The TGIE is based on the Harmonized Commodity Description and Coding System (henceforth, the "HC"), established by the World Customs Organization (henceforth, the "WCO"). This international nomenclature is based on a classification of goods subject to a 6-digit system.
TGIE is a classification system of goods in 8 digits, and with the proposed amendment it is migrated to a 10-digit system. The first 8 digits will continue to be the tariff Code that will establish the applicable duty, the two new digits that will be added will only be for statistical purposes, as well as to identify goods subject to countervailing and antidumping quotas.
Periodically, the WCO is responsible for proposing necessary amendments taking into consideration several aspects that warrant to update same. In June 2014, the WCO issued the Sixth Amendment to the HC, which country members shall adopt and enter force during 2017.
To update the TIGIE, the following concepts were considered by Mexican Government: (i) non-modification of duties, (ii) non-modification to tariffs Codes of Chapter 98 and prohibited goods, (iii) to not affect non-tariff regulations and restrictions.
Due to low trade, tariff codes with a volume of less than one million dollars shall be merged with other tariff codes that have the same tariff level and Tariff Unit of Measure (henceforth, the "UMT").
It is noteworthy to mention that the TGIE actually has 98 chapters, 1,231 headings, 5,212 subheadings and 12,498 tariff Codes.
Derived from the elimination due to low trade, 2,868 tariff Codes shall be eliminated and 339 will be created for a total of 10,279 tariff codes. Additionally, 2,585 tariff codes will be eliminated due to its merging with other tariff codes and therefore the TGIE will be integrated only by 7,694 tariff codes, which is expected to simplify Mexico's foreign trade operations.
It is important to note that until February 10 a consultation period is open, with the purpose of provide comments and suggestions to these process of updating and review of the TGIE which can be consulted in http://www.siicex.gob.mx/portalSiicex/actualiza/consultap It is important to note that until February 10 a consultation period is open, with the purpose of provide comments and suggestions to these process of updating and review of the TGIE which can be consulted in http://www.siicex.gob.mx/portalSiicex/actualiza/consultapublica2017.htm, therefore, we recommend you to review the tariff codes of the goods imported by your company to determine if the new tariffs Codes do not have an adverse effect.
The LIGIE project shall be submitted to the approval of the Congress during the first session period of this year which is comprised of the months of January to April.
Subsequent to the publication in the Official Gazette, all legal instruments that depend on the TIGIE shall be modified. Similarly, the Statistical Code Committee will be installed.
It is important to mention that changes are expected in 5 Decrees including IMMEX and PROSEC, as well as in 32 agreements, including the Agreements that set forth the rates of the general tax for imports of goods originating in different countries, Automotive Decree, as well as the agreement which sets forth the rules for the determination of the country of origin of imported goods as well as the provisions for certification in regards to compensatory duties.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.