TAX | DE MINIMIS | ADMISSIBILITY | PROHIBITED/RESTRICTED | CUSTOMS VALUATION | SURCHARGES

De Minimis Thresholds, Tax Rates, Customs Valuation Methods & Calculation, Customs & Carrier Surcharges, Admissibility, and Prohibited Restricted Commodities.

Please note that import tax rates, de minimis thresholds, admissibility requirements, customs valuation methods, prohibited & restricted commodity regulations, customs, and carrier surcharges are dynamic and may change without advance notice. Current regulations and rates for each topic must be queried and confirmed prior to shipment using the indicated official sources.

FlavorCloud recommends that our merchants use these tools as a reference and then verify at the national/provincial level and/or with your commodity- and country-specific expert before shipping.

† FOB — “Free on Board” – Incoterm and basis method for Customs Valuation 
√ CIF — “Cost of Goods + Insurance + Freight” – Incoterm and basis method for Customs Valuatio
β IEPS — (Impuesto Especial sobre Producción y Servicios) is a Special Tax on Production and Services; see Excise Tax section

CUSTOMS SURCHARGES***

***Customs and Carrier Surcharges are carrier, destination, and time specific. Items in orange apply to all consignments, and other items applied ad hoc, if applicable. Surcharges are dynamic and subject to frequent change by carriers without prior notice.

CARRIER SURCHARGES***

***Customs and Carrier Surcharges are carrier, destination, and time specific. Items in orange apply to all consignments, and other items applied ad hoc, if applicable. Surcharges are dynamic and subject to frequent change by carriers without prior notice.

Mexico Notes

Regulatory Framework

In Mexico, there are two main governmental agencies responsible for international trade regulations: the National Customs Agency of Mexico (Agencia Nacional de Aduanas de México [“A NAM”]) and the Tax Administration Service (Servicio de Administración Tributaria [“SAT”]). A comprehensive overview of relevant regulations and laws is available via the Mexican government’s digital customs repository, Mexico’s Customs Laws, and Mexican Foreign Trade Laws.

Import Duty/Tax De Minimis

The National Customs Agency of Mexico (Agencia Nacional de Aduanas de México [“ANAM”]) and the Tax Administration Service (Servicio de Administración Tributaria [“SAT”]) have established two separate categories of de minimis thresholds:

1. Non-T-MEC shipments (shipments outside CA/US and/or do not qualify or originate under T-MEC Chapter 5 provisions). For these shipments, de minimis is $50 CIF for duty and VAT.
2. Qualified T-MEC shipments (see USMCA/T-MEC/CUSMA section below for thresholds)

USMCA/T-MEC/CUSMA (formerly NAFTA)

Tratado entre México, Estados Unidos y Canadá (T-MEC)

Under T-MEC, for goods to be eligible for preferential treatment, the exporter/producer/seller/importer must include a statement, usually provided on the commercial invoice, which certifies that the goods qualify and originate under T-MEC Chapter 5 provisions. Mexico set the threshold for low-value shipments at USD $1,000, and the following certification statement is required for these low-value shipments:

“I hereby certify that the goods covered by this shipment qualify as an originating good for preferential tariff treatment under USMCA/T-MEC/CUSMA.”

If your products do not qualify for T-MEC or the certification statement is missing, Mexican Customs will likely not allow preferential duty/tax import, and the standard, the full amount, will be assessed.

If your products qualify and the certification statement is present on the commercial documentation, the de minimis levels are determined by the method of transportation as follows:

These thresholds are CIF (see CIF note below), meaning that it only includes the customs value of your goods, and excludes any shipping charges. The customs value is generally the sales price- the actual price paid by the buyer, or would otherwise normally be paid, to import the goods. Please see FlavorCloud’s Guide to Declared Value & Customs Valuation for further education on customs valuation.

FOB Customs Valuation Calculation Method Note

Unlike CIF, the customs valuation process does not include freight or insurance costs in transporting goods from the place of export to the destination when calculating customs value. However, any inland freight or insurance costs incurred by the purchaser/importer before the goods leave the place of export must be included in the customs value.

Excise Tax and De Minimis

Commodities subject to excise duty and/or excise tax do not qualify for de minimis duty-/tax- free importation, regardless of their value. Please review the Excise Duty and Excise Tax section below.

Customs Processing Fee (derecho de trámite aduanero), or “DTA”

Standard DTA is 0.8% of the customs value. The rate for shipments originating in Canada/USA (T-MEC) and other countries with which Mexico has an FTA is a flat MXP of $316.28 [Mexican Peso] per shipment.

• https://idconline.mx/comercio-exterior/2022/01/03/dta-2022
• http://omawww.sat.gob.mx/aduanas/importando_exportando/guia_importacion/Paginas/contribuciones_que_puedan_causarse_con_importacion.aspx
• https://dof.gob.mx/nota_detalle.php?codigo=5595824&fecha=30/06/2020#gsc.tab=0

Mexico Customs Valuation Methods

General Mexico Customs Valuation

Mexican government’s digital customs repository, Mexico’s Customs Laws, and Mexican Foreign Trade Laws govern the customs valuation processes.

Please refer to FlavorCloud’s Guide to Declared Value & Customs Valuation for further insight into the Customs Valuation process and how to correctly reflect the customs value on your shipments. Import Duty and Import VAT are calculated CIF in Mexico (See CIF note below)

Duty

https://bado.mx/articles/571/rgce-2020/rule-1.5.2-determination-of-the-customs-value/
CIF x Duty Rate (See CIF note below)

Tax (VAT)

https://bado.mx/en/Ley-del-IVA
CIF + Duty Amount + [IEPS, if applicable]x Tax Rate (See CIF note below)

CIF Customs Valuation Calculation Method Note

CIF = Cost of Goods + Insurance + Freight
+ Cost of Goods is the Transaction Value [actual price paid or otherwise would be payable by the buyer to the seller for the goods]
+ Insurance costs
+ Shipping charges

• Example: goods are being sold to the importer at $200 + $5 being paid for insurance + $20 for shipping by the buyer, then CIF value is $225 (converted to local currency by Customs).
  • If the duty rate is 10%, then the duty amount for this import would be $22.50
  • If tax rate is 25%, then tax amount would be $61.88 [CIF + Duty = $247.50 x 25% tax]

Import Tax (VAT)

Overview of Mexico’s different import VAT/IVA rates: Standard Rate (16%) and Exempt Rate (0%). Includes VAT rates, conditions, and notifications.
https://www.ventanillaunica.gob.mx/vucem/Clasificador.html

https://bado.mx/en/Ley-del-IVA

Import Tax (VAT) Exemptions

Examples are provided as a reference only. Please refer to the relevant legislation for full description and stipulations to determine if your products qualify for VAT exemptions:  https://bado.mx/articles/1802/ley-del-iva/article-2a-activities-affected-at-the-rate-of-0/.

Excise Tax

https://www.diputados.gob.mx/LeyesBiblio/pdf/LIEPS.pdf

An Excise Tax is a supplementary tariff applied to specific products in addition to any duty and tax already applied to the import. In Mexico, a Special Tax on Production and Services – (Impuesto Especial sobre Producción y Servicios [“IEPS”]) is an excise tax applied, at different rates, to certain products. Examples are listed below; please consult the IEPS link above to confirm your products are subject to IEPS excise tax.

• Alcoholic beverages, wine, and beer (generally 26.5-53%)
• Honey (generally 8%)
• Cigarettes, cigars, and tobacco products (generally 30-160% and subject to import quotas)
• Energy drinks, soft drinks, and other high-sugar beverages (generally 25%)
• High-calorie, non-staple “junk” foods (generally 8%)

Customs and Carrier Surcharges

***Customs and Carrier Surcharges are carrier, destination, and time specific. Items in orange apply to all consignments, and other items applied ad hoc, if applicable. Surcharges are dynamic and subject to frequent change by carriers without prior notice.

Admissibility (Non-Tariff Restrictions) Background

Many products are subject to specific import requirements such as import licenses, permits, certifications, inspections, product/business, and other labeling requirements. These requirements are generally referred to as admissibility or OGA/OGD/PGA requirements (“Other Governmental Agency” / (“Other Governmental Departments” / “Partner Governmental Agency”). In Mexico, these are called Non-Tariff Restrictions and apply to Prohibited or Restricted Goods. These restrictions are administered by several federal agencies such as the Secretaries of the Economy, Energy, Agriculture, Environment and Natural Resources, and Defense.

In addition to Non-Tariff Restrictions, Official Mexican Standards (“Normas Oficiales Mexicanas” or “NOMs”) also apply to many different products imported into Mexico. If your product is subject to NOMs, there is no way to import it unless the Conformity Assessment process is passed. Please review current NOMs requirements for your products prior to shipping to Mexico, and refer to the NOMs section below for additional details.

While some Restricted Goods may be imported after specific conditions and/or requirements are met (import licenses/permits, testing, etc.), other Prohibited goods may not be imported under any circumstances.

These admissibility requirements are subject to frequent change without advance notice and entirely depend on the commodity (HTS code), country of origin, country of import, and time of import. It is advised to regularly verify and validate admissibility requirements to ensure there are no import delays and to ensure the proper administrative steps are adhered to prior to shipment. Certain products are prohibited from being imported unless the relevant requirements/obligations are met. Significant fines, fees, delays, and storage charges can be assessed when these regulations are not followed. FlavorCloud always recommends that our merchants verify import requirements at the national and state levels and/or with your commodity- and country-specific expert before shipping.

Admissibility (Non-Tariff Restrictions) Resources

Certain commodities are prohibited or restricted depending on the country of import, country of origin, and the specific point at which the goods will be imported into Mexico. Assessment of import requirements specific to your products can be done in Mexico by consulting the Mexican government’s digital customs repository, Mexico’s Customs Laws, and Mexican Foreign Trade Laws

These repositories offer interactive query functionality to search for impacted commodities by category, description, specific tax and customs requirements, keywords, and a list of items to check for potential import requirements.

An indication of impacted commodities is shown below. A current overview, along with direct links to the government department/agency responsible for ensuring that Prohibited and Restricted goods and products subject to Non-Tariff Restrictions are not illegally imported into Mexico, is available using these official resources. Please also view in conjunction with NOMs requirements to gain visibility into the complete regulatory environment for your products.

1. Non-tariff import requirements – VUCEM
   https://www.ventanillaunica.gob.mx/vucem/Clasificador.html
2. Prohibited Imports (ANNEX 17 OF THE GENERAL RULES OF FOREIGN TRADE FOR 2020)
   https://bado.mx/articles/2827/rgce-2020/annex-17-of-the-general-rules-of-foreign-trade
3. National Service of Health, Safety and Food Quality (Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria) Prohibited Imports
   https://www.gob.mx/senasica/documentos/productos-prohibidos?state=published

Official Mexican Standards (“Normas Oficiales Mexicanas” [“NOMs”])

NOMs are the official standardizations that a product imported into Mexico conforms to its governing standard and involve a Conformity Assessment process. If your products are subject to NOMs but have not passed the Conformity Assessment process, they will be rejected by Mexican Customs, and there is no way to import them. While it differs for each commodity, the Conformity Assessment process generally includes sampling, testing, calibration, certification, verification, and labeling requirements. All product labeling must be done in Spanish.

As of October 2020, many of the NOMs exemptions (such as goods imported for personal use or for use at the US-Mexico border region) were removed, and nearly all subject products must meet these requirements.

NOMs standardization is required for the commodities/product groups itemized below. You can query your commodity using the HTS classification code using a current list of tariff codes subject to NOMs standards and the Annex of NOMs.

• The list of tariff codes subject to NOMs is published by the Servicio Nacional de Información de Comercio Exterior [(“SNICE”)], Mexico’s National Foreign Trade Information Service, and is located here: https://www.snice.gob.mx/cs/avi/snice/labelling.mx.2020.html.
• The Annex of NOMs is Annex 2.4.1 Tariff Fractions of the General Import and Export Tax Law, which SNICE has compiled here: https://www.snice.gob.mx/cs/avi/snice/seguridad.normatividad.html [DIRECT LINK].

Please note that these resources are not exhaustive and subject to change, so reviewing current NOMs requirements by commodity/product group below for your products is recommended, and ensuring they meet all applicable standards before shipping to Mexico. Direct links to the governmental agency, the Conformity Assessment process, and requirements are provided below. Also, please note that even if your products do not have a specific NOM standard, they may still be subject to general labeling standards pursuant to NOM-050-SCFI-2004; see General Labelling/Marketing Standards for All Products Marketed in Mexico below.

**NOTE: In addition to NOM-051-SCFI/SSA1-2010, most health/nutrition/food supplements require Federal Commission for the Protection against Sanitary Risk (COFEPRIS) permit for import. See COFEPRIS requirements: https://www.gob.mx/cofepris. 
https://www.dof.gob.mx/2020/SEECO/NOM_051.pdf 

These Prohibited and Restricted Goods, Non-Tariff Restrictions, and NOMs Requirements resources are subject to change, published at the national level, non-exhaustive, and subject to a detailed legal notice. FlavorCloud always recommends our merchants use these tools as a reference and then verify at the national/state level and/or with your commodity- and country-specific expert prior to shipping.