Mexico Increases Import Tariffs on Steel Products

noviembre 23, 2021

Mexico Increases Import Tariffs on Steel Products

Yesterday, the Mexican Federal Government published in the Official Gazette of the Federation (DOF) a Decree amending the Law on General Import and Export Taxes.

“New” Tariff Increase on Steel Products

The decree increases – again– an import tariff to 15% ad valorem on certain steel products (i.e., 112 tariff items). This tariff will betemporary until June 29, 2022 and will be subject to a tariff reduction scheme.

Context of Tariffs on Steel Products

VTZ wishes to recall that these steel products were subject to a 10% tariff as of September 22, 2021, in accordance with the tariff reduction scheme provided for in the Decree dated September 20, 2019.

However, yesterday’s decree mentions that the 15% tariff is again justified by the global economic situation and, particularly, that of the steel industry. VTZ points out that the decree states that the Mexican steel industry requires an adjustment period to resort to the necessary legal instruments against unfair trade practices and, thus, have the proper conditions for its recovery.

Tariff Reduction Scheme

General scheme

The decree renews the tariff reduction scheme for all listed products, reducing the tariff to 10% ad valorem as of June 30, 2022. Afterwards, most of the listed products will be subject to a 5% ad valorem tariff from September 22, 2023; finally, such tariffs will be eliminated as of October 1, 2024.

Exceptions

Not all steel tariffs will be eliminated, but they will follow a similar reduction scheme. For steel doors and windows, the tariff will be 10% from June 30, 2022, and it will be reduced to 7% ad valorem from September 22, 2023.

Steel pipes and rolled steel

For certain steel pipes, the tariff will be 10% from June 30, 2022, and it will be reduced to 5% from September 22, 2023. Finally, the tariff for certain rolled steel products plated or coated will be 10% from June 30, 2022, and will be reduced to 3% from September 22, 2023.

Diapositiva anterior

Diapositiva siguiente

For a complete list of the tariff items provided for in the decree, please refer to the following link: