The most recent similar agreement was published on September 19, 2022 and lasted for two years.
The Ministry of Economy published an agreement on Tuesday that extends the validity of a quota for importing toys and baby products and that aims, among its aims, to attract investments by granting tariff preferences.
The most recent similar agreement was published on September 19, 2022 and lasted for two years.
Among the reasons given by the Ministry of Economy for extending the quota, it said that the measure seeks to "take advantage of the effects of relocation or nearshoring."
Some of the products covered are tricycles, dolls and puppets, construction games or assortments, puzzles and inflatables, as well as cars, chairs and similar vehicles for transporting children, and games that imitate beauty, make-up or manicure preparations.
The new agreement enters into force on 19 September 2024 and will last until 31 December 2024.
To determine the amount of the import quota allocation for toys and baby products for the additional period, the base amount granted in 2020 will continue to be considered, the year until which the previous Agreement announcing the quota and allocation mechanism for importing toys and baby products, published in the Official Gazette of the Federation (DOF) on December 26, 2017, was in force.
For new companies interested in being allocated a quota, their domestic production sales in 2022 and 2023 will be considered.
Based on the above, during the additional period of validity provided for in the new agreement, the Ministry of Economy deemed it appropriate to reduce the amount of the quota to be assigned from 80 to 70% of the quota assigned to the company in 2020.
For companies that did not benefit from the import quota for toys and baby products in 2020, the maximum amount to be allocated was reduced from 20 to 10 million United States dollars, since the benefits granted in the quota are gradual and temporary.
In order to be certain about the information that must be provided to prove the investments made in the year prior to the request for the allocation, the Ministry of Economy considered it appropriate to establish as a requirement that, in the report to be prepared by the public accountant, a productive investment report be included that breaks down the acquisition dates, accounting records and amount expressed in national currency of the investments made in the year prior to the request, as well as a brief description of these.
In particular, the Ministry of Economy will assign an import quota to the requesting Production Companies and Economic Interest Groups that comply with the terms of the new agreement.
This allocation will be valid from the date it is granted until December 31, 2024.
The allocation is made as follows:
For Traditional Production Companies or Economic Interest Groups that have benefited from the import quota for toys and baby products in 2020, the Ministry of Economy will assign them 70% of the quota that was assigned to them in 2020 in dollars.
For New Production Companies or Economic Interest Groups that have not benefited from the import quota for toys and baby products in 2020, the Ministry of Economy will assign them an amount in dollars equivalent to the average of their sales of national production of toys and/or baby products in 2022 and 2023.
