Government will publish new decree against inflation

The Government of Mexico will publish this Friday a new decree for the temporary exemption from paying tariffs on the final import of various food products, personal hygiene products, animal feed and agricultural inputs, in order to counteract the escalation of prices during 2023.

The Ministry of Economy took the measure in continuity with the anti-inflationary policy and because there remains an international context with a generalized rise in prices and in accordance with the Package against Inflation and High Costs (Pacic) and the Opening Agreement against Inflation and the Famine (Apecic).

In May 2022, the Pacic was presented and, in October, the Apecic, two programs to offset the prices of basic basket products by exempting import tariffs and granting facilities in the review of all regulations that prevented or made more expensive the importation and introduction of food, including the mobility of the same from the freezing of concessioned highway rates.

To facilitate the application of the measures contained in the decrees of May 16 (updated on November 18) and October 19, 2022, they will be consolidated into a single instrument.

The new decree in the Official Gazette of the Federation will extend the validity of the measures until December 31, 2023, as well as the benefit to merchandise classified in 33 tariff fractions, which are added to the products that already had the tariff reduction.

In addition, merchandise classified in 23 tariff fractions are included to the administrative facility in the accreditation of non-tariff regulations and restrictions.

The products that are added are:

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• Lettuce
• Spinach
• Lentils
• Pera
• husked rice
• Cornstarch
• sausages
• Tilapia
• Soy sauce
• Salsa catsup
• Other tomato sauces
• Preparations for soups and broths
• Prepared soups and broths
• Meat meal and meat offal for animal feed or fertilizer
• Cereals
• Residues from the starch industry
• Food for dogs and cats
• Body deodorant and antiperspirant
• Disinfectant
• tablecloths and napkins
• Toothbrushes
• Sanitary towels
• fertilizer diapers
• insecticides
• Rodenticides and herbicides
• Soybean, sunflower and safflower oil

It also maintains the administrative facility in the accreditation of non-tariff regulations and restrictions for those who have the Single Universal License (LUU), which affects a decrease in prices for final consumers by reducing import costs.

In order for more importers to have LUU, it is established that they may prove their experience in importing merchandise if: o They imported merchandise in the 24 months prior to the application (currently 12 months).

The previously imported merchandise corresponds to the same subheading of the tariff fraction contained in the decree and the same regulations and non-tariff restrictions that are required in said fractions have been complied with.