New Law of General Import and Export Taxes

Today, the Decree issuing the Law of General Import and Export Taxes was published in the Official Gazette of the Federation (DOF), which repeals the Law of General Import and Export Taxes, published in the DOF on July 1, 2020.

Relevant changes

The Decree providing for the new Law of General Import and Export Taxes was issued to implement the Seventh Amendment to the Harmonized Commodity Description and Coding System of the World Customs Organization (WCO), which entered into force on January 1, 2022. 

The Seventh Amendment by the WCO contains a total of 351 sets of changes for the creation, modification and elimination of sub-heading. As a result of these changes, the new Law creates, modifies and eliminates Mexican HS tariff items (at a 8 digit level).

Seventh Amendment
351 group of changes
  • Creation of 362 subheadings + 531 tariff items.
  • Modification of 94 subheadings + 594 tariff items.
  • Elimination of 130 subheadings + 243 tariff items.

The changes provided for in the seventh amendment of the WCO are aimed at updating the tariff system concerning technological advances in products and adapting the tariff system to address social and environmental problems. Therefore, the new Law of General Import and Export Taxes (LIGIE) provides for the following:

Technological products
The new LIGIE incorporates new goods such as 3D printers, e-waste, LED products, smartphones, e-cigarettes and vapes.
Nicotine products
Separate classification of nicotine-containing products.
Wood
Creation of subheadings on wood products, as recommended by the Food and Agriculture Organization of the United Nations.
Weapons manufacturing products
Creation of batches of dual-use products susceptible to proliferation and weapons manufacturing.
Others
Incorporation of rapid diagnostic kits (Zika virus), chemicals with global warming potential, among others.
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Steel products

Previously, the «Decree amending the Tariff of the Law of General Import and Export Taxes«, published in the DOF on November 22, 2021, established a tariff reduction for steel products. Such relief consisted of a reduction of the tariff on steel products from 15% to 10% as of June 30, 2022, from 10% to 5% as of September 22, 2023 and to be exempted as of October 1, 2024. 

However, steel products will be exempted from tariffs much earlier than the period foreseen in the «Decree amending the Tariff of the Law of General Import and Export Taxes«. This is due to the fact that the Decree implementing the Seventh Amendment provides for the exemption of tariffs for steel products from its entry into force, which will be around December 19, 2022. 

Entry into force

The Decree will enter into force within 10 business days following the day in which the Tax Administration Service (SAT) determines that the electronic customs systems has been updated and it is ready. However, the entry into force may not exceed 180 business days following the publication of the decree, that is no later than December 19, 2022.

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