On October 17, 2017 the Ministry of Economy published in the Federal Official Gazette the Decree that modifies the Tariff of the General Import and Export Duties Law (Decree that modifies the Tariff) “Decreto por el que se modifica la Tarifa de la Ley de los Impuestos Generales de Importación y de Exportación” as well as the Decree that establishes different sectoral promotion programs (“PROSEC Decree”) “Decreto por el que se establecen diversos programas de promoción sectorial”.
By means of the Decree that modifies the Tariff, the Ministry of Economy increases again to 15% the import duty rate for 97 different tariff classifications of chapter 72 of the Tariff, covering steel and iron products. The Ministry of Economy has published similar decrees since 2015 increasing the duty to 15% for a period of 180 days. The foregoing, as the authority considers that there still exists an imbalance between the offer and demand of these products, and currently a lawful competition of the steel industry between different countries does not exist.
Since April 6, 2017 the mentioned tariff classifications were already subject to an import duty of 15%. However the term of the duty expired on October 3, 2017 (after the conclusion of the 180 days term established in the prior Decree). Therefore, after being exempted of import duty during 14 days, the import duty was increased again to 15% by means of the Decree of October 17.
Moreover, by means of the Decree that modifies the Tariff, different tariff classifications of chapter 72 are added to the benefits of PROSEC in order to maintain the competition between sensitive industries such as the electric, electronic, automotive and automotive spare parts that use steel products in their productive chains.
The increase of import duty and the inclusion of tariff classifications into PROSEC entered into force on October 17, 2017. Such measures will be applied during 180 days starting on October 18, 2017. To know in detail the tariff classifications with an increase in import duty to 15% and the tariff classifications added to the PROSEC Decree, please find the official publication at: http://dof.gob.mx/nota_detalle.php?codigo=5501424&fecha=17/10/2017
Furthermore, after analyzing the Decree that modifies the Tariff, we have detected several violations to the Political Constitution of the United Mexican States, as well as violations of general principles of law.
Hence, the Decree that modifies the Tariff, may be challenged through a constitutional action (amparo), either within 30 working days after the entry into force of the Decree, or within 15 working days after the first act of application.
Therefore, we are at your disposal for any questions or comments you may have regarding these amendments and analyze your particular case.