Southern African Customs Union (SACU) - MERCOSUR Preferential Trade Agreement

The Southern African Customs Union (SACU) and MERCOSUR Preferential Agreement entered into force in 2016. The agreement fully or partially eliminates import tariff for most energy products and technologies, including: 

• Nitrogen fertilisers, including Urea, whether or not in aqueous solution;
• Battery cells, including other lead-acid accumulators; 
• Semiconductor, including other types of photo-diode and transistor;
• Heat pumps;

For the products listed above, the agreement qualifies the product as originating and thus benefitting from preferential tariff treatment if the total value of non-originating materials used does not exceed 50% of the price of the product. 

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