IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 27 Mar 2015 | Removal date: 24 Dec 2016
Still in force

Localisation incentive

On 26 March 2015, the government reintroduced a program which allows transport vehicles that are older than 10 years to be exchanged for newer ones. The measure is directed at cargo trucks and buses of which at least 50% have to belong to small transport providers, so called 'hombres camión'. The guarantees will be provided by the National Development Bank (Nafin) at an interest rate of 10 to 15 per cent.
 
The policy is preceded by a similar measure, which lasted from 2004 to 2014 but resulted in few vehicles being scrapped, i.e., about 3'750 per year. The new scheme differs from its predecessor in a few points: The monetary support is about 55.5%-81.3% higher and is adjusted annually to inflation, 6'000 vehicles are expected to be scrapped per year, and it introduces the option to exchange two old vehicles for one new one.
 
The government argues that the scheme will improve road security, reduce gas emissions and increase the competitiveness of the automobile sector. It is effective from 27 March 2015 until 31 December 2016 with possibility of extension.
 
In a separate decree, Mexico also introduced local content requirements for the renewal of vehicles. For this, please, consult measure no. 9517 under Related Measures.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

435 Lifting & handling equipment & parts
8709 Works trucks, selfpropelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the fore
870911 Electrical
870919 Other
444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8702 Motor vehicles for the transport of ten or more persons, including the driver.
870210 With compressionignition internal combustion piston engine (diesel or semidiesel)
870290 Other
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
870432 g.v.w. exceeding 5 tonnes
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile wor
870510 Crane lorries
870520 Mobile drilling derricks
870530 Fire fighting vehicles
870540 Concretemixer lorries
870590 Other

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