International Trade News-RRS
Are you ready for the entry into force of the new General Import and Export Duties Law?
Edmundo-Elías Fernández
When does the New LIGIE enters into force?
The new General Import and Export Duties Law (“New LIGIE”) enters into force as of December 28, 2020.
Why was a New LIGIE issued?
- To update the nomenclature of the Tariff of the General Import and Export Duties (“TIGIE”):
- More than 4,000 (four thousand) tariff items considered obsolete were eliminated, since they represented a commercial value lower than 1 (one) million USD per year.
- Tariff items are compacted, including goods that have the same duties and unit of measure in the same tariff item.
- New tariff items were created for newly created goods.
- Implement the Sixth Amendment to the Harmonized System established by the World Customs Organization.
- To add a Commercial Identification Number (“NICOS”), which consists of 2 (two) digits that will be added to the tariff item of the goods for statistical purposes.
With the application of the NICOS the new tariff items will be integrated by 10 (ten) digits.
How is the New LIGIE structured?
The New LIGIE is integrated by the following 2 (two) articles:
· The first article contains the following information on regards of the tariff items, which are listed throughout 98 chapters:
· The second article contains the general and complementary rules for the application and interpretation of the New LIGIE.
What regulatory changes were made by means of the New LIGIE?
The entry into force of the New LIGIE implies that 5 (five) decrees and 40 (forty) accords are modified, and also the issuance of new accords and application methodologies, highlighting the following:
· Issuance of the National Notes
The National Notes were issued on December 26, 2020, and can be consulted in the following link:
https://www.dof.gob.mx/nota_detalle.php?codigo=5608825&fecha=26/12/2020
The National Notes entered into force on December 28, 2020, and, as of its entry into force the Explanatory Notes of the Harmonized Systems were abrogated.
What are the National Notes?
They are the official interpretation instrument of the Tariff of the New LIGIE, and its application is mandatory to determine the tariff classification of goods entering and leaving Mexico.
· NICOS
For the proper application of the NICOS, the SECON has issued the following:
- The list of NICOS by tariff items, which can be consulted in the following link:
https://www.dof.gob.mx/2020/SEECO/ECONOMIA_NICO.pdf
The list of NICOS by tariff item was modified on December 27, 2020.
This modification can be consulted in the following link:
https://www.dof.gob.mx/nota_detalle.php?codigo=5608867&fecha=27/12/2020
- The correlation tables between TIGIE 2012 (previous) and TIGIE 2020 (derived from the New LIGIE).
With this correlation tables the SECON sought to ease the identification of the tariff items that will be applicable in accordance with the New LIGIE, in correlation with the tariff items previously used.
These correlation tables can be consulted in the following link:
https://www.dof.gob.mx/2020/SEECO/ECONOMIA_TIGIE_2012_2020.pdf
Below please find an example of the correlation tables between NICOS and TIGIE:
The correlation tables were modified on December 27, 2020; said modifications can be consulted in the following link:
https://www.dof.gob.mx/nota_detalle.php?codigo=5608868&fecha=27/12/2020
Our recommendations
· Perform an exhaustive review of the tariff classification applicable to the goods imported and exported, since the tariff items previously used may have been modified or eliminated.
· Determine the NICOS applicable to said tariff items.
· In case of any doubt perform a tariff classification ruling request before the authority.
Below please find the link to the New LIGIE:
