On December 28, 2016, the Ministry of Economy published, in the Official Gazette of the Federation, an agreement announcing the entry into force of the Sixth Additional Protocol to Appendix II of the Economic Complementation Agreement No. 55 (ACE No. 55). The foregoing, in order to know the Regional Content Indices that will be applied to various auto parts until March 19, 2019.
On March 9, 2015, the Fifth Additional Protocol to Appendix II of ACE No. 55 between Mexico and Brazil was signed in Rio de Janeiro, Brazil, in accordance with the following:
Increasing and duty-free export quotas are established for the trade of light vehicles
The rule of origin for auto parts and light vehicles is maintained at 35%, reaching 40% in 2019.
The date for agreeing modalities, quotas and terms for the trade of light vehicles is postponed until December 31, 2018.
It will return to free trade as of March 19, 2019.
On December 28, 2016, the Brazilian authorities published the Sixth Additional Protocol to Appendix II of ACE No. 55, said instrument will regulate trade in the automotive sector between Mexico and Brazil until March 19, 2019. In particular, it establishes the following:
* The regional content index to which some auto parts will be subject is established, with an ICR of 10 to 30%, until March 18, 2019. Some examples:
* 8408.20.00 ICR 30%
* 8483.10.00 ICR 25%
* 8708.10.00 ICR 10%
* As of March 19, 2019, Mexico and Brazil must establish a new formula for regional content. In order to do so, the parties must start the respective negotiations on March 18, 2018.
Source: http://www.dof.gob.mx/nota_detalle.php?codigo=5467910&fecha=28/12/2016