Mexico: Decree increases Customs Duties  

April 26, 2024

Galicia Abogados - On 22 April, the "Decree modifying the tariff of the Law of General Import and Export Taxes" (hereinafter the "Decree") was published in the evening edition of the Official Gazette of the Federation, by means of which the general import tax is increased to rates between 5% and 50% for the import of various goods classified in 544 different tariff fractions, in the sectors of steel, aluminium, textiles, clothing, footwear, wood, plastic and its products, chemical products, paper and cardboard, ceramic products, glass and its products, electrical material, transport material, musical instruments, furniture, among others.

The aim of this increase in customs duties is to provide security and fair market conditions for sectors of national industry which are clearly in a situation of practices that alter and affect international trade, in order to promote the development of national industry and support the domestic market.

The decree also states that, due to the increase in nearshoring projects (relocation of production chains to Mexico), it is important to maintain a balanced market interaction and avoid distortions in the domestic market.

The decree states that it is important to maintain a balanced market interaction and to avoid economic distortions that could affect productive sectors considered strategic for the country, as well as attracting new businesses and high value-added industries.

The decree in question annuls the "Decree amending the tariff of the Law on General Taxes of The decree in question leaves in force the "Decree amending the tariff of the law on general import and export taxes" published on 15 August 2023, which had previously temporarily increased the tariffs of 392 tariff lines from 5% to 25%, so that from 23 April 2024 the general tariffs applicable to the goods described in the decree will be those specified in the decree instead of those covered by the decree of August 2023.

It is important to note that the Decree recognises that the tariff preferences provided for in the Free Trade Agreements signed by Mexico may continue to be applied to the importation of goods deemed to originate in the countries that are signatories to these agreements, provided that the corresponding certificates of origin are available.

The Decree will be in force for two years, from 23 April 2024 to 23 April 2026 and can be consulted at the following link.

For further information on the content of this update, please contact the specialists of the Customs and Foreign Trade Department of the firm.

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