Mexico Caps Footwear Imports to Aid Economy

Mexico City — The Government of Mexico has published a decree in the Official Journal of the Federation that temporarily suspends the importation of finished footwear through the IMMEX program. In 2024 alone, the footwear sector saw its GDP fall by 12.8%, production decreased by 12.5%, and nearly 11,000 formal jobs were lost, according to the Ministry of Economy.

According to data presented by its head, Marcelo Ebrard, during the morning press conference at the National Palace, the shoe industry presented an unusual 959% increase in imports, which has affected the local market by more than 20%.

The Ministry of Economy detailed that between 2021 and 2024, this sector suffered a negative impact. This was due to a prohibition on the importation of that finished product and the misuse of the Manufacturing, Maquiladora, and Export Services Industry (IMMEX) regime.

Another consequence was that factories decreased their installed capacity by 16.6%. Additionally, last year, imports of finished footwear grew by 159% in volume, and 60.3% in value, compared to 2023.

Furthermore, Ebrard Casaubón stated that prior to the previous administration, "there was the temporary import regime, where VAT was not paid because it was not for the domestic market, it was for export. But many companies that imported the footwear did not send it for export; they sold it in Mexico."

Faced with this situation, footwear industrialists decided to meet with President Claudia Sheinbaum to present the current situation in the sector. She then ordered the drafting of the decree that was published today, with which "it is no longer possible to bring in finished footwear under the temporary import regime, it is no longer possible," Ebrard detailed.

"Between 2019 and 2024, the Average Annual Growth Rate (AAGR) of the Gross Domestic Product (GDP) in the shoe industry experienced a decrease of 3.1%," Ebrard stated.

Shoemakers, Without Support

In early April, as part of Operation Cleanup, the Ministry of Economy canceled IMMEX program support for five companies in Baja California and Jalisco that, irregularly, imported shoes and sold them in the country.

"This represents unfair competition for the national industry because, in addition to not paying tariffs, they also did not pay VAT or Income Tax (ISR)," the ministry detailed.

The agency specified that the brands Kaizen Inc, Co Production de Tijuana, Soluciones Empresariales M.H. Fashion, Philkor Trends (in Baja California), and Grupo Maquilador sin Frontera, among others, simulated the importation.