Mexico Striving To Increase Market Share Of Local Textiles And Garments

Recently, the Mexico government has signed an agreement on best trade practices with many major national business associations within the framework of the new economic competition law. Through promoting competitive business practices, strengthening the construction of value chains conducive to consumers, promoting the development of supply chain and distribution channels, and improving the market share of textiles and clothing products in Mexico.

According to the agreement, by 2018, Mexico will suspend the textile tariff reduction of 80 tax numbers. The import tariffs on these tariff items will remain at around 25%, instead of 20% before 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.

In addition, since January 2015, the Mexico tax bureau will set up a list of importers of textiles and clothing, which will be used 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.

In the new regulation,

It is required to notify at least 5 days in advance of any activities involving the import of textiles and clothing from Mexico to foreign countries.

Notification must provide invoices, sources of supply, freight charges and insurance documents.

SAT can pre assess whether there is a low price in the import activity, and prepare the review process ahead of time.

At the same time, since January 1, 2015,

A valuation guarantee mechanism for the import of textiles and clothing manufactured goods and their raw materials will also be established. All importers attempting to import the 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.

Thanks to the announcement at the beginning of this year.

Mexico's various development banks are given more credit rights. SMEs are more likely to get loans than before, and they can get more favorable terms in terms of amount, time limit and interest rate.

Specifically, the state financial bank 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.

The Mexico foreign trade bank will provide financing support for the textile and garment enterprises to participate in the nationalization competition.

In view of the fact that most of the cotton used in the textile industry in Mexico is imported from now, the Ministry of agriculture will implement the ACERCA plan to encourage the Mexico textile industry to buy cotton from its farmers by providing some support for the cotton growers to buy insurance.