9 Jan 2015
Mexico Provides Duty-Free Treatment for Motorcycle Tyres, Increases Duty on Rice
Mexico's Ministry of Economy issued a decree on 10 December that provides duty-free treatment for meat of swine, new pneumatic rubber tyres of a kind used on motorcycles, and rubber inner tubes of a kind used on motorcycles and increases the current MFN duty on rice. A summary of these actions is provided below.
- Effective 8 February 2015, a new tariff breakout (HTSMX 4013.90.99) will be established for rubber inner tubes of a kind used on motorcycles and the MFN duty on this product will be lowered from 15 percent to zero because there is currently no domestic production of subject merchandise and imports are on the rise.
- The MFN duty on new pneumatic rubber tyres of a kind used on motorcycles classified under HTSMX 4011.40.01 has been lowered from 15 percent to zero because there is no domestic production of subject merchandise and imports have been growing at a rate of 11.4 percent per year, particularly with countries with which Mexico does not have a free trade agreement.
- The duty on rice in the husk classified under HTSMX 1006.10.01 will be increased from zero to nine percent while the duty on other rice classified under HTSMX 1006.20.01, 1006.30.01, 1006.30.99 and 1006.40.01 will be hiked from zero or five percent to 20 percent, effective 9 January 2015. This action has been taken to encourage domestic rice production, processing and commercialisation in light of the 50 percent plunge in national output from 2000 to 2013 and the 12 percent increase in domestic consumption during the same period.
- A tariff-rate quota has been established for meat of swine classified under HTSMX 0203.11.01, 0203.12.01, 0203.19.99, 0203.21.01, 0203.22.01 and 0203.29.99. In-quota imports will benefit from duty-free treatment while out-of-quota merchandise will be subject to a regular MFN rate of 20 percent. Mexican authorities indicate that the supply of pork meat has diminished as a result of the negative impact of porcine epidemic diarrhoea and domestic production is lower than domestic demand, which means that about 33 percent of the market is currently serviced by imported pork meat.
- Effective 8 February 2015, a new tariff breakout (HTSMX 1211.90.07) will be created for hibiscus but the duty on this product will remain at 10 percent.