Date: 2024-07-05 16:01:44
On April 22, an announcement was made by Mexico with the aim of fostering collaboration opportunities with the United States and boosting investment in Mexico's local manufacturing industry. As a result, significant adjustments have been made to the most-favored-nation tariff rates for various products. Notably, the tariff rate for tyre products has been raised to 35%.
The image displayed above illustrates the specific regulations pertaining to tyres. The relevant Mexican tax numbers are 4011.10.10, and the corresponding product description covers tyres for passenger cars, including both family and racing types. Additionally, tax number 4011.20.06 is associated with tyres having an inner diameter not exceeding 44.45 centimeters (equivalent to 17.5 inches).
One significant aspect of this tariff hike is its impact on virtually all countries' exports to Mexico, except those nations that have a free trade agreement (FTA) with Mexico. In other words, as long as the products possess a certificate of origin indicating their origin from the United States, Canada, the European Union, the United Kingdom, Vietnam, Japan, Singapore, or other countries that export to Mexico, the most-favored-nation tariff will not be applicable. Instead, products from these countries will continue to enjoy the preferential tariffs stipulated in their respective FTAs.
This Decree will come into effect on the day following its publication in the Official Gazette of the Federation and will remain valid for a period of two years from the effective date. The previous tax increase notice issued on August 15, 2023 (which had raised the tariff to 25% at that time) is now considered invalid.
