The Mexican Government of President Claudia Sheinbaum suspended all finished footwear imports temporarily to boost the domestic industry. The measure, published in the Official Gazette on Thursday, also tackles smuggling, it was explained.
The decision was taken after the ratio of imported to domestically produced shoes was found to have shifted from 1:6 in 2021 to 1:1 in 2024, leading to a GDP decline and the loss of nearly 11,000 jobs.
Under the new rule, finished footwear entering the country will no longer be considered a temporary import, which allowed companies to avoid paying taxes like VAT. Instead, they will be treated as definitive imports and subject to tariffs. However, manufacturers will still be able to import parts for the domestic industry as per the IMMEX program.
The temporary importation of finished footwear harms the domestic industry, Sheinbaum and Economy Secretary Marcelo Ebrard pointed out during their morning press conference.
Today, the decree suspending the temporary importation of finished footwear that was being brought into Mexico is published in the Official Gazette, and the president has ordered that this not be the case because it harms the domestic industry. It is published today, which means it comes into force, and finished footwear can no longer be imported into Mexico on a temporary basis, Ebrard explained. We are no longer going to bring in footwear that did not pay VAT, he added.
Finished products do not need to have temporary import permits. If they are imported, they are considered definitive imports and must pay taxes, Sheinbaum noted.
The strategy is part of the government's plan to promote the Made in Mexico label and strengthen domestic production to offset the tariff war launched by the United States.
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