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A Guide to International Trade in Mexico
Non-Tariff Barriers in Mexico
3.2 Non-Tariff Barriers
The Constitution, International Trade Law, and its regulation are the legal basis for non-tariff barriers in Mexico. The Executive, through the Ministry of Economy in conjunction with other Ministries, if relevant, establishes non-tariff barrier measures that have to published in the Official Journal; the President has the powers to establish emergency international trade measures on goods. In other words, if non-tariff regulations are not published in the Official Journal and/or the tariff items are not included in the decision, such a non-tariff barrier is not mandatory to a given product.
Mexico applies the following import restrictions:
- Prohibitions
- Automatic import licenses.
- Non-automatic import licenses (prior import permits).
- Import quotas.
- Non-tariff regulations.
Before importing a product into Mexico, it is important that a company checks the current tariff as well as whether the goods are subject to specific regulations under the relevant tariff items.
Import Prohibitions
In the latest Trade Policy Review in 2017, Mexico reported that 22 products that are prohibited, in particular chemicals and drugs.
Mexico has introduced new prohibitions since 2017. Mexico prohibited specific chemical products per the Stockholm Convention on Persistent Organic Pollutants on the 6th of November 2019.
On February 19th, 2020, Mexico also prohibited electronic cigarettes and/or vapers as well as their parts or components.
Licensing System
Mexico has in place an import licensing system that consists of prior import permits and automatic import notification. Per the International Trade Law, Mexico identifies the goods per their HS-Code that are subject to the licensing requirements in the decisions or decrees published in the Official Journal.
On the one hand, automatic licensing (automatic notification) is used to keep a record of imports and, in theory, the license should be issued immediately. The following category of products are subject to automatic licenses:
- iron products (e.g. welded steel pipes, cold-rolled steel, steel plate, etc),
- slot machines,
- textiles; and
- footwear.
When applying for an automatic license, the importer must submit specific information such as the value, quantity, tariff line, country of origin, exporting country, as well as supporting documentation. For instance, importers of iron products must submit mill certificates on iron products. Depending on the category of the product, licenses may be valid for a period ranging from 60 days to four months and are non-transferable. The customs authorities may authorize one or more automatic extensions of the validity of the original import license, save for iron products.
On the other hand, prior import permits do not have as a purpose to restrict the quantity or value of the imports, rather they are used to protect health, environment, security, as well as sanitary and phytosanitary purposes.
Ministry of Economy
Ministry of Health (through the Federal Commission For the Protection Against Sanitary Risks)
Ministry of the Environment
Species listed in the CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) appendices and products containing their parts (for instance, a wallet with an endangered “crocodile” or “alligator” ; forestry products and by-products; toxic or hazardous substances or materials;
Ministry of National Defense
Arms, ammunition, gunpowder, explosives, fireworks, and chemical substances related to explosives
Ministry of Agriculture and Fisheries (through the National Service of Food Safety and Quality)
Ministry of Energy
Hydrocarbons and petroleum products; Nuclear materials and fuels, radioactive materials, and equipment that generates ionizing radiation
Would you like to know what if a given product is subject to non-tariff barrier in Mexico?
The Mexican Ministry of Economy has developed an online platform to assist economic agents to find the applicable tariff item (MxHS) in an unofficial manner: Mi Fracción Arancelaria (available only in Spanish). In addition to the MxHS, you may find out the relevant non-tariff barriers.
Do you need help?
Other Non Tariff Barriers
Technical Standards & SPS measures in Mexico
A wide variety of imports are subject to technical regulations on product-information requirements, labeling, safety, characteristics. Mexico’s technical regulations apply to import and domestic products are commonly known as NOMs (Norma Oficial Mexicana). Other imports may be subject to sanitary and phytosanitary and safety standards.
Intellectual Property restrictions
For certain types of trademarked products, the importer must now prove that it is the owner or licensee of the trademark.
Price Estimates restrictions
Other notable non-tariff barriers are the “price-estimates” that apply to used vehicles, certain textiles, apparel, and footwear products in Mexico. The Ministry of Treasury provides the minimum price or value of said goods, and it is used “as a reference for the customs valuation..” in order to avoid undervaluation and tax evasion. If the value of the goods imported is below the estimated or minimum price, the importer will have to provide a security deposit securing the payment of the import duties per the estimated or minimum price.
Import Quotas
Certain products are subject to import quotas, such as certain agricultural products (e.g. beans, coffee, barley, and poultry meat) and manufactured goods (including polyester filament, motor vehicles, and toys).
Exports Tariff & Non-Tariff Export Barriers
A couple of export tariffs exist (e.g. bitumen, asphalt, and bituminous mixtures) and few non-tariff barriers on exports are applicable in Mexico. The Ministry of Economy, in conjunction with other ministries, imposes export restrictions and controls, such as:
- Automatic export licenses.
- Non-automatic export licenses.
- Export quotas.
- Non-tariff regulations.
Currently, the only product subject to an automatic export license is fresh tomato as a result of a suspension agreement in the antidumping investigation in the US.
Non-automatic export licenses are designed to protect public morals, the environment, security, public health, public heritage, and security interests. Therefore, certain goods that fall under the following categories may be subject to export licenses or permits:
- Live animals.
- Minerals.
- Chemical products.
- Pesticides and other toxic products.
- Textiles.
- Energy and basic petrochemical goods.
- Works of art.
- Security (Conventional Arms and Dual-Use Goods)
Like imports, the relevant authority will issue the export permit. The Ministry of Economy, for instance, is in charge to regulate and issue export permits on dual-use goods provided that it is not subject to export controls by another Ministry. For example, the Ministry of Energy has trade controls on some dual-use goods that fall on the GSN list (i.e. nuclear technology or components) and, thus, said Ministry would issue the export permit instead of the Ministry of Economy.
In sum, an individual or company that seeks to export must review the relevant tariff item (i.e. identification commercial number).
Mexico’s export quotas are based on its preferential trade agreements and FTAs or suspension agreements (for example, the suspension agreement on sugar trade with the US as a result of a subsidy investigation). To obtain an export quota, an exporter must follow two procedures before the Ministry of Economy (namely, the quota request and the quota certificate procedures). The rules governing quota allocations, as well as amounts and requirements, among other matters, vary depending on the product and export destination.
Click for More Information on International Trade Guide
International Trade
An overview on Mexico's International Trade Policy, including Tariffs.
Customs
Everything you need to know to import or export in Mexico.
How to do business in Mexico?
The Mexican Legal Guide
How to create a company in Mexico?
Under this section, Doing Business Mexico explains the 12 steps to create a company in Mexico, including the basic legal features of the two most relevant types of companies as well as other possible business structures.
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Do Foreign Investment Restrictions Apply in Mexico?
As a general rule, all sectors of the economy are open to foreign investors unless otherwise provided in Mexico’s Foreign Investment Law. Although through the years sectors have been liberalized, Mexico has still foreign investment restrictions in place that are applicable to specific activities as well as restrictions on land ownership.
Visit our guide: Foreign Investment in Mexico.
International Trade in Mexico
Being a WTO member and having 13 Free Trade Agreements, Mexico is a country that is open to international trade. In this guide, topics such as tariffs, preferential tariffs, import restrictions, customs procedures, Free Trade Agreements like USMCA, among other matters, are reviewed.
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The IMMEX Program and the Mexican Manufacturing Industry
The export-oriented manufacturing industry, also known as the maquiladora industry, represents one of the most important pillars of the Mexican economy. The IMMEX program is, to a great extent, used by companies within the manufacturing industry. In this guide, Doing Business in Mexico provides a general overview on the IMMEX program.
Visit our Guide: The IMMEX Program.
Taxation in Mexico
What are Mexico’s main taxes? What is the corporate income tax rate or Mexico’s VAT? When a foreigner creates a permanent establishment in Mexico, or is considered a resident for Mexican tax purposes? In this guide, Doing Business in Mexico explores the common questions that a foreigner has about Mexican Taxes.
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Labor in Mexico
What is Mexico’s labor environment? What is the minimum wage? What about the effects of the United States-Mexico-Canada Agreements (USMCA) on unions and collective bargaining? In this guide, Doing Business in Mexico explores the common employment topics that a foreigner has about Labor in Mexico .
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