ANNOUNCED AS TEMPORARYNo
Import-related non-tariff measure, nes
On 26 December 2014, the Secretariat of Finance and Public Credit (SHCP) introduced a decree including various policies restricting the importation of textiles, effective as of 27 December 2014. According to the Mexican government, the measures are supposed to combat "unfair import competition" in the sector.
The decree set the foundation for the policies and has been continuously complemented with regulations detailing the tariff lines and requirements. Please, see also measure #9277 under Related Measures for the same type of regulation on footwear.
The press release by the SHCP of 3 December 2014 includes six import restrictive interventions and three state aid policies (some of the policies are only implicitly mentioned in the decree of 26 December 2014):
1. Sector specific registry
Importers have to be inscribed on a sector-specific registry, otherwise they are not allowed to import textiles. The respective regulation stipulating the sectors was published on 26 December 2014 and was effective from 1 March 2015 on.
2. 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 5 February 2015, mandatory as of 7 March 2015. Import permits are only required when the import price is below the reference price set by the Secretariat of Finance and Public Credit.
3. 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 29 December 2014. However, before the regulation could enter into effect on 2 February 2015, the list was amended on 30 January 2015 and entered into effect on 12 February 2015.
4. 10-digit codes
Instead of an 8-digit tariff code, the SAT will use 10-digits in order to better estimate potential undervaluations.
5. Duty reduction suspended
A previous decree reducing the import duty on textiles has been nullified. The reduced import tariffs were suspended on 27 December 2014 until 31 January 2019. The new tariffs lie between 25% and 30% of the customs value instead of 20%.
6. Controls at customhouses
Like in other sectors, the SAT is going to control goods at the customhouses.
7. Credits by the National Development Bank
Support to small and medium enterprises (SMEs) through a credit program by the national development bank NAFIN (Nacional Financiera). The fund is worth USD 29 million (450 million pesos) for 2015.
8. Export credits
The National Bank of Foreign Trade (Bancomext) is going to offer direct credits to exporting companies, international factoring, and the provision of letters of credit for SMEs.
9. Subsidies for cotton sector
The Agency for Trade and Development Services for Agricultural Markets (Aserca) is going to support the Mexican cotton farmers in order to integrate their goods in the production chain of Mexican textile manufacturers.
Besides the abovementioned policies, the goverment is going to spend 540 million pesos (USD 34 million) on a textile-innovation center in the state of Hidalgo as well as on measures to further the internationalization of and domestic demand for national produce.
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