Mexico‘s Ministry of Economy has reversed a tariff reduction program in the apparel industry, including products such as fibers, yarns and fabrics in that sector.
In total, the measure includes 91 tariff items, which would lower their import duties to 20% as of October 1, 2024, according to a decree published in the Official Journal of the Federation (DOF) on November 18, 2022.
The cancellation of this tax relief program was authorized in a decree published in the DOF on Tuesday by the Ministry of Economy.
In order to achieve trade policy objectives, Mexico’s Executive Branch may decree measures to regulate foreign trade on an expedited basis and if it deems it «urgent».
For example, it may modify nomenclature and tariff rates, and restrict or prohibit imports and exports (or transit) of goods.
Since 2017, the Executive Branch has decreed: the increase of tariff rates in order to defend the interests of the domestic steel, aluminum, footwear and textile and apparel industries; and the modification of the tariff nomenclature so that it can be better interpreted, with the objective of providing foreign trade operators with greater clarity regarding requests for tariff concessions or the implementation of new trade agreements.
In addition, the Executive Branch has decided to exempt from tariffs imports of electric vehicles (to comply with obligations under the Paris Agreement) and in 2021, vaccines against the SARS-CoV-2 virus and aluminum oxygen tanks in the wake of the pandemic.
On the other hand, the import and export of pesticides and electric cigarettes and similar electric personal vaporizing devices has been banned to protect human health and the environment.
To import any goods subject to an estimated price, the importer must post a bond.
Since 2019, estimated prices are used for imports of footwear, textiles and apparel, although the legislation allows that they may also be used for vehicles, regardless of the source of the imports.