20 May Amendments to Steel Import Duties
With the recent Decree amending the Tariff of the General Import and Export Duties Law, 544 HTS codes of various industries, including aluminum and steel, were affected. However, after identifying that there is currently no domestic production of unwrought aluminum, and that the availability of such goods in countries with which Mexico has entered into an international trade agreement is insufficient, the Ministry of Economy decided to remove two HTS codes from such Decree, consisting of: unalloyed aluminum (7601.10.02 ) and aluminim alloys (7601.20.02).
On April 22nd, 2024, the Ministry of Economy published an amendment to the Tariff of the General Import and Export Duties Law. In this Decree, the government established temporary duties between 5% and 50% for more than 500 HTS codes related to various industries, such as steel, aluminum, textiles, apparel, footwear, wood, plastic and its manufactures, electrical material, among others; effective for a period of two years, starting on April 23rd, 2024.
The reason for such an increase is the growing implementation of new commercial models such as nearshoring, and with the purpose of maintaining a balanced market interaction and promoting the development of the national industry and the domestic market.
Additionally, the Decree clarifies that, in order to avoid affecting the productive chains and to maintain competitiveness in the electric, electronic, automotive and auto parts sectors, the PROSEC benefits applicable to the HTS codes of various steel products will remain for the same period of validity.
In connection with the above, on May 8th, 2024, the Ministry of Economy published the Decree amending the Decree modifying the Tariff of the General Import and Export Duties Law, and the Decree exempting the payment of import duties and granting administrative facilities to several goods of the basic food basket and basic consumption of families, with the purpose of eliminating HTS codes 7601.10.02 (non-alloyed aluminum) and 7601.20.02 (aluminum alloys) of the Decree recently published last April 22nd, which had been affected with a temporary general import duty of 35% and 20% respectively. According to the recitals of such Decree, this elimination is derived from the fact that there is currently no domestic production of primary unwrought aluminum (unalloyed and alloyed), and the availability of such goods in countries with which Mexico has entered into an international trade agreement is insufficient. In this sense, the purpose of excluding unalloyed aluminum products and other aluminum alloys is to avoid affecting the supply chain of the automotive, auto parts and electronics industries.
In Cuesta Campos we can advise our clients in any matter related to the application of this reform, as well as to understand the implications that it entails. Should you have any questions or comments, please do not hesitate to contact us.
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Alejandro Martínez
Victoria Parra
THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.