Also known as: Preferential rate, FTA tariff rate, Treaty rate
A reduced or zero tariff applied to goods originating from countries with which Mexico has a free trade agreement in force, provided they meet the agreement's rules of origin.
A preferential tariff rate is a reduced or exempt tariff that Mexico applies to goods imported from countries with which it has a free trade agreement (FTA) in force. To access this rate, goods must originate from the trading partner country, demonstrated through a certificate or declaration of origin certifying compliance with the specific rules of origin of the agreement.
To apply the preferential rate, two elements are needed: (1) the goods must originate from the partner country according to the treaty's rules of origin, and (2) a valid certificate of origin must prove it. Without these, the MFN (Most Favored Nation) rate applies, which can be significantly higher.
Leveraging preferential rates can yield significant savings: the MFN tariff for auto parts may be 20%, while under USMCA it is 0%. However, it is the importer's responsibility to verify that goods qualify as originating and to have valid origin documentation.
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Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free trade agreements.
DocumentsCertificate of Origin
Document certifying that goods originate in a specific country, required to claim preferential tariff rates under trade agreements.
TradeUSMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.
TradeFree Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.