WORLD TRADE
ORGANIZATIONG/SCM/N/71/URY
21 March 2002
(02-1469)
Committee on Subsidies and
Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
New and Complete Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement on
Subsidies and Countervailing Measures
URUGUAY
The following communication, dated 27 February 2001, has been received from the
Permanent Delegation of  Uruguay.
_______________
Afforestation
1. Title of the subsidy programme, if relevant, or brief description or identification of the
subsidy
Forestry Law.
2. Period covered by the notification
1 January 2000 to 31 December 2001.
3. Policy objective and/or purpose of the subsidy
- To increase the country's forest cover using low-productivity soils;- to expand and upgrade industrial plant and technologies for processing wood from
cultivated forests;
- alleviate the pressure on the country's native forests, and enhance their conservation
and sustainable use.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
Preservation, improvement, expansion and creation of forest resources, development of forest
resources, development of forest industries, and development of the forest economy in general.
Law No. 15.939 of 28 December 1987, published in the Official Journal on 9 February 1988.G/SCM/N/71/URY
Page 2
Regulatory Decree No. 452/988 of 6 July 1988, published in the Official Journal on
14 July 1988.
5. Form of subsidy (i.e. grant, loan, tax concession etc.)
Tax concession, tariff concession, partial refund of planting costs.
6. To whom and how is the subsidy provided (to producers, to exporters, or others;  through
what mechanism;  fixed or fluctuating amount per unit;  if the latter, how determined)
Producers who invest in afforestation are entitled to the subsidies, provided they qualify under
Forestry Law No. 15.939 and the regulatory decrees.  These provisions stipulate, inter alia , which
soils can be used for afforestation, the types and species to be planted, the need for an afforestationplan approved by the Ministry of Agriculture and Fisheries and the achievement, one year after
plantation, of a survival rate exceeding 75 per cent.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year).  Where provision of per unit subsidy information (for the year covered by the
notification, for the previous year, or both) is not possible, a full explanation
The amount of the refund of plantation costs in dollars per hectare was reduced from $179
during the period July 1998 to June 1999 to $165 during the period July 2000 to June 2001.
Tax exemptions for protective forests (natural or artificial) and producing forests are
estimated at about $9 per hectare per year.
Total expenditure on subsidies has been as follows:
1998 3 674 000 dollars
1999 5 233 000 dollars
2000 1 701 000 dollars
_______________
*The figure for 2000 is lower than for previous years because of delays in the payment of the
subsidy due to budgetary restrictions.
8. Duration of the subsidy and/or any other time-limits attached to it, including date of
inception/commencement
Exemptions and other tax benefits established by law apply to all taxes that in future would be
levied generically on agricultural enterprises, their owners as such, or their income.  They will be
applicable for a period of 12 years from the planting of the forests specified in Article 39 of the Law
(Article 43).
Moreover, on the proposal of the Ministry of Livestock, Agriculture and Fisheries, the
Government may exempt the importation of raw materials needed for the processing of wood
produced domestically and of equipment, machinery, utility vehicles and tools needed for the
installation and operation of such enterprises from all or part of the following taxes or charges:
additional duties and other customs levies, including import tax, port dues and taxes, surcharges,
deposits and any other levy on imports, or applied in connection with importation, for a period of15 years.G/SCM/N/71/URY
Page 3
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific
nature and scope of such statistics is left to the judgement of the notifying member.  To the extent
possible, relevant and/or determinable, however, it is desirable that such information includes
statistics of production, consumption, imports and exports of the subsidized product(s) or sector(s).
Revised and updated statistical data concerning afforested areas and forestry exports for
calendar years 1998 and 1999, in terms of physical volume and value, are attached hereto. The
statistical data for the year 2000 are still being processed.G/SCM/N/71/URY
Page 4 AREAS AFFORESTED UNDER THE PROJECT FOR THE PERIOD 1975-1999 (HECTARES)
Type:  Eucalyptus, Pinus, Salix, Populus and Other
DEPARTMENT 1975-1980 1981 1982 1983 1984 1985 1986 1987 1988 1999 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 TOTAL
ARTIGAS 0 0 0 0 0 0 0 0 0 0 0 0 48 46 0 25 18 0 56 0 198
CANELONES 167 70 29 30 11 307 439 297 130 233 310 430 482 518 287 275 91 49 76 27 4,260
CERRO  LARGO 86 0 0 0 0 0 0 0 0 0 33 430 1,152 1,972 2,093 1,801 2,573 3,912 4,845 1,948 20,846COLONIA 131 428 18 0 5 21 0 25 0 116 30 63 189 340 281 90 137 0 0 80 1,953
DURAZNO 1,181 10 15 0 0 180 84 43 115 307 754 1,074 2,518 6,183 3,809 3,678 2,779 3,951 4,099 3,309 34,089
FLORES 144 0 0 0 0 0 0 0 0 0 0 20 116 87 62 0 42 0 0 100 570
FLORIDA 1 0 40 0 0 0 0 0 0 0 102 568 1,291 2,599 3,102 1,501 2,652 3,954 5,573 2,435 23,816
LAVALLEJA 19 0 0 0 0 0 0 0 265 501 619 1,114 2,461 2,681 4,481 5,465 6,722 6,707 7,622 8,251 46,888MALDONADO 0 0 19 0 0 0 0 0 70 58 151 501 983 1,234 1,555 910 1,339 1,457 1,421 833 10,531
MONTEVIDEO 0 0 0 0 0 0 0 0 0 11 30 22 42 9 0 3 0 0 11 11 137
PAYSANDU 2,614 372 681 565 796 817 803 304 464 1,848 962 3,464 3,723 5,039 4,567 5,418 4,992 8,861 10,456 8,335 66,080RIO NEGRO 2,163 90 88 59 0 350 45 30 99 410 2,830 5,132 7,051 8,906 11,313 15,849 12,495 4,715 6,465 2,204 80,284
RIVERA 3,662 781 908 599 684 1,194 993 1,707 772 2,289 1,100 1,332 1,013 4,156 3,687 9,395 10,718 14,527 14,726 12,640 88,862
ROCHA 1,414 126 58 17 0 0 0 0 91 0 39 38 471 657 817 183 526 595 2,941 4,535 12,517
SALTO 0 0 0 0 0 0 0 0 0 0 0 10 30 0 0 14 240 22 0 121 437
SAN JOSE 299 25 25 15 15 15 110 2 67 125 134 123 283 704 576 267 132 18 43 0 2,978SORIANO 68 0 0 0 0 0 0 0 0 277 122 231 1,107 4,066 3,596 4,252 2,825 2,580 1,613 962 21,709
TACUAREMBO 1,844 39 24 36 0 170 132 140 67 382 427 638 2,464 2,580 3,323 6,865 8,663 15,476 15,767 12,594 71,631
TREINTA Y TRES 90 0 0 122 0 0 0 0 0 0 0 0 62 101 530 517 310 1,620 1,401 282 5,036
TOTAL 13,883 1,941 1,904 1,442 1,491 3,052 2,806 2,547 2,141 6,554 7,645 15,190 25,486 41,887 44,068 66,507 57,255 68,446 77,115 68,666 489,825
Source: Forestry Department Note:  (1) Includes area actually afforested and areas zoned for afforestation purposes (roads and buffer zo nes)
              Planning – Studies
Updated: September 2000G/SCM/N/71/URY
Page  5FORESTRY EXPORTS, BY PRODUCT (PHYSICAL VOLUME)
(M3, Tons and Units)
NCM PRODUCT UNIT 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
44011 to 06 Wood in the rough (total) m3- - - 126 - - 7 - 46,251 113,624 82,568 145,095 149,320 87,987 215,033 467,013 510,306 890,95 632,295 711,316
4401 and 02 Fuel wood, charcoal,
sawdust, particles,
briquettes, etc.tons n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.124 3,722
44031 Treated (poles, posts, stakes,
etc.)m3- - - - 892 1,427 - - - - - 97 117 - - 10,268 - - 9,420 9,064
44032 Untreated, coniferous m3n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. - -
44039 Untreated, non-coniferous
(for pulp)m3n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 622.875 702.294
4407 Sawn timber (total) m329 30 - 533 1,577 32 - 11 58 68 2,135 2,380 14,799 21,590 28,126 36,458 103,441 64,551 56,649 159,057
44071 Coniferous m3- - - 3 506 - - 1 26 36 19 - 1,147 1,650 2,262 2,451 64,197 39,497 20,075 131,451
44079 Non-coniferous m329 30 - 530 1,071 32 - 10 32 32 2,116 2,380 13,652 19,940 25,864 34,007 39,244 25,504 36,574 27,576
4408 Veneer sheets and sheets for
plywoodtons - - - 2 - - - - - - - - - - - 8 - 1,816 4,018 397
4412 Plywood tons - - - - - - 9 - - 1 - - - - - - -
4410 Particle board tons - - 1 - - - - 283 - - - - - - - - - - 0.160 -
4411 Fibreboard tons - 133 - - - - - - - - - - 1 - - - - -- 0.142
4415 to 21 Pallets, etc. unit n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 322,307 74,412
4701 to 06 Wood pulp tons - - - 1,037 1,370 - 448 552 518 2,939 1,446 300 1,005 800 700 1,750 64 203 - -
4707 Waste and scrap of paper or
paperboardtons - 1,138 340 140 60 840 358 600 520 1,866 145 - 600 3,090 4,585 3,149 3,257 5,434
4801 to 4810 Paper and paperboard tons 9,450 6,312 5,475 8,469 7,926 7,131 12,938 12,181 11,382 7,332 11,824 21,502 22,213 20,555 19,580 14,843 20 ,331 31,658 34,797 37,704
Source:  Ministry of Livestock, Agriculture and Fisheries (MGAP) – Forestry Department, based on data from the Banco de la Repu blica Oriental de Uruguay (BOU).  Figures for 1980 to 1997 subject to change.
Note:  Exports of the following not included:
NCM PRODUCT 1998 1999
4818 Toilet paper, napkins, etc. (tons) 6,768 4,584
4819 Boxes, bags and other packing containers, of paper or
paperboard (tons)6,982 7,285
4820 Books, pads, exercise books, folders, forms, etc. (tons) 65 131
4821 Labels of all kinds, whether or not printed (tons) 29 63
4823 Other paper, paperboard, cellulose fibre (tons) 4,836 7,434
Total 18,499 19,497G/SCM/N/71/URY
Page 6FORESTRY EXPORTS, BY PRODUCT (VALUE)
(In Thousands of Current Dollars)
NCM PRODUCT 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
44011 to 06 Wood in the rough (total) - - - 4 - - - - -1.943 4,510 3,460 5,836 7,346 3,396 7,923 25,001 27,557 34,755 31,568 35,712
4401 and 02 Fuel wood, charcoal, sawdust, particles,
briquettes, etc.n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.226 93
44031 Treated (poles, posts, stakes, etc.) - - - - 40 56 - - - - 2 514 n.a. 0 - - - 856 855
44032 Untreated, coniferous n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n. a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. - -
44039 Untreated, non-coniferous (for pulp) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 30,712 34,764
4407 Sawn timber (total) 11 12 - 34 105 5 - 5 15 8 210 273 1,690 2,133 3,721 5,511 7,802 7,868 9,051 10,060
44071 Coniferous --- 4 4 3--0450 - 5 1 2 3 2 5 4 5 7 7 0 1 , 7 2 9 4 , 0 7 0 4 , 3 3 3 6 , 4 3 2
44079 Non coniferous 11 12 - 30 82 5 - 5 7 3 210 273 1,639 1,901 3,176 4,741 6,073 3,798 4,718 3,629
4408 Veneer sheets and sheets for plywood - - - 0 . 1 - - --.------ 3- 2 1 5 4 9 9 4 8
4412 Plywood - - - - - - - 1 5 --- 0 . 1-------
4410 Particle board - - 0 . 1- - - - 6 0 --------- 0 . 1 8 2-
4411 Fibreboard - 6 1- - - - -- --- 0 . 5------ 0 . 1 9 5
4415 to 21 Pallets, etc. - - - - - - -- ---- 3 8 7 1 , 5 1 0 4 7 4 4 3 3 4 3 2 5
4701 to 06 Wood pulp - - - 378 816 - 204 342 338 1,791 1,004 143 491 369 98 263 724 272 - -
4707 Waste and scrap of paper or paperboard - - 220 39 18 6 112 49 154 56 - 172 25 - 14,540 15,573 20,962 32,529 290 473
4801 to 17 Paper and paperboard 1 0 , 3 6 8 7 , 9 9 6 4 , 5 9 3 6 , 6 4 6 6 , 9 6 7 5 , 9 8 6 1 0 , 0 3 7 1 0 , 7 4 5 1 0 , 7 4 5 6 , 3 6 6 8 , 4 8 3 1 6 , 8 2 8 1 5 , 8 3 2 1 4 , 5 8 7---- 3 2 , 7 2 0 3 1 , 4 5 8
TOTAL 10,379 8,068 4,813 7,101 7,746 6,053 10,353 11,216 13,190 12,768 13,157 23,283 25,999 20,484 28,889 47,881 57,092 75,683 74,481 78,075
Source:  Ministry of Livestock, Agriculture and Fisheries (MGAP) – Forestry Department, based on data from the Banco de la Repu blica Oriental de Uruguay (BOU).  Figures for 1980 to 1997 subject to change.
Note:  Exports of the following not included:
NCM PRODUCT 1998 1999
4818 Toilet paper, napkins, etc. (tons) 14,398 9,064
4819 Boxes, bags and other packing containers, of paper or
paperboard (tons)6,216 5,784
4820 Books, pads, exercise books, folders, forms, etc. (tons) 153 184
4821 Labels of all kinds, whether or not printed (tons) 239 215
4823 Other paper, paperboard, cellulose fibre (tons) 3,229 4,464
Total 24,256 19,712G/SCM/N/71/URY
Page 7
Automotive industry
1. Title of the subsidy programme, if relevant, or brief description or identification of the
subsidy
Regulations for enterprises exporting vehicles assembled in the country.
2. Period covered by the notification
1 January 2000 to 31 December 2001.
3. Policy objective and/or purpose of the subsidy
Restructuring of the automotive sector and specialization in market segments for export.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
Adoption of measures to facilitate business decisions related to production and investment
programmes and in preparation for the common MERCOSUR regime.
Decree 316/92 of 7 July 1992 published in the Official Journal on 25 September 1992.
Decree 583/94 of 30 December 1994.
Decree 340/96 of 23 August 1996 published in the Official Journal on 6 September 1996.Decree 60/99 of 3 March 1999 published in the Official Journal on 12 March 1999.Decree 273/99 of 10 September 1999 published in the Official Journal on
20 September 1999.
1
5. Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Enterprises which export vehicles completed or part-completed in the country, or auto-parts
of national origin, may benefit from a customs concession, applicable to the importation of motor
vehicles assembled in the place of origin destined for the domestic market, in accordance with the
conditions laid down in the above-mentioned regulations, or allocate it for the payment of taxes due to
the Directorate-General of Taxation, in accordance with Article 3 of Decree 60/99.
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others;
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how
determined)
For every United States dollar of exports (based on the f.o.b. values declared in the relevant
customs declarations) imports may be made with a concession of 13 per cent of the TGA (global
tariff), applicable to the surcharge element, for new vehicles assembled in the place of origin (based
on c.i.f. imports declared to the Banco de la Re publica Oriental de Uruguay (BROU)), or payments
may be allocated to the Directorate-General of Taxation.
                                                     
1 Decrees 60/99 and 273/99 amended Decree 316/92 and prescribed a tax benefit which is not limited
strictly to the importation of vehicles but can also be used for meeting tax obligations.G/SCM/N/71/URY
Page  8
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year).  Where provision of per unit subsidy information (for the year covered by the
notification for the previous year, or both) is not possible, a full explanation
Thirteen per cent of TGA (global tariff), applicable to the surcharge element, for new vehicles
assembled in the place of origin.
8. Duration of the subsidy and/or any other time-limits attached to it, including date of
inception/commencement
Decree 60/99 entered into force in 1999 and continues in force by virtue of Decree 273/99.
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific
nature and scope of such statistics is left to the judgement of the notifying member.  To the
extent possible, relevant and/or determinable, however, it is desirable that such information
includes statistics of production, consumption, imports and exports of the subsidized
products(s) or sector(s)
Exports (f.o.b.) 2000 $177,482,452
2001 $176,912,906
Exemptions for industrial automotive products amounted to approximately 10% of the f.o.b.
value exported.G/SCM/N/71/URY
Page 9
Law No 15939
Promulgated: 28/12/1987 Published: 09/02/1988
National Registry of Laws and Decrees: Volume: 2
Semester: 2
Year: 1987
Page: 1216
SANGUINETTI - PEDRO BONINO GARMENDIA - RICARDO ZERBINO CAVAJANI -
HUGO M. MEDINA - ADELA RETA - ALEJANDRO ATCHUGARRY - JORGE PRESNO
HARAN
Article 1
The preservation, improvement, expansion and creation of forest resources, development of forest
resources, development of forest industries, and development of the forest economy in general are
declared to be in the national interest.(*)
---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 2.
---------------------------------------------------------------------------------------------------------------------------
Article 2
National forestry policy shall be formulated and implemented by the Ministry of Livestock,
Agriculture and Fisheries and shall be basically directed towards the attainment of the objectives ofnational interest mentioned in the preceding article.(*)
---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 3
The provisions of this Law shall regulate matters re lating to forests, parks and forest lands existing
within the national territory.(*)
---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 4
A forest is an association of vegetation in which trees of any size, whether or not exploited,
predominate and which is capable of producing wood or other forest products and of influencing soil
conservation, the hydrological regime or the climate, or which provides shelter or other benefits of
national interest.   (*)
--------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 17.
--------------------------------------------------------------------------------------------------------------------------
Article 5
Forest lands are those which, whether wooded or not:
     (A) By virtue of their soil conditions, fitness, climate, location and other characteristics are
unsuitable for any other permanent beneficial use or purpose;G/SCM/N/71/URY
Page  10
     (B) Are assigned forest priority by resolution of the Ministry of Livestock, Agriculture and
Fisheries because of the suitability of the soil or in the public interest. In this latter case the General
Assembly shall be informed.   (*)
---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Articles 17, 44 and 48.
---------------------------------------------------------------------------------------------------------------------------
Article 6
The Forestry Department of the Ministry of Livestock, Agriculture and Fisheries shall be the body
responsible for implementing forestry policy.   (*)---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 7.---------------------------------------------------------------------------------------------------------------------------
Article 7
Without prejudice to the provisions of the preceding Article, the Forestry Department shall have the
following special tasks:
(A) Promote forestry development in all its productive stages by carrying out research and advisory,
informational and popularization activities;(B) Study and plan the development of the nation al forest economy, analyze its production costs,
prices and markets and take a census of all silvicultural and industrial means of production;
(C) Encourage and plan afforestation on private and public lands and develop all the activities for
which, to that end, this law provides;
(D) Increase and improve the production and distribution of plants and seeds for afforestation;(E) Assist public institutions and private owners of forests with the management of natural woodlands
and plantations and their rational exploitation;
(F) Administer, conserve and utilize the State Forest Lands, in accordance with the provisions of this
law;
(G) Organize the protection of forests against disease, parasites and other destructive influences;
(H) Coordinate fire prevention measures with the National Fire Service;
(I) Develop experimentation in the field of forest ecology, forest use and forest industries, incoordination with the activities being undertaken by other institutions in this field;
(J) Collaborate with the Honorary Forest Council;
(K) Coordinate with the appropriate State agencies  monitoring of the transfer of ownership and
transport of forest products, which may be effected using ownership and movement records, in
accordance with the regulations. It shall also be auth orized to require holders of forest products to
make out sworn statements, in accordance with the regulations;
(L) Coordinate with interested government departments measures to promote forestry within the
department.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos. 452/988 of 6 July 1988; 23/990
 of 23 January
1990; and 330/993  of 14 July 1993.
---------------------------------------------------------------------------------------------------------------------------
Article 8
Private forests shall be classified according to their purpose as follows:
(A) Protective, if their main purpose is the conservation of soil, water or other renewable natural
resources;
(B) Producing, if their main purpose is the produc tion of woody or non-woody materials and they are
of special national interest by virtue of their location or the type of wood or other forest products that
they yield;(C) General, if they are neither protective nor producing.G/SCM/N/71/URY
Page 11
Protective and producing forests shall be so classified by the Forestry Department, on its initiative or
at the request of an interested party.
In the latter case, the interested party must submit:
(A) A detailed report, where the forest to be classified already exists;
(B) An afforestation plan, where it is a question of creating a protective or producing forest.    (*)---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Articles 10, 30, 39 and 50.---------------------------------------------------------------------------------------------------------------------------
Article 9
The Forestry Department shall keep registers in which the forests classified as protective or producing
shall be recorded.   (*)
---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 10
The Forestry Department shall determine the technical procedures for classifying forests, in
accordance with Article 8.   (*)---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 21.---------------------------------------------------------------------------------------------------------------------------
Article 11
The Forestry Department is authorized to carry out the inspections necessary to ensure compliance
with this law.  (*)
---------------------------------------------------------------------------------------------------------------------------
 (*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 12
It shall be compulsory to plant protective forests on those lands which so require in order to ensure the
proper conservation or recovery of renewable natural resources, whether the said lands be in public orin private ownership. Land for compulsory afforestation shall be so designated by the Executive
Power, on the proposal of the Ministry of Livestoc k, Agriculture and Fisheries, which shall account
for its actions to the General Assembly   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Articles 13, 15 and 22.
---------------------------------------------------------------------------------------------------------------------------
Article 13
The resolution mentioned in the preceding Article sh all determine the conditions of afforestation and
the time limits for implementing the afforestation, whic h shall be eligible for all the tax and financial
incentives for which this law provides.
An owner who, finding himself in an Article 12 situ ation, prefers not to carry out the work may opt to
sell the land to third parties or to the State; in  the former case, he shall give preference to the
occupant. In the case of leased or share-cropping land, the occupant must allow the owner to carry out
the afforestation work. If the afforested area exceeds 5% (five per cent) of the total area of the land
the rent shall be proportionately reduced, insofar as the area covered by forest cannot be used by the
occupant.   (*)G/SCM/N/71/URY
Page  12
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Articles 14, 15 and 22.---------------------------------------------------------------------------------------------------------------------------
Article 14
The expropriation of lands whose owners fail to carry out the planting within the time limits referred
to in the preceding Article is declared to be in th e public interest. In this case, subject to compliance
with the requirements laid down in Article 32 of the Constitution, the Executive Power, on the
proposal of the Ministry of Livestock, Agriculture and Fisheries, may expropriate the land, in whole
or in part. The area expropriated shall be incorporated in the State Forest Lands.   (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Articles 15 and 22.---------------------------------------------------------------------------------------------------------------------------
Article 15
Without prejudice to the provisions of the preceding Article, until the planting is carried out or the
Executive Power designates the whole of the property or part thereof for expropriation, once the time
limits referred to in the first paragraph of Article 13 have expired, the owner shall pay a monthly
penalty of 1 o/oo (one thousandth) of the real value of the whole of the property, or the part liable toexpropriation, as the case may be, as determined by the Directorate-General of the National Land
Registry and State Property Administration.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 22.
---------------------------------------------------------------------------------------------------------------------------
Article 16
On the proposal of the Ministry of Livestock, Agriculture and Fisheries and subject to a report by the
Forestry Department, the Executive Power may amend the resolution establishing compulsoryafforestation, if the owner puts forward alternative so lutions, whether total or partial, which enable the
same results to be achieved under the conditions and within the time limits laid down.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 17
All forests and forest lands, as defined in Articles 4 and 5, that are owned by the State at the time of
promulgation of this Law and those that it may acquire thereafter shall form part of the State Forest
Lands, under the protection of the Ministry of Livestock, Agriculture and Fisheries, with theexception of woodlands fringing main roads, which shall remain the responsibility of the Ministry of
Transport and Public Works and the surrounding municipalities.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 55.
---------------------------------------------------------------------------------------------------------------------------
Article 18
The Forestry Department shall provide for their conservation, protection, expansion, improvement
and rational use.
This shall not apply to the National Parks of Santa Teresa and San Miguel, which shall continue to be
managed and administered by the Honorary Committee for the Restoration and Preservation of theG/SCM/N/71/URY
Page 13
Fortress of Santa Teresa and Fort San Miguel (Law No 8.172, of 26 December 1927 and Article 12 of
Law 12.802, of 30 November 1960).
Where expedient, the Executive Power may assign the management and administration of other parts
of the State Forest Lands to public or private non-profit entities. Where national parks are concerned,
the general public must be permitted to use them. (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 55.---------------------------------------------------------------------------------------------------------------------------
Article 19
National parks shall be declared to be such by resolution of the Ministry of Livestock, Agriculture and
Fisheries, on the proposal of the Forestry Department. National parks shall be used for tourism and
recreational, scientific and cultural purposes and may not be exploited, except where necessary to
preserve the public-interest use for which they were established.
The remaining revenue forests shall consist, without express declaration, of the portion of the State
Forest Lands not in the situation envisaged in the preceding paragraph. They may be exploited only
under a management, land use and improvement plan proposed by the Forestry Department, approved
by the Ministry of Livestock, Agriculture and Fisheries and implemented by the said Department,
whether directly or through contracts with other public or semi-public organizations, private
companies or cooperatives. (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 55.---------------------------------------------------------------------------------------------------------------------------
Article 20
The proceeds of the use of forests administered by the Ministry of Livestock, Agriculture and
Fisheries shall flow directly into the Forest Fund. That Fund, in its turn, shall finance the
afforestation, improvement, management and exploitation activities of the Forestry Department on the
State Forest Lands. Such financing shall have priority over loans to individuals.  (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 55.---------------------------------------------------------------------------------------------------------------------------
Article 21
The Forestry Department shall identify the forests that form part of the State Forest Lands, even
though they may not be protective or producing, and shall maintain special registers for all of them.
The State Forest Lands shall be classified by the Forestry Department, in accordance with the
provisions of Article 10, within a period of one year following the date of promulgation of this law,
and, where other portions are added in the future, within a period of thirty days of registration.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 55.
---------------------------------------------------------------------------------------------------------------------------
Article 22
Protection of private forests.
- The destruction of protective forests is prohibited.G/SCM/N/71/URY
Page  14
The destruction of forests shall be considered to mean any operation that does not fit within the plan
mentioned in Article 49 and which, intentionally or not, harms the development or viability of the
forest. Forests may only be felled after authorization has been obtained and subject to such
precautions as deemed necessary by the Forestry Department in each case.
Anyone who destroys a forest in violation of the provisions of the preceding paragraphs shall be
obliged to replant it in accordance with the requirements of Articles 12, 13, 14 and 15, without the
benefit of the financial advantages afforded by the law.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Articles 40 and 69.---------------------------------------------------------------------------------------------------------------------------
Article 23
After consulting the Ministry of Livestock, Agriculture and Fisheries and the competent Departmental
Governments, the Executive Power shall delimit the areas in which the felling and destruction of
protective forests on urban and suburban land shall be prohibited.
Departmental Governments may, with good cause, authorize the partial or total felling of the forests in
question, with the precautions they consider appropriate in each case, and require reafforestation of
the land where necessary.    (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 24
Felling and any other operation that jeopardizes the survival of the indigenous forest shall be
prohibited, except in the following cases:
(A) If the product of exploitation is intended for the domestic use and fencing of the rural settlement
to which it belongs;
(B) If the Forestry Department has given its authorization on the basis of a technical report which
explains why felling is justified and sets out the plans for exploitation to be implemented in each case.
(*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988; 23/990  of 23 January
1990; and 330/993 of 14 July 1993.
---------------------------------------------------------------------------------------------------------------------------
Article 25
The destruction of natural palm groves and any operation that jeopardizes their survival shall be
prohibited.
For scientific or public-interest reasons, the Ministry of Livestock, Agriculture and Fisheries, on the
proposal of the Forestry Department, may establish regulations for the felling or exploitation of
particular forest species or specimens, as well as for the use of the gum, bark, seed, leaves or otherparts of native or exotic forest trees.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------G/SCM/N/71/URY
Page 15
Article 26
Departmental Governments may not authorize building on land designated for compulsory
afforestation by the Ministry of Livestock, Agriculture and Fisheries, without the latter’s prior
authorization, which shall not be given until it has been afforested.   (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 27
Protective and producing forests may be expropriated by the National Colonization Institute only in
exceptional cases, subject to prior authorization by th e Executive Power, if in the public interest.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 28
If diseases appear in a forest or parasites develop, threatening its survival or that of adjacent forests,
anyone aware of the situation must immediately notify the Forestry Department. The owner of the
forest must comply with the instructions i ssued in this connection by the Department.
Every forest owner must take measures to combat pests, vermin and predators that may harm plants,
poultry or domestic animals on adjacent properties, complying with the instru ctions issued in this
connection by the Ministry of Livestock, Agriculture and Fisheries through its specialized services.
Forest owners may take advantage of the financ ing provided for in Article 44 for the purpose of
carrying out necessary phytosanitary treatments.    (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 29
The Executive Power shall lay down mandatory rules for fire prevention and other forms of forest
protection.  (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Article was implemented by Decrees Nos. 452/988 of 6 July 1988 and 849/988
 of 14
December 1988.     See Article 30.
---------------------------------------------------------------------------------------------------------------------------
Article 30
Every afforestation, forest management or land use project based on Articles 8 and 49 must provide
for a network of firebreaks, which must be kept free of vegetation in accordance with the provisions
of this law and the regulations mentioned in the preceding Article.
The owners of forests bordering on railway lines or public highways shall keep free of vegetation
strips of land whose width shall be determined by the regulations.
If these obligations are not fulfilled, the Forestry Department may propose the withdrawal of the
benefits granted under Articles 39 to 51 of this law .
The Ministry of Transport and Public Works, the Departmental Governments and the State Railways
Administration shall be authorized to carry out by themselves, or to contract out to third parties, the
clearing of scrub and the construction of firebreaks in areas occupied by highways or railway lines
adjacent to forests. (*)G/SCM/N/71/URY
Page  16
---------------------------------------------------------------------------------------------------------------------------
(*) The wording of the last paragraph was determined by Law No 16.002 of 25 November 1988,
Article 60. The original text can be viewed in Official Journal No 22.562, of 9 February 1988.
     This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 31
The financing for forest protection work to which Article 44 refers shall extend to the works and
elements needed to protect forests against fire, such as: watchtowers, firebreaks, communication
equipment, apparatus for signalling and determining risk indicators, together with machines and
implements for fighting forest fires.
Financing may also be granted to the associations of interested parties mentioned in Article 32.Goods imported by interested parties for these purposes shall be eligible for relief under
Article 66. (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 32
The Forestry Department shall assist with the establishment and operation of civil associations of
forest owners formed to prevent and fight forest fires and forest pests on a collective basis.
The State, through the Ministry of Livestock, Agriculture and Fisheries, may participate in these
associations if the forests of the members of one of them are in the vicinity of forests or forest landforming part of the State Forest Lands.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 33
Anyone aware of the presence of fire in a forest or in its vicinity, or of any breach of the rules of
forest protection laid down in the preceding Articles, must report it immediately to the nearest
authority.
The government authorities shall take prompt and appropriate steps, in terms of resources and
personnel, to organize the extinguishing of forest fires.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 34
The third paragraph of Article 12 of the Rural Code shall be replaced by the following:
“The distance between posts shall not exceed fifteen metres and the stakes shall be sufficient in
number to ensure that they can be placed not more than two metres apart. The posts must be of wood
or another material of reasonable durability, natural or acquired, and the stakes and wire must be of
good quality. The Executive Power shall determine, after consulting the Forestry Department, which
wood or other material can be used for posts". (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------G/SCM/N/71/URY
Page 17
Article 35
Article 20 of the Rural Code is replaced by the following:
"ARTICLE 20.-  No plants or trees may be planted along the dividing line, except with the mutual
consent of the adjoining property owners.
If the dividing line is a party wall, planting may be carried out to form espaliers, which may not
exceed the height of the wall.
Hedges may be planted  at a minimum distance of 1.5 metres from the dividing line, with a maximum
height of 2 metres and without the side branches extending beyond the boundary of the property. Fruittrees must be at least 5 metres away from the dividing line.
Protective or replacement screens may not be more than 7 metres high; in this respect the minimum
distance specified in the preceding paragraph shall apply, except in the case of screens located on the
southern boundary of the land, in which case that distance shall be 10 metres.
Forests of any kind, public or private, shall be situated at a minimum distance of 12 metres from the
dividing line. On the south side, the minimum distance shall be 25 metres.
In the circumstances of the preceding paragraph, if the neighbour considers that the plantations, even
under the conditions indicated, may harm his property, he shall submit the question to the Forestry
Department, which shall determine whether any harm is being done and, if so, fix a minimum distance
for the plantation.
In the case of dividing lines with public roads, there shall be no planting, of any kind, within 5 metres
of the dividing line".   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 36
Forests and forest land forming part of the State Forest Lands shall be subject to the protective
regulations mentioned in the preceding chapter, where applicable.
Without prejudice to the provisions of these regulations, in forests and forest lands forming part of the
State Forest Lands, the Forestry Department may:
(A) Temporarily prohibit movement when climatic or other factors place conservation at risk;(B) Prohibit permanent occupation or settlement by private individuals;(C) Prohibit the exploitation and total or partial felling of isolated trees and shrubs of any size or age;(D) Prohibit, totally or partially, the use of crops of any product, apart from wood, when advisable in
order to conserve or protect natural resources;
(E) Prohibit grazing by domestic animals, establishing, where authorized, the terms of payment, the
number and kinds of animals that can be introduced, and the area and boundaries of the concession.
The proceeds of any concession to private individuals on land forming part of the State Forest Lands
shall be paid into the Forest Fund. (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 37.G/SCM/N/71/URY
Page  18
---------------------------------------------------------------------------------------------------------------------------
Article 37
Anyone failing to comply with the protective provis ions of the preceding Article shall compensate the
Revenue for any consequent damage, direct or indirect, to the State Forest Lands.
This compensation shall be paid into the Forest Fund.The payment of compensation shall not exempt the person responsible from the other sanctions for
which this law, the Civil Code and the Rural Code provide.    (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 52 (D).
---------------------------------------------------------------------------------------------------------------------------
Article 38
The Ministry of Livestock, Agriculture and Fisheries may invest up to 5% (five per cent) of the
annual income of the Forest Fund in fire prevention and in the organization and maintenance of aforest guard service to keep constant watch over the State Forest Lands.    (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 39
Man-made forests, whether existing or to be planted in the future, declared protective under Article 8,
producing forests in areas declared as having priority for forestry, and natural forests declared
protective under the aforementioned Article, together with the land occupied by or directly allocated
to them, shall be eligible for the following tax concessions:
(1) They shall be exempt from all national tax on rural real estate and from rural property tax;(2) Their respective values and areas shall not be  calculated for determining: (a) income for the
purpose of assessing the tax on notional farm income (IMAGRO or other taxes introduced in thefuture for similar reasons), and (b) the tax base for assessing patrimony tax;
(3) Income from the exploitation of forests shall no t be calculated for the purpose of determining
income subject to agricultural income tax (IRA or  other taxes introduced in the future for similar
reasons).
(4) Income from their exploitation shall not be calcul ated for the purpose of assessing industrial and
commercial income tax (IRIC), or other taxes which may be introduced in the future for similar
reasons, on taxpayers engaged in agricultural and industrial activities if all or part of the proceeds of
the agricultural activity constitutes an input for the industrial activity. (*)
---------------------------------------------------------------------------------------------------------------------------
(*) Item (4) was incorporated by Law No 16.002 of 25 November 1988, Article 90.     This legislation was implemented by Decrees Nos 452/988 of 6 July 1988 and 247/989
 of 24 May
1989.     See Articles 40, 43, 50 and 68.
---------------------------------------------------------------------------------------------------------------------------
Article 40
The tax concessions specified in the preceding Article shall be suspended from the moment that, for
any reason, the forest is destroyed.
If the destruction was partial, the above-mentioned concessions shall continue to apply to the part of
the forest that remains.G/SCM/N/71/URY
Page 19
If the destruction of the forest, whether total or partial, was caused deliberately or due to gross
negligence and if responsibility lies with the owner, the administration shall impose penalties for late
payment from the time that tax was deferred under the preceding Article, without prejudice to the
provisions of Article 22 and Title VII.   (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988 and 247/989
 of 24 May
1989.     See Article 68.
---------------------------------------------------------------------------------------------------------------------------
Article 41
The value of the land and that of the plantations shall be determined separately for valuation and
appraisal purposes.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988 and 247/989  of 24 May
1989.
     See Article 68.
---------------------------------------------------------------------------------------------------------------------------
Article 42
Each year, the Ministry of Livestock, Agricult ure and Fisheries, on the proposal of the Forestry
Department, shall establish the notional costs of afforestation and maintenance.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos. 452/988 of 6 July 1988 and 247/989  of 24 May
1989.
     See Article 68.
---------------------------------------------------------------------------------------------------------------------------
Article 43
The exemptions and other tax concessions for which this law provides shall extend to all taxes which
may in future be generically levied on agricultural enterprises, on their owners as such or on their
income. They shall apply for a period of twelve year s from the planting of the forests, in accordance
with Article 39 of this law.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988 and 247/989  of 24 May
1989.
     See Article 68.
---------------------------------------------------------------------------------------------------------------------------
Article 44
The financing for which this chapter provides shall be drawn from the Forest Fund described in
Chapter III of this title.
This financing shall be granted by the administration of the Fund for afforestation, natural
regeneration of the forest, and forest management and protection.
Afforestation shall be deemed to include the establishment and development of forest nurseries.Financing for existing afforestation shall be granted in accordance with its degree of development.
Afforestation projects may receive financing provided they have been approved and graded as
protective or producing.G/SCM/N/71/URY
Page  20
The planting of forests on the land referred to in Article 5 of this law may receive financing from the
resources of the Forest Fund to cover the direct investment, calculated in accordance with the notional
cost of each phase of planting, excluding the value of the land, under the conditions laid down in the
regulations.      (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Articles 45 and 68.
---------------------------------------------------------------------------------------------------------------------------
Article 45
The Forestry Department shall exercise technical control over forest nurseries that benefit from
financing under the preceding Article, whether intended for own use or for profit.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 68.---------------------------------------------------------------------------------------------------------------------------
Article 46
In the case of forests created using financing provided under the forest legislation, the beneficiary and
subsequent owners of the forest shall be jointly and severally responsible for the implementation of
the respective afforestation project and management and exploitation plan. They shall therefore besubject to the application of the sanctions for which this law provides, as well as those laid down in
the tax offence legislation in force.
They shall be released from this responsibility if, before the new owner takes possession of the forest,
the Forestry Department finds that the afforestation and management plans have been correctlyimplemented.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 68.---------------------------------------------------------------------------------------------------------------------------
Article 47
If the total or partial destruction of a forest that has benefited from financing under this chapter was
deliberate or the result of gross negligence and if responsibility lies with the beneficiary, the
Administration shall require repayment of the financing granted, including an adjustment inaccordance with the notional cost determined by th e Executive Power, with authority to apply the
sanctions for which Title VII of this law provides.
The amount shall be repaid within one year of the destruction of the forest and in proportion to the
area affected.
If the Forestry Department determines that the destruction cannot be attributed, directly or indirectly,
to the beneficiary of the financing, it may grant a reasonable period for replanting or, failing that, for
the refunding of the benefits received, adjusted in accordance with the cost determined by the
Executive Power.    (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 68.
---------------------------------------------------------------------------------------------------------------------------
Article 48
Financing requested for planting on forest lands which meet all the conditions of subparagraphs (A)
and (B) of Article 5 shall be given priority.    (*)G/SCM/N/71/URY
Page 21
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 68.---------------------------------------------------------------------------------------------------------------------------
Article 49
To benefit from the tax concessions and financing for which this title provides, interested parties must
submit a management and organization plan for the forest exploitation and regeneration work. This
plan must be approved by the Forestry Department, which shall require it to be signed by an
agronomist or forestry expert from the Forestry College of the Technical and Vocational Education
Council.  (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988 and 247/989
 of 24 May
1989.     See Article 68.
Article 50
Persons liable for the Agricultural Activities Tax (IMAGRO), Agricultural Income Tax (IRA) and
Industrial and Commercial Income Tax (IRIC), mentioned in subparagraph (4) of Article 39, or other
taxes which, for similar reasons, may be introduced in the future, may deduct from the amountpayable in respect of these taxes a percentage of the cost of planting man-made forests designated
protective or producing, in areas that have been assigned forest priority, in accordance with Article 8
of this law.  (*)
This provision shall be implemented as from the entry into force of Law 15.939, of 28 December
1987.
The Executive Power shall regulate the conditions on which this concession shall be granted.  For this
purpose, it shall take into account the value established for the notional cost of afforestation and
maintenance.
---------------------------------------------------------------------------------------------------------------------------
(*) The wording of the first subparagraph was determined by Law No 16.002 of 25 November 1988,Article 91. The original text can be viewed in Official Journal No 22.562 of 9 February 1988.
     This provision was implemented by Decrees Nos. 452/988 of 6 July 1988 and 247/989
 of 24 May
1989.     See Article 68.
---------------------------------------------------------------------------------------------------------------------------
Article 51
The Executive Power shall determine, by regulation, the arrangements for granting financing under
this law, in accordance with the phases in the im plementation of the project. The beneficiaries of
financing may be required to take out insurance and provide any necessary guarantees.  (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 68.---------------------------------------------------------------------------------------------------------------------------
Article 52
A Forest Fund is hereby established to provide for the expenditure necessary to apply this law.
This Fund shall be financed from the following resources:
(A) The sums allocated to it by the Executive Power from the budget;G/SCM/N/71/URY
Page  22
(B) The repayments and interest on loans granted by the Forest Fund;
(C) The proceeds of any charges for use, concessions or rentals deriving from the management of
State Forest Lands;
(D) Compensation received by the State Forest Lands under Article 37;(E) Any fines for breaches of the provisions of this law and its regulations;(F) The funds from loans and other financing arranged in accordance with this law;(G) Any bequests or donations received.     (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 55.---------------------------------------------------------------------------------------------------------------------------
Article 53
The Forest Fund shall be administered by an Honorary Committee to be known as the "Forest Fund
Administration Committee" reporting to the Ministry of Livestock, Agriculture and Fisheries, which
shall provide it with all the support it needs to function.
The Committee shall consist of three members:(1) The Director of the Forestry Department of th e Ministry of Livestock, Agriculture and Fisheries,
who will act as chairman;
(2) Another representative of the Ministry of Livestock, Agriculture and Fisheries;(3) A representative of the Ministry of the Economy and Finance.In addition, the departments represented shall appoint an alternate for each regular member. Without
prejudice to the tasks assigned to it by the regulations, the Administrative Committee thus set up shallhave as its basic and fundamental responsibility the administration, direction, monitoring and
supervision of the economic and financial aspects of forest plans and projects implemented with
assistance from the Forest Fund.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 54
Sums paid into the Forest Fund shall be deposited in a special account in the Banco de la República
Oriental del Uruguay, named "Forest Fund", whose resources shall be used to meet the requirementsof forest development through financing, in accordance with the provisions of this law and such
provisions as the Executive Power may introduce through regulations, on the proposal of the Ministry
of Livestock, Agriculture and Fisheries.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 55
The Executive Power shall set aside for forest development a minimum annual appropriation
equivalent to the notional cost of afforesting ten thousand hectares, to be distributed as follows:G/SCM/N/71/URY
Page 23
(1) The first 95% (ninety-five per cent) for the Forest Fund to be set up under Article 52 of this law.
This fund may also be used for the provision of financing under Chapter II of this title and for paying
for expropriations, acquisitions and afforestation under Title III of this law;
(2) The remaining 5% (five per cent) for hiring persons and contracting for services and for paying the
costs of Executive Unit 107, “Directorate-General of Renewable Natural Resources” and ExecutiveUnit 119, “Forestry Department”.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) The wording of subparagraph 2 was determined by Law No 16.170 of 28 December 1990, Article
269. The original text can be viewed in Official Journal No 22.562, of 9 February 1988.
     This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 56
The Executive Power, on the proposal of the Ministry of Livestock, Agriculture and Fisheries, shall,
within ninety days of the promulgation of this la w, draw up a five-year National Afforestation Plan,
which shall be updated annually on 30 November by introducing changes based on the experience
acquired in previous years. This document shall contain the annual targets, including the number of
hectares to be afforested.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 57
Each year and within thirty days of the approval or updating of the National Afforestation Plan, the
Forestry Department of the Ministry of Livestock,  Agriculture and Fisheries shall draw up and publish
a forest activities promotion programme.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 58
Tree plantations and forests shall be included among the  property which may form the subject of a
rural or agrarian pledge agreement under Law 5.649, of 21 March 1918. (*)
---------------------------------------------------------------------------------------------------------------------------
(*) Wording determined by Law No 16.320 of 1 November 1992, Article 195. The original text canbe viewed in Official Journal No 22.562 of 9 February 1988.
     This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 60.---------------------------------------------------------------------------------------------------------------------------
Article 59
The pledging of forests by the owner of the property on which they stand must, if that property is the
subject of a mortgage, have the consent of the mortgagee.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 60.
---------------------------------------------------------------------------------------------------------------------------
Article 60
In addition to complying with the provisions of Law 5.649, of 21 March 1918, the pledge agreement
referred to in the preceding Articles must be registered in the Forestry Department’s General Forest
Register, in accordance with the procedure and condi tions laid down by the regulations issued.   (*)
---------------------------------------------------------------------------------------------------------------------------G/SCM/N/71/URY
Page  24
(*) This Article was implemented by Decrees Nos 451/988 of 6 July 1988 and 452/988  of 6 July
1988.
---------------------------------------------------------------------------------------------------------------------------
Article 61
Wood and other forest products extracted from a forest subject to a real right of pledge may be sold,
with the prior approval of the Forestry Depart ment (Articles 62 and 63) and provided the phased
requirements of the corresponding management plan are met, by whoever holds the right to exploit
the forest, but the latter may make delivery of those products only after first having paid the holder of
the real right of pledge those sums to whose reimbursement they are assigned, or with his consent,
which must be recorded against the entries in the respective Registers.   (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 62
In the event of the enforcement of the charge on a forest, the acquirer of the forest shall respect the
corresponding exploitation and management plan approved by the Forestry Department.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 63
If a charge on a forest is enforced, the owner of the land on which the forest stands must allow the
person who acquires the forest access to the property in such a way as to enable him to carry out the
exploitation and management plan approved by the Forestry Department, by establishing thenecessary rights of way. This obligation upon the land owner and the rights of way established shall
lapse two years after completion of the exploitation period specified in the exploitation and
management plan approved by the Forestry Department.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 64
For the purposes of this law the second paragraph of Article 4 of Law 5.649, of 21 March 1918 shall
not apply.  (*)---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 65
For fifteen years from the promulgation of this law, rural, industrial or agro-industrial producers and
enterprises engaged in afforestation or the exploitation or processing of domestically produced wood
shall have the benefit of the facilities of Article 66 for the following activities:
(A) Production of forest plants, planting and forest management;(B) Exploitation of wood or utilization of other forest products;(C) Processing of wood to produce pulp, pape r and board, sawn lumber, plywood and veneer,
fibreboard and particle board, wood distillation;
(D) Preservation and drying of wood;(E) Utilization of forest products as raw materials in the chemical or power generating industries.   (*)G/SCM/N/71/URY
Page 25
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988 and 457/989  of
27 September 1989.---------------------------------------------------------------------------------------------------------------------------
Article 66
The Executive Power, on the proposal of the Ministry of Livestock, Agriculture and Fisheries, may
exempt the importation of raw materials needed for the processing of domestically produced wood
and of equipment, machinery, utility vehicles and tools needed for the installation and operation of
such enterprises from all or part of the following taxes and charges: additional duties and other
customs levies, including import tax, port dues and taxes, surcharges and deposits, and any other levyon imports or applied in connection with importation. It shall be an indispensable condition for the
granting of such exemption that:
(A) raw materials, equipment, machinery, vehicles and tools comparable in quality and price to those
to be imported are not normally produced domestically;
(B) the activity in which the beneficiary enterprise is engaged is consistent with the general objectives
of forest policy.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988 and 457/989
 of 27
September 1989.---------------------------------------------------------------------------------------------------------------------------
Article 67
The following shall be added to the responsibilities of the National Fuel, Alcohol and Portland
Cement Administration, in accordance with Law 8.764, of 15 October 1931, and its amending
supplements:
Research into the best use of domestically produced wood as a source of energy.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 68
Administrative proceedings brought against resolu tions refusing or cancelling tax concessions or
financial benefits provided for in Chapters I and II of Title V of this law shall have suspensive effect.
(*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Article was implemented by Decrees Nos 452/988 of 6 July 1988 and 247/989   of 24 May
1989.---------------------------------------------------------------------------------------------------------------------------
Article 69
Violations of and offences against the forest laws and regulations shall be punishable by fines
ranging, depending on the seriousness of the offence, from one tenth to fifty times the notional cost ofafforestation per hectare, in effect at the time of commission of the offence, without prejudice to any
civil or criminal proceedings to which the act may give rise. The Forestry Department and the
Renewable Natural Resources Department shall be responsible for verifying the offence.
The Agricultural Inspection Department of the Minist ry of Livestock, Agriculture and Fisheries shall
be responsible for determining, imposing and enforcing the appropriate penalties, in accordance with
the procedures laid down in Law No 10.940 of 19 September 1947.   (*)--------------------------------------------------------------------------------------------------------------------------G/SCM/N/71/URY
Page  26
(*) The wording of the first paragraph was determined by Law No 16.170 of 28 December 1990,
Article 271. The original text can be viewed in  Official Journal No 22.562, of 9 February 1988.
     This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 70
The Ministry of Livestock, Agriculture and Fisheries, on the proposal of the Forestry Department,
may implement the mechanisms needed to gather th e information necessary to carry out the controls
that the application of the provisions of this law requires, for which purpose it may order the making
of sworn statements.    (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 71
Subparagraph (2) of Article 85 of Decree Law 14.189, of 30 April 1974, shall be replaced by the
following:
"(2) If the object of the company is afforestatio n, fruit-growing, citrus fruit-growing or by-products
thereof".  (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
     See Article 2.---------------------------------------------------------------------------------------------------------------------------
Article 72
All expert reports and valuations of a judicial or administrative nature relating to the subject matter of
this law shall be entrusted exclusively to agronomists or agricultural surveyors, in their respective
fields.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 73
This law is public policy.  (*)
---------------------------------------------------------------------------------------------------------------------------(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 74
The Executive Power shall implement this law within one hundred and twenty days of its
promulgation.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 75
Law 13.723, of 16 December 1968, and any other provisio n that conflicts with this law, is hereby
repealed.  (*)
---------------------------------------------------------------------------------------------------------------------------
(*) This Law was implemented by Decree No 452/988 of 6 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 76
Proclaimed, etc.G/SCM/N/71/URY
Page 27
Decree No 452/988
Promulgation : 06/07/1988 Publication : 14/07/1988
National Registry of Laws and Decrees: Volume: 1
Semester: 2
Year: 1988
Page: 33
SANGUINETTI - PEDRO BONINO GARMENDIA
Having regard to the provisions of Article 74 of Law 15.939, of 28 December 1987;Whereas under that provision the Executive Power is entrusted with the implementation of the
aforementioned law;
Whereas to give effect to that law it is necessary to proceed with its implementation in accordance
with the general principles contained therein, without  prejudice to the issuance of other regulations on
specific aspects, where so required;
Bearing in mind the fundamental provisions of Article 168.4 of the Constitution of the Republic and
Art. 74 of Law 15.939, of 28 December 1987;
The President of the Republic
HEREBY DECREES:
Article 1
(Definition of forest). For the purposes of Law 15.939, of 28 December 1987 and its regulations,
“forest” shall be taken to mean an association of vegetation which, in addition to possessing thecharacteristics specified in Article 4 of that law, has an area of at least 2,500 square metres.
Article 2
(Designation of forest land). In accordance with Article 5 of Law 15.939, of 28 December 1987, land
included in the following zones or soil groups shall be designated forest land:
(a) The sandy coasts of the southern seaboard, from the confluence of the Río Negro with the Río
Uruguay to that with the Arroyo Chuy, in the Department of Rocha;
(b) The banks of the Río Negro throughout its length, including those of Lakes Baygorria, Rincón del
Bonete and Palmar, the banks of Lake Salto Grande, and the banks of the rivers Tacuarembó Grande,
Tacuarembó Chico, Yí, Santa Lucía and San José. The area of forest land may never be less than that
contained between the respective bank and mean flood level, without prejudice to which a strip at
least 150 metres wide must be included;
(c) Soil groups 2.11a, 2.12, 2.14, 5.01C, 7.1, 7.2, 7.31, 7.32, 7.33, 7.41, 7.42, 8.1, 8.02a, 8.02b, 8.3,
8.4, 8.5, 8.6, 8.7, 8.8, 8.9, 8.10, 8.11, 8.12, 8.13, 8.14, 8.15, 8.16, 9.1, 9.2, 9.3, 9.41, 9.42, 9.5, 9.6, 9.7,
9.8, 9.9, 07.1 and 07.2, excluding soils of letter (a); 09.1, 09.2, 09.3, 09.4 and 09.5, S09.10,S09.21, in
accordance with the CONEAT classification.
Without prejudice to the above, the Forestry Department shall propose to the Ministry of Livestock,
Agriculture and Fisheries the designation of other forest areas, where justified on public interestgrounds. (*)G/SCM/N/71/URY
Page  28
---------------------------------------------------------------------------------------------------------------------------
(*) The wording of letter (c) was determined by Decree No 26/993, of 12 January 1993, Article 1. The
original text can be viewed in Official Journal No 22.663, of 14 July 1988.  See Articles 5 and 11.
---------------------------------------------------------------------------------------------------------------------------
Article 3
(Suitability for forest use). To be suitable for forest use a soil must provide good conditions for trees
to take root and grow, be sufficiently well-drained, and have low natural fertility.
Article 4
(Classification). Private forests shall be classified according to their purpose under the provisions of
Article 8 of the law.
This classification shall be made by the Forestry Department of the Ministry of Livestock, Agriculture
and Fisheries:
(a) On its own initiative, in the following cases:1. Where the forest is located in a zone designated for compulsory afforestation, under Article 12 of
Law 15.939.
2. To ensure compliance with the provisions for the protection of forests of Title IV, Chapter I of Law
15.939 and its implementing regulations; and
3. Where necessary in order to implement development plans approved by the competent authorities.(b) At the request of an interested party, who must fulfil the requirements of the last paragraph of
Article 8 of Law 15.939.
Article 5
(Classification criteria). The classification of forests shall be based on the following criteria:
(I) To determine whether a forest is protective it is necessary to consider:(a) whether it helps to prevent erosion or conserve renewable natural resources or to regulate drainage
basins, of regional importance. These factors shall be evaluated by the Forestry Department, in
accordance with general conservation principles; or (b) whether it is located on forest land as defined
in Article 2(a) and (b) of this Decree.
(II) To determine whether a forest is producing the following characteristics must be taken into
account:
(a) its suitability for producing woody or non-wood y materials whose utilization is in the national
interest. For this purpose, materials obtained from the following species shall be considered to fit this
description: Pinus elliottii, taeda and pinaster, Eucalyptus grandis, saligna, globulus and subspecies
maidenii, Populus deltoidea and hybrid 63/51; Salix alba var. coerulea and hybrids 131 - 25 and 131 -
27.
(b) its location in zones designated as forest land under Article 2(c) of this Decree.(c) its area, which may not be less than 10 (ten) hectares; andG/SCM/N/71/URY
Page 29
(d) its location on soils subordinate to those of forest priority (in accordance with the classification of
the Uruguayan Soil Recognition Chart, Volume III, description of soil units, Montevideo - Uruguay
1979) provided that the area occupied by these soils does not exceed forty per cent of the survey area
and that the remainder belongs to the soil groups specified in Article 2(c) of this Decree and is at least
ninety per cent afforested.
On these subordinate soils, species other than thos e mentioned in paragraph II(a) of this Article may
be planted, provided that, in the opinion of the Forestry Department, afforestation is technically
viable.
(III) All forests which, becau se of their charact eristics, cannot be classified as protective or producing
shall be deemed to be general forests. (*)
---------------------------------------------------------------------------------------------------------------------------
(*) The wording of paragraph II(d) was determined by Decree No 333/990, of 25 July 1990, Article 1.The original text can be viewed in Official Journal No 22.663, of 14 July 1988.
---------------------------------------------------------------------------------------------------------------------------
Article 6
(Notification). The resolution classifying a forest shal l be notified to the owner or user of the land on
which it stands, in person, in accordance with the procedure laid down in Article 48 ff. of Decree
640/978, of 8 August 1973.
Article 7
(Projects and reports). For forest classification purposes, the owner or user, in whatever capacity,
must submit a corresponding forest management and organization plan for the cultivation, use and
regeneration of the forest, in accordance with the relevant law and regulations in force. He shall also
be subject to the forest protection provisions of Title IV, Chapter I of Law 15.939 and, whereappropriate, to the special provisions applying to the situation that justified the classification.
Article 8
(Presentation and requirements). The afforestation report or project must be presented in accordance
with the instructions drawn up for that purpose by  the Forestry Department, so as to meet its
requirements. Interested parties must produce, inter alia , the items on the following purely illustrative
list: survey maps, aerial photographs, soil analyses, fire prevention plan, notarized certificate
establishing their legal relationship to the land.
Article 9
(Registration). The Forestry Department of the Mini stry of Livestock, Agriculture and Fisheries shall
maintain a Register in which there shall be recorded the forests it has classified. Registration shall be
mandatory for the purpose of obtaining the tax and financial concessions for which Law 15.939
provides, as well as for transacting any business with the Department relating to the planting,
conservation, management or use of forests.
Article 10
(Inspections). The Forestry Department of the Ministry of Livestock, Agriculture and Fisheries may
carry out inspections for the purpose of certifying the area occupied by a forest or plantation, as well
as its state or management.
Article 11
(Compulsory planting - State lands).
The planting of forests shall be compulsory on the forest land specified in Article 2(a) and (b) of this
Decree whose owner or occupant, in whatever capacity, is the State, the Autonomous Entities,
Decentralized Services or Government Departments, provided that such land has a minimum
continuous area of 10 (ten) hectares.G/SCM/N/71/URY
Page  30
Article 12
(Time limits). It is mandatory that the above afforestation be started within one year of the date of this
Decree, a maximum period of five years being allowed for the complete planting out of the land. The
afforestation shall be carried out for the account of the owning or occupying entities, throughcontracts with third parties, and shall be eligible, where appropriate, for the tax and financial
concessions for which Law 15.939 of 28 December 1987 provides. Nevertheless, those entities which,
under the legislation governing their organization and operation, are required to maintain reserve or
investment funds may not make use of special credits for afforestation.
Article 13
(Registration of forests). For the purpose of classifying State Forest Lands, the same requirements and
provisions as for classifying private forests shall be respected, where applicable.
Article 14
(General principle). The felling of indigenous forests and any other operation that jeopardizes their
survival and the destruction of manmade protective forests shall be prohibited.
Article 15
(Felling of indigenous forests for domestic use). For the purposes of Article 24(a) of Law 15.939, the
product of exploitation shall be deemed to be intended for domestic use if it is used for heating,
cooking or rural buildings within the settlement.
Article 16
(Felling of indigenous forests). For the purposes of the authorization mentioned in Article 24(B),
interested parties shall apply to the Renewable Natural Resources Department of the Ministry of
Livestock, Agriculture and Fisheries with a technical report giving the reasons why felling or any
other proposed operation is justified and their exploitation plan.
On flat or undulating land suitable for agricultural use and not susceptible to flooding, the Renewable
Natural Resources Department may authorize felling where the forest limits improvement and there is
no question of preserving arboreal communities or species, maintaining ecosystems or protecting the
public interest. (*)---------------------------------------------------------------------------------------------------------------------------
(*) Wording determined by Decree No 24/993 of 12 January 1993, Article 1. The original text can be
viewed in Official Journal No 22.663, of 14 July 1988. See Article 24(b).
---------------------------------------------------------------------------------------------------------------------------
Article 17
(Protection). Forests and forest land forming part of the State Forest Lands shall be subject to the
above-mentioned protection provisions, where applicable.
Article 18
Plants and trees may not be planted along the dividing line, except by mutual agreement between the
adjoining property owners (Article 20.1 of the Rural Code).
If the dividing line is a party wall, espaliered planting may be carried out provided it does not exceed
the height of the wall (Article 20.2 of the Rural Code).
Species whose invasive roots might harm neighbouring crops or buildings may not be used for this
purpose.
Article 19
Hedges may be planted at a minimum distance of 1.5 metres from the dividing line; such hedges may
not be more than 2 metres high and the side branches may not extend beyond the boundary of the
property.G/SCM/N/71/URY
Page 31
Article 20
Fruit trees must be at least 5 metres from the dividing line between neighbouring properties.
Article 21
Protective and dividing screens may not be more than  7 metres high and may not be less than 5 metres
from the dividing line, except for those on the southern boundary of the property, where the minimum
distance shall be 10 metres. (*)---------------------------------------------------------------------------------------------------------------------------
(*) See Article 23.
---------------------------------------------------------------------------------------------------------------------------
Article 22
Forests of any kind, public or private, shall be located at least 12 metres from the dividing line
between neighbouring properties. On the south side the minimum distance shall be 25 metres. (*)
---------------------------------------------------------------------------------------------------------------------------
(*) See Article 23.
---------------------------------------------------------------------------------------------------------------------------
Article 23
In the cases referred to in Articles 21 and 22 of this Decree, if the neighbour considers that the
plantation, even under the above conditions, may damage his property, he may submit the matter for
decision by the Forestry Department which shall determine whether there has been any damage and, ifso, shall establish a minimum distance for the plantation.
Article 24
In the case of dividing lines with public highways, no plantations of any kind shall be located within 5
metres of the dividing line.
Article 25
With regard to trees of species whose invasive roots harm neighbouring crops, such as American
aspen (Populus tremuloides), silver poplar (Populus alba var), honey locust (Gleditschia triacanthos)
and elm (Ulmus sp.), they may not be plante d within 30 metres of the neighbouring property.
Article 26
Where species planted in forests or hedges belonging to neighbouring properties invade cultivated
areas, threatening the crops, their owner shall bear the corresponding clean-up costs.
Article 27
Promulgated, etc.G/SCM/N/71/URY
Page  32
Decree No 316/992
Promulgation : 07/07/1992 Publication : 25/09/1992
National Register of Laws and Decrees: Volume: 1
Semester: 2
Year: 1992
Page: 26
LACALLE HERRERA - EDUARDO ACHE - IGNACIO DE POSADAS MONTERO
Having regard to the measures adopted for the purpose of deregulating the automotive industry.Whereas the special characteristics of the national automotive industry and of the domestic motor
vehicle market make it advisable to adopt measures to encourage the growth of exports of theproducts of the sector, thereby enabling it to be restructured.
Considering:(I) the effects on local industry of the policies developed in this sector by the MERCOSUR member
countries;
(II) that the measures to be applied will facilitate the adoption of sectoral agreements within the
framework of the aforementioned treaty with a view to accelerating the integration of regional
industry;
(III) that it is desirable to establish the exclusion of the benefit consisting of the refunding of indirect
taxes in respect of the products whose exportation is encouraged by this Decree;
(IV) that it is necessary to find mechanisms for preventing the distortions which in the process of
restructuring may be caused by commercial practices such as the importation of used vehicles, or the
assembly of vehicles from used parts;
Mindful of the above and the provisions of  Article 2.2(c) of Law 12.670 of 17 December 1959,
The President of the Republic
HEREBY DECREES:
Article 1
Enterprises which export completed or part-completed vehicles assembled in the country, or auto-
parts of national origin, may avail themselves of the following mechanism, applicable to theimportation of motor vehicles assembled in the place of origin destined for the domestic market and to
products they import under Tariff Heading 8708.99.90.50. of the MERCOSUR Common
Nomenclature.
They may make imports with a concession of up to 13 per cent of the TGA (global tariff), which
includes the 3 per cent increase resulting from Article 1 of Decree No 484/997, of 29 December 1997,
subject to a ceiling of the equivalent of US$0.10 (ten United States cents) for every United States
dollar of exports, based on the f.o.b. value declared in customs declarations.
Enterprises that cumulate the benefit provided under Decree No 558/994, of 21 December 1994, may
reduce the ceiling provided for in the preceding paragraph to US$0.07 (seven United States cents) andG/SCM/N/71/URY
Page 33
may allocate US$0.005 (zero point five United States cents) to be used in the manner established in
Decree No 558/994 under reference, in which case the ceiling shall fall to US$0.065 (six point five
United States cents).
The enterprises covered in the first paragraph of this Article which, within a period of 90 days
counted as from the date of the export declaration, fail to make use of the TGA benefit in any of thealternatives envisaged, may allocate the balances for the payment of taxes due to the Directorate-
General of Taxation. (*)
---------------------------------------------------------------------------------------------------------------------------
(*) Wording of Decree No 60/999 of 3 March 1999, Article 1. The original text can be viewed in
Official Journal No 23.648 of 25 September 1992. See Article 4.
---------------------------------------------------------------------------------------------------------------------------
Article 2
The following products shall be considered eligible for the benefits for which this Decree provides:
 - Auto-parts produced in the country from domestic or imported raw materials, which have
undergone a change in their original compositio n, shape or structure, provided their ultimate
destination is an Automotive Terminal or the motor vehicle replacement parts market, or they can
reliably be shown to have been used in motor vehicles;
 - Auto-parts assembled in the country and consisting of vehicle assemblies or sub-assemblies,
provided that they are the result of a significant industrial process.
  - Completed or part-completed vehicles assembled in the country from imported kits with a degree
of disassembly approved by the National Department of Industry.
  - Vehicle and auto-part manufacturing or assemb ly plants must demonstrate a National or Regional
Value Added, as appropriate, in accordance with the origin requirements of bilateral or multilateral
agreements concluded between the country and the importing countries.
The National Department of Industry of the Mi nistry of Industry, Energy and Mines shall be
responsible for verifying compliance with the provisions of this Article. (*)---------------------------------------------------------------------------------------------------------------------------
(*) See Article 10.
---------------------------------------------------------------------------------------------------------------------------
Article 3
The National Department of Industry of the Ministry of Industry, Energy and Mines shall monitor the
values imported and exported by the respective ente rprises and shall issue the appropriate certificates
certifying that the importation qualifies for a concessi on of up to 10 per cent of the TGA, which shall
be submitted to the Banco de la República Oriental del Uruguay, together with the form giving
entitlement to import vehicles assembled in the place of origin, upon presentation of the importapplication.
Article 4
The exporting enterprises referred to in Article 1 may assign their rights derived from prior exports to
enterprises that import vehicles for sale on the domestic market, which in this case shall be thebeneficiaries of the tax exemption for which this Decree provides. The National Department of
Industry of the Ministry of Industry, Energy and Mines shall check the respective assignment and
authorize it, where appropriate.
Article 5
 (*)G/SCM/N/71/URY
Page  34
---------------------------------------------------------------------------------------------------------------------------
 (*) Revoked by Decree No 583/994 of 30 December 1994, Article 1. The original text can be viewed
in Official Journal No 23.648, of 25 September 1992.
---------------------------------------------------------------------------------------------------------------------------
Article 6
The certificate of origin of vehicles assembled in the country for export to the Federal Republic of
Brazil under the Trade Expansion Protocol (PEC) shall be issued by the National Department of
Industry of the Ministry of Industry, Energy and Mines.
Article 7
The vehicle category G established by Article 1 of Decree 128/970 of 13 March 1970 is abolished.
Articles 7 and 8 of Decree 464/978 of 11 August 1978 are revoked.
Article 8
The importation of goods referred to in Article 1 of Decree 494/990, of 29 October 1990, and Article
1 of Decree 583/990, of 18 December 1990, is prohibited for a period of 120 (one hundred and
twenty) days from the entry into effect of this Decree.
Article 9
The importation of used vehicles of NADI heading 87.02 and subheading 07.01.02 is prohibited for a
period of 120 (one hundred and twenty) days from the entry into effect of this Decree;
Article 10
Products covered by the provisions of Article 2 of this Decree in accordance with a resolution of the
National Department of Industry of the Ministry of Industry, Energy and Mines are excluded from the
benefits accorded by Article 5 of Decree 393/991 of 29 July 1991.
Article 11
This Decree shall enter into effect upon publication in the newspapers of the capital.Article 12
Proclaimed, published, etc.G/SCM/N/71/URY
Page 35
Decree No 583/994
Promulgation : 30/12/1994 Publication : 13/01/1995
National Register of Laws and Decrees: not included.
LACALLE HERRERA - MIGUEL ANGEL GALAN - IGNACIO DE POSADAS MONTEROHaving regard to the regime adopted by Decree No 316/992 of 7 July 1992, for the purpose o
f
encouraging the restructuring of the national automotive industry;Whereas:(I) the Council of the Common Mark et of MERCOSUR has decided (Dec . 29/994) to establish (a) a
Common Automotive Regime to operate from 1 January 2000;
(b) a provisional regime to operate from 1 June 1995; and(c) that no restrictive changes in Intra-Zonal automotive sector trade shall be unilaterally introduced.(II) it is considered desirable to extend the period of validity of the regime established in Decree No
316/992, since domestic enterprises are in the midst of a process of restructuring under cover of thatDecree;
(III) the extension to be granted does not involve a restriction on Intra-Zonal automotive sector trade;In the light of the above:
The President of the Republic
HEREBY DECREES:
Article 1
Article 5 of Decree No 316/992 of 7 July 1992 is revoked, the TGA (global tariff) concessions
established by that Decree being maintained in force until the Mercosur member countries agree the
provisional regime referred to in recital (I).G/SCM/N/71/URY
Page  36
Decree No 340/996
Promulgation : 28/08/1996 Publication : 06/09/1996
National Register of Laws and Decrees: Volume: 1
Semester: 2
Year: 1996
Page: 634
SANGUINETTI - JULIO HERRERA - LUIS MOSCA
Having regard to the regime that regulates the national automotive industry;Considering:
(I) the present transitional situation through which the Mercosur automotive sector is passing and the
initiation of definitions by Argentina and Brazil in connection with the final regime to operate from
the year 2000;
(II) the prospect of Uruguay occupying a competitive position in the industry of the region,
specializing in segments of the market and conso lidating the changes made with a view to exporting
to the region;
(III) the existence of an unfavourable regional economic climate which has limited exports under the
CAUCE and PEC agreements and affected  levels of industrial production;
Whereas it is desirable to adopt measures to facilitate business decisions concerning production
schedules and investment and in preparation for the common MERCOSUR regime;
Mindful of the provisions of Article 2 of La w 12.670 of 17 December 1959 and Article 2 of Law
16.492 of 2 June 1994;
The President of the Republic
HEREBY DECREES:
Article 1
Motor vehicle components or auto-parts (parts, assemblies and subassemblies) imported as kits, in
accordance with the lists authorized for each model by the National Department of Industry of the
Ministry of Industry, Energy and Mines, shall be subject to a global tariff (TGA) of 2 (two per cent)
by way of minimum surcharge.
The provisions of this Article shall apply during the period of validity of Decree No 316/992 of 7 July
1992.
Article 2
The benefits for which Decree No 316/992 of 7 July 1992 provides may be cumulated with those
established by Decree No 558/994 of 21 December 1994, under the conditions laid down in the next
Article.   (*)
---------------------------------------------------------------------------------------------------------------------------
(*) See Article 3.
---------------------------------------------------------------------------------------------------------------------------G/SCM/N/71/URY
Page 37
Article 3
 (*)
---------------------------------------------------------------------------------------------------------------------------
(*) Revoked by Decree No 60/999 of 3 March 1999, Article 4. The original text can be viewed inBase DIAR .
     See Articles 5 and 6.---------------------------------------------------------------------------------------------------------------------------
Article 4
The motor vehicles of headings 87.02, 87.03 and 87.04 are incorporated in the regime established by
Decree No 558/994 of 21 December 1994, the tax refund percentage being fixed at 3.3% (three point
three per cent).
Article 5
Exporters of products covered by Decree No 316 /992 of 7 July 1992 who have not had a tax refund
percentage fixed within the context of the above-mentioned Decree No 558/994 and wish to opt for
the cumulation of both benefits under the conditions laid down in Article 3 must apply to the Ministryof the Economy and Finance with a reasoned reque st for the fixing of a tax refund percentage.
Article 6
For the purpose of obtaining the “Tax Refund Certificates” referred to in Article 6 of the above-
mentioned Decree No 558/994, the beneficiary enterpri ses must lodge with the Banco de la República
Oriental del Uruguay a certificate issued by the National Department of Industry of the Ministry of
Industry, Energy and Mines, showing that they are op erating within the framework of Article 3 of this
Decree.
Article 7
Account shall be rendered to the General Assembly.Article 8
This Decree shall enter into effect on 1 September 1996.
Article 9
Proclaimed, published, etc.G/SCM/N/71/URY
Page  38
Decree No 60/999
Promulgation : 03/03/1999 Publication : 12/03/1999
National Registry of Laws and Decrees: Volume: 1
Semester: 1
Year: 1999
Page: 368
SANGUINETTI - LUIS MOSCA - JULIO HERRERA
HAVING REGARD to the regime governing the Automotive Industry;WHEREAS it is necessary to amend that regime in order that it may more efficiently attain the
objectives for which it was adopted;
ACCORDINGLY
THE PRESIDENT OF THE REPUBLIC
HEREBY DECREES:
Article 1
(*)
---------------------------------------------------------------------------------------------------------------------------(*) This Article reworded Decree No 316/992 of 7 July 1992, Article 1, and should therefore be
viewed in the latter.
---------------------------------------------------------------------------------------------------------------------------
Article 2
The National Department of Industry of the Ministry of Industry, Energy and Mines shall monitor the
use of the benefit for which Article 1 provides and shall issue the corresponding certificates for
presentation to the competent government authorities.
Article 3
(Transitional provision). The enterprises covered by Article 1 may earmark for the payment of taxes
due to the Directorate-General of Taxation such balances as may exist on the effective date of this
Decree owing to the non-use of the TGA concession envisaged under the present regime and which
are no older than 90 days as from the said date.
Article 4
Article 3 of Decree No 340/996, of 28 August 1996, and all provisions conflicting with the present
Decree are hereby revoked.
Article 5
(*)
---------------------------------------------------------------------------------------------------------------------------
(*) Revoked by Decree No 273/999 of 10 September 1999, Article 1. The original text can be viewedin Base DIAR .
---------------------------------------------------------------------------------------------------------------------------
Article 6
Proclaimed, published, etc.G/SCM/N/71/URY
Page 39
Decree No 273/999
Promulgation : 10/09/1999 Publication : 20/09/1999
National Register of Laws and Decrees: Volume: 1
Semester: 2
Year: 1999Page: 610
SANGUINETTI - JULIO HERRERA - LUIS MOSCA
HAVING REGARD to the regime governing the Automotive Industry and the provisions of Decree
60/999 of 3 March 1999;
WHEREAS it is necessary to  maintain in force the regime governing the Automotive Industry as from
1 January 2000, with the amendments introduced by Decree 60/999 of 3 March 1999;
ACCORDINGLY
THE PRESIDENT OF THE REPUBLIC
HEREBY DECREES:
Article 1
Article 5 of Decree 60/999 of 3 March 1999 is hereby revoked.Article 2
Proclaimed, published, etc.
__________