Mexico included steel and iron products to the Sector Promotion Programs (Prosec) as part of a decree published by the Ministry of Economy on Tuesday.
These are 11 types of flat-rolled steel and iron products.
These tariff fractions were included for the purposes of the «Decree establishing several Sector Promotion Programs», published in the Official Gazette of the Federation (DOF) on August 2, 2002 and its subsequent amendments.
As of this Wednesday and until July 31, 2025, this inclusion will be in effect in the programs referred to in sections I, II and XIX of Article 5 of such decree.
Specifically, they are the following tariff fractions:
- In the electrical industry program, tariff items 7208.39.01, 7208.51.04 and 7211.29.99.
- In the electronic industry program, the tariff item 7225.19.99, only for the effects of section II, subsection b, of article 5 of the decree.
- Finally, in the automotive and auto parts industry programs, tariff items 7208.26.01, 7208.27.01, 7209.16.01, 7209.17.01, 7211.29.99, and 7225.30.91 and 7225.40.91.
Prosec
In addition to programs to promote exports, Mexico maintains other programs to attract investment and create jobs, several of which have been notified to the World Trade Organization (WTO).
Most of these programs were already in place and had been notified at the time of the previous review in 2017.
These included, in particular, Prosec, under which inputs and machinery needed to produce specific goods are allowed to be imported at a preferential tariff, regardless of whether the final product is consumed domestically or exported.
The only change since the previous review was the addition of a program for the fertilizer sector.
The total number of tariff lines covered by Prosecs in 2021 (May) was 2,487.
In 2021, the most common preferential tariff rates were 0 and 5%, which applied to 76.2 and 19.1 of the beneficiary tariff lines, respectively.
In September 2019, the import tariff of 15% was established for goods classified in 228 tariff items of the steel sector with a medium-term tariff elimination scheme that ends on August 22, 2024.
