Non Tariff Barriers

A Guide to International Trade in Mexico

Doing Business Mexico (August 2020)

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
 Conventional Arms and Dual-Use Goods and Technologies (including Software) as included in the Wassenaar Agreement, Australia Group, GSN lists.
Ministry of Health (through the Federal Commission For the Protection Against Sanitary Risks)
 Essential chemicals; Products for human consumption; finished products and raw materials for medicaments pharma-chemicals; narcotics and psychotropic substances; products for the diagnosis, treatment or rehabilitation of illnesses in humans; chemical substances; and tobacco and cigarettes
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)
Agricultural products and aquatic species 
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.

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