The buying decision is strongly influenced by family and friends, but the most of the time, the buyer is the housewife. Mexicans frequently use customer service. Promotional prices are very much appreciated.
Consumer Profile and Purchasing Power
It is difficult to influence a Mexican consumer, he is aware of brand names, he is well informed and demanding on the cost-benefit ratio. Mexicans expect to be treated individually and prefer the places where there is personalized service. In general, Mexicans are very loyal to their preferred brands.
Consumers Associations
PROFECO, Federal Commission for Consumer Protection Alconsumidor, Civil Association for Consumer Assistance COFETEL, Telecommunications Federal Commission
The three large commercial zones of the country are: the capital (Federal District) and its suburbs, Guadalajara and Monterrey. There is acute influence of the United States on consumer habits in the big cities. However, it is important to take into account that 20% of the population lives below poverty level and more than 58% in precarious conditions.
Market Shares
The rise of the middle class in recent years has considerably increased the importance of the large-scale distribution sector provoking a decline on the traditional trade. Supermarkets have taken a great space: Wal Mart de México and Mexican Commercial Controller are the main Mexican groups in terms of large-scale distributors. Organización Soriana and Chedraui are provincial chains. The concept of mail-order selling and teleshopping is rapidly increasing.
Free trade agreements with the European Union, North America, the European Free Trade Association, and trade agreements with Mercosur, the Northern Triangle, Japan and Israel. The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP). For further information, consult the Mexican Trade Agreements.
Non Tariff Barriers
Since Mexico joined the GATT in 1986, there are less products that are subject to an import license. For the products that are still regulated, a permit must be obtained from the Ministry of the Economy . There is still a large number of particular conditions for textile products. About 10% of imported goods are checked in detail, especially in the automobile, chemical, pharmaceutical, metallurgical and agricultural sectors. Origin regulations, allow goods to benefit from reductions of duty taxes (especially for textiles). However these rules have become more rigorous since Mexico signed the North America Free Trade Agreement NAFTA or TLCAN (in Spanish) . The Annex 401 refers to the origin regulations which is part of the country's national legislation.
Customs Duties and Taxes on Imports
In 2006, the average tax rate, according to UNCTAD (United Nations Conference on Trade and Development), was of 11.5%. It is a very high rate, when compared to the tax rate applied in other emerging countries such as Brazil, China and Russia. You can consult the Tariff information system via Internet.
Customs Classification
Mexico participates in the Harmonized System of Goods Classification's.
Import Procedures
The importing agent is in charge of handling all the formalities and he requests the authorization to allow customs clearance. It is advised to work with experienced importing agents.
The agent must present an import requisition (issued by the Ministry of the Economy), as well as a commercial invoice, a bill of lading, an exemption permit, and a certificate establishing the origin of the goods so that the corresponding taxes and duties can be applied.
General import taxes depend on the tariff bracket in which the imported goods are classified, in conformity with the Tariff of the General Import and Export Taxes Law or the Mexican Tax Allowance Table proposed in the free trade treaties.
Importing Samples
Samples must be classified according the customs list 9801.00.01 of the Legislation of General Tax for Imports and Exports, and they cannot be the object of commercialization.
Transportation of goods by road insures more than 50% of commercial freight. The road network is vast (355 796 km). Maritime international trade goes through the ports of Lazaro Cardenas, Manzanillo, Veracruz, Dos Bocas and Cayo Arcas. The railway is mostly used for transporting large volumes of goods to the main ports and borders. Air transport of goods is going through a difficult period due to the lack of infrastructures and the price of fuel.
Industrial activities represent 18% of the gross domestic product (PIB) in Mexico and about 90% of all exports, where the fields of food industry, automobile and electronics excelled.
The Assembly Plant Industry (Maquiladoras) occupies an important place in the manufacturing sector (about 80% of the production) due to the tax reductions negotiated on the treaty of free trade in North America, and also to the exporting help programs promoted by the Ministry of Economy.
Mexico: Selling and Buying
