Mexico’s imports of intermediate goods

The share of intermediate goods imports in Mexico‘s total imports was 74.33% last November, its lowest level since December 2015.

With a total of 419.637 billion dollars from January to November 2023, imports of intermediate goods are an essential part of the production chain in Mexico. 

At a year-on-year rate, that amount had a 4.3 percent drop, according to Inegi data.

What are intermediate goods? Products that are used as inputs in the manufacturing process of other goods or services. 

Some intermediate goods are raw materials, parts, pieces and components, 

For example, electronic integrated circuits, motors, lithium, flat screens, shoe soles, threads, nuts and specialized steels.

Imports of these goods are essential for the production and competitiveness of various industries. 

Imports of intermediate goods

The World Trade Organization (WTO) reports that for several decades, Mexico’s foreign trade policy has focused on eliminating barriers to foreign trade, which has resulted in an increase in Mexican non-oil exports and has led to a greater importance of manufactured goods relative to agricultural products.

In particular, the Foreign Trade Law grants the President broad powers to establish import and export duties, as well as other trade restrictions. 

Also, this law created the Foreign Trade Commission, an administrative body of the Federal Public Administration to conduct mandatory consultations on foreign trade matters, including the imposition of countervailing duties, which are import duties imposed under WTO rules to neutralize the effect of a foreign country’s subsidy on its exports. 

Customs procedures

In addition, the Foreign Trade Law defines and regulates unfair trade practices, thus aligning Mexico’s trade regulatory framework more closely with current international practices and standards.

The legal framework regulating customs procedures in Mexico mainly comprises the Customs Law and its Regulations, the Foreign Trade Law (LCE) and its Regulations; the General Foreign Trade Rules of the Tax Administration Service, which are published annually; the General Foreign Trade Rules and Criteria of the Ministry of Economy and the Customs Resolutions applicable to Free Trade Agreements, issued by the Ministry of Finance and Public Credit.

This legal framework also includes legislation on internal taxes, such as import taxes.