Mexico Tightens Auto Parts Tariff Waiver to 11 Qualified Manufacturers
Mexico’s Economy Ministry has issued a clarification restricting a zero-tariff waiver on automotive parts to only 11 specific carmakers with existing plants in the country. The directive, effective from 14 October for a period of five years, marks a significant narrowing of eligibility for the duty exemption that was initially announced via decree on Tuesday 13 October.
The clarification was formally released by the ministry on Friday 16 October, two days after the decree took effect. This delay occurred due to differing interpretations regarding the scope and application of the original announcement. The ministry has not yet named the 11 qualifying makers or published the specific guidelines that will govern the minimum output caps on parts imports as a share of complete vehicle production.
Specific Eligibility Criteria and Customs Line Changes
The waiver applies specifically to light-vehicle manufacturers that already possess productive facilities within Mexico and hold a bonded-warehouse permit with prior approval. The policy explicitly excludes importers of finished cars or companies that do not have established productive facilities in the country.
At the regulatory level, the decree modifies customs line 9803.00.01, which covers parts and components used for assembling cars. This modification reduces the applicable tariff on these items from 10% to zero. Despite this reduction, importers must obtain prior permission for every individual import transaction. They are also required to report vehicle identification numbers and supply detailed data tracing the origin and movement of the parts.
Data indicates that the scope of this change is relatively narrow in terms of volume. In 2025, just 0.01% of Mexico’s automotive imports utilized this specific customs line. This suggests that while the policy is significant for the affected manufacturers, it impacts a very small fraction of total import activity.
Government Rationale and Leadership
The decree aims to protect domestic jobs, enhance Mexico’s competitiveness for investment, and incentivize carmakers already operating in the country to move production lines from abroad to Mexican facilities. The policy is designed to ensure that the benefits of tariff exemptions are tied directly to local manufacturing output rather than mere importation.
The decree was co-signed by Economy Secretary Marcelo Ebrard with President Claudia Sheinbaum. Finance Secretary Édgar Amador Zamora signed the document on Friday 9 October, preceding the public announcement and subsequent clarification. The ministry continues to develop the necessary guidelines for minimum output caps, which will further define how much parts imports can constitute relative to complete vehicle production.