A comprehensive strategy aimed at the textile and clothing industry, allowing secure employment for more than 450,000 families belonging to the sector, and to promote competitiveness of enterprises, as well as to create legal and equitable conditions of competition, was announced by Mexico’s Secretariat of Finance and Public Credit (SHCP), in coordination with the Ministry of Economy (SE), last month.
Secretary of Finance Luis Videgaray Caso said six specific measures in customs matters will be implemented to combat unfair trade, and funds would be provided to the textile and clothing sector through banks.
According to the six specific customs measures, textile and clothing importers will be required to be listed on a sector-specific registry, and those who are not listed would not be allowed to import.
Secondly, an automatic alert system would be set up for textile and apparel imports, which will allow customs officials to verify imported goods in advance.
Thirdly, Servicio de Administración Tributaria (SAT or the Tax Administration Service) will set up a system of controls for importers of undervalued goods and their customers.
Fourthly, the levy of tariff on textile and garment imports would be expanded to 10-digit level from the current 8-digit level.
Fifthly, the implementation of import duty reduction from 25 per cent to 20 per cent on 73 apparel items and seven textile made-ups on import from countries with which Mexico has free trade agreements has been postponed to 2018.
Lastly, minimum estimated price will be set for import of raw materials, and tax would be levied at 100 per cent when a product is imported below this price.
In addition, with an outlay of 450 million pesos the Mexican Government, through Nacional Financiera (Nafin), will implement a new programme to support the textile, clothing and fashion industry, and extend funds mainly for the SME segment, for modernisation of machinery and equipment, innovation, and development of new products.
Moreover, the National Bank for Foreign Trade (Bancomext) will offer loans to companies that are exporting or are seeking to export their products, and provide letters of credit for import and export transactions carried out by SMEs.
Also, in order to encourage the integration of the entire textile value chain, the Service Agency for the Commercialisation and Development of Agricultural Markets (Aserca) will support the purchase of cotton from farmers by textile manufacturers. (RKS)
