Mexico suspends 10% auto part tariff to attract manufacturing

President Claudia Sheinbaum has decreed a five-year suspension of the 10% import tariff on specific automotive parts and components used for vehicle assembly in Mexico. The measure, published in the Official Gazette of the Federation, aims to attract new production lines and encourage the manufacturing of light vehicles within the country rather than importing fully finished units.

The exemption applies to tariff fraction 9803.00.01, targeting terminal automotive industry companies with fiscal deposit authorization for assembly and manufacturing under Customs Law. To qualify, companies must meet specific fiscal, customs, and operational guidelines established by the Ministry of Economy.

This policy is designed to reduce establishment and operational costs for new automotive projects, facilitating the installation or expansion of assembly lines. By incentivizing Semi Knocked Down (SKD) and Completely Knocked Down (CKD) schemes, the government seeks to strengthen Mexico’s competitiveness amid the reconfiguration of global supply chains and promote technology transfer and specialized job creation.