Mexico imported some US$11 billion worth of goods under Rule Eight in 2021, according to the U.S. International Trade Commission (USITC).

The United States was the largest source of those imports, at $3.3 billion.

In Mexico, the Sector Promotion Programs (Prosec) allow participating companies in specific sectors to import goods at reduced tariffs.

For its part, Rule Eight (Rule 8) allows companies to import goods that are not produced in Mexico (or are produced in insufficient quantities to meet domestic demand) at reduced duty rates.

These duty reduction mechanisms are applicable regardless of whether the goods are subsequently exported or sold in the Mexican domestic market.

There is an extensive certification system to obtain additional relief from the 16% Value Added Tax (VAT) and, if applicable, from the Special Tax on Products and Services (IEPS).

Eighth rule permits are limited to a specific HTS code, product description, use and intended volume. If the expected volume is exceeded, companies may reapply for a new permit to cover the additional volume.

Rule Eight

The application process is relatively easy and quick, in some cases taking only two days for approval.

Mexico also has several special customs regimes that share some similar characteristics with the U.S. free zone and bonded warehouse programs, including the recinto fiscal, the recinto fiscalizado estratégico (known as RFE) and the depósito fiscal.

Like the United States and Canada, Mexico has a duty drawback program that, with restrictions, allows companies to recover duties previously paid when exporting qualifying goods.

Prosec was created in 2002 in response to the gradual introduction of NAFTA requirements, including tariff standardization among the three parties and the WTO Agreement on Subsidies and Countervailing Measures, which prohibits export subsidies.

In establishing the IMMEX program in 2006, the Mexican government cited both competitiveness in international markets and its commitments under NAFTA.