Measures To Encourage The Development Of Mexico'S Textile And Garment Industry

(1) industrial policy measures

The Ministry of economic affairs of Mexico has formulated a set of policies that will help to enhance the productivity and competitiveness of the industry in conjunction with the 26 strategic production departments, and plans to invest more than 540 million pesos for the policy.

The industrial policy mainly includes four aspects:

1, the ability to develop enterprises

Cooperate with the industry to introduce the enterprise capability certification, management and production process system, and integrate these process systems with key customers and creative markets based on standard rules or strategic means.

2, promote the implementation of the innovation process.

International experience shows that innovation and added value are the source of power for products to resist external competition and open up foreign markets. Therefore, the state plans to set up the national textile and clothing innovation center, so as to realize President Pernia's commitment to the industry. This year, the first stage of the plan will be launched, and the address will be chosen in Hidalgo.

3, stimulate domestic market demand

The government and many major national business associations including CONCAMIN have signed an agreement on best trade practices within the framework of the new economic competition law, promoting the construction of value chains conducive to consumers by promoting competitive business practices.

And the development of distribution channels to increase the share of textiles and clothing products in the domestic market;

4, further deepen the process of internationalization of departments.

Utilizing the existing multi bilateral free trade network in Mexico, we actively promote textile and other industries through complementary resources and win-win cooperation with foreign counterparts.

Increase the share in the international market.

1, suspend the process of import tax reduction for manufactured goods.

During the six years of the current president's PnIA campaign, from 2013 to 2018, the textile tariff reductions of 80 tax numbers will be suspended. The import tariffs on these tariff items will remain at 25% levels, rather than the previous ones, which have been reduced to 20% since January 1, 2015.

It is worth emphasizing that the measure is only targeted at countries that do not have a free trade agreement with Mexico.

2. Establishment of importers list

Starting from January 2015, the Inland Revenue Department will set up a list of importers of textiles and clothing, which will serve as a control mechanism to identify importers and measure their foreign trade risks.

Importers who have not entered the register will not be allowed to import fibres or manufactured goods.

The tax administration service bureau (SAT) under the Ministry of finance has the right to formulate specific requirements for registration, and every registered importer must abide by the principle of fair competition.

3. Perform prior notification obligations.

In the new regulation, importers are required to notify at least five days in advance of any activities involving importing textiles and clothing from abroad to Mexico.

It must include: invoice, source of supply, freight and insurance for goods.

SAT can pre assess whether there will be a low price in the import activity, and make a review process in advance.

4, establish a "continuous supervision" system.

Continuous monitoring of declarations, importers and their customers of low price declarations will be conducted not only when customs declaration is conducted, but also for imported enterprises with unfair records, such as unfair competition or illegal imports.

5, start the "split customs tariff" pilot project.

The former 8 customs tariff numbers are refined to 10 bits in order to describe goods more accurately and concretely, so as to identify and distinguish them better.

Together with SAT, the Ministry of economy will start with a batch of tax numbers, such as the successful completion of the pilot scheme to all the relevant tax numbers.

6, establish a guarantee mechanism for commodity import valuation.

Since January 1, 2015, a valuation guarantee mechanism for the import of textiles and clothing manufactured goods and their raw materials will be established. All importers attempting to import relevant products at a price lower than their actual cost must guarantee the difference between the customs declaration price and the valuation price. Once the commodity is confirmed to be imported at a low price, the margin will be used to compensate the difference between the price and the valuation price.

(three) financial incentives

Thanks to the financial reform plan announced earlier this year, various development banks of Mexico were given more credit rights. SMEs were more likely to get loans than before, and they could get more favorable terms in terms of amount, time limit and interest rate.

Specifically, the financial incentives to promote the development of textiles and clothing industry are as follows:

1, national financial bank (NAFIN) SME support plan

NAFIN will provide at least 450 million Peso credit financing for the textiles and clothing sector in the next 12 months, dedicated to the modernization of machinery and equipment and the development and innovation of new products for SMEs in the sector.

2, Mexico International Trade Bank (Bancomext) international financing plan

Bancomext will provide financing support for enterprises in the textile and clothing sector to participate in national competition, including the following three specific products:

(1) provide direct loans for the Department to engage in export oriented enterprises, for mobile capital, equipment and investment projects;

(2) provide international factoring for accounts receivable from foreign buyers, and export commercial invoice discounts for international customers;

(3) to provide letters of credit for small and medium enterprises, letters of credit often become an important factor hindering the export of Mexico companies.

3. ACERCA plan of the Ministry of Agriculture

In view of the fact that most of the cotton used in the ink and textile industry comes from imports, the plan aims to encourage Mexico's textile industry to buy cotton from its own farmers by providing some support for cotton growers to buy insurance.

The Ministry of agriculture will introduce relevant details of the plan in the near future.