Detailed Explanation of the General Trade Agency Export Process

Category: Trade Compliance Date: Recently, the President of Mexico signed the Executive Order on Amending the General Tariff Law, adjusting the import tariffs of 392 customs codes such as steel, rubber, glass, textiles, and ceramics to 5% - 25%. This decree came into effect on August 16, 2023, and is valid until July 31, 2025. (Note 1: For imported goods classified under tariff items 7210.70.02 and 7212.40.04, a 10% tax rate applies from the date of entry into force of this decree until December 31, 2023; from January 1, 2024, to July 31, 2025, a 25% tax rate applies.) This tariff adjustment aims to protect Mexicos domestic industries, especially the automotive manufacturing industry. Source: Shanghai Zhongshen International Trade Co., Ltd.

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Legal and Economic Reasonsimport and exportImpact on China - Mexico TradeGlobal Supply Chain and China - US Trade RelationsMexicos legal basis includes the Political Constitution of the United Mexican States and the International Covenant on Economic, Social and Cultural Rights. In addition, Mexico also emphasizes its rights within the framework of the World Trade Organization, that is, adjusting import tariffs as long as they do not exceed the bound tariff range.Economically, the Mexican government has emphasized the global overcapacity of steel, the impact of the COVID - 19 pandemic on Mexicos national industries, and the need to maintain a balanced global market and provide stable and fair market conditions.Growth in trade volume: Chinas exports of goods to Mexico have increased significantly in recent years, especially in the automotive manufacturing field. Mexico is also a key part of the United States near - shore supply chain layout in North America and Latin America.

Impact of tariff adjustment: Although Mexico has adjusted the tariffs of 392 tax codes, according to customs data, the five major categories of products that are truly affected are mainly steel and steel products, plastics and rubber, transportation equipment and parts, textiles, and miscellaneous furniture.

Mexicos tariff adjustment will have a relatively large impact on Chinese enterprises exporting to Mexico. However, considering the close connection of the global automotive industry chain and the depth of trade relations between China and Mexico, both sides should actively communicate and seek common solutions to reduce trade frictions and achieve a win - win situation.

The original text of this decree in Mexico: https://www.dof.gob.mx/nota | detalle.php?codigo=5698661&fecha=15/08/2023#gsc.tab=0

Impact on the automotive industry: Auto parts are one of the main products imported by Mexico from China. Mexicos automotive manufacturing industrys dependence on China is also steadily increasing.

Growth in Trade Volume:Chinas merchandise exports to Mexico have increased significantly in recent years, especially in the automotive manufacturing sector. Mexico is also a key part of the United States near - shore supply chain layout in North America and Latin America.
Impact of Tariff Adjustments:Although Mexico has adjusted the tariffs of 392 tariff numbers, according to customs data, the five major categories of products that are truly affected are mainly steel and steel products, plastics and rubbers, transportation equipment and parts, textiles, and miscellaneous furniture.
Impact on the Automotive Industry:Automotive parts are one of the main products imported by Mexico from China. Mexicos automotive manufacturing industrys dependence on China is also steadily increasing.

The United States layout of the friend - shore supply chain through the United States - Mexico - Canada Agreement to counter Chinas influence is beginning to show results. Although Mexicos increase in tariffs is beneficial to its trade relations with the United States, it may also have an impact on China - Mexico trade relations.

The United States layout of the friend - shore supply chain through the United States - Mexico - Canada Agreement to counter Chinas influence is beginning to show results. Mexicos increase in tariffs, while beneficial to its trade relations with the United States, may also have an impact on China - Mexico trade relations.