On September 20, 2019, Minister of Finance and Public Credit – Andrés Manuel López Obrador and Minister of Economy – Arturo Herrera Gutiérrez signed a decision to amend the Import Tariff of steel items in effect since September 23, 2019.
Under the old policy, the import tax of steel items to the Mexican market was 0%. This is seen as an open-door policy without over-selecting the import source of this market. Because of the 0% import tariff, Mexico has become a lucrative market for steelmakers around the world and affecting domestic production, as well as sources of imports from allied countries of Mexico.
Realizing this, from the beginning of 2019, since the new government came to power, Mexico has been preparing to change the import tax policy to rearrange the source of imported goods into this market.
Accordingly, the import tariff increased to 15% for steel items, including galvanized steel, aluminum plated, color coated, steel bars, construction steel, steel pipes, … respectively according to the list of HS code stated clearly in the decision.
According to the appendix attached to the Decision, for galvanized, galvalume, pre-painted galvanized, pre-painted galvalume, HRC, CRC, … items will enjoy a 10% tax rate from September 22, 2021, 5% effective September 22, 2023 and exempt from tax on August 22, 2024.
This change in tax policy can be seen as a major obstacle for countries that previously exported goods to Mexico. The tax rate will increase by 15% and will increase the product price by 15%. Although the process of tax reduction has been set, the immediate future is still a big challenge.
However, this is considered an advantage for Vietnam and other countries in the CPTPP free trade area. Under this FTA, 11 countries in the CPTPP will receive import tax incentives as the previous article presented.
If you want to import GOOD QUALITY Steel Coils from Vietnam, please contact us at:
– Email: firstname.lastname@example.org
– Mobile/Whatsapp/Wechat/Line/Viber: +84 973 765 730
– Website: https://steelvn.vn/
Despite the 15% tax rate, Vietnam is a member of CPTPP so it will not be subject to this import tax and this will be a great advantage for Vietnam.
Recently, Mexico has moved to import a lot of steel products from Vietnam, steel factories in Vietnam should take advantage of this to continue promoting the development of the Mexican market.