Have you ever wondered why the final price of your order is higher than you expected? Tariffs are one of the culprits.  

Tariffs play a key role in global trade and often affect the cost of products you buy from abroad. That's why it's important to know what tariffs are and how to calculate import taxes.  

But don’t worry, we’ve got you covered with everything you need to know.  

We’ll start by explaining what tariffs are, followed by the types and modalities that exist in Mexico. Additionally, we’ll discuss other taxes to consider, and we'll give you the steps to calculate tariffs.  

This will help you better understand the costs associated with your purchases.  

What Are Tariffs, Types, Modalities, and How to Calculate Them?

What Is a Tariff?

A tariff is a type of tax that governments impose on foreign trade operations, both for imports and exports. They are often used to protect key sectors of the economy, regulate foreign trade, and generate state revenue.  

Types of Tariffs Charged in Mexico

The types of tariffs used in foreign trade affect the calculation of import taxes.  

According to Article 12 of the Foreign Trade Law, they can be classified as:  

• Ad valorem. Based on a percentage of the total value of the goods. To calculate it, you take the customs value of the product and multiply it by the percentage indicated in the corresponding tariff classification.  

• Specific. Imposed as a fixed amount per unit of measure of the product, such as liters, kilograms, or pieces.  

• Mixed. In some cases, both a percentage on the value of the goods and a fixed amount per unit of measure are applied. The final payment may depend on which of the two calculations results in a higher amount.  

These types of tariffs are paid when goods are cleared through customs, according to the rates defined by law and the international treaties Mexico has signed.  

Tariff Modalities  

The tariff modalities in Mexico allow for determining how import taxes are calculated. These are the different ways tariffs can be applied to international trade of goods.  

They are as follows:  

• Quota Tariff. Applied when limits are set on the quantity or volume of a product that can be imported or exported. Once exceeded, a higher tariff may be applied.  

• Seasonal Tariff. This varies depending on the season or time of year when certain products are imported. It is commonly used for agricultural products or those requiring seasonal production, such as fruits and vegetables.  

• Preferential Tariff. Defined through agreements like the T-MEC or other trade agreements.  

The tariff modalities in Mexico align with foreign trade policies and allow the tariff policy to adjust based on market needs and the local economy.  

Other Taxes Applied to Imports  

Besides tariffs, there are other import taxes in Mexico that need to be considered:  

• Value Added Tax (VAT). The Mexican VAT law states that this tax must be paid by anyone bringing goods into the country. It applies to most products and services and is mandatory for any import operation.  

• New Vehicle Tax (ISAN). A specific tax for new vehicles entering Mexico. It’s charged when they are imported permanently into the country.  

• Customs Clearance Duty (DTA). This fee is charged for using customs facilities and storing goods while customs clearance is processed.  

• Special Tax on Production and Services (IEPS). Applied to certain products, with a rate that varies depending on the type of goods.  

How to Calculate Tariffs

Planning to buy from online stores in the USA? Estimate what you might be charged to bring products into the country.  

Here are the steps to calculate tariffs:  

1. Identification  

First, you need to identify the type of product, as not all are subject to tariffs or taxes. Additionally, some have higher rates than others.  

Each item has a code from the Harmonized System (HS), which classifies goods at the international level.  

2. Customs Value  

The tariff is calculated on the product’s customs value, which includes:  

• The price of the goods, as shown on the purchase invoice.  

• The shipping cost to Mexico.  

• Insurance costs, if applicable.  

Let’s say you buy a product from Temu, Shopee, or AliExpress for $100 USD, with shipping at $20 USD. The customs value would be $120 USD.  

3. Tariff Rate  

Next, the corresponding tariff rate is applied, which varies depending on the product type.  

For example, some electronics may have a tariff between 0% and 15%, but clothing or shoes could have higher rates, around 20% or more.  

The rates are regulated by the Law on General Import and Export Taxes in Mexico.  

4. Import VAT  

The VAT for importing products into Mexico is generally 16%, applied to the customs value plus the tariffs.  

The formula would be: VAT = (Customs Value + Tariff) x 16%  

5. Customs Processing Fee (DTA)  

This is a percentage that may be charged based on the purchase amount. It’s usually 0.8% of the customs value, but it also depends on the import regime.  

Let’s say you buy an item from a Chinese online store for $100 USD, with shipping at $20 USD. The tariff for the product is 10%.  

• Customs Value: $100 USD + $20 USD = $120 USD  

• Tariff (10%): $120 USD x 10% = $12 USD  

• Subtotal: $120 USD + $12 USD = $132 USD  

• VAT (16%): $132 USD x 16% = $21.12 USD  

• Total to Pay: $132 USD + $21.12 USD = $153.12 USD  

The final cost, including tariff and VAT, would be $153.12 USD.  

Additional Factors to Consider:  

• Some products may be exempt from tariffs depending on trade agreements like the USMCA.  

• If your purchase is less than $50 USD (excluding shipping), it’s generally tax-exempt.  

• For large packages or items requiring customs clearance, you may need a customs broker, which could incur additional costs.  

Conclusion  

Understanding what tariffs are and how they’re calculated is essential to avoid surprises when receiving your package.  

In fact, calculating the import tax helps you anticipate the additional costs you’ll incur. As a result, you’ll pay more attention to where and when you make your purchases and can factor them into your budget.  

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