Recently, the Mexican government and many major national business associations signed an agreement on best trade practices within the framework of the new Economic Competition Law to enhance value for consumers by promoting competitive business practices. Chain construction, promote the development of supply chain and distribution channels, and increase the market share of textile and clothing products in Mexico.
According to the agreement, Mexico will suspend the reduction of textile tariffs on 80 tax codes until 2018. The import tariffs on products under these tax codes will remain at around 25%, instead of the previously stipulated effective date of January 1, 2015. Starting from 20%. It is worth emphasizing that this measure only targets countries that do not have a free trade agreement with Mexico.
In addition, starting from January 2015, the Mexican Tax Agency will establish a “Textiles and Clothing Sector Importers List”, which will serve as a control mechanism to identify importers and measure their foreign trade business risks. Importers who are not registered in the directory will not be allowed to import fibers or manufactured products. The Tax Administration Service (SAT) under the Ministry of Finance has the power to formulate specific requirements for registration, and each registered importer must comply with the principles of legal and fair competition. In the new regulations, importers are required to notify at least 5 days in advance any activities involving the import of textiles and clothing from abroad into Mexico. The notification must provide invoices, sources of supply, commodity freight and insurance documents, etc. Based on this, SAT can pre-assess whether there is price under-reporting in the import activity and formulate a review process in advance.
At the same time, starting from January 1, 2015, Mexico will also establish a valuation guarantee mechanism for the import of textiles and clothing finished products and their raw materials. All importers who attempt to import related products at a price lower than their actual cost must guarantee Pay tax on the difference between the customs declaration price and the valuation price. Once it is confirmed that the goods are imported at a lower price, the deposit will be used to compensate for the difference between the customs declaration price and the valuation price.
Thanks to the financial reform plan announced at the beginning of this year, various development banks in Mexico have been given more credit rights. It is easier for small and medium-sized enterprises to obtain loans than before, and they can obtain more favorable conditions in terms of amount, term and interest rate. Specifically, the National Financial Bank is providing at least P450 million in credit financing to the textile and apparel sector over the next 12 months, earmarked for the modernization of machinery and equipment and the development and innovation of new products for small and medium-sized enterprises in the sector. Mexico’s Foreign Trade Bank will provide financing support for companies in the textile and clothing sector to participate in national competition.
Given that most of the cotton currently used in the Mexican textile industry comes from imports, the Ministry of Agriculture will implement the ACERCA plan, which aims to encourage the Mexican textile industry to purchase cotton from domestic farmers by providing partial support for cotton farmers to purchase insurance.
