On December 20, 2024, Mexican President Claudia Sheinbaum enacted a decree introducing measures aimed at safeguarding Mexico’s textile and apparel sectors while addressing compliance issues related to the country’s IMMEX program.

This shift in Mexico’s trade and manufacturing policies will lead to higher import costs for several goods and may require adjustments from importers, especially those fulfilling U.S. e-commerce orders from Mexico. Companies involved in the repair or alteration of apparel and textiles in Mexico, or those utilizing HTS subheadings 9802.00.80 or 9802.00.91 for assembling U.S. components abroad, will also be affected, including those operating under the Mexico Special Regime program.

Tariff Increases

The new decree raises import duties on 121 apparel products and 17 made-up textile items under Chapters 63 and 94 from 20-25% to 35%. It also hikes the import duty on 17 textile-related tariff lines from 10% to 15%. These increases are designed to support Mexican industries by addressing competition from lower-cost imports, particularly from nations without free trade agreements with Mexico. The new tariff rates will remain in place until April 23, 2026.

Changes to IMMEX Program for Temporary Imports

The IMMEX program enables companies to defer duties on imported raw materials and components used in the production of goods for export. Many businesses using Mexican warehouses to fulfill U.S. e-commerce orders rely on IMMEX to avoid paying duties on goods imported to Mexico and then sent to the U.S.

Under the new decree, however, certain finished goods are now excluded from temporary importation under IMMEX. These exclusions include finished clothing and textile products under HTS Chapters 61, 62, and 63; quilts and comforters under HTS subheading 9404.40; and pillows, cushions, and other bedding materials under HTS subheading 9404.90.

Certain items such as garment parts classified under HTS subheadings 6117.90 and 6217.90, certain household linens under HTS 6302.91, 6302.93, and 6302.99, as well as textile products like yarns and fabrics under HTS chapters 50-60, are exempt from the decree and remain eligible for IMMEX usage.

Annex I of the IMMEX decree has been updated to include the additional HTS headings now restricted from temporary importation. Furthermore, 302 items from Chapters 61, 62, and 63 have been removed from Annex II, which lists tariff lines that must meet specific conditions for temporary importation under IMMEX.

Goods Affected by Tariffs and IMMEX Changes

The main categories of goods impacted by the new tariffs and IMMEX restrictions are as follows:

  • Clothing (Chapters 61 and 62):
    • Coats, suits, jackets, pants, dresses, shirts, sweaters
    • Textile accessories, such as gloves, belts, and ties
  • Made-Up Textile Articles (Chapter 63):
    • Home goods, including bed linens, blankets, pillowcases, curtains, towels
    • Tents, awnings, needlecrafts, rags

 

Source: NCBFAA Customs Counsel: Sandler, Travis & Rosenberg, P.A.