On August 15, 2023, a Decree was published by which the Ministry of Economy established an increase in tariffs for certain products from countries with which Mexico has not entered into international trade agreements. The reason behind this modification of tariffs is to support and strengthen national producers and retailers, as well as to encourage their participation in the industrial field in 2024 and 2025.
This increase is focused on a wide range of goods and supplies, most of them in very diverse sectors, such as steel, aluminum, bamboo, rubber, chemical products, oil, soaps, paper, cardboard, ceramic products, glass, electrical materials and supplies, musical instruments, furniture, among others.
Specifically, the increase in import tariffs is applicable to 392 tariff items of the Table of Correlation between the Tariff of the Law of General Import and Export Taxes, being that the percentage of increase is wide, ranging from 50% to 500%.
The question that arises is how this measure could impact the economy and international trade. In essence, this increase in the cost of importing raw materials and foreign goods will mean that companies that import such raw materials will have to consider its origin, since countries that have a trade agreement with Mexico could be favored, as the tax rate does not increase in such cases.
Specifically, we can point out that imports from countries such as China, South Korea, Thailand, among others, could be affected, since at the moment there is no trade agreement with these countries. On the other hand, there could be an increase in imports from Europe or countries such as Vietnam or Malaysia, due to the Comprehensive and Progressive Agreement of Trans-Pacific Partnership (TIPAT).
Additionally, this adjustment in the tariffs entails an increase in the generation of income from the Value Added Tax (VAT), which is paid at the time of importing goods. This is due to the fact that the amount of the General Import Contribution is added to the taxable base, having an impact on the calculation of the corresponding VAT.
As a result of the above increases, it will be important for companies to seek advice not only prior to importing goods and inputs, but also regarding the tax and regulatory repercussions on their operations.
The Tax and Regulatory team of Vega, Guerrero &; Asociados can provide your company with the corresponding advisory and assistance in order to comply with these dispositions. As well as to initiate any legal defense against the determinations of the authority in relation to any fine or violation in fiscal or administrative matters.
