News, Insights and Best Practices for Manufacturing in Mexico

How to Reduce or Eliminate Duties When Importing Items into Mexico

09 Jun 2011

Category: Manufacturing in Mexico

Ever since the NAFTA was signed in 1994, Mexico has pursued an aggressive policy of establishing free trade agreements with countries around the globe.  As such Mexico is not only a great place from which to manufacture for the U.S. and Canadian markets, but also serves as a duty free export platform to many nations.

Conversely, importing machinery, raw materials and components into Mexico for use in subsequent manufacturing and/or assembly can be done in most instances on a duty free basis.  Mexico has free trade agreements with the following nations:

  • Bolivia
  • Canada
  • Chile
  • Colombia
  • Costa Rica
  • El Salvador
  • Guatemala
  • Honduras
  • Iceland
  • Israel
  • Lichtenstein
  • Nicaragua
  • Norway
  • Panama
  • Switzerland
  • Uruguay
  • Venezuela
  • Japan
  • The European Union
  • The United States

Because of this extensive network of free trade agreements (45 nations), many items that are imported into Mexico for production purposes enter the country duty free.  When an item is dutiable, there are several Mexico duty reduction or elimination program alternatives that may be employed to reduce or eliminate duties altogether.

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