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4.4 Trade Regulations

Eligibility for Conducting Foreign Trade

According to Mexico’s Customs Law, importers must be listed in the registry of importers at the Secretaría de Hacienda y Crédito Público (Ministry of Finance and Public Credit). This requirement does not apply to persons or companies importing for their own use or in the case of goods that are not to be marketed.

Mexico also previously required importers of a broad array of products to be listed in sector-specific registers aimed at detecting fraudulent activities, illegal transhipment and undervaluation of shipments. As of 31 December 2007, Mexico had sector-specific registers in place for such products as beer, wine and liquor, chemical products, pencils, diapers, certain wood, certain household cleaning products, certain textile and apparel products, footwear, steel, bicycles, motorcycles, toys, lighters, radioactive and nuclear products, and certain tools, locks, electronic products, automotive products, paper, school articles and food products. However, this requirement has been eliminated for most importers, with the exception of importers of merchandise that poses a public health or national security risk. The following products were subject to sector-specific registration as of 1 November 2008.

·        Chemical products classified under HTSMX 2803.00.01, 2803.00.02, 2803.00.99, 2812.10.01, 2812.10.02, 2812.10.03, 2812.10.99, 2815.11.01, 2815.12.01, 2847.00.01, 2904.90.07, 2907.11.01, 2914.13.01, 2915.31.01, 2915.32.01, 2915.33.01, 2916.12.01, 2916.12.02, 2916.14.01, 2917.32.01, 2920.90.13, 2921.19.14, 2922.19.37, 2930.90.15, 2930.90.39, 2931.00.02, 3102.21.01, 3206.20.01, 3206.20.02, 3206.20.03, 3903.19.02, 3903.19.99, 3903.90.05, 3903.90.99, 3904.10.03, 3904.10.04, 3904.10.99, 3904.21.99, 3904.90.99, 3912.39.05, 3915.30.01, 3920.59.01, 4002.19.02 and 4004.00.99.

·        Radioactive and nuclear products classified under HTSMX 2612.10.01, 2612.20.01, 2844.10.01, 2844.20.01, 2844.30.01, 2844.40.01, 2844.40.02, 2844.40.99, 2844.50.01 and 9022.21.01.

·        Basic chemicals and chemical precursors classified under HTSMX 2806.10.01, 2807.00.01, 2841.61.01, 2902.30.01, 2909.11.01, 2914.11.01, 2914.12.01, 2914.31.01, 2915.24.01, 2916.34.01, 2922.43.01, 2924.23.01, 2932.91.01, 2932.92.01, 2932.93.01, 2932.94.01, 2939.41.01, 2939.42.01, 2939.49.01, 2939.61.01, 2939.62.01, 2939.63.01, 2926.90.99 (only benzyl cyanide), 2933.32.99 (only piperidine and its salts) and 2939.49.99 (only phenylpropanola and its salts).

In general, import documentation must be submitted by a customs agent or an authorised representative of the importer. Requirements to practice as a custom broker include being a Mexican national by birth. This does not apply to authorised representatives of an importer, however, who are licensed to handle procedures only at a given customs point and for a specific importer.

Importers are also required to comply with a range of requirements. For example, the Customs Law requires importers to: have an inventory control system to differentiate between domestic and foreign goods; have documentation and verification mechanisms in place to determine the country of origin of imported goods for purposes of preferential duty treatment, origin marking, quotas, applicability of anti-dumping duties and any other requirements; provide a declaration to the customs broker or representative with information to determine the customs value of the imported goods; if a customs broker is used, provide the applicable power-of-attorney to the customs broker; and comply with any other applicable requirements.

Import Taxes

Products imported into Mexico for consumption are generally subject to the following taxes and charges: (i) import duties; (ii) value-added tax; (iii) excise taxes for certain products; (iv) customs processing fee; and (v) storage charges.

Import Duties

Mexico affords at least most favoured tariff treatment to all its trading partners. All imports are subject to ad valorem tariff rates, except for certain specific food preparations, fruits, milk products, ethyl alcohol, syrups, used tyres, pick-up trucks/lorries and products containing sugar, which are subject to either specific or compound rates.

According to the WTO, Mexico applied a simple average MFN tariff rate of 11.2% in 2007, down from 16.5% in May 2001. The average applied tariff for non-agricultural products stood at 9.9% in 2007 while the tariff for agricultural goods was 23.0%. Ad valorem rates range from zero to a maximum of 234% for certain poultry products, 245% for certain fresh or chilled potatoes and 254% for certain pig and poultry fat.

A chapter-by-chapter analysis of Mexico’s tariff schedule shows that duties on apparel and footwear (excluding parts) are 35% across the board, duties on textile floor coverings are 20%, and duties on textile made-ups of HS Chapter 63 range from 20% to 35%. Duties on jewellery and electrical and electronic products range from zero to 20%, while duties on toys are generally 15%, with certain exceptions. For their part, leather manufactures of HS Chapter 42 are generally subject to a 35% duty, with certain exceptions.

The Ministry of Economy issued a decree in October 2008 increasing the MFN duty for textile yarns and fabrics to 24%, effective from 24 October 2008 through 11 December 2011. The measure appears to cover most - if not all - yarns and fabrics of Chapters 50 through 56 and 58 through 60. One of the reasons for this increase, according to language included in the decree, is the establishment of transition duties on a range of apparel imports from mainland China. In addition, the decree makes reference to the changing dynamic of international trade and the impact of the current financial crisis on that process.

Duties are generally calculated based on the transaction value of the good, plus its insurance and freight (CIF). The transaction value is applied on a CIF basis except when preferential treatment is requested under a free trade agreement, in which case the basis is the FOB value.

The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to Mexico, plus amounts equal to:

·         the packing costs incurred by the buyer;

·         any selling commission incurred by the buyer.

·         the value, apportioned as appropriate, of any assist;

·         any royalty or licence fee that the buyer is required to pay, directly or indirectly, as a condition of the sale; and

·         the proceeds of any subsequent resale, disposal or use of the imported merchandise that accrue, directly or indirectly, to the seller.

These amounts are added only to the extent that each is not included in the price and is based on information accurately establishing the amount.

When the customs value cannot be determined on the basis of the transaction value, the following methods are to be used in this order: (i) the transaction value of identical goods; (ii) the transaction value of similar goods; (iii) the unit selling price; (iv) the computed value or the previous methods with added flexibility. The order of application of the third and fourth methods may be reversed at the importer’s choice.

In April 2008, Mexico eliminated the estimated price mechanism used to prevent the undervaluation of a range of goods (certain automobiles are still subject to this requirement, however). This mechanism, which covered such products as textiles and apparel, footwear and electronic appliances, required the importer to deposit a security when the declared value was lower than the price estimated by the Ministry of Finance and Public Credit. The security was equivalent to the difference between the duty paid and the duty payable if the value of the imported goods corresponded to the estimated price (including AD or CV duties, when applicable).

In 2000, Mexico established programmes for sectoral promotion (PROSEC) covering specific manufacturing activities. Under these programmes firms registered with the Ministry of Economy can import selected inputs for their production activities at a reduced duty rate. Companies registered under the IMMEX programme to import parts and components to produce export goods may also benefit from the duty concessions established through PROSEC. To benefit from PROSEC, Mexican manufacturers must be duly registered to operate under one of the 22 sectoral programmes. The programme is effective for one year with an automatic renewal every year thereafter.

 

 

Value-Added Tax

Mexico generally applies a value-added tax of 15% on domestic and foreign goods and services. A 10% rate is applied to activities undertaken in the border areas, except property transfers, and a zero rate is applied on the sale of: non-industrialised animal and vegetable products; patented pharmaceuticals; food products (except beverages other than milk, juices, syrups, caviar, smoked salmon, young eels, food additives and appetising substances); ice; certain water; ixtle (a jute-like fibre) and palm; certain agricultural machinery; fertilisers and pesticides; certain greenhouses and irrigation equipment; certain gold and gold jewellery; books, magazines and newspapers; certain domestic services; and exports of goods and services.

For imports, VAT is assessed on the basis of the customs value of the merchandise plus all applicable import duties, including any AD duties.

Excise Taxes

Mexico also applies excise taxes on certain merchandise, as shown in the table below.

Product

Tax

Assessment Basis

Legal Basis

Alcoholic beverages and beer (up to 14 degrees) 1/

25%

Customs value + import duty

Special Tax on Goods and Services Law

Alcoholic beverages and beer (between 14 and 20 degrees) 1/

30%

Customs value + import duty

Special Tax on Goods and Services Law

Alcoholic beverages and beer (higher than 20 degrees) 1/

50%

Customs value + import duty

Special Tax on Goods and Services Law

Alcohol, denatured alcohol and non-crystallised honey

50%

Customs value + import duty

Special Tax on Goods and Services Law

Tobacco products, not wholly hand-made

160% (150% in 2008)

Customs value + import duty

Special Tax on Goods and Services Law

Tobacco products, wholly hand-made

30.4% (28.5% in 2008)

Customs value + import duty

Special Tax on Goods and Services Law

Gasoline and diesel

Rate adjusted on a monthly basis

Customs value + import duty

Special Tax on Goods and Services Law

New automobiles

Varies depending on vehicle’s type and value

Sale price of the vehicle to the final consumer

Federal Law of New Cars Tax

1/ For beer, the rate specified or up to MX$3.00 per litre, whichever is higher.

Source: Special Tax on Goods and Services Law, Federal Law of New Cars Tax.

Customs Processing Fee

The customs processing fee (derecho de trámite aduanero – DTA) varies according to the origin and nature of imports. The general DTA is 0.8% of the declared customs value. Imports under temporary regimes carry a reduced rate of 0.176%, or under certain conditions a specific amount of MX$202 per transaction (approximately US$15-16). Exports are subject to a MX$202 rate, as are imports exempt from import duties. Definitive importations from countries with whom Mexico has a free trade agreement are exempt from DTA. This includes imports from the United States, Canada, Costa Rica, Chile, Colombia, El Salvador, Guatemala, Honduras, Bolivia and Nicaragua, provided they qualify as originating imports under the terms of each respective agreement and are accompanied by the applicable certificate of origin. Originating imports from certain other preferential partners (i.e., Israel, the EU and the European Free Trade Association) are subject to a MX$202 rate, however.

Storage Charges

A storage charge is payable for depositing goods to be imported in the customs in-bond warehouses. Storage is free for the first two calendar days for goods stored in the air and land traffic customs posts and for five days in the case of goods stored in maritime traffic customs posts. At the end of these periods, the rates laid down in the Federal Law on Duty apply. The daily storage rates for every 500 kilograms, or a fraction thereof, are as follows.

·         MX$8.00 during the first 15 calendar days.

·         MX$15.00 during the next 30 calendar days.

·         MX$25.00 each day thereafter.

A rate double the regular rate will apply in the following cases.

·         Merchandise packed in boxes, containers, cartons and other packaging with a volume higher than five cubic metres.

·         Merchandise that must be stored in a safe or kept under special custody.

·         Explosive, flammable, contaminating, radioactive or corrosive merchandise.

·         Merchandise that must be refrigerated or stored in a sterile space or under special conditions.

·         Live animals.

Import Restrictions

Prohibitions

Mexico maintains import prohibitions on 22 tariff items for reasons of public safety, health, morality or child protection. These items are shown in the table below.

Description

HTSMX

Fish predators

0301.99.01

Poppy flour

1208.90.03

Marihuana seeds

1209.99.07

Marihuana plants

1211.90.02

Opium prepared for smoking

1302.11.02

Marihuana saps and extracts

1302.19.02

Marihuana by-products

1302.39.04

Thallium sulphate

2833.29.03

1,4,5,6,7,8,8-Heptachlor-3ª,4,7,7 a –tetrahydro-4,7-

metanoindeno (heptachlor)

2903.52.02

1,2,3,4,10,10- Hexachlor-1,4,4ª,5,8,8ª-hexahydro-endo-endo-

1,4:5,8- dimetanonaftalene (isodrin)

2903.59.03

1,2,3,4,10,10-Hexachlor-6,7-epoxi-1,4,4ª,5,6,7,8,8ª-octahydroendo,

endo-1,4:5,8- dimetanonaftalene (endrin)

2910.90.01

Feniltiophosphonate O-(2,5-dichloro-4-bromophenil)-O-methyl

(Leptofos)

2931.00.05

Heroin

2939.11.01

Cannabis preparations

3003.40.01

Morphine acetyl preparations

3003.40.02

Cannabis preparations

3003.90.05

Morphine acetyl preparations

3004.40.01

Cannabis preparations

3004.40.02

Cannabis preparations

3004.90.33

Raw hides or skins, of turtles or hawksbill turtles

4103.20.01

Transfers (decalcomanias), put up for sale in envelopes or packages, containing pictures, images or illustrations that denigrate or ridicule children, show children inciting violence, self-destruction or any other anti-social behaviour (e.g., “Garbage Pail Kids”)

4908.90.05

Pictures, designs and photographs, put up for sale in envelopes or packages, containing pictures, images or illustrations that denigrate or ridicule children, show children inciting violence, self-destruction or any other anti-social behaviour (e.g., “Garbage Pail Kids”)

4911.91.05

Source: Mexico’s Tariff Schedule.

Quotas

Mexico does not have any quantitative import quotas in place. Mexico does have tariff quotas in place for a range of products, whereby in-quota merchandise benefits for duty-free treatment or a reduced rate of duty. Some of these tariff quotas apply to imports from countries with whom Mexico has signed an FTA.

As part of its WTO commitments, Mexico has tariff quotas in place for several agricultural products including milk powder (HTSMX 0402.10.01 and 0402.21.01), certain cheese (HTSMX 0406.10.01, 0406.30.01, 0406.30.99, 0406.90.03, 0406.90.05 and 0406.90.99) and coffee (HTSMX 0901.21.01, 0901.22.01, 0901.90.01 and 0901.90.99). Mexico also has a range of tariff quotas aimed at guaranteeing the supply of products when domestic production is insufficient to meet domestic demand. These quotas apply to the products shown below.

·        Carnauba wax (HTSMX 1521.10.01).

·        Duck and goose products (HTSMX 0207.33.01).

·        Certain cheese (HTSMX 0406.90.06).

·        Certain coffee extracts (HTSMX 2101.11.01, 2101.11.02, 2101.11.99 and 2101.12.01).

·        Certain oats (HTSMX 1004.00.99).

·        Oilcake and other solid residues resulting from the extraction of soybean oil (HTSMX 2304.00.01).

·        Certain barley (HTSMX 1003.00.02 and 1003.00.99).

·        Malt (HTSMX 1107.10.01 and 1107.20.01).

·        Certain milk preparations (HTSMX 1901.90.05).

·        Certain kidney beans (HTSMX 0713.33.02, 0713.33.03 and 0713.33.99).

·        Certain textured polyester yarn not put up for retail sale (HTSMX 5402.33.01). This TRQ is limited to imports of (i) textured multi-filaments of polyester with a denier equal to or lower than 1.25 (including micro-fibres), (ii) textured filament yarn known as “thick and thin” and (iii) certain textured filament yarn incorporating special features).

·        Certain toys and games (HTSMX 9503.00.01, 9503.00.02, 9503.00.03, 9503.00.04, 9503.00.05, 9503.00.06, 9503.00.07, 9503.00.08, 9503.00.09, 9503.00.10, 9503.00.11, 9503.00.12, 9503.00.13, 9503.00.14, 9503.00.15, 9503.00.16, 9503.00.16, 9503.00.17, 9503.00.18, 9503.00.19, 9503.00.20, 9503.00.21, 9503.00.22, 9503.00.23, 9503.00.24, 9503.00.26, 9503.00.99, 9504.03.99, 9504.40.01, 9504.90.01, 9504.90.02, 9504.90.04, 9504.90.06, 9504.90.99, 9505.90.99, 9506.59.99, 9506.62.01, 9506.69.99, 9506.70.01, 9506.99.06 and 9506.99.99).

·        Certain baby products, including silicone nipples and trainers (HTSMX 3924.90.99), baby bottles of plastic and silicone pacifiers (HTSMX 3926.90.99), baby bottles of glass (HTSMX 7013.37.99), baby carriages (HTSMX 8715.00.10), and high-chairs and baby carriers (HTSMX 9401.80.01).

·        Certain textile yarns and fabrics of Chapters 50 through 56 and 58 through 60.

Licensing Requirements

Mexico maintains import permits for sensitive products for reasons of national security, public health and protection of domestic industries. The following imports from MFN sources require a permit if entered under the definitive importation regime.

Description

HTSMX

Petrochemical products

2709.00.01, 2709.00.99, 2710.11.03, 2710.11.04, 2710.19.04, 2710.19.05, 2710.19.08, 2711.12.01, 2711.13.01, 2711.19.01, 2711.19.03, 2711.19.99, 2711.29.99

Used pneumatic tyres

4012.20.01, 4012.20.99

Used clothing

6309.00.01

Diamonds 1/

7102.10.01, 7102.21.01, 7102.31.01

Certain anti-pollution equipment

9806.00.02

Certain merchandise for technological research or development

9806.00.03

Used vehicles

8701.20.01, 8702.10.01, 8702.10.02, 8702.10.03, 8702.10.04, 8702.90.01, 8702.90.02, 8702.90.03, 8702.90.04, 8702.90.05, 8703.10.01, 8703.10.99, 8703.21.99*, 8703.22.01*, 8703.23.01**, 8703.24.01**, 8703.31.01*, 8703.32.01**, 8703.33.01**, 8703.90.01, 8703.90.99, 8704.21.02, 8704.21.03, 8704.21.99, 8704.22.02, 8704.22.03, 8704.22.04, 8704.22.05, 8704.22.06, 8704.22.99, 8704.23.99, 8704.31.03, 8704.31.04, 8704.31.99, 8704.32.02, 8704.32.03, 8704.32.04, 8704.32.05, 8704.32.06, 8704.32.99, 8705.10.01, 8705.20.01, 8705.20.99, 8705.40.01, 8705.90.01, 8705.90.99, 8706.00.01, 8706.00.02, 8706.00.99

1/ Permit also required for merchandise imported under the temporary regime.

* Except go-karts.

** Except certain family/station-wagon-type vehicles for funerary purposes.

Source: Annex 2.2.1 – Agreement by which the Ministry of Economy issues general rules and criteria on foreign trade.

Permits are also required for some products imported under Mexico’s sectoral promotion programme (HTSMX 9802.00.01, 9802.00.02, 9802.00.03, 9802.00.04, 9802.00.05, 9802.00.06, 9802.00.07, 9802.00.08, 9802.00.09, 9802.00.10, 9802.00.11, 9802.00.12, 9802.00.13, 9802.00.14, 9802.00.15, 9802.00.16, 9802.00.17, 9802.00.18, 9802.00.19, 9802.00.20, 9802.00.21, 9802.00.22, 9802.00.23 and 9802.00.24) and certain products imported under various trade arrangements.

Import permits are issued by the Ministry of Economy and are generally valid for one year, with certain exceptions. For example, import permits for used clothing are valid for three months while permits for used tyres to be commercialised in certain regions of the country are valid through 31 December of each year. In general, import permits are established for a given quantity, value and type of merchandise and are nominative and non-transferable. Import permits for used clothing are only granted in the event of a national emergency or national disaster (a maximum of five kilograms of used clothing per affected person) while permits for used vehicles are restricted in various ways to protect the domestic industry.

Port Restrictions

Imports of certain radioactive and nuclear goods and chemical precursors must be processed by specific ports, as follows.

HTSMX Classification

Customs Ports

Radioactive and nuclear products classified under HTSMX 2844.10.01, 2844.20.01, 2844.30.01, 2844.40.01, 2844.40.02, 2844.40.99, 2845.10.01, 2846.90.02, 8401.10.01, 8401.20.01, 8401.30.01, 8401.40.01 and 9022.21.01

Altamira, Ciudad del Carmen, Ciudad Hidalgo, Ciudad Juárez, Ciudad Reynosa, Colombia, Guadalajara, Lázaro Cárdenas, Manzanillo, Mexicali, Monterrey, Nogales, Nuevo Laredo, Piedras Negras, Subteniente López, Tijuana, Toluca, Veracruz, Aeropuerto Internacional de la Ciudad de México

Chemical precursors classified under HTSMX 2914.31.01, 2924.23.01, 2926.90.99 (only benzyl cyanide, its salts and by-products), 2932.91.01, 2932.92.01, 2932.93.01, 2932.94.01, 2939.41.01, 2939.42.01, 2939.49.01, 2939.61.01, 2939.62.01 and 2939.63.01

Aeropuerto Internacional de la Ciudad de México, Manzanillo, Nuevo Laredo (except HTSMX 2939.42.01), Veracruz

Source: Annex 21 – General Foreign Trade Rules for 2008.

Trade Remedies

Anti-dumping (AD)/Countervailing (CV)

The Ministry of Economy, through its International Trade Practices Unit (UPCI), has the authority to conduct AD and CV duty investigations. The UPCI is responsible for decisions on dumping, subsidies, material injury and duty determination. Preliminary determinations of injury and dumping must be issued within 90 working days from the date of initiation of the investigation, while final measures must be issued within 210 working days from the date of initiation. AD/CV duty orders are issued for a period not to exceed five years and may be renewed or revoked following the completion of a sunset review. Administrative reviews of AD/CV duty orders may be conducted on an annual basis and may be initiated at least one year after the initial establishment of the AD/CV measures or the date of completion of the previous administrative review, as applicable.

On 1 June 2008, Mexico and China signed an agreement under which Mexico has eliminated or will gradually reduce the AD duties on imports of a broad range of products from the mainland. Mexico was required to modify or review the AD duty orders in place on these products by 11 December 2007, as part of a commitment it made during China’s WTO accession. As expected, several Mexican sectors pushed for these protections to be extended and a compromise was ultimately reached with China, avoiding a potential WTO dispute settlement action.

As part of the agreement, 73% of Mexico’s AD duties on imports from China (covering 749 tariff lines) were eliminated on 15 October 2008. This action covered products such as certain organic chemicals, certain textiles and apparel, certain footwear, brass padlocks, and certain tools, toys, bicycles, and electrical machinery and equipment. A list of these tariff lines is shown in Appendix 4-3.

The vast majority of the remaining 27% of the AD duties (covering 204 tariff lines) have been rescinded and replaced with so-called “transition duties,” also effective from 15 October 2008. These duties, which are generally significantly lower than the AD duties that were previously in place, will be phased out over a three-year period and apply to a range of products, including certain organic chemicals, certain textiles and apparel, certain footwear, certain tools, certain electrical machinery and equipment, baby carriages, door knob locks, pencils, non-refillable pocket lighters, and certain bicycles, toys and iron and steel valves.

For example, the transition duties for certain apparel were set at 140% as of 15 October 2008, falling to 130% on 12 December 2008; 120% on 12 December 2009; and 80% on 12 December 2010. The transition duties for certain footwear were initially set at 100% and will be reduced to 95% on 12 December 2008; 90% on 12 December 2009; and 70% on 12 December 2010. The transition duties on certain toys start at 100% and will be reduced to 87.5% on 12 December 2008; 75% on 12 December 2009; and 50% on 12 December 2010. The transition duties will be eliminated on 12 December 2011.

Products like ballasts (HTSMX 8504.10.01 and 8504.10.99), candles (HTSMX 3406.00.01) and certain electrical machinery and equipment (HTSMX 8501.52.04, 8501.53.04 and 8515.90.01) are fully shielded, which means that the transition duties on these products have been set at fairly high rates and will remain unchanged until their elimination on 12 December 2011. Pencils classified under HTSMX 9609.10.01 will also be heavily protected during the transition period, with duties initially set at 350% and falling to 300% on 12 December 2008; 275% on 12 December 2009; and 250% on 12 December 2010.

A list of the tariff lines subject to “transition duties” is available in Appendix 4-4.

Finally, the AD agreement precludes Mexico from renewing the transition duties or imposing any trade remedies against the products that will be afforded duty protection through 11 December 2011.

The regulation published by the Mexican government to implement these commitments includes several additional provisions of interest, summarised below.

·          A number of products have been specifically exempted from the transition duties, including certain toys and Christmas articles (including goods entered under a special tariff-rate quota or having an “exclusive product” exemption), wedding dresses classified under HTSMX 6204.43.99, certain baby carriages classified under HTSMX 8715.00.01 and certain electric grills and roasters classified under HTSMX 8516.60.01.

·          The regulation implementing the transition duties will not apply to the apparel products shown below until such time as the Ministry of Economy issues a notice to that effect in Mexico’s official gazette (Diario Oficial de la Federación). As a result of this decision, these products will remain subject to AD duties of 533% until further notice.

o   HTSMX 6109.10.01 – cotton knitted t-shirts, singlets, tank tops and similar garments

o   HTSMX 6109.90.01 – man-made fibre knitted t-shirts, singlets, tank tops and similar garments

o   HTSMX 6109.90.99 – knitted t-shirts, singlets, tank tops and similar garments, other than of cotton, man-made fibres or containing more than 70% by weight of silk

o   HTSMX 6110.20.99 – cotton knitted garments of subheading 6110.20, with the exception of sweaters, pullovers and vests

·          The transition duties on products classified under HTSMX 2920.11.02 and 3808.50.01 will be suspended until Mexico resumes domestic production of methyl parathion.

·          The transition duties on certain footwear will be assessed on the difference between the customs value of the good and a specific minimum reference value for that good. Transition duties will not be assessed in instances where the customs value is higher than the minimum value. The HTSMX tariff lines covered by this measure are 6402.19.03 (US$16.59/pair), 6402.19.99 (US$16.59/pair), 6402.20.01 (US$16.59/pair), 6402.91.01 (US$16.59/pair), 6402.99.01 (US$16.59/pair), 6402.99.02 (US$16.59/pair), 6402.99.03 (US$16.59/pair), 6402.99.04 (US$16.59/pair), 6402.99.05 (US$16.59/pair), 6402.99.99 (US$16.59/pair), 6403.19.02 (US$14.86/pair), 6403.40.01 (US$22.26/pair), 6403.59.99 (US$22.26/pair), 6403.91.03 (US$22.26/pair), 6403.91.99 (US$22.26/pair), 6403.99.02 (US$22.26/pair), 6403.99.03 (US$22.26/pair), 6403.99.04 (US$22.26/pair), 6403.99.05 (US$22.26/pair), 6404.11.01 (US$17.93/pair), 6404.11.02 (US$17.93/pair), 6404.11.03 (US$17.93/pair), 6404.11.99 (US$17.93/pair), 6404.19.02 (US$17.93/pair), 6404.19.03 (US$17.93/pair) and 6404.19.99 (US$17.93/pair). Notwithstanding this provision, the transition duties will be assessed on the basis of the customs value for footwear with uppers of canvas classified under HTSMX 6404.11.01, 6404.11.02, 6404.11.03 and 6404.11.99.

As of 30 November 2008, Mexico applied the following AD measures on imports from mainland China and Hong Kong (Note: a list of products subject to transition duties is included in Appendix 4-4). No CV or safeguard measures were in force as of that date.

 

AD Duty Orders in Place as of 30 November 2008

Product

HTSMX

AD
Measures

Date of Imposition/
Renewal

Date of Expiry

Hong Kong

Denim

5209.42.01

47%

11/08/05

11/08/10

Mainland China

Galvanised hexagonal steel wire mesh 1/

7314.19.03, 7314.31.01, 7314.41.01, 7314.49.99

US$2.80/kg

24/07/02

1/

Steel chain with welded links

7315.82.02

US$0.72/kg

17/07/03

1/

High carbon ferro-manganese 1/

7202.11.01

54.34%

25/09/03

1/

Sodium hexameta-phosphate

2835.39.02

102.22%

03/08/04

03/08/09

Carbon steel connections for welding

7307.93.01

US$2.07/kg

04/08/04

04/08/09

Certain knitted apparel

6109.10.01, 6109.90.01, 6109.90.99, 6110.20.99

533%

2/

2/

Concrete steel nails

7317.00.99

US$0.50/kg

29/11/04

29/11/09

Hydraulic bottle jacks

8425.42.02

US$18/unit

23/09/05

23/09/10

Mushrooms of the genus Agaricus 3/

2003.10.01

US$0.2476/kg (Calkins &
Burke Limited); US$0.4484/kg (China-wide)

17/05/06

17/05/11

Plastic pencil sharpeners

8214.10.01

US$10/kg

12/06/06

12/06/11

1/ A sunset review of these AD duty orders is currently under way. Each order will remain in place until its respective review has been completed.

2/ The regulation implementing the transition duties will not apply to the apparel products shown below until such time as the Ministry of Economy issues a notice to that effect in Mexico’s official gazette. As a result of this decision, these products will remain subject to AD duties of 533% until further notice. Once a notice is published, the AD duties will be rescinded and only HTSMX 6109.10.01, 6109.90.01 and 6110.20.99 will be subject to transition duties.

3/ A changed circumstances review of this AD duty order is currently under way.

Source: Ninth Modification to the Agreement by which the Ministry of Economy issues general rules and criteria on foreign trade. Diario Oficial de la Federación.

AD Investigations under Way as of 30 November 2008

Product

HTSMX

Preliminary
AD Margins

Date of Initiation

Valves without caps and plastic atomisers

9616.10.01

114%  1/

17/10/07

1/ Preliminary determination issued on 17/12/08. The preliminary margin applies only to imports of plastic atomisers.

Source: Ministry of Economy.

Non-preferential rules of origin apply to products subject to AD/CV duties or transition duties. Mexico previously maintained comprehensive origin certification requirements for products identical or similar to those subject to AD/CV duties. For example, imports of textiles, apparel and footwear had to be accompanied by specific certificates of origin (known as an Annex III certificate of origin) while other products had to be accompanied by a declaration of origin. However, the Mexican government issued two separate regulations, on 14 April 2008 and 17 July 2008, that eliminate the requirement for importers to submit an Annex III certificate of origin or a declaration of origin with the import declaration. Importers are now required to list the applicable country of origin on the import declaration, as determined under these non-preferential rules of origin.

It should be noted that if imported merchandise is labelled as originating from a location that is subject to AD/CV duties or transition duties, that merchandise will be liable for AD/CV duties or transition duties, as applicable, regardless of whether a different country of origin is listed on the import declaration.

Preferential Treatment

Over the past two decades Mexico has developed an extensive web of FTAs with a fairly diverse range of partner countries in the Americas, Asia and Europe. Mexico has FTAs in place with the United States and Canada (North American Free Trade Agreement), Central America’s Northern Triangle (El Salvador, Honduras and Guatemala), Bolivia, Chile, Colombia, Costa Rica, the European Union, European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland), Israel, Japan, Nicaragua and Uruguay. Mexico has also concluded partial preferential trade agreements with Mercosur, Brazil, Argentina, Peru, Ecuador, Paraguay and Panama and is currently negotiating an FTA with South Korea. Mexico previously had an FTA in force with Venezuela but Venezuela withdrew from the agreement on 19 November 2006.

Product Standards/Certification Requirements

Mexican product standard regulations are classified in three categories: technical regulations (Official Mexican Standards – NOMs), standards (Mexican Standards – NMXs) and reference standards (NRs). Technical regulations, which are mandatory for both domestically-produced and imported merchandise, aim to establish rules and specifications for goods, services or processes to ensure safety, the protection of human life, animals, plants or the environment or prevent deceptive practices. Standards are used as guidelines for consumers and producers and as instruments of quality promotion. In general standards are voluntary, except when their application is required in a technical regulation or when producers or retailers state that their goods and services comply with a specific standard. Preliminary draft technical regulations are developed by federal administration agencies and submitted to national standardisation advisory committees.

Products subject to technical requirements include, but are not limited to, certain animal and vegetable products; pigments, paints and varnishes; certain fertilisers; various preparations; matches; hydraulic brake fluids put up for retail sale; toilets; prefabricated septic tanks; pneumatic tyres; electric blankets; portable containers for liquefied petroleum gas; cooking appliances; wire for electrical use; certain bath ware; cosmetics; pumps for measuring and dispensing fuels; leather products; textiles and apparel; footwear; toys; certain motors; lamp ballasts; transformers; converters; safety belts; road wheels; baby carriages; measuring tapes; firearm replicas; certain lighting fixtures; certain other instruments and apparatus; and a range of non-electrical, electrical and electronic machinery including such items as fans, air purifiers, air conditioners, water heaters, refrigerators, freezers, coffeemakers, dishwashing machines, weighing machinery, certain hydraulic equipment, certain food preparation machinery, printing and copying equipment, washing and bleaching machines, sewing machines, electromechanical domestic appliances, shavers, telephone sets, sound/video recording/reproducing apparatus, radio reception apparatus, TV reception apparatus, monitors, automatic data processing machines, electronic cameras, valves, vacuum cleaners, and electric drills and saws, among others.

Some of the more relevant technical regulations currently in force include NOM-001-SCFI-1993 (safety of household electronic apparatus), NOM-019-SCFI-1998 (safety of data processing equipment), NOM-016-SCFI-1993 (safety of electronic office equipment), NOM-003-SCFI-2000 (safety of electrical equipment), NOM-024-SCFI-1998 (commercial information in packaging, instructions and warranties of electrical and electronic products), NOM-086-SCFI-2004 (safety of automobile tyres) and NOM-086/1-SCFI-2001 (safety of lorry tyres).

Some of the more relevant NOMs that deal specifically with labelling issues are covered in the section on Labelling. Most if not all of the regulations mentioned in the previous paragraph also incorporate certain marking requirements.

Labelling

Mexico has labelling regulations in place for a broad range of products. Some of these labelling requirements are summarised below.

General Requirements

NOM-050-SCFI-2004 establishing general packaging and labelling requirements applies to domestically-produced and imported products that are not subject to more specific labelling requirements through a separate NOM. The requirements apply to finished products destined for the final consumer and do not cover bulk products, live animals, books and periodical publications, and certain parts identified with a part or bar code acquired through catalogues to repair or service products.

In general, the information provided must be true and described and presented in a manner in which the consumer is not misled as to the nature and characteristics of the product. Covered products must include at least the following information in their labels.

·         Name or generic name of the product when the product is not easily identifiable at first glance by the consumer. A product is deemed to be “easily identifiable at first glance” if the contents can be seen by the consumer or if the packaging includes a graphical depiction of the product, as long as the packaging does not include depictions of other products.

·         Indication of quantity in accordance with NOM-030-SCFI, with the understanding that an indication of quantity is not necessary if the content or number of units can be identified at first glance. Multiple or collective containers whose content is not identifiable at first glance must bear an indication of quantity.

·         Name, trade name or corporate name and fiscal domicile of the manufacturer or the entity responsible for the domestic manufacture of the products or the importer. In the case of imported products, this information may be incorporated to the product in Mexico, after customs clearance but prior to the commercialisation of the product. Such information must be provided to the Ministry of Economy by the importer upon request.

·         Country of origin.

·         Warnings of risks in the case of hazardous products, to be indicated in printed texts, graphically or by means of warning symbols.

·         Should the use, handling or conservation of the product require instructions, such information must be provided or indicated in an instruction sheet or operating manual enclosed with the product, with the text on the respective label making reference to the attached instructions or operation manual.

·         As applicable, the date of expiration or optimum period of consumption.

When the required commercial information is included on the container or packaging that will be presented to the consumer, it is not necessary to include that information on the surface of the product itself.

The required information must be in Spanish (if so desired, this information may be in another language in addition to Spanish) and expressed in comprehensible and legible terms in a manner that the size and type of letters allow the consumer to read the information at first sight. The information must comply with the provisions of NOM-008-SCFI regarding units of measurement and NOM-030-SCFI regarding quantity labelling, without prejudice to additionally expressing this information by means of other unit systems. NOM-030-SCFI sets forth the content, placement and dimensions of quantity information that must be borne by pre-packaged products, as well as the units of measure that must be employed. Among other things, it requires the net quantity and drained quantity (if applicable) to be shown free of visual obstructions on the main display surface. 

The required information must be applied to each unit or multiple or collective container in a manner in which the label will remain fixed to the product until the time of its use or consumption under normal conditions has been effected. The standard also requires that the information be placed in the principal area of exhibition, at least in the case of the generic name of the product and the indication of quantity.

The instructions, operating manuals and warranties must be in Spanish and presented in accordance with the General System of Units of Measurement, without prejudice to additionally expressing such information in other languages and by means of other unit systems. Such instructions, operating manuals and warranties must include clear and exact indications for the normal use, handling, conservation and assembly of the products, as well as any applicable warnings.

Pre-Packaged Food and Non-Alcoholic Beverages

NOM-051-SCFI-1994 establishes specific labelling requirements for domestically-produced and imported pre-packaged food and non-alcoholic beverages. The requirements apply to finished products destined for the final consumer and do not cover bulk products and products that are subject to more specific labelling requirements through a separate NOM.

In general, the information provided must be true and described and presented in a manner in which the consumer is not misled as to the nature and characteristics of the product. Covered products must include at least the following information in their labels.

·         Name or generic name of the product.

·         List of ingredients (not required when there is a single ingredient).

·         Net quantity and drained quantity in General System of Units of Measurement in accordance with NOM-030-SCFI, without prejudice to additionally expressing this information by means of other unit systems.

·         Name and fiscal domicile. For imported products, the name, trade name or corporate name and fiscal domicile of the importer must be included. This information may be incorporated to the product in Mexico, after customs clearance but prior to the commercialisation of the product.

·         Country of origin.

·         Batch identification.

·         Date of expiration.

Nutritional information may be included on a voluntary basis and is only required when any nutritional properties are declared. The inclusion of an optimum consumption date is also voluntary.

The required information must be applied to each unit or multiple or collective container in a manner in which the label will remain fixed to the product until the time of its use or consumption under normal conditions has been effected. The information must be provided in clear, visible and indelible characters and in contrasting colours in order to allow the consumer to easily read that information. The standard also requires that at least the brand and denomination of the product be placed in the principal area of exhibition.

The required information must be in Spanish, without prejudice to additionally expressing this information in another language.

NOM-051-SCFI-1994 also explicitly prohibits the inclusion of certain statements.

Textiles and Apparel

NOM-004-SCFI-2006 establishes specific labelling requirements for textiles and apparel. These requirements apply to apparel, apparel accessories, textile products and home textiles having a textile content greater than 50% of the product’s total weight. A number of products are excluded from the regulations, including electric blankets, disposable diapers, sanitary towels, wet towels, toys made from textile materials, costumes, furniture, badges, flags, closures and zippers, buttons and buckles, certain watch parts of textile materials, certain cloths, kitchen gloves and makeup bags.

The labelling requirements are fairly detailed and contain a range of requirements and exceptions. In general, apparel and apparel accessories must bear a permanent, legible label on the collar, waist or another visible location with the information listed below in Spanish (if so desired, this information may be in another language in addition to Spanish).

·         Commercial brand name.

·         Fibre content, in accordance with Mexican Standard NMX-A-099-1995-INNTEX.

·         Size.

·         Care instructions, in accordance with Mexican Standard NMX-A-240-INNTEX-2004.

·         Country of origin.

·         For physical persons (individuals), manufacturer’s or importer’s name and address. For legal entities (companies), manufacturer’s or importer’s corporate name and address. This information must be included on the permanent label, a temporary label or the product’s closed packaging.

In the case of hosiery and socks, headbands and wristbands, the information above may be included in a permanent or temporary label on the product itself or on the product’s packaging.

Labels for home textiles must also include the information listed above, except that the product’s dimensions must be included in lieu of the size. A permanent label with this information must be affixed to the following items: bed sheets, blankets, bedspreads, coverlets, tablecloths, placemats, napkins, made-up curtains, towels, mattresses and mattress bases made from or covered with a textile material. The products’ dimensions and the manufacturer’s/importer’s information may be included on a temporary label on all these products except bedspreads and blankets, where that information appears not to be necessary.

For handbags, luggage, purses, wallets, cases, backpacks, umbrellas, seat covers, cushions, cleaning supplies, textile belts, diapers, bibs, artists’ canvas, covers for household goods, furniture and bathroom furniture, certain fabrics for retail sale with a fibre content of 45% or more by weight of combed wool, and other miscellaneous items, the following information must be included on a permanent or temporary label.

·         Fibre content.

·         Country of origin.

·         For physical persons (individuals), manufacturer’s or importer’s name and address. For legal entities (companies), manufacturer’s or importer’s corporate name and address.

The information above must be presented on a permanent or temporary label adhered or tied to the product in the following cases: fabrics, carpets and rugs, wigs, bow ties, hair products (except those that must be packed in bulk quantities due to their small size) and disposable articles. In the case of disposable articles, this information can be included on the product’s packaging.

Leather Goods and Footwear

NOM-020-SCFI-1997 establishes specific labelling requirements for leather and man-made materials with a leather appearance, footwear and goods made from such materials. These products must include the following information in Spanish.

·         Name, trade name or corporate name of the domestic producer or importer or its registered brand.

·         Country of origin.

·         Generic or specific definition of the materials and, on a voluntary basis, the product’s finishing. This information may be included on a label.

The required information must be marked permanently in a visible location. The regulations require that the composition of the principal elements of articles made from leather or leather-like materials be provided. For footwear this includes the upper, lining and outersole. For leather clothing it includes the lining and outer material.

Toys

On 17 April 2008, the Mexican government issued a technical regulation (NOM-015-SCFI-2007) that amends in various ways the labelling requirements for toys, effective from 17 January 2009. The regulation only made a few changes to the previous labelling regulations. For example, it added a new provision that requires the inclusion of certain additional commercial information on the battery and electrical power features of toys. The regulation also clarified that warnings on small parts only have to be included if the toy contains such parts and is intended for children younger than five years of age. Toys intended for children three years of age and younger cannot include small parts, however.

A summary of the new labelling requirements for toys is provided below.[1]

In general, NOM-015-SCFI-2007 requires any information included on toys to be truthful and to be presented in such a way as to avoid a deceitful misrepresentation of the toy’s nature and characteristics. The information must be presented in Spanish and must comply with the provisions of NOM-008-SCFI-2002 regarding units of measurement, without prejudice to additionally expressing this information in another language and/or by means of other unit systems.

The following commercial information must be included on the toy’s packaging.

·         Generic name of the product when the product is not easily identifiable at first glance by the consumer.

·         Written or graphical indication of quantity, with the exception of: (i) toys commercialised per numerical unit in packages whose contents are clearly visible; and (ii) toys commercialised per numerical unit in packages whose contents are obvious but not clearly visible, and which contain one single item. Toys commercialised in units of mass or volume have to include the quantity in written form.

·         For toys manufactured in Mexico, the manufacturer’s name, address and corporate name. In the case of imported toys, this information must be submitted by the importer to the Ministry of Economy or the Federal Consumer Agency (Procuraduría Federal del Consumidor) at the request of either one of these bodies. The Ministry of Economy or the Federal Consumer Agency are required to provide this information to consumers who have any complaint on the product and request the information.

·         For imported toys, name, trade name or corporate name and address of the importer. This information may be incorporated to the product in Mexico, after customs clearance but prior to the commercialisation of the product.

·         Country of origin.

·         Legend or symbol indicating the manufacturer’s recommended age for the toy.

·         If applicable, the type and quantity of batteries or any other power source equal to or lower than 24 volts.

·         If applicable, the electrical power features of the toy if it requires more than 24 volts for its operation.

The regulations also establish several miscellaneous requirements, including the following.

·         Toys that need to be assembled must include assembly instructions or a written or graphical explanation on the packaging or in a separate document of how the product is assembled. If the toy needs to be assembled by an adult, a reference to that effect has to be included.

·         Slides, swings, rings, trapezes, ropes and similar toys that are fixed to a portico must come with instructions advising consumers to verify and give periodic maintenance to their principal components (suspensions, bindings, anchor mechanisms, etc.) The instructions must also inform consumers of the risk of a fall or tip-over hazard if periodic verifications are not performed and identify any parts of the toy that may pose a hazard to consumers.

·         The instructions or packaging for toys with projectiles must warn consumers not to use projectiles other than those supplied or recommended by the manufacturer, as well as to refrain from firing at animals or people.

·         Explosive capsules included with toys must include a warning notice to prevent these capsules from being detonated near flammable materials or a person’s eyes or ears, as well as from being carried in a pocket.

·         Imitations of protective gear must include a warning notice to inform consumers that the toy does not provide protection in case of accident.

·         Roller skates and skateboards for children distributed as toys must include a warning notice informing consumers that they must be used with adequate protective equipment. 

·         Inflatable aquatic toys must include a warning notice indicating that these products are toys and must be used under adult supervision.

·         Toys to be attached to cribs or baby carriages by means of a rope, elastic, thread or ribbon must include a warning notice to avoid potential risks for infants.

·         Scientific toys must comply with a broad range of specific requirements.

·         Costumes (disguises) must include a warning notice advising consumers not to use the costume near a fire.

·         Tents and toy houses for children must include a warning notice advising consumers not to use the product near a fire.

·         Toys performing or imitating the functions of products or apparatus designed for adults must include a warning notice advising consumers to use the product under adult supervision. In addition, they must include instructions on their use and safety measures that users would be required to follow, making clear that users could be exposed to inherent hazards if these safety measures are not followed. Lastly, the instructions have to indicate that the toy must be kept out of the reach of children under the manufacturer’s recommended age.

Toys are required to include separate instructions or include those instructions on the packaging at no additional cost. Such instructions have to incorporate clear and precise directions for the normal use and conservation of the toy, as well as any necessary warnings for the safe and reliable use of the product.

Paints and Varnishes

In August 2008, Mexican authorities amended the labelling requirements for paints, varnishes, ink, lacquer and enamels to include certain health-related provisions. The new regulations, as set forth in NOM-033-SSA1-2006, will require both lead-containing and non-lead-containing products formulated with a solvent, an aqueous solution or a vegetable oil solution to include certain cautionary and health information. This information must be preceded by the word “ADVERTENCIA” (WARNING) and must account for 5% to 20% of the total surface of the label, depending on the characteristics of the product. The information must be presented in Spanish and, in the case of imported merchandise, it must include country of origin information and the importer’s name and address. These products must also comply with NOM-050-SCFI-2004, which is the standard that establishes general packaging and labelling requirements for domestically-produced and imported products.

NOM-033-SSA1-2006 is scheduled to enter into force on 5 February 2010.

Medical Devices

In April 2008, the Mexican government issued a proposal (PROY-NOM-137-SSA1-2005) that would amend the current labelling requirements for domestically-produced and imported medical devices, as set forth in NOM-137-SSA1-1995. The requirements would apply to all types of medical devices, including medical equipment, prostheses, orthoses, materials used in dental care, functional aids, diagnostic devices, surgical materials, healing materials and hygienic products.

The proposed regulations are fairly detailed and contain a range of requirements. In general, they would require any information included on medical devices to be presented in Spanish in legible and comprehensible terms, without prejudice to additionally expressing this information in another language or by means of another unit of measurement system. At a minimum, the following information would have to be included on medical devices.

·         Generic name of the product.

·         Specific name of the product, which may be provided in a language other than Spanish.

·         If the producer is the holder of the sanitary registration, the label would have to include the statement “made in Mexico by:”, or “produced in Mexico by:”, or “manufactured in Mexico by:”, followed by the corporate name and address of the producer. If the producer and the holder of the sanitary registration are different, the label would have to include the statement “made in (name of country) by:”, or “produced in (name of country) by:”, or “manufactured in (name of country) by:”, followed by the corporate name and address of the producer, and the importer and/or distributor’s name and address. In instances where the medical device is produced by a subcontractor in Mexico or overseas, the label would have to include the statement “made in (name of country) by:”, or “produced in (name of country) by:”, or “manufactured in (name of country) by:”, followed by the corporate names and addresses of the actual producer and its customer.

·         Country of origin.

·         Sanitary registration number provided by Mexico’s Health Ministry.

·         Date of expiration of the product, whenever applicable.

·         Serial or lot number.

·         Contents.

·         Use instructions, whenever applicable, which may be included in a separate document or manual.

·         Any adverse effects that the product may cause.

·         Warning or precautionary information, whenever applicable. Warning or precautionary information for toxic or dangerous products must comply with all applicable Mexican regulations.

·         An indication that the product is sterile, whenever applicable, as well as certain related language.

·         The terms “non-toxic,” “pyrogen-free” or similar statements, whenever applicable.

·         Disposable products would have to include such language as “disposable”, “single-use only” or other similar language.

·         Units of measurement in accordance with the General System of Units of Measurement, whenever applicable.

·         Appropriate storage temperature and/or humidity conditions, whenever applicable.

·         Medical products that include several ingredients would have to be labelled with the qualitative formula or a declaration of the product’s active ingredients, whenever applicable.

·         In vitro diagnostic devices would have to comply with certain specific labelling requirements.

·         Labels would have to comply with Ministry of Health specifications.

·         Certain additional information may be included on labels, provided it does not cause confusion and has been authorised by the Ministry of Health.

·         Products commercialised in bulk would only require the country of origin in the collective packaging.

Under the proposal, the required labelling information could be incorporated into medical devices in Mexico, after customs clearance but prior to the commercialisation of the product.

Documentation

All imports must be accompanied by an import declaration, which must contain a broad range of information. In addition, the following documents must be submitted with the import declaration.

·        A commercial invoice (original or copy) whenever the customs value of the merchandise is higher than US$300. The commercial invoice must include the following information: (i) place and date of issue; (i) name and domicile of the consignee; (iii) a detailed commercial description of the merchandise, including type of merchandise, number of units, identification numbers (whenever applicable), unit value and total value; and (iv) name and domicile of the seller. If the information described in point (iii) is in a language other than Spanish, English or French, it must be translated into Spanish on the commercial invoice or on an annexed document.

·        A bill of lading or airway bill.

·        Documents showing compliance with non-tariff regulations and restrictions, where applicable.

·        Certificates of origin for purposes of determining preferential duty treatment and applicability of any other requirements, where applicable (the requirement to submit a certificate of origin for goods subject to AD/CV duties has been eliminated).

·        Documents demonstrating guarantee of payments of additional duties when imports appear to be undervalued, where applicable (the estimated price mechanism was eliminated in April 2008 for a range of products, with the exception of certain automobiles).

·        Information allowing identification, analysis and control of the imported merchandise, whenever applicable (the documentary requirement to include information such as the serial number, brand or model on the import declaration, the commercial invoice or the bill of lading was eliminated in April 2008, except for merchandise that poses a public health or national security risk).

·        A certificate of weight and volume from an authorised certification company is required for bulk merchandise imported via maritime transport.

Temporary Entry and Samples

Mexico has two temporary import regimes in place: (1) a temporary import regime for merchandise entered for a limited period and a specified use and then returned abroad in the same condition and (2) a temporary import regime for merchandise used in manufacturing, transformation or repair activities by in-bond industries and firms with authorised export programmes. The temporary import regime for merchandise to be returned abroad in the same condition allows duty-free admission for a specified period of time of goods such as commercial samples, packaging, containers and goods for exhibits. The temporary regime for the in-bond (maquiladora) industry and companies with authorised export programmes allows registered firms to benefit from duty-free treatment or defer duty liabilities on imports of inputs and components to be used in the production of goods destined for the export market. 

On 1 November 2006, the Ministry of Economy issued a new decree to regulate the operation of the domestic in-bond (maquiladora) industry. The decree repealed the existing PITEX scheme and consolidated the old maquiladora and PITEX programmes into a single, unified framework, known as IMMEX.

To be eligible to participate in the IMMEX programme companies must have annual foreign sales of over US$500,000 or exports of at least 10% of annual sales. In addition, companies must comply with the requirements of the programme, including certain reporting requirements.

Temporarily imported inputs from all sources incorporated in exports to non-NAFTA members may be imported duty-free under IMMEX. Inputs used in the production of merchandise exported to certain preferential trade partners are subject to certain restrictions, however. For example, non-NAFTA-originating inputs incorporated in final goods destined to the NAFTA region are subject to the relevant import duty but a duty concession may be claimed equal to the lesser of the tariff payable in Mexico on the inputs or the tariff paid on final goods upon importation into Canada or the United States. NAFTA-originating inputs incorporated in exports to NAFTA members may be imported duty-free.

Temporary imports under IMMEX are subject to certain specified time limits and are not liable for the VAT or AD duties. IMMEX participants also benefit from a range of tax concessions. Firms registered under the IMMEX programme may also benefit from the tariff concessions established through PROSEC.

Mexico also maintains a drawback mechanism through which exporters may obtain import duty refunds for, among other products, raw materials, replacement parts, trailers, containers and fuels incorporated in goods exported or re-exported without processing.

Commercial samples may be entered duty-free under the “same condition” temporary import regime (HTSMX 9801.00.01) provided they are returned in the same condition within a period of six months. Samples (i) must have a unit value no higher than US$1; (ii) be marked (by ink or paint in a clearly visible, legible and permanent manner), torn, perforated or treated in a such a way that prevents them from being sold or used in any other way; (iii) cannot be included in packages for sale, except if those packages are appropriately marked, torn or perforated; and (iv) cannot involve merchandise that is difficult to identify (i.e., merchandise that, due to its presentation as powder, liquid or in pharmaceutical form, including pills, tablets and capsules, requires a physical or chemical analysis to determine its composition, nature, origin and other characteristics necessary for tariff classification). As an exception to point (i) above, toy samples may have a unit value of up to US$50 and a maximum of two sample units of the same model may be imported, provided they comply with points (ii) and (iii) above.

Exchange Controls

Mexico does not have any foreign exchange restrictions and therefore does not impose any limits on the total amount of currency derived from trade operations that can be exported/imported to/from the country. Mexico does not impose any restrictions on profit, royalty, dividend, interest payment or capital repatriation.

 



[1] Firearm replicas continue to be regulated by NOM-161-SCFI-2003.

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