Mexico Nearshoring Incentives

On October 11, 2023, The Mexican President published a decree, offering attractive fiscal incentives tailored to crucial sectors of the export industry.

These incentives center around two crucial advantages: 1) the immediate deduction of investments in new fixed assets and 2) an additional deduction for training expenditures. We strongly advise U.S. exporters to meticulously examine the list of impacted products and seize the opportunity to offer more competitive prices.

The most noteworthy feature of this stimulus for Mexican companies is the immediate deduction of investments in new fixed assets, specifically for assets acquired between October 12, 2023, and December 31, 2024. This is a promising opportunity for U.S. exporters looking to offer their products and services to these specific sectors in Mexico. The beneficiaries of such incentives are Mexican exporting companies, recently incorporated or those already operating. 

The sectors that benefit from the incentives are: Products intended for human and animal nutrition,  

* Fertilizers 
* Raw Materials for the pharmaceutical industry, 
* Electronic Components
* Semiconductors modems for computers and telephones
* Machinery for watches
* Medical equipment
* Batteries, accumulators
* Gasoline, hybrid and alternative fuel engines for cars, vans and trucks, 
* Electrical and electronic equipment, 
* Internal combustion engines, 
* Turbines and transmissions for aircraft
* Non-electronic equipment 
* Devices for medical
* Disposable material for medical use and optical items for ophthalmic use.

The complete list and the official decree can be found here:  https://www.dof.gob.mx/nota_detalle.php?codigo=5704676&fecha=11/10/2023#gsc.tab=0

Additionally, the incentives are also granted to Mexican taxpayers who produce and export audiovisual works that are protected by copyright under applicable law.

For further questions or if you encounter any problems with Mexican Customs, please Ask Manny, contact Manuel.Velazquez@trade.gov