EU-Mercosur FTA active · EUDR enforcement underway

Source LATAMFashion.

The sourcing workflow for EU fashion brands importing from Brazil, Argentina, Uruguay, and Colombia. Verified suppliers, compliance documents, freight, and escrow. One platform.

Start Your First Sourcing Lane

Free to join. Commission on orders only. Onboarding as a supplier?

12%

MFN tariff eliminated

HS 61/62 apparel · EU-Mercosur FTA · year one

72h

average DDS filing time

Supplier approval to TRACES NT reference number

14d

Santos to Rotterdam

LCL consolidated, Freightos-booked, pre-cleared

Why the timing matters

EU-Mercosur tariffs started January 2026.

Year 1 reduces HS 61/62 duties from 12% to 10.8%. The rate improves each January. Every quarter sourced at MFN rates is a margin point left behind.

EUDR due diligence is now required.

Due Diligence Statements must be filed before regulated commodities enter the EU. The obligation applies on import. Retroactive filing is not accepted under Article 10.

CSDDD mandatory from 2027.

EU companies above 1,000 employees must have documented supply chain due diligence processes. Supplier verification takes months to establish from zero.

Pilot activity

Brazil · Colombia

Pilot suppliers onboarded

Verified factories in Brazil and Colombia have completed KYB onboarding and EUDR geo-polygon submission.

Active

Initial EU buyers testing workflows

European fashion brands are actively running sourcing and compliance workflows on the platform.

In progress

First transactions in progress

Early orders are moving through the sourcing, compliance, freight, and escrow pipeline end-to-end.

Try it now

Paste a catalog URL. See a sourcing match.

Enter any product URL and click simulate. The output below is a representative mock showing what a real Merco sourcing result looks like.

How an order actually works

See the workflow. Step by step.

Each tab shows what you do, what the platform handles, and the exact output you receive. These are representative samples of real platform output.

Your input

You paste your catalog URL.

What Merco does

The platform parses your product categories, maps HS codes, and scores shortlisted LATAM factories by compliance profile, MOQ, and tariff position using AI-assisted matching.

What you receive

A ranked shortlist of verified factories. You review the profiles and select who to proceed with.

90 seconds

Platform output

Supplier results

HS 6109.10 · Cotton T-shirts · Brazil

8 found · 90s
#1

Cottonline do Brasil Ltda

Score 97
BR · GOLD
BCIEUDRDDSGOTS
MOQ 300 · 25d lead
#2

São Paulo Knitwear Export S.A.

Score 91
BR · SILVER
BCIEUDRDDS
MOQ 500 · 30d lead
#3

Mato Grosso Cotton Mills

Score 78
BR · BRONZE
BCI
MOQ 1000 · 45d lead

Showing 3 of 8 results. You review and select.

How a real order moves through Merco

Example: 10,000 cotton shirts from Brazil to Germany.

This is what a live Merco order looks like mid-pipeline. Status indicators, blockers, and responsible party shown per step.

✓

Buyer submits sourcing request

COMPLETEDBuyer

Category: Cotton T-shirts · HS 6109.10 · 10,000 units · Delivery: Hamburg, DE · Target FOB price range submitted

✓

Suppliers matched and ranked

COMPLETEDMerco

8 verified Brazilian factories scored in 90 seconds · Cottonline do Brasil ranked #1 (score 97) · Compliance profile, MOQ, and tariff position shown

✓

Compliance workflow triggered

COMPLETEDMerco

EUDR geo-polygon verified against Global Forest Watch · DDS drafted and filed to TRACES NT · EUR.1 Rules of Origin confirmed for HS 6109.10

04

Documents collected and structured

IN REVIEWMerco + Supplier

Factory audit report uploaded · Commercial invoice draft generated · Packing list pending final quantities

Blocker: Lab test certificate (OEKO-TEX) not yet uploaded by supplier

05

Shipment coordinated

PENDINGMerco

LCL rate locked via Freightos · Santos (STS) to Rotterdam (RTM) · ETD Apr 15 · ETA May 06 · REF: FQ-AB12CD34

06

Payment secured in escrow

PENDINGBuyer + Merco

$34,200 authorized via Stripe manual capture · 3-milestone schedule defined · Supplier paid per milestone on buyer confirmation

07

Goods delivered

PENDINGBuyer + Partners

Customs cleared at Rotterdam by customs broker · Buyer confirms goods received · Final milestone released · Transaction closed

Structured compliance outputs

Every document traceable. Every status visible.

All compliance outputs are structured, timestamped, and stored against your order. Nothing is a PDF attached to an email.

EUDR Due Diligence Statement

Generated

TRACES NT reference: BR-2026-0042-DDS

Geo-polygon check: CLEAR · 0.0 ha deforested

Doc hash: SHA-256 · 8f3a2c1d...e94b

Rules of Origin · EUR.1 Certificate

Confirmed

HS 6109.10 · Double transformation met

Origin: Brazil · GSP-GEN eligible

Issuing authority: Receita Federal

Supplier Verification Report

Verified

KYB: CNPJ confirmed · EORI on file

Certifications: BCI, GOTS, OEKO-TEX

UFLPA entity check: CLEAR

Lab Test Certificate

Pending upload

OEKO-TEX Standard 100 required

Supplier notified · Due: 5 days

Order on hold until received

Freight Booking Confirmation

Locked

REF: FQ-AB12CD34 · Freightos

Santos to Rotterdam · 21 days

ETD Apr 15 · ETA May 06

Escrow Milestone Ledger

Active

$34,200 held · Stripe manual capture

Milestone 1: $10,260 · Raw materials

Buyer approval required per release

All compliance outputs are structured, traceable, and reviewable. You retain full access and can export at any time.

Roles and responsibilities

What Merco handles. What you own.

Merco is a workflow platform, not a customs broker or legal compliance advisor. This is the exact boundary.

Buyer

  • Commercial owner of the order
  • Final supplier selection
  • Quality inspection and acceptance
  • EU customs import declarations
  • Import duty and VAT payment
  • EU operator of record for compliance

Merco

  • Supplier discovery and ranking
  • EUDR geo-polygon verification
  • DDS drafting and TRACES NT filing
  • Rules of Origin documentation (EUR.1)
  • Freight coordination via Freightos
  • Stripe escrow holding and milestones
  • Audit trail and document storage

Partners (execution)

  • Freightos — freight booking and rate locking
  • Stripe — escrow and payment rails
  • Customs brokers — import clearance
  • Legal advisors — regulatory submissions
  • TRACES NT — DDS portal (EU Commission)
  • GFW — deforestation geo-data

Simple success-based pricing.

Commission on completed orders. No subscription fee. Commission invoiced to buyer; supplier receives net payment.

Learn more

Legal note. The EUDR due diligence obligation under Article 4 rests with the EU operator placing regulated commodities on the market. Merco supports that process with workflow tooling and AI-assisted document preparation. It does not replace legal counsel or constitute a compliance guarantee.

Platform modules

Four systems. One contract.

MODULE 01

AI-Assisted Sourcing

Submit a catalog URL. The platform maps your product categories to HS codes and returns a scored shortlist of verified LATAM factories. Ranked by compliance profile, MOQ fit, and tariff position.

90sURL to supplier shortlist
MODULE 02

Compliance Workflow

Geo-polygon verification, DDS preparation, and TRACES NT filing are handled within the platform. Every document is generated at supplier onboarding and stored with your order. Human review is supported at each stage.

72haverage DDS filing time
MODULE 03

Freight Coordination

LCL consolidation from Santos, Buenos Aires, Montevideo, and Cartagena. Rates sourced via Freightos, locked per order, and tracked through to Rotterdam. Pre-clearance documentation included.

14dSantos to Rotterdam
MODULE 04

Stripe Escrow

Buyer funds are held in Stripe-backed escrow with manual capture. Supplier receives each tranche only after you confirm the corresponding milestone. Full ledger maintained on Merco and Stripe.

$0buyer wire exposure

Expand when ready

Four origins. One operating agreement.

Start with one sourcing lane. Add origins as your portfolio grows. Each market has its own compliance profile, certification stack, and EU tariff trajectory.

BR

Brazil

  • Cotton Textiles
  • Denim
  • Swimwear

2nd largest cotton exporter worldwide

AR

Argentina

  • Leather Goods
  • Footwear
  • Accessories

VISEC-certified bovine traceability

UY

Uruguay

  • Merino Wool
  • Fine Knitwear

WFTO Fair Trade, ZQ Merino certified

CO

Colombia

  • Shapewear
  • Activewear
  • Swimwear

14-day Cartagena to Rotterdam lane

EU-Mercosur FTA · Tariff phase-out · HS 61/62

The tariff window
opened January 2026.

Brazil, Argentina, Uruguay, and Paraguay entered the phase-out schedule. Merco applies the correct annual rate per order and generates EUR.1 certificates at filing. The saving compounds each year.

Rates apply to apparel HS 61/62. Country-specific schedules vary. Merco calculates the applicable rate at order time.

2026NOW

Year 1

10.8%

-1.2% vs MFN

2030

Year 5

6.0%

-6.0% vs MFN

2035TARGET

Full elimination

0%

-12% vs MFN

See full tariff schedules by origin and HS code

Supplier verification methodology

Seven checks before a supplier is listed.

Every factory on Merco passes this sequence before their first listing. The criteria are fixed; they are not adjusted per deal.

EUDR geo-polygons

WGS84 farm coordinates cross-checked against GFW deforestation data

DDS drafted and filed

Due Diligence Statement submitted to TRACES NT at supplier onboarding

CSDDD risk score

AI-assisted 0-100 score across environmental and labour criteria

Rules of Origin

EUR.1 eligibility confirmed per HS code and manufacturing stage

UFLPA forced-labour check

Cross-referenced against UFLPA entity list and supplier graph

Certification audit

BCI, GOTS, WFTO, VISEC, OEKO-TEX validated with expiry tracking

KYB identity

Legal entity, tax ID, EORI number, and MID code verified before listing

Referenced standards

BCI Better CottonWFTOVISEC ArgentinaResponsible Wool StandardOEKO-TEXGOTS

Platform details

Legal entityMerco AG · Zurich, Switzerland
Data ownershipBuyer-owned · exportable at any time
Payment railsStripe Connect · SWIFT bank wires
Methodology refEUDR Art.10 · CSDDD Art.8 · UFLPA guidance

Suppliers can apply to become verified.

LATAM manufacturers and factories apply via a simple contact form. Verification includes KYB, certification audit, and EUDR geo-polygon submission.

Apply as a supplier

Brazil · Argentina · Uruguay · Colombia

Your first LATAM sourcing lane, handled end to end.

Verified suppliers, filed compliance documents, locked freight, and Stripe escrow. One platform. Start with one corridor.

Start Sourcing

No subscription. Onboarding as a supplier?