The 5 modifications to the import regime for Mexico’s border region

Redacción Opportimes 8 diciembre, 2022

México tramita 5.5 millones de pedimentos de importación. Mexico processes 5.5 million import declarations. Le Mexique traite 5,5 millions de déclarations d'importation. — Photo: Gil y Gil Agentes Aduanales.

The Mexican government has made five modifications to the export and import regime for the border region and the northern border strip.

To begin with, in 2016 it was established that the original list of products subject to preferential treatment, i.e., the list of products included in the Decree establishing the general import tax for the border region and the northern border strip, dated December 24, 2008, would be fully duty-free until December 31, 2019.

Then, in 2019, it was decided to extend the tax relief schedule for some of these products until September 30, 2024 and to tax other products at a rate of 5% until December 31, 2019.

In 2020, the tax relief schedule for some tariff items was again modified.

For tariff items HS 7308.30.02 and 7308.90.99, the tariff rate would be 10% as of September 22, 2021 and 7% as of September 22, 2023, and for other tariff items (HS 7304.19.01, 7304.19.02, 7304.19. 03, 7304.29.99, 7304.39.10, 7304.39.11, 7304.39.12, 7304.39.13, 7304.39.14, 7304.39.15, 7305.20.01, 7306.19.99, 7306.29.99, 7306.30.99 and 7308.20.02), the tariff would be 10% starting September 22, 2021 and 5% starting September 22, 2023.

These items would be duty-free as of October 1, 2024.

Import regime

In 2021, the relief program was again modified in order to establish a favorable environment for the steel industry to adjust to the international economic context and to stimulate the domestic market.

As a result, for certain tariff items related to this item, the tariff would be 10% as of June 30, 2022, 5% as of September 22, 2023, and would be exempt from tariffs as of October 1, 2024.

In 2021, certain HS Chapters 61, 62, 63, 64 and 87 products, such as apparel and textiles, footwear and vehicles, were removed from the list of products eligible for preferential treatment when imported by border companies.

According to the World Trade Organization (WTO), these changes were based on the Decree that modifies and extends the validity of the diverse by which the general import tax for the border region and the northern border strip is established (DOF of November 17, 2016), and Decree by which the Tariff of the Law of General Import and Export Taxes is modified (DOF of November 22, 2021).