Uruguay, a member of the Southern Common Market (Mercosur), receives many of its imports from other Mercosur nations. A Mercosur Common External Tariff (CET) on imports from non-member countries entered into force in 1995. Mercosur’s general rule is to apply a higher CET on higher-value-added imports. There are numerous sectoral and national exceptions to Mercosur’s CET diminishing the uniformity of the CET across member countries. Sectoral exceptions apply to capital goods, information technology, and telecommunication goods. At a national level, each Mercosur member may exempt a certain number of goods from the CET. These exemptions, along with various special import regimes, have significantly eroded the CET’s uniform application.  

Mercosur also lacks other mechanisms to become an effective customs union, such as a mechanism to distribute tariff revenues or an updated common customs code – which, despite existing, has not been incorporated into domestic law by Uruguay and Paraguay. Thus, a good imported into a Mercosur country must generally pay another duty if re-exported to another member country.  

In July 2022, the Mercosur Common Market Council approved Decision No. 8/2022, authorizing a 10 percent reduction in the CET for approximately 6,900 Harmonized System (HS) codes. This measure lowered the average CET from 8.5 percent to 7.1 percent. Additionally, the number of items with a 0 percent CET increased from 746 to 2,869. As of April 2025, Mercosur member countries agreed to temporarily extend certain CET exemptions in response to challenging international economic conditions.

Uruguay’s tariff structure comprises 19 rates ranging from 0 percent to 35 percent. According to the World Trade Organization, Uruguay allows a significant number of items to enter duty-free. Products subject to tariffs exceeding 20 percent include sunflower and cardamom oil; soybean oil; margarine and other fixed vegetable fats and oils; milk and cream; mozzarella; cane or beet sugar; fruit and nuts; rubber-soled footwear; and motor vehicles for passengers and goods transport. Many of these items are either on Uruguay’s national list of CET exceptions or are products for which the CET has been temporarily modified. Uruguay’s tariff classifications are based on the Mercosur Common Nomenclature (NCM), itself derived from the international Harmonized System (HS) codes.

Preferential tariffs and tax exemptions are available for certain imports, such as agricultural and hotel equipment, capital goods, and items designated for projects declared of national interest. These incentives aim to promote investment and development in key sectors of the Uruguayan economy.