Regime on Packaging at Origin for ‘Yerba Mate’

On February 4, 2015 Law No. 27,114 was published in the Official Gazette. The aim of this law is to promote the establishment and development of the Yerba Mate or Ilex Paraguariensis industry in the ‘production region’, comprised of the Argentine Provinces of Corrientes and Misiones.

The law includes the following definitions:

• Packaging at origin: consists of the realization of all the necessary steps for the packaging of Yerba Mate or Ilex Paraguariensis in the region where the plantations of Ilex Paraguariensis are located. The packaging can be carried out in either provinces –Misiones or Corrientes- indistinctly.
• Appellation of origin: refers to the name of a region, province, department, district, town, or area of the country duly registered used to designate a product that is produced in such area, whose qualities or properties significantly or exclusively determined by the geographical environment, including natural factors and human factors.

The law also states in particular that:

1. Any new establishments dedicated to dividing and packaging Yerba Mate for consumption should be set up exclusively within the production region.
2. Companies that currently have packaging plants for Yerba Mate outside the producing region will have sixty (60) months after enactment of the law to file their respective plants within the ‘production region’. The plants located outside the production region whose products consists of a mixture between Yerba Mate and other herbs, fruits, essences and/or flavoring, provided that these herbs, fruits, essences or flavorings represent at least thirty percent (30% ) of the final product for consumption or export are excepted from establishing their plants within the ‘production region’.
3. A National Register for the Promotion of Packaging at Origin is created. Individuals or legal entities involved in the preparation of Yerba Mate who meet the requirements of the Act should register in order to receive credit facilities or other benefits to be set out in the future by the Executive branch.
4. The provinces of Corrientes and Misiones may permit bulk trade when the Yerba Mate is intended for export. In this case, the Yerba Mate may not be subject to any packaging outside the production region until it reaches its final destination abroad. However, bulk marketing and division or packaging outside the production region is permitted provided that the Yerba Mate is intended to be mixed with other herbs when these herbs, fruits, essences or flavorings represent at least thirty percent (30%) of final product intended for consumption or export.

The Executive Branch shall regulate the Law within 180 days of the publication date.