Types of tariffs in Mexico

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20 August, 2019
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20 August, 2019
Types of tariffs in Mexico

When certain product arrives in Mexican territory, it must go through customs and pay import taxes, also know as liens or tax rates that are applied by the government of Mexico

If you want your company international, you should know the tariffs

The tariff is an economic barrier which increases the price in the imported goods; in other words, it is an indirect tax levied on the entry of goods. There may also be a tariff on exports, but this is unusual.

The tariff is a customs duty levied on a product when it crosses the borders of a country

The tariff classification of goods is an important step in import or export of a particular product, as well determine the origin of your goods, this it is essential to regulations that allow granting nationality to goods.

Main propose of tariff 

  • Protect national assets such as business and labor in the country of origin.
  • Serve as a source of revenue for the state
  • Apply restrictive trade policies

According to Article 12 of the Foreign Trade Law, tariffs are defined as: the quotas of the tariffs of the general taxes of export and import, and in turn classifies them in 3 types:

  • AD Valorem: When expressed as a percentage of the customs value of the goods.
  • Specific: When expressed in monetary terms per unit of measure.
  • Mixed: The combination of AD valorem and specific.

These types of tariffs can adapt the following ways:

  • Tariff quota: A quotas tariff has the purpose of importing a certain amount of a product or merchandise, with a lower tariff (a tax) than that applied to merchandise that is imported without this benefit. The authorization is granted through a certificate of quota and has a certain validity, which is established in the certificate itself.
  • Seasonal Tariff: Different tariff levels are established for different periods of the year.
  • Other modalities. Which are indicated by the Federal Executive, such as preferential tariffs or transition measures. Preferential tariffs in Mexico are found in Free Trade Agreements, International Trade Agreements, among others.

International trade treaties or conventions that form part of Mexico may establish tariffs different from the general tariffs provided for in the general export and import tax tariffs.

> We recommend reading our entry: What is it and how the customs value determined?

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