RESCHEDULE TO DUTY RELIEF ON STEEL PRODUCTS AND MATERIALS

Mexican Federal Government has recently announced modifications to the Harmonized Tariff Schedule of the General Import and Export Duties Law to reschedule the progressive tariff relief applicable to steel sector.   Originally, Federal Government published a tariff relief without implementation due to the situation of the global steel market and the negative effects of pandemic (SARS-CoV-2).

 

The new schedule to duty relief is applicable to some steel products and materials of headings 7208, 7209, 7210, 7211, 7212, 7213, 7214, 7216, 7219, 7225, 7226, 7227, 7228, 7304, 7305, 7306, 7307 and 7308.   For such purposes, it is imposed an initial import duty rate of 15% to non-originating products starting November 23, 2021.   However, a progressive duty relief would apply as follows, except for some steel product of heading 7308:

     a. Import duty rate of 10% as of June 30, 2022.

     b. Import duty rate of 5% as of September 22, 2023.

     c. Exempted from duties as of October 1, 2024.

 

For some steel products of heading 7308, the progressive duty relief is as follows:

     a. Import duty rate of 10% as of June 30, 2022.

     b. Import duty rate of 7% as of September 22, 2023.

 

The progressive duty relief for some steel products of headings 7304, 7305, 7306 and 7308 is as follows:

     a. Import duty rate of 10% as of June 30, 2022.

     b. Import duty rate of 5% as of September 22, 2023.

 

Finally, for tariff item 7210.41.01, the progressive duty relief is as follows:

     a. Import duty rate of 10% as of June 30, 2022.

     b. Import duty rate of 5% as of September 22, 2023.

     c. Import duty rate of 3% as of October 1, 2024.

 

This Client Alert is for informative purposes only, therefore, it is highly recommended to confirm the applicable rates of your specific tariff item (HTS).   For more information, please do not hesitate to contact us.

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Advertising: This client alert is provided for information purposes only and it is not intended to serve as or provide legal advice relating to a particular matter.   Should you have specific questions regarding this or other legal matter, please feel free to contact us.

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