On April 22, 2024, a decree was published modifying our country’s tariff policy. The decree directly impacts the General Import and Export Tax Law (Ley de los Impuestos Generales de Importación y de Exportación, LIGIE), imposing temporary tariffs on more than 500 tariff items.
These temporary tariffs directly impact markets such as textiles, footwear, chemicals, steel, plastics, among others, with tariffs ranging from 5% to 50% according to the tariff established in the Law.
The imposition of these tariffs seeks to balance and provide security to certain industrial sectors that are considered vulnerable in Mexico due to the already known unfair practices such as dumping, undervaluation or trade triangulation.
The decree itself states that the aim is to promote the development of the domestic industry and strengthen the domestic market, in a context of increasing international competition.
In this sense, it will be necessary to consider the impact or imbalance that this could generate for companies that import inputs or products into the country, as an example, it is expected that, considering all the sectors involved impacted by these tariffs, about 85% of imports from China will be affected.
It is important to note that the Decree also contemplates the continuity of the Sector Promotion Programs, as well as the benefits established in the Free Trade Agreements signed by Mexico. This ensures that, despite changes in the tariff structure, stability and consistency in the country’s trade policies will be maintained under these instruments.
In practical terms, the Decree became effective immediately, the day after its publication, and will remain in effect until April 23, 2026. This move marks a milestone in Mexico’s trade policy, reflecting a commitment to strengthening domestic industry and adapting to an ever-changing business environment.
Given this scenario, it is essential to have adequate legal advice to ensure compliance with tax regulations. At Vega, Guerrero & Asociados, our team specializes in customs law and is available to provide the necessary support and advice in this complex and constantly evolving field.