Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 10/17/2019
U.S. exporters should look carefully at broker fees, transportation costs, and taxes to determine if the product/service can be priced competitively. U.S. companies shipping goods not made in the United States (or goods produced in multiple countries outside NAFTA) could find their products subject to duties. For more information about import tariffs, see the Customs, Regulations & Standards topics in the Trade Barriers section.

It is also important to take into consideration the value-added tax (impuesto al valor agregado or IVA). With a few exceptions for border transactions or re-export, Mexican Customs (Servicio de Administración Tributaria or SAT) collects IVA from the importer on foreign transactions upon entry of the merchandise into Mexico. This IVA is assessed on the cumulative value consisting of the U.S. plant value of the product (Free On Board or FOB price), plus the inland U.S. freight charges, and any other costs listed separately on the invoice, such as export packing and insurance, plus the duty, if applicable. Temporary imports of raw materials intended for export in final goods may be exempt from IVA under certain conditions.

The IVA is 16 percent country-wide. The importer will pay other fees for such services as inland Mexico freight, warehousing, and customs brokerage fees, if applicable. The IVA is a pass-along tax, typically recovered at the point of sale when the product is sold to the end-user. Each time the product is sold the buyer is charged the IVA. If resold, the importing company will then be reimbursed.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.

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