Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.
Last Published: 10/10/2018

There are no tariffs for products made in the United States that meet NAFTA rules of origin requirements. However, there are several 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 the “What’s My Tariff” tool. For future developments and information on eventual agreements related to the NAFTA renegotiation, check the Fact Sheets and NAFTA pages at the Office of United States Trade Representative at www.ustr.gov. 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 the U.S. International Trade Administration’s page on Mexico Anti-Dumping and Countervailing Duty Measures.

Mexico has implemented the Sectoral Relief Program (PROSEC), which reduces 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 20 different industry sectors and affects 16,000 HS codes. Mexican companies must be registered under this program to participate. In January 2017, the list of PROSEC programs was updated. The complete list of HS codes and sectors that must comply with PROSEC can be found in Annex 10 of the 2018 General Rules for Foreign Trade via the Mexican Tax Administration Service’s website.

All NAFTA-compliant products “definitively” imported into Mexico are no longer assessed 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 (FOB 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. We strongly urge all U.S. companies planning to bring samples, equipment, displays, or any other item into Mexico on a temporary basis to utilize an ATA Carnet. Mexico signed onto the international carnet system in 2014, and companies have had temporary import goods impounded by Mexican Customs when those goods were not accompanied by an ATA Carnet. See our Temporary Entry section below for more information on temporary imports.


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 all of Mexico. 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 foods, and junk foods. This tax may vary from 25 to 160 percent depending on the product.

In 2016, the government officially announced the creation of Special Economic Zones (Zonas Económicas Especiales or ZEEs), which will support the economic development in certain regions and cities around the country. The ZEEs provide incentives to create development projects, enabling investors and entrepreneurs to receive fiscal, financing, and customs benefits during the first eight years of operations. The customs duties for these ZEEs, as well as the VAT, are waived. The current ZEEs are in the Port of Lazaro Cardenas, Istmo de Tehuantepec corridor, and Puerto Chiapas. More details can be found in the Special Economic Zones report.

On June 5, 2018, in response to tariffs implemented by the U.S government applied to products from Mexico, the Mexican government suspended NAFTA preferential duty rate treatment to 71 HS codes, 50 of which correspond to several steel products. Duties range from 5 percent to 25 percent. The complete list of the HS codes affected can be seen via the Mexican Official Gazette for June 5, 2018.

 

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.



Mexico Tariff Rate Quotas Import Duties