Tariff Classification as a compliance tool
To successfully carry out any foreign trade operation in Mexico without setbacks, the initial and indispensable step is the correct identification of the products. This identification is crucial because it determines the regulations and restrictions that will apply, and therefore, the correct coordination of the entire logistics operation. This identification is carried out by assigning a code.
This process of assigning a specific code to products is known as Tariff Classification (or Customs Classification). This code is based on the Harmonized System (HS) of the World Customs Organization (WCO) and represents the step that defines the legal and fiscal obligations that the merchandise must meet.
Tariff classification is, without a doubt, the most important step for any foreign trade operation. It represents the standard code that allows customs to unequivocally identify the merchandise and, based on it, apply the entire regulatory framework: the Non-Tariff Regulations and Restrictions (NTRRs), the corresponding tariffs, and the collection of statistics.
In Mexico, tariff classification is governed by the Law of General Import and Export Taxes (LIGIE). This Law contains the General Tax Tariff (TIGIE), which is the legal instrument that organizes and lists the 10-digit merchandise codes.
By determining the tariff classification of the product within the TIGIE, the following are precisely established:
The taxes (tariffs) that must be paid for the merchandise.
The applicable Non-Tariff Regulations and Restrictions (NTRRs).
Composition of the Mexican Tariff Classification
The classification of goods is composed of a 10-digit numerical structure. The first six digits correspond to the international Harmonized System (HS) nomenclature, and the remaining four correspond to the national nomenclature. This composition is as follows:
Chapter (First 2 digits): Establishes the general category of the product.
Heading (First 4 digits): Specifies the product family within the chapter.
Subheading (First 6 digits): This is the international base of the code and represents a detailed subdivision of the merchandise.
Tariff Item/Fraction (8 digits): The total 8 digits, where the last two are national, form the legal code for determining tariffs and NTRRs in Mexico.
NICO (10 digits): The two additional digits (totaling 10) are the Commercial Identification Number, used for national statistical purposes.
The NTRRs associated with the tariff item are the most frequent reason an import is detained, as incorrect product classification can lead to the omission or error in mandatory regulatory documents (Sanitary Permits, NOMs, etc.). It is essential to accurately determine the classification before import, as customs strictly enforce compliance with these regulations.
These may include:
Prior Permits
Sanitary Certifications
Compliance with Mexican Official Standards (NOMs).
Documents or Approvals from other government agencies
Failure to comply with these regulations may result in considerable fines, the precautionary seizure of the merchandise, or, in the worst-case scenario, its destruction.
To guarantee a successful import and avoid unnecessary setbacks and costs, it is essential to consult and verify the correct tariff classification with experts in foreign trade and logistics. Meticulous planning based on the correct tariff classification is the only guarantee for considering all the details (logistical, fiscal, and regulatory) involved in bringing products into Mexico.
In summary, Tariff Classification is not just a customs requirement; it is the key element that defines the viability and efficiency of your supply chain. Correctly securing the 10 digits (Tariff Item and NICO) is the first step toward mitigating compliance risks, optimizing costs, and ensuring the smooth flow of operations.
Written by:
Josué Garza
About IPS
If your company is planning to import medical devices into Mexico, IPS can support you with tailored regulatory and logistical guidance. Our team of experts in health regulation, customs procedures, and logistics is ready to help you ensure a smooth and compliant import process.
Contact us at info@insumosparasalud.com to learn more about our specialized import support services.