Mexico imposes tariffs and duties on imported goods. The amount of duties and tariffs that are charged depends on the type of good that is being imported and who the importer is. Goods must a accompanied by specific documentation and a licensed customs broker must submit the customs declaration.
Mexico uses anti-dumping measures when determining duty rates on certain products (such as textile goods) from certain countries. This brings the price closer to the "normal value" of the good. This has been known to result in rates up to 1,105 percent. This is to protect Mexican domestic industry.
Goods which are produced in either Mexico, the United States or Canada will not have import taxes levied on them by Mexican authorities. This is in accordance with the North American Free Trade Agreement (NAFTA). Any goods that do not have visible evidence of where they were produced are also exempt under this act. Mexico also has specific trade agreements with reduced tariffs for good produced in Bolivia, Canada, Chile, Colombia, Costa Rica, El Salvador, the European Community, Guatemala, Honduras, Iceland, Israel, Liechtenstein, Nicaragua, Norway, Switzerland, Uruguay, the U.S. and Venezuela.
Duty Rate & VAT Calculation
Goods imported to Mexico are subject to an eight-digit classification system, which determines the duty rate and establishes any applicable non-tariff barriers such as quotas or other restrictions. These applicable duties and taxes can be paid at commercial banks locates at the Mexican port of entry. A value added tax (VAT) is also added by Mexican authorities which is normally 15 percent of the value of the goods. VAT for goods staying within the border zone (up to 20 kilometers south of the U.S. border) is 10 percent. There is also a customs processing fee of 0.8 percent.
Additional duties that can be imposed on a good include an ad-valorem tax, which is a percentage of the value of the imported good and specific duties. These taxes are levied as a fixed sum per unit of quantity. There are also specific duties applied to sugar and sugar products.