Mexico

Distributing a product

Evolution of the sector

The three big commercial zones of the country are: the capital (District Federal) and suburbs, Guadalajara and Monterrey. There is an acute influence of the United States on consumer habits. However, it is important to take into account that 20% of the population lives under the poverty line and more than 58% in precarious conditions.

Market shares

The emergence of a middle class in the recent years has considerably increased the importance of the large-scale distribution sector. The traditional business suffered from the emergence of the large-scale distribution but the trend is now reversing. The beneficiary of this new competition is the Mexican consumer who could benefit from decreasing prices in recent years.

Supermarkets have a surface area of 4,000 to 8,999 m² and beyond 9,000 m², they are considered as hypermarkets. Wall Mart de México, Controladora Comercial Mexicana and Gigante are the 3 main Mexican groups in terms of large-scale distribution. Two provincial chains have benefited from an important development, Soriana, in the North of the country and Chedraui in the South. The European large-scale distribution practice was adopted in Mexico with Carrefour in 1994, followed by Auchan in 1995.
The concept of mail-order selling and teleshopping is rapidly growing.

Organizations in the retail sector

Market access procedures

International Conventions

Non tariff barriers

Since Mexico joined the GATT in 1986, few goods have been subject to import license. For the products which are still subject to import license (see table below), the administration in charge of import license is the Economy Secretariat (Secretaria de economia). These licenses are non-transferable. They are valid for a period of 9 months and can be renewed for 3 additional months. All import products have to handle a certificate of origin, and particularly strict requirements are demanded for textiles.
There is a large number of procedures to check the imported goods. About 10% of the goods are checked in detail. In motorcars, chemicals, pharmaceutical products, metallurgy and farm products sectors, about 75% of the arrivals are checked in detail.
All imports have to pass through a customs broker. A statement of import must be presented to the Mexican Customs, along with a commercial invoice, a B/L (or airway bill) and if necessary, with a certificate giving evidence of the origin of goods. The particulars of origin, which allow, among other things, to benefit from duties discounts (especially for textiles) are excessively severe, since Mexico joined the ALENA (annex 401 on the rules of origin). It was then introduced into the national legislation.

 

 

Product	Import licence	Import licence	Prohibited
Petroleum		X
Petrochemical products		X
Pharmaceutical products		X
Motorcars		X
Second hand products		X
Weapons, ammunitions, explosives	X
Second-hand Vehicles			X

Customs classification

Mexico applies the Harmonised Customs System. Customs duties are calculated Ad valorem on the CIF value of the goods, except for goods originating from the USA and Canada where the FOB value is taken as reference.
There are customs duty discounts (and even exemptions) for products helping in the development of the local industry ("Maquiladora" programme).
Mexico signed a certain number of bi or multi-lateral agreements, resulting in the creation of free trade areas:
- The ALENA (definite suppression of customs duties with progressive decrease until 2009, especially for goods under the rules of origin, as recommended in the treaty).
- A certain number of agreements also exist with Latin American countries, notably Chile, Colombia, Venezuela, Bolivia and Costa Rica.
- Mexico is also part of the APEC.

Import procedures

Mexico applies the Harmonised Customs System. Customs duties are calculated Ad valorem on the CIF value of the goods, except for goods originating from the USA and Canada where the FOB value is taken as reference.
There are customs duty discounts (and even exemptions) for products helping in the development of the local industry ("Maquiladora" programme).
Mexico signed a certain number of bi or multi-lateral agreements, resulting in the creation of free trade areas:
- The ALENA (definite suppression of customs duties with progressive decrease until 2009, especially for goods under the rules of origin, as recommended in the treaty).
- A certain number of agreements also exist with Latin American countries, notably Chile, Colombia, Venezuela, Bolivia and Costa Rica.
- Mexico is also part of the APEC.

For further information

Organizing goods transport

Ports

The airport of Mexico City
The airline company AéroMexico
The airline company Mexicana Airlines
Web sites of the ports of Mexico
The first Mexican railroad company

Airports

Sea transport organizations

Air transport organizations

Road transport organizations

Rail transport organizations