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INCREASE OF MEXICAN IMPORT DUTIES

On August 15, 2023, a presidential decree was published in the Official Gazette of the Federation (DOF) temporarily increasing, between 5% and 25%, import duties on 392 products in the following sectors: steel, aluminum, bamboo, rubber, chemical products, oils, soap, paper, cardboard, ceramic products, automobile and light-truck tires, glass, electrical material, musical instruments, furniture, among others. The purpose of the decree is to promote the recovery of the domestic industry, foster its development, and stimulate the domestic market. The increase in tariffs became effective on August 16, 2023, and will expire on July 31, 2025.


The aforementioned decree emphasizes that the steel, textile, and footwear sectors are vulnerable and for this reason the tariff reduction scheme published in the DOF on November 18, 2022, is eliminated. In the case of the steel sector, this tariff reduction had begun on June 1, 2023, and a second phase was scheduled for September 22, 2023, which will no longer be effective.


The decree published on August 15 does not affect imports of goods covered by a certificate of origin of the USMCA, CPTPP, FTA-EU or other free trade agreements signed by Mexico. Imports made under import/export enhancement decrees, such as the IMMEX Program, the PROSEC Programs, the Border Region Decree, among others, are also not affected.


The aforementioned decree is consistent with the current federal administration's strategy of not imposing taxes on the importation of foodstuffs, but it makes access to other consumer goods more expensive. Some products, such as automobile and light-truck tires, are particularly affected by the tax increase, especially since such product is currently under anti-dumping investigation.


Agon is at your service for a specific analysis on any particular product or to comment further on the content of the decree.

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