As the global economy undergoes significant turbulence, manufacturing bases and transportation routes worldwide are being reassessed, with Mexico’s position growing increasingly prominent.
Mexico’s geographic and economic proximity to the USA, its extensive network of free trade agreements (FTAs) with over 50 countries and regions, and its strategic trade policies have reignited recognition of its role as a pivotal location for international commerce.
Of particular interest is Mexico’s customs regime—a complex system that extends beyond mere tariff rates to impact corporate cost structures, supply chain design, and regulatory compliance.
This article systematically outlines the latest developments in Mexico’s customs framework and highlights key considerations for Chinese enterprises trading with Mexico.
Customs Regulation in Mexico
Mexico’s tariff system aims to protect the domestic market and secure fiscal revenue through a system of taxes and fees levied on imports. Having joined the World Trade Organization (WTO) in 1995, Mexico’s tariff policy operates based on multilateral rules.
Three key points must be kept in mind when understanding the tariff system:
- Types of tariffs
- Tariff rate levels and averages
- Tariff calculation methods and the role of relevant agencies
Types and Characteristics of Tariffs
Mexico imposes three types of tariffs:
Ad Valorem Tax
This is the most common method of taxation, levied as a fixed percentage of the CIF value (Cost, Insurance, and Freight) of imported goods.
Specific Tax
This is a special system applied to specific items, taxed based on a specific unit of measurement (weight or quantity, not monetary value).
Compound Duty
This combines ad valorem and specific duties. While rarely applied under the current tariff schedule, it remains a recognized option within the system.
For example, industrial products such as machinery parts and automotive components are primarily subject to ad valorem duties, while certain agricultural products are subject to specific duties.
Average Tariff Rates and Trends by Product Category
As of 2023, Mexico’s weighted average tariff rate stands at approximately 6.8%. However, tariff rates vary significantly across products, with industrial goods generally maintaining rates around 5-7%, while agricultural products can sometimes exceed 10%.
Furthermore, these rates can be effectively reduced to zero through the utilization of FTAs (Free Trade Agreements). For instance, under the Japan-Mexico Economic Partnership Agreement (EPA), numerous products exported from Japan qualify for duty-free entry into Mexico.
Method and Procedure for Calculating Customs Duties
The calculation of Mexican customs duties is based on the following factors:
- Duty-assessable value (CIF value)
- Applicable duty rate (normal tariff or FTA preferential rate)
- Relevant non-tariff charges (VAT, excise taxes, etc.)
The practical operation of this system is overseen by the Ministry of Economy (SE) and the National Tax Administration Service (SAT). When importing goods, businesses must undertake appropriate preparations, such as completing customs formalities in advance, verifying HS codes, and obtaining certificates of origin.
Therefore, while Mexico’s customs tariff system aligns with international standards, it is significantly influenced by free trade agreements and domestic policies. Practical countermeasures must be implemented based on the latest information.
Why Are Mexico’s Tariffs Drawing Attention?
Global trade has changed a lot in recent years, and now Mexico is in the spotlight.
This shift is about more than just location. Companies want to lower geopolitical risks, handle different tariffs, and take advantage of Mexico’s active government support.
U.S.-China Tensions and Shifts in Global Supply Chains
Manufacturers and logistics companies that depend on China are dealing with more uncertainty because of U.S.-China tariff disputes and security concerns. To adapt, many global businesses are adding new locations or moving production closer to important markets.
For businesses focused on the U.S. market, Mexico offers an especially attractive alternative.
Mexico’s Geographical and Logistical Advantages
- Proximity to the U.S. – Bordering the United States, Mexico enables overland transportation of goods, reaching major cities within 24–72 hours.
- Strategic Port Access – With ports on both the Gulf of Mexico and the Pacific Ocean, Mexico allows flexible handling of shipments to and from Asia and Europe.
- Aligned Time Zones – Sharing time zones with the U.S. facilitates real-time coordination across procurement, manufacturing, and sales.
These factors are evaluated not just for proximity, but also for operational efficiency and the ability to build low-risk, reliable supply chains.
Flexible Trade Strategy Based on the Global FTA Network
Mexico is one of the world’s most extensive signatories of free trade agreements (FTAs), having concluded such agreements with over 50 countries.
USMCA (United States-Mexico-Canada Agreement)
Enables duty-free access to the North American market. Many companies, particularly those in the automotive sector, are establishing production systems in Mexico based on this agreement.
Latest Developments on Mexico’s Tariffs
From 2024 to 2025, the Mexican government will revise its tariff system to boost the domestic industry and reduce its reliance on low-cost imports from certain countries. These changes will shift trade policy and directly affect local procurement, production, and sales, impacting Chinese enterprises.
Key Changes in 2024
2024 marks a major turning point in Mexico’s tariff policy, as the government imposed additional tariffs on certain products and implemented a stricter classification system. These measures aim to restore competitiveness in domestic industries and correct excessive imports.
These developments have forced foreign companies, including Chinese firms, to reassess their customs procedures and pricing strategies.
Introduction of Additional Tariffs (April 2024)
The government has set new tariffs of 5% to 50% on 352 products, such as steel, textiles, leather goods, plastics, and chemicals. This decision follows a sharp increase in cheap imports from China and Southeast Asia, which has made things harder for local manufacturers.
These measures aim to “prevent domestic industries from hollowing out” and “correct price competition,” with a particular focus on sectors dominated by small and medium-sized enterprises.
Special Protection for Textiles (Scheduled for Implementation in December 2024)
New tariffs will impose duties of up to 35% on textile and apparel products and up to 15% on raw materials. These measures primarily target products from non-Free Trade Agreement countries and aim to support domestic apparel and fabric manufacturers.
This revision will further differentiate imports from FTA countries while also relatively increasing the value of existing agreements, such as the Japan-Mexico EPA.
HS Code Reclassification and Enhanced Customs Audits
Due to widespread misuse of HS codes by importers attempting to reduce tariff rates, the Tarifa system underwent revisions in 2024, introducing stricter classification standards.
Concurrently, customs authorities are intensifying audit efforts, with audit volumes in the first half of 2024 alone increasing by 150% compared to the same period last year.
Accurate import declarations are more critical than ever, making collaboration with experts essential.
Enhancing the Reliability of the Electronic Customs System “VUCEM”
In February 2025, Mexico’s electronic customs system, VUCEM (Ventanilla Única), experienced a major failure, halting nationwide customs clearance operations.
In response to this situation, the government announced the following measures:
- Introduction of AI-Based Automatic HS Code Classification
- Fully Authorized Electronic Signatures
- Implementation of a Real-Time Error Checking System Prior to Document Submission
These digital enhancements signify that while improving convenience, the system is also evolving toward higher standards of accuracy and transparency in tax filings.
Expanded Application of the Non-Automatic Import Licensing System
For reasons of national security and environmental protection, certain items will gradually transition to a non-automatic licensing system (prior review and approval system) starting in 2025.
The affected sectors are as follows:
- Semiconductors and electronic components (to protect technological advantages)
- Medical devices and chemicals (public health and environmental considerations)
- Specific energy facilities (for resource conservation purposes)
Consequently, imports will require not only a customs declaration but also prior consultation with relevant government agencies and submission of documentation. This is expected to significantly increase administrative burdens and preparation time.
Integrating Technical and Environmental Certifications into Customs Systems
Technical certifications such as RoHS compliance, ISO compliance, and COFEPRIS registration (for medical and food-related products) were previously optional but are now explicitly required for customs clearance.
Going forward, situations requiring these certification documents during customs declaration will become increasingly common, with particular attention needed in the following sectors:
- Electrical/Electronic Products (Electromagnetic Waves/Hazardous Substances Regulations)
- Automotive Components (Structural and Environmental Safety Standards)
- Pharmaceuticals and Food (Quality and Sanitary Inspections)
These developments indicate that the focus of customs policy is shifting from simple “taxation” to “emphasising safety, environmental protection, and sustainability.”
Impact on Chinese Enterprises and Recommended Countermeasures
With the recent adjustments to Mexico’s tariff system, Chinese enterprises face several significant challenges and operational shifts:
1. Rising Import Costs
Recent tariff increases on certain products have raised import costs and reduced profit margins for many companies.
2. Increasingly Complex Customs Procedures
Companies now need to follow stricter digital customs procedures in Mexico, including using systems such as VUCEM and updating their product classification.
3. Greater Certification and Licensing Burden
There is now more work involved in getting certifications and permits. Companies need to work more closely with regulators and keep all compliance documents up to date.
4. Need for Supply Chain Restructuring
To reduce tariff exposure, enterprises should source more components or materials from countries with free trade agreements with Mexico or expand local manufacturing operations to secure preferential treatment.
Mexico’s 2024–2025 tariff reforms are more than just a change in rates. They represent a major shift in the trade environment and will change how companies handle customs, compliance, and supply chain management.
Tariff Risks and Preventive Measures for Chinese Enterprises in Mexico
Chinese companies need to fully understand Mexico’s tariff system to manage costs and maintain stable operations over time.
Although Mexico’s tariff system may seem simple at first, in practice, there are many hidden risks. Without proper preparation, companies could face unexpected costs, shipping delays, or even have to pause their operations.
The following sections identify key tariff-related risks for Chinese companies and outline practical measures to mitigate them.
Key Tariff-Related Risks
HS Code Errors
Incorrect tariff classification of products will result in the application of erroneous tariff rates, leading to additional duties and penalties. Mexican Customs conducts rigorous classification audits with stringent accuracy requirements.
Submit properly prepared Certificates of Origin. Any information errors, incorrect formats, or delayed submissions may lead to rejection of duty exemption claims.
Customs Valuation Errors
If costs that should be included in the import price (freight, insurance, royalties, etc.) are not correctly recorded, customs will adjust the valuation, potentially requiring additional tax payments.
Insufficient VUCEM Support
Submitting declarations without familiarity with Mexico’s electronic customs clearance system, “VUCEM,” may result in data transmission errors and incomplete documentation, causing clearance delays.
Failure to Obtain Required Licenses and Permits
Certain products (medical devices, food items, electrical appliances, etc.) require certification regarding safety, hygiene, and technical standards (NOM standards, COFEPRIS approvals, etc.).
Importing without certification may result in serious consequences, such as cargo detention or disposal.
Specific Measures Chinese Enterprises Should Adopt
Enhance Classification and Valuation Accuracy
Collaborate with local Mexican customs brokers and experts to accurately classify HS codes, develop internal manuals for import/export pricing, and clearly define valuation factors.
Establish a Free Trade Zone Operational System
Automate the process for obtaining and submitting Certificates of Origin, ensuring regular updates. Implement a centralized digital management system for certificate expiration dates, signing authorizations, and other critical information.
Address Non-Tariff Regulations
Proactively verify the specific Mexican legal certifications and regulatory requirements for each product. Thoroughly manage the timelines for obtaining product certifications you plan to import.
Internal Support Utilized by VUCEM
Develop or hire in-house expertise in electronic customs procedures and collaborate with external customs brokers to ensure accuracy in pre-filled and supplementary documents within VUCEM.
By consistently implementing these measures, we not only prevent potential issues but also enhance the efficiency of customs clearance and strengthen our credibility locally.
This article gives you a clear look at Mexico’s customs system, including the basics, recent changes, what they mean for your business, and ways to use this knowledge to your advantage.
In a rapidly evolving global economy, understanding customs regulations is crucial for cost management, risk mitigation, and enhancing competitiveness.
Mexico’s customs system is often complex, so businesses need to keep up with local rules and updates. Trading with Mexico can also mean adjusting some internal company processes.
Therefore, if you have any questions about customs regulations, we recommend consulting with experts.
