The United States of America (USA) on March 8, 2018 increased, as of March 23, 2018, the tariff rates applicable to imports into that country of steel and aluminum products from around the world by 25% and 10% respectively .;

On April 30, 2018, the United States decided to establish a temporary exemption from the payment of the increase in import duties on steel and aluminum products originating in Canada, Mexico and the European Union until May 31, 2018; These tariffs are already applicable to imports of steel and aluminum products originating in Mexico as of June 1, 2018.

The measures taken by Mexico are equivalent to the measures implemented by the US, these measures will only be applied to definitive imports, including those carried out under the Sectorial Promotion Programs (PROSECs); As well as those carried out in the northern border region and strip, the measures consist of suspending preferential tariff treatment and increasing the rates of the general import tax on various merchandise originating solely from the United States regardless of the country of origin, which will be in force until the Federal Executive determines that the United States has stopped applying tariff rates to steel and aluminum products originating in Mexico.

In order to differentiate between the goods to which the measures to be imposed will be applicable from those that will not be affected, it is necessary to create a tariff section that allows distinguishing the sausages of pigs of the other species. The fraction is as follows:

Mexico can adjust the composition of the list of merchandise originating in the United States for which the general import tax rates will be increased.

On October 17, 2017, the Tariff of the General Import and Export Tax Law was modified in order to temporarily increase the import tariff of 97 tariff items that correspond to to iron and steel sector merchandise related to slab, sheet plate, roll plate, cold rolled sheet, hot rolled sheet and wire rod, with a tariff level similar to that used by other countries; With this increase, there has been an increase in imports from countries with which Mexico has a trade agreement and a reduction in imports from countries with which no type of trade agreement has been signed.

As the absence of conditions for healthy competition between the steel industries of different countries persists, and in addition to the unilateral measures imposed by the US, a substantial increase in exports from US supplier countries to our country, coupled with a drop in prices and a deviation in trade due to the increase in the global supply of steel that will cease to consume that country, the world's leading steel importer. Therefore, it is equally urgent and necessary to establish an increase in the general import tax for 186 tariff fractions of iron and steel products, of the families of slab, sheet plate, roll plate, cold-rolled sheet, hot-rolled laminated, wire rod , seamless pipes, welded pipes, coated sheet, rod and profiles.

In turn, various sectoral promotion programs are established, in order to incorporate, for the same time period, various tariff fractions to prevent the general import tax from impacting the chains productive and competitiveness is maintained in the most sensitive industrial sectors such as electrical, electronic, automotive and auto parts.

It will be necessary to specify the description of the tariff fractions included in subheading 7210.49 and chapter 73 of the Tariff of the Law of General Import and Export Taxes in order to avoid the interpretation that a good can be classified into two or more tariff items; Likewise, it is convenient to add explanatory notes of national application to Chapter 73, referring to tariff heading 73.04, in order that the customs authority can, in a more simple and expeditious way, carry out the customs clearance of goods of difficult classification, such as those relating to various steel manufactures.

The import tariffs of the tariff items applied to items 0203.12.01, 0203.19.99, 0203.22.01, 0203.29.99, 0406.10.01, 0406.20.01, 0406.90 .04 and 0406.90.99 will enter into force on July 5, 2018, meanwhile the applicable tariff to tariff items 0203.12.01, 0203.19.99, 0203.22.01, 0203.29.99, 0406.20.01 and 0406.90.04 will be 10% and for tariff items 0406.10.01 and 0406.90.99 it will be 15%.

The tariffs that Mexico applies to the US range between 7% and 25%.

Sector Promotion Programs are modified with an EX tariff, with the following tariff fractions: 26.01, 7208.27.01, 7209.16.01, 7209.17.01, 7211.29.02, 7225.30 .99, 7225.40.01, 7208.39.01, 7208.51.01, 7211.29.02, 7225.19.99.

The Ministries of Finance and Public Credit and of the Economy, within the scope of their respective powers, may issue the general provisions that are necessary for the correct and due application of this document. Decree.

On November 30, 2017, the SAT announced the following modifications, additions and derogations to the RGCE:

Registration and revocation of the conferred order : it must be carried out before the Central Administration of Customs Investigation (ACIA), likewise, customs agents who need to cancel an order conferred in accordance with this rule must inform the ACIA. (Rule 1.2.4)

Causes of suspension in the registers : when there is a notification made by the National Nuclear Safety and Safeguards Commission of SENER before the Central Administration of Customs Investigation (ACIA); When the determination of the declared value in the import petition is lower by 50% or more than the price of those identical or similar goods imported 90 days before or after the date of operation, as long as it is determined through the corresponding resolution; when the taxpayer introduces any of the goods that are not subject to fiscal deposit into the tax deposit regime (Rule 1.3.3)

Indirect export of sugar : Suppliers resident in the national territory who are registered with the SE as suppliers of inputs to the sugar sector, who dispose of the companies With the IMMEX Program, merchandise classified according to the TIGIE, and that are authorized in the respective program, may be considered as exported. (Rule 4.3.7)

Merchandise not subject to fiscal deposit : Vehicles may not be subject to the fiscal deposit regime, except those classified in sections 8703.21.01 and 8704.31. 02, and in heading 8711. (Rule 4.5.9)

Instructions for filling out the motion (Ninth) : The following identifiers are added:

B2 . Goods of article 2 of the IEPS Law, to identify the goods according to article 2, section I, subsections D) and H), of the IEPS Law.

1. Type of gasoline. to declare gasoline depending on its octane number.
2. PO . Supplier of origin, to declare the data of the supplier of the goods by item, contained in the commercial invoice, in the case of imported goods to which a tariff preference is applied under a Free Trade Agreement and / or Trade Agreement signed by Mexico.

SOURCE: http://www.sat.gob.mx/informacion_fiscal/normatividad/Documents/0_3a_RMRGCE_2017.pdf

On October 10, 2017, the SAT released the fourth Resolution of Modifications to the Miscellaneous Fiscal Resolution for 2017.

 For the option that residents abroad for tax purposes that carry out maquila operations through a company with an IMMEX program under the shelter modality fulfill their obligations through said company; must: request a key in the RFC without tax obligations from the tax authorities, Maintain at the disposal of the tax authorities the documentation that proves that the information of the companies of residents abroad is duly identified, during the established period, have the certification, under the highest possible modality according to its seniority, submit an annual information return, 

The option granted by this rule will be applicable provided that the company that operates the IMMEX Program under the hostel modality in no case obtains income from the sale or distribution of products manufactured in Mexico.  (Regla 3.20.6)

 Provisional payments made for the first time by residents abroad through a company with an IMMEX program under the shelter modality that choose to comply with their tax obligations in accordance with the provisions of rule 3.20.6.

The company with the IMMEX program will determine the ISR that would have corresponded to each of the residents abroad, in the fiscal year of 2017, The monthly provisional payments will be the amount that results from dividing the ISR of the determined year by twelve It would have corresponded, for each of the residents abroad, multiplying said result by the months elapsed in the fiscal year to which the provisional payment corresponds, being able to credit against the tax to pay, the provisional payments of the same fiscal year made previously. The first provisional payment will comprise the first, the second and the third month of the fiscal year and will be made on the date on which the provisional payment corresponding to the month of March is due. (Rule 3.20.8)

  The resolution will enter into force the day after its publication in the DOF.

http://www.dof.gob.mx/nota_detalle.php?codigo=5500752&fecha=10/10/2017

 On July 17, 2017, the Office of the US Trade Representative (USTR) published, on its electronic portal, the objectives that the Administration of President Donald Trump intends to achieve in the process of modernizing the North American Free Trade Agreement (NAFTA).

The administration of President Donald Trump notified Congress on May 18 of its intention to modernize NAFTA with Mexico and Canada, a process that opened a 90-day consultation period that ends on August 16, date from which it could renegotiate the trilateral agreement.

Among the objectives are:

• Ensure that NAFTA countries avoid manipulating the exchange rate in order to prevent effective adjustments in the balance of payments or to gain unfair advantages.

• Increase opportunities for US companies to sell products and services to the governments of the NAFTA region.

• Adopt transparent, predictable and non-discriminatory rules to regulate government purchases in NAFTA countries.

• Improve the US trade balance and reduce the trade deficit with the NAFTA countries.

• Maintain existing duty-free access for US textile and apparel goods to NAFTA parties; as well as seeking to improve market opportunities for US textile and clothing goods, taking into account import sensitivities.

• Seek to eliminate non-tariff barriers for US agricultural exports, including discriminatory barriers, restrictive administration of quota tariffs; as well as other unjustifiable measures that limit access to US products, such as: cross-subsidies, price discrimination.

• Ensure, to the extent possible, that shipments are released immediately after compliance with applicable laws and regulations and adopt new disciplines for timely release of goods, automation, and use of guarantees.

• Grant simplified and expedited customs treatment to express parcel shipments, including those that are above the de minimis threshold. Provide a de minimis value comparable to US shipments of $ 800.

• Update and strengthen the rules of origin to ensure that the benefits of the Agreement are granted to goods genuinely produced in the region.

• Promote cooperation between NAFTA countries to ensure that goods that comply with the rules of origin receive benefits under the Agreement, preventing tariff evasion and combating customs violations.

• Create an active committee for the chapter on technical barriers to trade in order to discuss bilateral and third-party trade concerns; multilateral and regional activities; regulatory cooperation; and implementation of best regulatory practices.

• Assure US investors rights consistent with the principles of the US legal framework; as well as ensuring that investors from NAFTA countries in the American Union do not receive substantive rights superior to those enjoyed by domestic investors.

The negotiation of the treaty could begin as of August 16, since with this publication the Administration of President Trump complies with one of the requirements established in the “Bipartisan Congressional Trade Priorities and Accountability Act of 2015” better known as TPA 2015 that establishes the obligation to publish, at least 30 days before the start of the negotiation.

SOURCE:https://ustr.gov/sites/default/files/files/Press/Releases/NAFTAObjectives.pdf