Introduction

The new General Import and Export Duties Law (LIGIE) entered into force on 28 December 2020. The new LIGIE:

  • updates the General Import and Export Tariff Code (TIGIE) by:
    • removing more than 4,000 obsolete tariff items which represented a commercial value of less than $1 million per year;
    • consolidating the existing tariff items, including by combining goods that have the same duties and units of measure under the same tariff ítem; and
    • introducing new tariff items for newly created goods;
  • implements the Sixth Amendment to the Harmonised System established by the World Customs Organisation; and
  • introduces a commercial identification number (NICOS), which consists of two digits that will be added to the tariff items of goods for statistical purposes. With the application of the NICOS, the new tariff items will comprise 10 digits (see below).

Structure of new LIGIE

The new LIGIE comprises two articles:

  • The first article comprises 98 chapters and contains the following information with regard to each tariff item:
    • the NICOS;
    • a description of the goods;
    • a unit of measure; and
    • the applicable duties.
  • The second article contains the general rules for applying and interpreting the new LIGIE.

Regulatory changes

The new LIGIE has modified five decrees and 40 accords and issued new accords and application methodologies, including as follows.

National Notes The National Notes were issued on 26 December 2020 and entered into force on 28 December 2020, abrogating the Explanatory Notes of the Harmonised System.

The National Notes are the official interpretation instrument of the TIGIE, the application of which is mandatory to determine the tariff classification of goods entering and leaving Mexico.

NICOS For the proper application of the NICOS, the Secretariat of Economy (SECON) has issued:

  • a list of the applicable NICOS for each tariff item, which was modified on 27 December 2020; and
  • tables setting out the correlation between the TIGIE 2012 (the previous version) and the TIGIE 2020 (derived from the new LIGIE). These correlation tables were modified on 27 December 2020. With these tables, SECON has sought to ease the identification of the tariff items that will apply in accordance with the new LIGIE, in correlation with the previous tariff items.

Recommendations

In light of the new LIGIE, parties should:

  • undertake an exhaustive review of the tariff classification applicable to the goods which they import and export, as the tariff items which they previously used may have been modified or eliminated;
  • determine the NICOS applicable to said tariff ítems; and
  • in case of any doubt, file a tariff classification ruling request with the authorities.