Also known as: Preferential treatment, Treaty tariff treatment
A tariff benefit granted by a country to imports from a trading partner with which it has an agreement or treaty, applying lower duties than the general rates.
Preferential tariff treatment is the benefit of paying a reduced or zero tariff on imported goods, granted under a free trade agreement or trade treaty between countries. To access this benefit, the importer must demonstrate that goods originate from the trading partner country, complying with the treaty's specific rules of origin and presenting the corresponding origin documentation.
To apply preferential treatment, the customs broker must declare in the pedimento the applicable treaty, the corresponding preferential rate, and the certificate of origin number. If applied incorrectly, the importer faces duty differences and penalties.
It is important to distinguish preferential treatment from Most Favored Nation (MFN) treatment. MFN is the general rate applying to all WTO members, while preferential treatment is lower and only applies between countries that have negotiated a specific trade agreement.
Classify with TariffPro
Learn more→Preferential Tariff 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.
DocumentsCertificate of Origin
Document certifying that goods originate in a specific country, required to claim preferential tariff rates under trade agreements.
TradeRules of Origin
Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free 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.