Mexico’s Restrictions on Cosmetics

Mexico is now USA’s No. 1 trade partner, according to the U.S Census Bureau’s 2019 report.  Mexico has become a strong market for foreign companies looking to expand their international foothold.  With the COVID-19 pandemic and the U.S-China trade war, more U.S companies are establishing new supply chains creating tremendous growth for the country.  According to recent data from Mexico’s Ministry of Communications and Transportation (SCT), in the first four months of 2019, the number of freight transportation companies in Mexico increased 4.7 percent compared to the same period in 2018. One factor that is helping Mexico shipping industry see continuous growth is their top 10 ranking in the world for cosmetic and personal care products. With Mexico having availability to a variety of both domestic and imported brands and a strengthening economy it has helped push their consumption of cosmetics over the past 15 years. Unfortunately, with the COVID-19 pandemic the cosmetic and personal care industry has taken a heavy hit.  Many salons and spas have been closed down throughout the country slowing down the growth of the overall industry. As of late last year, customs in Mexico City started restricting cosmetics of any kind through the simplified clearance process and now requires formal importation. This includes liquids, shampoos, creams, and traditional cosmetics. This restriction is only impacting imports that go directly through Mexico City. Carriers such as GlobalPost that induct shipments across the border instead of flying directly to Mexico City are not impacted by this change and may still induct via the simplified clearance process. As we continue to deal with the effects of COVID-19 around the world shippers should not get discouraged as countries implement new policies like what we see from Mexico.  GlobalPost is here to help with options that can simplify taxes & duties for you.