Mexico Announces New Registration, Advance Data Requirements for Textile and Apparel Importers
The Mexican government recently announced a series of measures on the importation of textiles and apparel, including registration and reporting requirements, that will take effect on Jan. 1, 2015. At a press conference held in Mexico City on Dec. 3, Mexican officials said the moves will stem fraud and undervaluation of textile and apparel imports and improve the competitiveness of Mexican industry (here).
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The measures will include a registration requirement for importers of textiles and apparel into Mexico. Importation of fibers and cut-to-shape pieces will be prohibited unless the importer is registered, said Mexican Secretary of Finance and Public Credit Luis Videgaray Caso. Registration will allow the Mexican government to monitor the risk posed by importers.
Importers will also have to give five days advance notice before importing any textiles or apparel products. Textile and apparel importers will also have to identify their suppliers on invoices accompanying their shipments.
To combat undervaluation, Mexico will set minimum reference prices on imports raw materials and cut-to-shape components, said Videgaray. The prices will be determined under a model developed by the Mexican Ministry of Finance with industry import, he said. Importers that “introduce fibers or merchandise at below cost prices” will have to post bond worth the difference between the declared value and the reference price, and if Mexico confirms that the merchandise entered at below cost the bond will be used to cover the difference, said Videgaray. Mexico will also create a permanent audit program for importers that have a history of fraud, he said.
Videgaray also announced a series of other measures designed to promote the Mexican textile and apparel industry and monitor imports. Mexico will begin a pilot program on expanding to 10-digit tariff numbers for the textile and apparel sectors, with the participation of Mexican customs brokers. The country will also implement a financing program for the modernization of the Mexican textile and apparel industry, as well as subsidies for the purchase of domestic cotton for use by Mexican textile manufacturers. Finally, the country is suspending a planned tariff reduction for imports of cut-to-shape products until 2018. The suspension means tariffs, which were set to drop to 20%, will remain at 25 percent for countries that don’t have a free trade agreement with Mexico.