Mexico - Import TarriffsMexico - Import Tarriffs
Under the terms of the North American Free Trade Agreement (NAFTA - see “Trade Agreements” section later in this chapter for more information), products made in the United States that meet NAFTA rules of origin requirements face no tariffs. However, there are a number of exceptions and caveats noted below that may affect overall pricing of U.S. exports. See: http://export.gov/FTA/nafta/index.asp for a thorough explanation of NAFTA certificates of origin as well as a “What’s my tariff” tool. A few U.S. exports are subject to antidumping duties that limit access to the Mexican market. A list of these products may be found at:
Mexico has also implemented what are called “Sectoral Promotion Programs (PROSEC),” which reduce Most Favored Nation (MFN) tariffs to zero or five percent on a wide range of important inputs needed by Mexico’s export manufacturing sector. This program includes some 20 different industry sectors and affects 16,000 tariff line items. Mexican companies must be registered under this program to participate.
All NAFTA-compliant products imported “definitively” into Mexico no longer need to pay the customs processing fee (CPF). Products temporarily imported for processing and re-export may be subject to the CPF since the imports are not considered “definitive.” The import duty, if applicable, is calculated on the U.S. plant value (F.O.B. price) of the product, plus the inland U.S. freight charges to the border and any other costs listed separately on the invoice and paid by the importer. These can include charges such as export packaging, inland freight cost, and insurance.
In addition, Mexico has a value-added tax (IVA) on most sales transactions, including sales of foreign products. The IVA rate is 16 percent for the entire Mexican territory. Basic products, such as food and drugs, and some services, are exempt from the IVA. A special tax on production and services (IEPS) is assessed on the importation of alcoholic beverages, cigarettes and cigars. In 2013, IEPS was expanded to include a tax on soda, high calorie food and junk food. This tax may vary from 25-160 percent depending on the product.
Where an "arm’s length" transaction does not exist between seller and importer, such as intra-company sales or transfers, Mexico applies valuation rules that are compatible with the Brussels Customs Valuation Code. Goods for which the NAFTA preferential tariff treatment is not requested are valued on a C.I.F. basis.
Regarding textiles, apparel and footwear U.S. exporters must be aware that On May 10th, 2016 the Ministry of Finance published in the Official Gazette a decree to amend the Import and Export Tariff Law (Tariff de la Ley de los Impuestos Generales de Importacion y Exportacion, TIGIE) for textile & apparel products. The Decree came into effect on June 1st, 2016. For further details please review the chapter Textiles.
Mexico Tariff Rate Quotas Import Duties