Mexico import tariff reduction on steel products
Today, June 1st, 2023, Mexico begins its tariff reduction process for steel products. This process implies that numerous steel and iron products will be subject to a 10% import tax, instead of the previous 15% tariff. This tariff reduction originates from the «Decree amending the Decree modifying the Tariff of the Law of General Import and Export Taxes«, published in the Official Gazette of the Federation on June 29th, 2022.
What products will benefit from this import tariff reduction?
As of today, the 10% tariff reduction will apply to a wide variety of steel products under 112 tariff items. These include rolled steel, coated steel, plated steel, steel wire rods, iron and steel bars, stainless steel, steel pipes and tubes, as well as steel and iron materials used in construction.
What are the next steps of the import tariff reduction?
The 10% import tariff reduction is only the first step in the tariff reduction process. On September 22nd, 2023, these products will experience a further tariff reduction, bringing their import tariff to 5%. Finally, as of October 1st, 2024, the steel products will be free of import taxes in Mexico.
Are there any exceptions to the import tariff reduction?
Although all of the above products will experience a tariff reduction to 10% as of June 1, 2023, not all of them will be exempt from import taxes as of October 1st, 2024. In particular, steel doors, window frames, trim, and sills, as well as selected steel parts used in construction, will maintain a 7% tariff as of September 22nd, 2023.
In addition, certain steel pipes, tubes, towers, and derricks will be subject to a 5% tariff as of September 22nd, 2023. Finally, zinc-plated sheets on both sides will be subject to a 3% import duty as of October 1st, 2024.
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