Mexico limits duty waiver to 11 light-vehicle makers

On October 16, 2026, Mexico’s Ministry of Economy issued an information bulletin clarifying the decree published on October 13 that temporarily reduces the general import duty for tariff code 9803.00.01. According to the Ministry, only companies with production facilities in Mexico — that is, only 11 light-vehicle manufacturers — will be able to import parts and components for vehicle assembly duty-free under this tariff code, provided they meet the requirements set out in the decree and hold the corresponding authorization.

Eligible manufacturers and authorization requirements

Only companies with production facilities in Mexico — that is, only 11 light-vehicle manufacturers — will be able to import parts and components for vehicle assembly duty-free under this tariff code, provided they meet the requirements set out in the decree and hold the corresponding authorization. These companies must hold a bonded warehouse authorization for vehicle assembly and manufacturing under the Customs Law and comply with the guidelines to be issued by the Ministry of Economy.

Import controls and production requirements

Imports will be subject to prior authorization from the Ministry of Economy. The guidelines provide for control by the Tax Administration Service（SAT） and the National Customs Agency of Mexico(ADAM); companies must report the vehicle identification numbers (VIN) of the units assembled with the imported parts and components and provide information allowing the traceability of such parts.

The guidelines will consider minimum volumes of complete vehicle production in Mexico and set limits on imports as a proportion of such production. Only a high level of vehicle output under complete industrial processes will entitle manufacturers to import parts under Semi Knocked Down (SKD) or Completely Knocked Down (CKD) assembly schemes, with the aim of progressively increasing local content.

Policy objectives and the Ministry’s clarification

The bulletin sets out three objectives: preserving the productive capacity of the automotive industry to protect jobs; strengthening the conditions for Mexico’s competitiveness as an investment destination for this industry; and favoring the relocation to Mexico, from other countries, of production lines of companies that already manufacture vehicles in the country. The decree is valid for five years, which the Ministry describes as a reasonable period for the adjustment of assembly processes towards more complex ones.

The Ministry states that in 2025 only 0.01% of Mexico’s total automotive imports were made under this tariff code. The bulletin adds that the strategy also seeks to reduce imports of complete vehicles from countries with which Mexico has no trade agreement, moving from assembly towards full vehicle manufacturing, and cites the announcement made by the President of Mexico in May 2026 that General Motors will relocate two model production lines from China to Mexico, starting with assembly and progressively adding local content.

The bulletin states clearly that the decree will not facilitate the import of parts for vehicle assembly by companies without production facilities in Mexico that add no value, nor will it in any way facilitate the entry of vehicles from countries with which Mexico has no trade agreement. Its objective, the Ministry says, is to strengthen Mexico’s automotive supply chain.

For more details check the official complete Decree in this link:

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