Mexico exempts 78 tariff items from tariffs to face inflation

The government of Mexico exempted from tariffs, as of this Thursday, the importation of 78 tariff fractions as a measure to face inflation.

Many of these products were already exempt from last May 17, when that facility was granted for 66 tariff items; but among the new products included yellow corn for animal consumption and toilet paper stand out.

On the one hand, the inclusion of toilet paper is explained by the ban on birch exports from Russia, whose wood consists of short fibers that soften sanitary products, which has encouraged greater demand for pulp, the main ingredient in paper. .

On the other hand, Mexico had already exempted the importation of white (bread) corn, but has now incorporated yellow corn for animal consumption, of which it is widely deficient.

Another novelty is that the Register of Importers of Basic Basket Productsin charge of the Tax Administration Service (SAT), which will be made up of the importers that the government registers.

Among the exempted products are: rice, tuna, pork, chicken, beef, onion, jalapeño pepper, beans, wheat, egg, tomato, milk, lemon, white corn, apple, orange, box, potato, sardine, sorghum, wheat and carrot.

The exemption is part of Package Against Inflation and Famine (PACIC) and the decree that authorizes it was published on Wednesday night in the Official Gazette of the Federation (DOF), will be in force until February 28, 2023 and may be extended until December 31, 2023.

The extension will be granted provided that the “Basic Basket Products Import Company” proves that it has entered into a contract during the term referred to in the First transitory article of this decree.

The SAT will issue the general rules, and the National Customs Agency of Mexico the rules of operation, necessary for the due and correct application of the new decree.

These imports will be assigned to the definitive import customs regime by an “Importing Company of Basic Basket Products” registered in the List of Importers of Basic Basket Products.

The government argued that annual headline inflation in Mexico in September 2022 stood at 8.7%, which meant an increase of 0.62% compared to the previous month.

At the same time, the general minimum wage for 2022 was set at 172.87 pesos per day, equivalent to a growth of 22% compared to the previous year. Although this helped to recover purchasing power, its effect was limited by the inflationary scenario.

roberto.morales@eleconomista.mx