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Mexican Customs Now Requires 10-Digit HS Tariff Codes

Posted December 23, 2020


Earlier this year, the Government of Mexico enacted the so-called “New LIGIE” (Tarifa de la Ley de los Impuestos Generales de Importación y de Exportación) which, among other things, updated and modernized Mexico’s Tariff (La Tarifa arancelaria or TIGIE) by adding a new statistical suffix to the Harmonized System tariff code. 

Mexican Pesos (Coins/Bill) INEGI Logo

Background


This move is the result of a commitment made in 2017 to implement changes called for by the Sixth Amendment to the World Customs Organization’s International Convention of the Harmonized System. The WCO is an intergovernmental organization based in Brussels that represents 183 Customs administrations across the globe that collectively process almost all commercial trade in the world.

As part of its tariff modernization process, Mexico also recently streamlined the LIGIE by deleting roughly 5,000 tariff codes (fracciones arancelaria) that were deemed obsolete (i.e., generally, goods with a trade value of less than a million/year).

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Commercial Identification Number (NICO) Structure


This change will result in required updates of the part number databases for Mexican importers/exporters by adding a two-digit suffix to the NICO, as shown in this example: 

NICO Structure (Breakdown of HS Number - 10 Digits)

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Benefits


The Mexican government says the increased statistical detail provided from adding a fifth pair of digits to the tariff code will allow it to achieve better identification and monitoring of the country’s international trade flows and other economic data.

The trade community should also gain an efficiency benefit from the closer alignment with the similarly modernized Tariff systems of countries such as the U.S., Canada, China, and the European Union, which also have a break-out at the 10 digit level for statistical purposes. 

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Effective Date


Changes made in connection with the new LIGIE take effect on December 28, 2020.

Note: An FAQ published by the Mexican Economic Secretariat regarding its implementation addresses issues such as correlating tariff codes and the treatment of existing authorizations (license, permit, etc.) after Dec. 28.  

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Need More Information?


Should you have any questions about the impact of this new Mexican Customs requirement on your exports or imports, don’t hesitate to contact one of our knowledgeable trade experts.

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