New regulations to affect Mexican textile industry in 2015
Mexico’s counterpart to the IRS, the Secretaria de Credito y Hacienda Publica (SCHP), announced the enactment of new set of regulations at the beginning of December 2014 that will enter into effect on January 1, 2015 that are related to the Mexican textile industry. The stated puprose of the new regulations is to support and strengthen the Mexican textile industry, as well to protect it from “unfair” practices and competition. Among the measures that will affect the businesses in the sector beginning in 2015, will be the creation of a Sectorial Importers Registry for not only fiber importers, but, also, companies that clothing items from outside of Mexico’s borders.
Additional measures that will be put into place for the purpose of strengthening the Mexican textiles industry include:
- Financial audits of industry companies that have proven to have engaged in unfair trade practices
- Requirements that demand that importers of fibers or clothing into Mexico advise SCHP five days prior to receiving shipment of related products and goods. Notification to the SCHP must include a detailed description of the items to be brought into Mexico
- Suspension of tariff benefits for items imported under customs heading HTS 9802.00.80 for a period of three years
- Avoidance of the possible underestimation of raw materials and customized products using a valuation system developed jointly by industry experts and SCHP officials
In the same announcement as that made regarding the new regulations related to Mexican textile industry imports, the Secretary de Credito y Hacienda Publica also committed its support to small and medium size businesses in the sector. In addition to making credit more accessible for the purchase of new and modernization of older equipment, the SHCP has also extended its support for programs which will enable small and medium sized Mexican textile producers to export their products.
While employing approximately four hundred and twenty thousand workers Mexican textile sector produced goods totaling US $4.2 billion in 2014. This was almost a two and one half percentage point growth over the prior year. In a year over year comparision Mexican textile industry exports grew above ten percent between 2013 and 2014, reaching a total value above US $1.2 billion.