Yes, Mexico’s international trade is based on a harmonized tariff system. Like the U.S. and Canada, in Mexico, a particular good is classified based on a harmonized tariff schedule, import duties, country of origin, and value. The Mexican government has instituted a number of programs to help manufacturers reduce, and in most cases, eliminate import duties for goods entering Mexico. In addition to NAFTA, Mexico provides programs such as PROSEC and REGLA OCTAVA (translates to the eighth rule) which reduce duties on many industry specific commodities. Learn about PROSEC here. For companies manufacturing as a maquiladora, the 16% levied value added tax (VAT) does not count as an import duty. Mexico assesses VAT on all imports of raw materials and equipment effective January 1, 2015. However, an SAT Certification allows maquila operations to request an instant credit to this VAT at the time of import. SAT is the enforcement branch of Mexico’s treasury department. Companies that meet the certification requirements will not have to pay the VAT at the time of importing raw materials or equipment into Mexico. VAT is assessed and payable each time consumable items enter Mexico.