IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 30 Aug 2014 | Removal date: open ended
Still in force

Import-related non-tariff measure, nes

On 29 August 2014, the Secretariat of Finance and Public Credit (SHCP) introduced a decree including 8 policies restricting the importation of footwear, effective as of 30 August 2014.
 
According to the Mexican government, the policies are supposed to combat the unfair competition in the said sector. The aforementioned decree set the foundation for those policies and has been continuously complemented with regulations detailing the tariff lines and requirements.
 
1. Duty reduction suspended
A previous decree reducing the import duty on footware has been nullified. The reduced import tariffs were suspended on 30 August 2014 until 31 January 2019. The new tariffs lie between 25% and 30% of the customs value instead of 20%. See also measures #774 and #3961 under Related Measures for previous decrees reducing the duties.
 
2. Reference prices
Estimated prices, i.e., references prices, have been reestablished. Importers are obliged to pay the difference in case the price of the imported good is below the reference price set by the government. The prices are listed in a resolution by the SHCP published on 5 September 2014 (effective 1 October 2014).
 
3. Reduction of points of entry
Instead of 33, now only 9 customhouses are exclusively assigned to deal with shoe imports. The according regulation was published on 1 September 2014 (effective 1 October 2014).
 
4. Sector specific registry
Importers have to be inscribed on a sector-specific registry, otherwise they are not allowed to import shoes. The respective regulation stipulating the sectors was published on 1 September 2014 and was effective as of 1 October 2014.
 
5. Advance notice
Importers have to notice their orders in advance. The Fiscal Administration Service (Servicio de Administración Tributaria, SAT) will review the invoices, freight costs, insurances, and cargo documents in order to screen imports for undervalued products. 
 
The requested data and affected tariff lines are listed in an agreement published on 8 January 2015 and 5 February 2015, effective as of 19 January 2015. Import permits are only required when the import price is below the reference price set by the Secretariat of Finance and Public Credit.
 
6. Auditing
Imported goods will be audited for compliance at the customs offices and posterior to that.
 
7. Observation
Like in other sectors, the SAT is going to designate observers by the Chamber of the Footwear Industry to control the goods at the customhouses. In a first move, 10 observers of the industry will be appointed.
 
8. 10-digit codes
Instead of an 8-digit tariff code, the SAT will use 10-digits in order to better estimate potential undervaluations.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

293 Footwear other than sports footwear
6401 Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes.
640192 Covering the ankle but not covering the knee
640199 Other
6402 Other footwear with outer soles and uppers of rubber or plastics.
640220 Footwear with upper straps or thongs assembled to the sole by means of plugs
640291 Covering the ankle
640299 Other
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640351 Covering the ankle
640359 Other
640391 Covering the ankle
640399 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640419 Other
640420 Footwear with outer soles of leather or composition leather
6405 Other footwear.
640520 With uppers of textile materials
294 Sports footwear, except skating boots
6402 Other footwear with outer soles and uppers of rubber or plastics.
640219 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640411 Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes and the like
295 Other footwear
6401 Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes.
640110 Footwear incorporating a protective metal toecap
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640340 Other footwear, incorporating a protective metal toecap

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