Skip to Content

Brazil and Mexico agree to extend limits on duty-free imports of light motor vehicles

March 18, 2015 Article 1 min read

On March 9, 2015, Brazil and Mexico renewed their 2012 agreement that established limits on the value of light-duty motor vehicles that Mexican manufacturers may export to Brazil free of duty each year. Brazil had originally agreed to provide unrestricted duty-free treatment to Mexican light-duty vehicles by March 19, 2015, but that deadline has been extended for four years.

The agreement allows limited duty-free exports of light-duty vehicles from Mexico to Brazil each year, as follows:

  • March 19, 2015 to March 18, 2016: US $1.560 billion
  • March 19, 2016 to March 18, 2017: US $1.606 billion
  • March 19, 2017 to March 18, 2018: US $1.655 billion
  • March 19, 2018 to March 18. 2019: US $1.705 billion
  • March 19, 2019: no limitation or quota is expected

The agreement requires a minimum of 35 percent Mexican content in order to avoid duties. This requirement increases to 40 percent in 2019.

Please do not hesitate to contact the Plante Moran Global Services team with any questions or concerns.

Related Thinking

Two tax professionals looking at a mobile phone and walking up stairs.
February 8, 2024

India tax change: Royalty and FTS withholding rates increased

Article 3 min read
American, Russian, and Chinese flags against a blue sky.
December 19, 2023

Economic decoupling: Breaking up is hard to do

In The News 5 min read
Business professionals researching and learning about international tax updates.
December 14, 2023

International updates: Tax news and other global updates for Q4 2023

Article 9 min read