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Egg Import Tariffs Eliminated

18 September 2012, at 12:10pm

MEXICO - On September 13, 2012, the Secretariat of Economy (SE) announced modifications to applied duties for imported fresh eggs for human consumption and eggs for industrial purposes in the Diario Oficial (Mexico’s Federal Register). Effective as of September 14, 2012, eggs from the harmonized tariff system (HTS) codes listed below are tax exempt.

According to SE, the June 21, 2012, H7N3 subtype A avian influenza outbreak in the state of Jalisco has drastically reduced domestic egg production.

Consequently, the market has witnessed increased prices, greater volatility, and unjustified speculation. SE reports that this measure received the approval of the Foreign Trade Commission.

The SE announcement states that starting September 14, 2012, egg imports (for human consumption, dry, frozen or in powder) from any country will be exempt from import tariffs.

Prior to this announcement, applied duties ranged from 45 per cent for HTS 0407.21.01 to 20 per cent for other HTS code items indicated in the chart.

The USDA Foreign Agricultural Service in Mexico has said that this announcement does not imply any change to the United States’ preexisting tariff-free access, but could result in increased price competitiveness.

However, the import of eggs from distant countries is likely to be carefully scrutinized as zoo-sanitary requirements, transportation costs and times, etc. may prevent access for other potential trading partners.