Industry News

Mexico Revises Lists of U.S. Products Subject to Retaliatory Tariffs in Trucking Dispute

August 18, 2010


Today, the Mexican Secretary of the Economy published a notice amending the list of U.S. goods subject to retaliatory tariffs in connection with the ongoing cross-border trucking dispute. The tariffs were originally implemented on March 18, 2009 after the U.S. Congres unilaterally cancelled the Cross-Border Trucking Service Demonstration Program with Mexico. Although the U.S. has made progress towards compliance by removing certain legal restrictions on the Department of Transportation’s budget, it has yet to present a formal proposal for allowing Mexican trucks to operate freely in North America in accordance with NAFTA.

As a result of the U.S. continuing failure to resolve the dispute, Mexico is revising the list of U.S. goods subject to increased tariffs. The new list drops certain products, such as certain wireless headsets with microphones, but adds several new ones, like fresh oranges and certain pork cuts. The list imposes ad valorem tariffs of up to 100 percent on melt adhesive, but the majority of the tariffs range between 10 and 20 percent.

Tomorrow, Mexico will begin applying increased tariffs on goods of US origin* as follows (unofficial translation):

 

Subheading

Description

Tariff

     

0203.12.01

Hams, shoulders and cuts thereof

5%

0203.22.01

Hams, shoulders and cuts thereof, without bone

5%

0406.10.01

Fresh cheese (unripened), including whey & churd

25%

0406.30.99

Processed cheese, not grated or powdered; other

25%

0406.90.04

Parmegiaano-Reggiano or Grana, with a content by weight of fat or less 40%, containing by weigh of water, no matter fat, less than or equal to 47%; danbo, edam, fontal, fontina, fynbo, gouda, havarti, maribo, samsoe, esrom, italic kernhem, saint-nectaire, saint-paulin and taleggio, containing by weight of less than 40%

20%

0406.90.99

Other

25%

0604.91.02

Christmas trees

20%

0703.10.01

Onions

10%

0705.11.01

Cabage

10%

0710.40.01

Sweencorn

15%

0802.12.01

Pistachios shelled

20%

0802.50.01

Pistachios

20%

0802.50.99

Other

20%

0804.10.01

Fresh Dates

20%

0804.10.99

Other Dates

20%

0805.10.01

Oranges

20%

0805.40.01

Grapfruit

20%

0806.10.01

Strawberries

20%

0808.10.01

Apples

20%

0808.20.01

Pears

20%

0809.10.01

Appricots

20%

0809.20.01

Cherries

20%

0810.10.01

Strawberries

20%

0813.30.01

Apples

20%

0813.50.01

Mixtures of fruit, nuts and dried nuts of this chapter

20%

1104.12.01

Of Oats

10%

1602.49.01

Cooked pig leather pieces

20%

1704.10.01

Chewing gum, even sugar-coated

20%

1806.31.01

Chocolates; stuffed

20%

1806.32.01

Chocolates; not filled

20%

1902.19.99

Pasta, whether or not cooked or staff, other

10%

2004.10.01

Potatoes

5%

2005.40.01

Peas

20%

2008.11.99

Nuts, peanuts (ground nuts); other.

20%

2008.19.01

Almonds

20%

2008.19.99

Almonds; others

20%

2008.60.01

Cherries

20%

2009.80.01

Other fruit juice or fruit or begetable

20%

2009.90.01

Vegetable juice.

20%

2009.90.99

Vegetable juice; other

20%

2103.10.01

Soy Sauce

20%

2103.20.01

Ketchup.

20%

2103.90.99

Tomato preparations; other

20%

2104.10.01

Soups and broths; soups and broths and prepations

10%

2106.90.06

Concentrate of a single fruit or vegetable, fortified with minerals or vitamins.

15%

2106.90.07

Mixtures of concentrated fruit juice, vegetable juices, fortified with minerals or vitamins

15%

2106.90.08

With a higher milk solids content than 10% by weight.

15%

2201.10.01

Mineral water.

20%

2204.10.99

Sparkling Wine

20%

2204.21.02

Red wines,  rose, claret or white, alcohol up to 14% Alc. To Vol temperature of 20 cel. In containers of clay, ceramic or glass.

20%

2206.00.99

Other fermented beverages.

20%

2306.30.01

Bran, Sharps and other residues of sunflower seeds

15%

2306.49.99

Other oil cake and other solid residues of other rape or colza seeds.

15%

2309.10.01

Dog or cat food for retail sail.

10%

3213.10.01

Artists, students, or signboard painters colours, modifying tins, in tables, tubes, jars bottles, pans or similar forms of packaging, in assortments.

10%

3304.30.01

Preparations for manicures and pedicure

10%

3304.99.99

Other

5%

3305.10.01

Shampoos

10%

3305.30.01

Hair lacquers

10%

3305.90.99

Others

10%

3306.10.01

Dentifrices

10%

3306.90.99

Other

10%

3307.10.01

Preparations for shaving

10%

3307.20.01

Deodorants and antiperspirants

10%

3405.30.01

Polishes (glosses) and preparations similar bodies except preparations metal polishes

15%

3506.91.03

Melt adhesives 100% concentrate solids, plastic base artificial waxes and other components.

10%

3924.10.01

Dishes and other service items kitchen or tables

15%

3924.90.99

Other.

15%

3926.40.01

Statuettes and other ornaments

15%

4015.19.99

Articles of apparel of vulcanized rubber; other

15%

4016.91.01

Floor coverings and carpets of vulcanized rubber.

10%

4818.10.01

Toilet paper

5%

4820.20.01

Notebooks

5%

4901.99.99

Other printed books, brochures, leaflets, and similar printed matter, whether or not in single sheets.

15%

4911.99.02

Tickets or raffle tickets, lotteries shows, train and other transportation services.

15%

4911.99.03

Printed with clear writing.

15%

4911.99.05

Plastic cards for identification and for credit without tape

15%

5511.10.01

Of synthetic staple fibers.

15%

7013.49.03

Glass limestone

15%

7612.90.99

Aluminum casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 liters, whether or not lined or heat insulated, but n; other

15%

8302.41.02

Rods.

15%

8304.00.99

Desk-top filing or card-index cabinets, paper trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment and parts thereof, of base metal, other than office furniture of heading 9403

15%

8418.10.99

Other combined refridgerator-freezers, fitted with separate external doors.

15%

8418.21.01

Of compression

20%

8419.81.01

Coffee pots

15%

8421.39.99

Other filtering machinery and apparatus for gases

5%

8422.11.01

Dish washing machines;;; for household use.

15%

8429.59.01

Trenchers

15%

8450.12.01

House laundry machines

20%

8450.12.99

Household laundry machines; other

15%

8516.79.99

Other electic instantaneous storage water heaters for automobiles.

15%

9004.10.01

Sun glasses

10%

9020.00.01

Gas masks

5%

9504.30.99

Other games operated by coins

15%

9608.10.01

Ball point pens of common metal

15%

9608.10.99

Ball point pens; other

15%

9608.20.01

Pens and felt tip markers with other porous tips.

15%

9608.99.99

Other

15%

9609.10.01

Pencils, except as covered by 9609.10.02

15%

According to comments made by Mexican Economic Minister Ruiz Mateos, the sanctions are meant to highlight the anticompetitive nature of the current system, under which cargo trailers at the border are pulled by three different trucks. Minister Mateos also indicated that talks to resolve the dispute cannot begin until the US Congress has confirmed a Commerce Secretary.

For its part, the Obama administration reacted to the announcement with disappointment, but offered no details on when a proposal will be forthcoming or what it might entail.

*The increased tariff rates only apply to goods of US origin. Goods from third countries warehoused in the US and then trucked to Mexico would not be subject to these tariffs absent any processing in the US that would trigger one of the tariff shift rules in 19 CFR 102.