WORLD TRADE
ORGANIZATIONG/SCM/N/95/URY
6 August 2003
(03-4133)
Committee on Subsidies and Countervailing Measures Original:  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 11 July 2003, has been received from the Permanent
Mission 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 2002 to 31 December 2002.
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 plants and technologies for processing wood from
cultivated forests;
- To 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)
The preservation, improvement, expansion and creation of forest resources, the development
of forest resources, the development of forest industries and the development of the forest economy in
general.
Law No. 15.939 of 28 December 1987, published in the Official Journal on 9 February 1988
and Law No. 16.002 of 25 November 1988, published in the Official Journal on 13 December 1988.G/SCM/N/95/URY
Page 2
Regulatory Decree Nos. 452/988 of 6 July 1988, published in the Official Journal on
14 July 1988, 931/88 of 30 December 1988, published in the Official Journal on 10 July 1989 and
212/97 of 18 June 1997, published in the Official Journal on 3 July 1997.
5. Form of subsidy (i.e. grant, loan, tax concession etc.)
Tax concession, tariff concession, partial refund of planting costs.
The tariff concession expired in December 2002, in accordance with the provisions of Article
65 of Law No. 15.939.  As regards the partial refund of planting costs, Article 43 of Law No. 17.453
of 28 February 2002, published in the Official Journal on 1 March 2002, provides that such refunds
will be gradually reduced from 2004 until they are phased out completely in 2007.
6. To whom and how the subsidy is provided (to producers, 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 that 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
afforestation plan approved by the Ministry of Livestock, 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 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 planting costs in dollars per hectare was reduced from $165
during the period July 2000 to June 2001 to $140 during the period January 2002 to December 2002.
Tax exemptions for protective forests (natural and artificial) and producing forests are
estimated at approximately $9 per hectare per year.
The total expenditure on subsidies has been as follows:
2001 US$ 5,266,147
2002 US$ 2,424,489
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 this Law apply to all taxes that in future
would be levied generically on agricultural enterpri ses, their owners as such, or their income. Future
taxes will be applicable for a period of at least 12 years from the time the forests specified inArticle 39 of the Law are planted (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 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 or charges:  additional duties and
other customs levies, including import tax, port dues and taxes, surcharges, deposits and any otherG/SCM/N/95/URY
Page 3
levy on imports, or applied in connection with importation, for a period of 15 years.  As indicated in
paragraph 5, this benefit expired in December 2002.
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 informationincludes 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 the
calendar years 2000, 2001 and 2002, in terms of physical volume and value, are attached hereto.
Areas Afforested under the Project for the Period 2000-2002 (Hectares)
Department 2000 2001 2002
ARTIGAS - - -
CANELONES 16 42 131
CERRO LARGO 2,626 1,133 -
COLONIA 138 38 -
DURAZNO 956 1,772 8
FLORES ---
FLORIDA 2,151 140 337
LAVALLEJA 7,637 2,593 936
MALDONADO 2,695 3,186 120
MONTEVIDEO - - -
PAYSANDU 9,101 6,640 4,610
RIO NEGRO 2,502 2,073 388
RIVERA 11,309 6,317 5,105
ROCHA 2,617 3,705 174
SALTO 134 - -
SAN JOSE 24 - -
SORIANO 1,371 1,909 -
TACUAREMBO 10,044 11,829 2,003
TREINTA Y TRES 227 594 -
Total 53,547 41,970 13,811G/SCM/N/95/URY
Page 4
Forestry Exports for the Period 2000-2002 (US$)
NCM PRODUCT 2000 2001 2002
44.01 – 06 Wood in the rough (total) 40,335 41,523 43,142
44.01  and 02 Fuel wood, charcoal, sawdust,
particles, briquettes, etc.426 667 137
44.03 Treated (poles, posts, stakes, etc.) 521 448 23
44.03 Untreated, coniferous - 1 -
44.03 Untreated, non-coniferous (for pulp) 39,388 40,408 42,982
44.07 Sawn timber (total) 7,793 7,011 8,759
44.07 * Coniferous 5,565 5,173 1,031
44.07 * Non-coniferous 2,228 1,838 7,728
44.08 Veneer sheets and sheets for plywood - 9 3
44.12 Plywood - -
44.10 Particle board - 1 6
44.11 Fibreboard - 30 0
44.15 – 21 Pallets, etc. 377 619 392
47.01 – 06 Wood pulp 19 376 -
47.07 Waste and scrap of paper or
paperboard1,394 1,758 1,491
48. 01 - 48.10 Paper and paperboard 36,169 32,991 32,784
TOTAL 86,087 84,317 86,578
Source:  Forestry Department of the Ministry of Livestock, Agriculture
and Fisheries (MGAP), based on data from the Central Bank of Uruguay
(BCU)
 NCM = MERCOSUR Common Nomenclature
Note: Exports of the following not included:
NCM PRODUCT 2000 2001 2002
48.18 Toilet paper, napkins, etc. 10,678 7,415 5,619
48.19 Boxes, bags and other packing
containers, of paper or paperboard7,447 7,573 2,808
48.20 Books, pads, exercise books, folders,
forms, etc.47 58 590
48.21 Labels of all kinds, whether or not
printed103 121 148
48.23 Other paper, paperboard, cellulose
fibre4,777 6,912 2,215
Total 23,052 22,080 11,380G/SCM/N/95/URY
Page 5
Forestry Exports for the Period 2000-2002 (Forestry)
(Cubic Metres, Tons, Units)
NCM PRODUCT 2000 2001 2002
44.01 to 06 Wood in the rough (total)  861,739  937,422  1,097,008
44.01 and 02 Fuel wood, charcoal, sawdust,
particles, briquettes, etc. 16,615 25,831 11,971
44.03 Treated (poles, posts, stakes
etc.) 5,495 4,570 265
44.03 Untreated, coniferous - 30 -
44.03 Untreated, non-coniferous (for
pulp)839,629  906,991 1,096,743
44.07 Sawn timber (total) 135,208  58,240  76,088
44.07 * Coniferous 116,363  44,053  7,549
44.07 * Non-coniferous 18,845 14,187  68,539
44.08 Veneer sheets and sheets for
plywood-                     - 25
44.12 Plywood -                     - -
44.10 Particle board -  895 55
44.11 Fibreboard -  161,849 -
44.15 to 21 Pallets, etc. 78,390 88,209 79,993
47.01 to 06 Wood pulp 26  588 -
47.07 Waste and scrap paper or
paperboard12,187 17,408 19,413
48.01 to 48.10 Paper and paperboard 38,804 36,172 43,526
Source:  Forestry Department of the Ministry of Livestock, Agriculture and
Fisheries (MGAP), based on data from the Central Bank of Uruguay (BCU)
 NCM = MERCOSUR Common Nomenclature
Note: Exports of the following not included:
NCM PRODUCT 2000 2001 2002
48.18 Toilet paper, napkins, etc.
(tons)5,873 4,589 4,209
48.19 Boxes, bags and other packing
containers, or paper of
paperboard (tons)9,260 8,421 2,028
48.20 Books, pads, exercise books,
folders, forms, etc. (tons)13 21 378
48.21 Labels of all kinds, whether or
not printed (tons)11 14 8
48.23 Other paper, paperboard,
cellulose fibre (tons)7,275 7,939 4,787
Total 22,432 20,985 13,412G/SCM/N/95/URY
Page 6
B. Automotive industry
1. Title of the subsidy programme, if relevant, or brief description or identification of the
subsidy
Standards for enterprises exporting vehicles assembled in the country.
2. Period covered by the notification
1 January 2002 to 30 June 2003
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 relating to production and investment
programmes and in preparation for the common MERCOSUR regime.
Decree No. 316/92 of 7 July 1992, published in the Official Journal on 25 September 1992.
Decree No. 583/94 of 30 December 1994.
Decree No. 340/96 of 23 August 1996, published in the Official Journal on 6 September
1996.
Decree No. 60/99 of 3 March 1999, published in the Official Journal on 12 March 1999.
Decree No. 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 that export vehicles completed or part-completed in the country, or auto-parts of
national origin, may benefit from a customs concession, applicable to imports of motor vehicles
assembled in the place of origin and 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 No. 60/99.
6. To whom and how the subsidy is provided (whether 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 Republica Oriental de Uruguay (BROU)), or payments may
be allocated to the Directorate-General of Taxation.
                                                     
1 Decrees Nos. 60/99 and 273/99 amended Decree No. 316/92 and prescribed a tax benefit not limited
strictly to the importation of vehicles but which can also be used for meeting tax obligations.G/SCM/N/95/URY
Page 7
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 fullexplanation
Thirteen per cent of the 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 No. 60/99 entered into force in 1999 and continues to be in force by virtue of Decree
No. 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.)  2002  US$ 163,319,143,70
Statistics for the period from 1 January to 30 June 2003 are not yet available.G/SCM/N/95/URY
Page 8
LAW No. 16.002 (In Part)
Granting a Subsidy of up to 30 Per Cent of the Standard Cost of Planting
Promulgation: 25 November 1988
Publication: 13 December 1988
Article 45 – The Ministry of Livestock, Agriculture and Fisheries is authorized to pay an
annual sum of N$Ur 270,500,000 (two hundred and seventy million five hundred thousand new
Uruguayan pesos) to the Forest Fund created under Article 52 of Law No. 15.939 of
28 December 1987.  From the sum authorized under this Article, the Forest Fund may grant, inaddition to the benefits provided for in Law  No. 15.939 of 28 December 1987, a subsidy of up to
30% (thirty per cent) of the standard cost of planting established under Article 42 of the said Law to
forest owners who are subject to Agricultural  Income Tax (IRA) or Industrial and Commercial
Income Tax (IRIC).  In other cases, the subsidy may cover up to 50% (fifty per cent) of the said
standard cost.
Government regulations shall determine the conditions of access to the subsidy by producers
with producing or protective forest plans approved by  the Forestry Department, to whom the latter has
issued a certificate authorizing plantation and who are also subject to IRIC, IRA or Agricultural
Activities Tax (IMAGRO).G/SCM/N/95/URY
Page 9
Decree No. 931/88 – Subsidy for the Planting of Forests
Promulgation: 30 December 1988
Publication: 10 July 1989
MINISTRY OF LIVESTOCK, AGRICULTURE AND FISHERIES
MINISTRY OF THE ECONOMY AND FINANCE
Having regard to the provisions of Article 45 of Law No. 16.002 of 25 November 1988 and
Article 53 of Law No. 15.939 of 18 December 1987;
Noting:(i) That Article 45.2 of Law No. 16.002 establishes that, in addition to the benefits
provided for in Law No. 15.939 of 28 December 1987, the Forest Fund may grant a
subsidy of up to 30% (thirty per cent) of the standard cost of planting to forest owners
who are subject to Agricultural Income Tax (IRA).  In other cases, the subsidy maycover up to 50% (fifty per cent) of the said standard cost.
Article 45.3 of the above Law stipulates that the regulations will determine the
conditions under which producers may obtain the subsidy.
(ii) That Article 53 of Law No. 15.939 sets out the tasks of the Administrative Board of
the Forest Fund, without prejudice to those assigned to it in the regulations.
Considering:
(i) That the provisions of Article 45 of Law No. 16.002 should be applied through the
regulation of the aforesaid subsidies.
(ii) That it is appropriate, to that end, to make the Administrative Board of the Forest
Fund responsible for administering, monitoring and granting the said subsidies.
In the light of the above;
The President of the Republic
HEREBY DECREES:
Article 1
The granting of the subsidies provided for under Article 45 of Law No. 16.002 of 25
November 1988 shall be governed by the provisions of this Decree.
Article 2
Forest owners subject to Agricultural In come Tax (IRA) or Industrial and Commercial
Income Tax (IRIC) shall receive, for each planted hectare and once only for each afforested area, asubsidy equivalent to 20 % (twenty per cent) of the standard cost of afforestation. This subsidy shall
not be counted as taxable income for the purposes of the aforementioned taxes.   Forest ownersG/SCM/N/95/URY
Page 10
subject to taxes shall receive, for each planted hectare and once only, for each afforested area, a
subsidy amounting to 50 % (fifty per cent) of the standard cost of afforestation.
The fiscal year in which the planting took place shall be taken into account for the purpose of
determining the percentage of the subsidy to be paid.
The Directorate-General of Taxation shall supply, upon application by the interested party,
attestation of the latter's situation in respect of the first two paragraphs.
Article 3
The payment of subsidies to the owners of be neficiary forests shall be made taking into
account the standard cost of afforestation in the fiscal year in which the planting took place, adjustedto reflect the fluctuations in the consumer price index in the period between the date of the entry into
force of the applicable standard cost of afforestation and the month prior to that in which the order of
payment is issued.
Article 4
In order to receive the aforementioned subsidies, natural or legal persons, public or private,
must fulfil the following requirements:
(a) Possess an afforestation plan for the plantation of protective or producing forests,
approved by the Forestry Department;
(b) Obtain, one year after planting the trees, a survival rate exceeding 75% (seventy five
per cent) of the density indicated in the corresponding project;
(c) The forest must be located on land where priority is given to forests and must have
been declared a protective or producing forest by the Forestry Department;
(d) Apply for the subsidy within four  years of planting the forest.
Article 5
The afforestation plan provided for under Article 4 (a) shall be submitted in accordance with
the provisions of Article 8 of Decree No. 452/988 of 6 July 1988.
Article 6
On applying for the subsidy, the beneficiary must demonstrate, by means of a technical report
prepared in accordance with the provisions of Article 49 of Law No. 15.939, that the survival rate is in
excess of 75% (seventy five per cent), indicating the methods used and the reasons therefore as well
as the calculation process.
The owner shall declare under oath that the information provided in the application is
accurate.G/SCM/N/95/URY
Page 11
Article 7
Once the requirements set out in the above Articles have been met, the Forestry Department
shall issue a certificate attesting to the plantation and designation of the forest, forwarding the details
to the Administrative Board of the Forest Fund for the purpose of awarding the corresponding
subsidy.
Article 8
The subsidies established in this Decree sh all apply to plantations implemented as of
1 January 1989.
Article 9
The Ministry of Livestock, Agriculture and Fisheries, at the proposal of the Forestry
Department, shall fix annually, on 30 June, the standard cost of afforestation and maintenance.
Article 10
The standard cost of afforestation shall be fixed in accordance with the tree species to be
planted and the initial plantation densities.
The following items shall be considered as integral to the cost:(a) fencing;
(b) soil preparation;
(c) pest control;
(d) plants;
(e) planting;
(f) replacement of losses;
(g) miscellaneous costs (administration, stationery, fees, etc., which shall be calculated at
10% (ten per cent) of the estimated cost).
Article 11
In addition to the powers and tasks set out in Article 53 of Law No. 15.939, the Honorary
Administrative Board of the Forest Fund shall administer the sums assigned in Article 45.3  of Law
No. 16.002, being responsible for the monitoring and granting of the subsidies established in this
Decree.
Article 12
The aforementioned Honorary Administrative Bo ard shall establish its rules of procedure
within ninety days of its creation.
Its decisions shall be adopted by a majority of the membership.  An alternate member shall
replace a permanent member in the event of the latter's absence.G/SCM/N/95/URY
Page 12
Article 13
Proclaimed, etc.
Julio María Sanguinetti
Pedro BoninoRicardo Zerbino.G/SCM/N/95/URY
Page 13
Decree No. 212/97
Increasing the Subsidy to up to 50 Per Ce nt of the Standard Cost of Planting
Promulgation: 18 June 1997
Publication: 3 July 1997
MINISTRY OF LIVESTOCK, AGRICULTURE AND FISHING
MINISTRY OF ECONOMY AND FINANCE
Having regard to the provisions of Article 251 of Law No. 16.170 of 28 December 1990.
Considering:
(i) That, in accordance with the provisions of Article 45 of Law No. 16.002 of
25 November 1988, owners of agricultural enterprises who plant producing
or protective forests under Law No. 15.939 of 28 December 1987 wereauthorized to receive a subsidy of up to thirty per cent of the standard cost of
planting fixed by Article 42 of that law in the case of those subject to
Agricultural Income Tax (IRA) or Industrial and Commercial Income Tax
(IRIC), and of up to 50% (fifty per cent) in the case of those not subject
thereto;
(ii) That Article 2 of Decree No. 931/88 of 30 December 1988 fixed the subsidy
at 20% (twenty per cent) of the standard cost of afforestation in the case of
forest owners subject to Agricultural  Income Tax (IRA) or Industrial and
Commercial Income Tax (IRIC), and at 50% (fifty per cent) for forest owners
not subject to those taxes;
(iii) That the legal provisions cited in "Having regard to" above increased up to
50% (fifty per cent) of the standard cost of planting the amount of the subsidy
that can be received by owners of agricultural enterprises who plant
producing or protective forests authorized under the aforementioned Forestry
Development Law, No. 15.939 of 28 December 1987;
(iv) That Article 651 of Law No. 16.736 of 5 January 1996 modified the law in
force governing authorized deductions from the Agricultural Income Tax
(IRA), thereby preventing IRA taxpayers from deducting from their gross
income for the fiscal year the cost of planting protective or producing forests
for which they have received the Forest Fund subsidy.
Whereas:
(i) The development of forestry production occupies a predominant place in the
agricultural policy applied by the Government;
(ii) The instruments for such development include subsidies that the State may
grant to agricultural producers;G/SCM/N/95/URY
Page 14
(iii) In view of the exclusion, pursuant to Law No. 16.736, of deductions for the
purposes of determining net income in respect of the Agricultural Income
Tax (IRA), it is appropriate to adjust the amount of the subsidy applicable to
the owners of agricultural enterprises subject to the Agricultural Income Tax
(IRA) and the Industrial and Commercial Income Tax (IRIC) in order to
reflect the new tax reality.G/SCM/N/95/URY
Page 15
In light of the above.
The President of the Republic
HEREBY DECREES:
Article 1
The percentage established in Article 2.1 of Decree No. 931/988 of 30 December 1988 shall
be increased to 50% (fifty per cent).
Forest owners who implemented plantations during the fiscal years up to 31 December 1995
shall continue to be governed by the provisions of Article 2 of Decree No. 931/988 of30 December 1988.
Article 2
Recipients of the subsidy referred to in the first paragraph of the previous Article may not
deduct the cost of planting protective or producing forests from their gross income for the purposes of
paying the Agricultural Income Tax (IRA) or the Industrial and Commercial Income Tax (IRIC), if
applicable.  On applying for the subsidy, they shall accordingly submit to the Honorary
Administrative Board of the Forest Fund a sworn statement attesting to the option chosen in
accordance with the instruction thereon provided by the Board.
Article 3
The Honorary Administrative Board of th e Forest Fund shall communicate to the
Directorate-General of Taxation the names of the enterprises that have received a subsidy togetherwith a copy of the sworn statement to which reference was made in the previous Article.
Article 4
Proclaimed, etc.
Julio María Sanguinetti
Carlos Gasparri
Luis Mosca.G/SCM/N/95/URY
Page 16
LAW No. 17.453 (In Part)
Art. 43- The sum provided for under Article 219 of Law No. 17.296 of 21 February 2001, for
the purpose of providing the benefits established under Article 52 of Law No. 15.939 of
28 December 1987 and the subsidy established under Article 45 of Law No. 16.002 of 24 November
1988, shall be reduced as of 1 January 2004 as follows:
2004 25%
2005 50%
2006 75%
Within 90 days of the adoption of this Law, the Government shall determine the scope, form
and conditions of obtention of the said subsidy for the years 2004 to 2006.  Under no circumstances
may the maximum or annual total amount of the subsidy exceed that provided for in the budget,
taking into account the reduction established in the first paragraph of this article.
Promulgation: 28 February 2002
Published in the Official Journal on 1 March 2002G/SCM/N/95/URY
Page 17
Decree No. 316/992
Promulgation: 07/07/1992 Publication : 25/09/1992
National Register of Laws and Decrees: Volume: 1
Semester: 2Year: 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 growth in exports of productsfrom 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 the exportation of which is encouraged by
this Decree;
(iv) That it is necessary to find mechanisms to prevent distortions which in the process of
restructuring, may be caused by commercial practices such as the importation of usedvehicles or the assembly of vehicles from used parts;
Mindful of the above and of 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 that 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 the
importation of new 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.G/SCM/N/95/URY
Page 18
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 th e f.o.b. value declared in customs declarations.
Enterprises concurrently receiving the benefit provided under Decree No. 558/994 of
21 December 1994 shall reduce the ceiling provided for in the preceding paragraph to US$ 0.07
(seven United States cents) and 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
from the date of the export declaration, fail to make use of the TGA benefit in any of the alternativesenvisaged, may allocate the balances for the payment of taxes due to the Directorate-General of
Taxation.
1
Article 2
The following products shall be considered elig ible 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 composition, shape or structure, provided that theirultimate 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 assembly plants must demonstrate a National or
Regional Value Added, as appropriate, in accordan ce 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.
2
Article 3
The National Department of Industry of the Mi nistry of Industry, Energy and Mines shall
monitor the values imported and exported by the re spective enterprises and shall issue the appropriate
certificates certifying that the importation qualifies for a concession 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 formgiving entitlement to import vehicles assembled in the place of origin, upon presentation of the import
application.
                                                     
1 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.
2 See Article 10.G/SCM/N/95/URY
Page 19
Article 4
The exporting enterprises referred to in Articl e 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
the beneficiaries 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 andauthorize it, where appropriate.
Article 5
(3)
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 Mini stry of Industry, Energy and Mines.
Article 7
The vehicle category G established by Article 1 of Decree No. 128/970 of 13 March 1970 is
abolished.  Articles 7 and 8 of Decree No. 464/978 of 11 August 1978 are revoked.
Article 8
The importation of goods referred to in Article 1 of Decree No. 494/990 of 29 October 1990,
and Article 1 of Decree No. 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 Mi nistry of Industry, Energy and Mines are excluded
from the benefits accorded by Article 5 of Decree No. 393/991 of 29 July 1991.
Article 11
This Decree shall enter into effect upon publication in two newspapers of the capital.
Article 12
Proclaimed, published, etc.
                                                     
3 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.G/SCM/N/95/URY
Page 20
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 MONTERO
Having 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 Market of MERCOSUR has decided (Decree No. 29/994):
(a) To establish a Common Automotive Regime to operate from 1 January 2000;
(b) To establish a provisional regime to operate from 1 June 1995.
(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 that Decree.
(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 theprovisional regime referred to in recital (i).G/SCM/N/95/URY
Page 21
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 consolidating 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  Law 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.G/SCM/N/95/URY
Page 22
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.1
Article 3
(2)
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 at3.3% (three point three per cent).
Article 5
Exporters of products covered by Decree N o. 316/992 of 7 July 1992 who have not had a tax
refund percentage fixed within the context of above-mentioned Decree No. 558/994 and wish to opt
for the accumulation of both benefits under the conditions laid down in Article 3 must apply to the
Ministry of the Economy and Finance with a reasoned request 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 above-
mentioned Decree No. 558/994, the beneficiary en terprises must lodge with the Banco de la
República Oriental del Uruguay a certificate issued by the National Department of Industry of theMinistry of Industry, Energy and Mines, showing that they are operating 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.
                                                     
1 See Article 3.
2 Revoked by Decree No. 60/999 of 3 March 1999, Article 4.  The original text can be viewed in Base
DIAR .  See Articles 5 and 6.G/SCM/N/95/URY
Page 23
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
(1)
Article 2
The National Department of Industry of the Mi nistry 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.
                                                     
1 This Article reworded Decree No. 316/992 of 7 July 1992, Article 1, and should therefore be viewed
in the latter.G/SCM/N/95/URY
Page 24
Article 5
(1)
Article 6
Proclaimed, published, etc.
                                                     
1 Revoked by Decree No. 273/999 of 10 September 1999, Article 1.  The original text can be viewed in
Base DIAR.G/SCM/N/95/URY
Page 25
Decree No. 273/999
Promulgation : 10/09/1999           Publication: 20/09/1999
National Register of Laws and Decrees: Volume: 1
Semester: 2
Year: 1999
Page: 610
SANGUINETTI - JULIO HERRERA - LUIS MOSCA
HAVING REGARD to the regime governing the Automotive Industry and the provisions of
Decree No. 60/999 of 3 March 1999;
WHEREAS it is necessary to main tain in force as from 1 January 2000 the regime governing
the Automotive Industry, with the amendments in troduced by Decree No. 60/999 of 3 March 1999;
ACCORDINGLY
The President of the Republic
HEREBY DECREES:
Article 1
Article 5 of Decree No. 60/999 of 3 March 1999 is hereby revoked.
Article 2
Proclaimed, published, etc.
__________