On September 20, 2019, the Ministry of the Economy published in the Federal Official Gazette the "Decree modifying the General Imports and Exports Taxes Act Tariff (TIGIE), the Decree establishing the General Importation Tax (IGI) for the border region and the northern border strip (Border Decree), the Decree establishing various Sector Promotion Programs (PROSEC Decree) and the Decree for the Promotion of Manufacturing, Maquila and Export Services Industry (IMMEX Decree)", (together, the "Decree").
The Decree entered into force on September 22, 2019, and by virtue of it, several tariff items were created, amended and eliminated, as well as their descriptions and/or their tariffs. These products correspond to the steel industry, including products such as steel plates, rolled steel plates, cold rolled steel sheet, hot rolled steel sheet, wire rod, tubes, rebar, and steel profiles, among others.
The creation, amendment, and elimination of tariff items took place to favor comparability between trade flows in the steel sector between Mexico and the United States, for purposes of meeting commitments made between both countries to monitor the foregoing, as part of the Agreement of May 17, 2019, which eliminated U.S. tariffs imposed on Mexican steel and aluminum imports (Section 232), and the retaliatory measures imposed by Mexico against U.S. imports (see "Newsletter about the Elimination of Section 232 Tariffs").
Additionally, the Decree concludes with the arrangement, initiated in October 2015, imposing and renewing every six months, import tariffs on various steel products. Instead, a medium and long term policy is established, starting with a 15% tariff rate set forth in the Decree, and based on a tariff reduction scheme established...