ANNOUNCEMENT 05 Oct 2017
On October 5, 2017, the Mexican Secretary of Economy adopted a Decree modifying the General Law on Import and Export Tax, the Law on applicable Border Regions and the Decree to Boost the Maquila Industry.
NUMBER OF INTERVENTIONS
Official Gazette of Mexico. Diario Oficinal de la Federación. Secretaría de Economía. "Decreto por el que se modifica la Tarifa de la Ley de los Impuestos Generales de Importación y de Exportación, el Decreto por el que se establece el impuesto general de importación para la región fronteriza y la franja fronteriza norte y el Decreto para el Fomento de la Industria Manufacturera, Maquiladora y de Servicios de Exportación." Available at: http://www.dof.gob.mx/nota_detalle.php?codigo=5500076&fecha=05/10/2017
On 5 October 2017, the Mexican Secretariat of Economy adopted a Decree modifying the customs tariffs. In particular, the new legislation created 144 new 8-digits tariff lines with ad valorem import duties ranging from 10% to 25% and specific duties ranging between MXN 0.338/Kg (USD 0.018/Kg) and MXN 0.36/Kg (USD 0.2/Kg).
These dispositions shall enter into force 60 days after the Decree was announced with the exceptions of the changes introduced to tariff lines 17.01.
In addition, the Decree issued by the Mexican Secretariat of Economy on 5 October 2017 also established that the certain HS Codes related to sugar and used tyres (HS Codes 1701.12.04, 1701.14.04, 1701.91.02, 1701.91.03, 4012.20.99) cannot longer be imported under the IMMEX regime.
The IMMEX program allows the temporary duty and VAT-free importation of goods and raw materials that are to be used in the production, transformation or reparation of foreign goods that will be exported. As a result of the new decree, certain sub-types os sugar and used tyres are no longer allowed within this regime.
On the contrary, the new Decree published in the Mexica Official Gazette on 5 October 2017 introducing changes to the import and export tax, eliminated the import tariff on Lithium primary cells and batteries (HS Code 8516.50.01). Previously, the import duty set on this tariff line was 5%.
The new import tax shall enter into force 60 days after the publication of the Decree in the Official Gazette.
The Decree issued by the Mexican Secretariat of Economy on 5 October 2017 also eliminated the tax-based export incentive resultant from the temporary duty and VAT-free importation of goods under the IMMEX program. In this sense, the removal of certain types of sugar and used tyres from the list of inputs affected by the IMMEX regime implies that their related outputs do not longer enjoy the export incentive.