Logistics & Supply Chain

Mexico Reduces Compensatory Fee on US PVC by 38%

October 29, 2026
Mexico Reduces Compensatory Fee on US PVC by 38%

October 28, 2026 

The Ministry of Economy modified import tariffs on US PVC with the aim of safeguarding domestic producers without impacting the manufacturing chain. The fee on imported US PVC was reduced to 0.39 USD/kg. |Mexico City / 28.10.2026 10:59:00.

Mexico, through the Ministry of Economy (SE), reduced by 38 percent the compensatory quota that companies must pay for importing polyvinyl chloride (PVC) resin from the United States, which is a material used to manufacture pipes, windows, floors, and other plastic products. According to the resolution published in the Official Gazette of the Federation (DOF), the fee went from 0.63 to 0.39 dollars per kilogram, after the agency concluded an investigation into the sale of this product at prices lower than those considered fair to compete in Mexico.

We recommend: With Mexico, 'the US economy will be promising for the next 100 years': Ross Perot Jr. 'The Ministry considers that the purpose of compensatory quotas is not to inhibit competition in the internal market, nor to affect the transforming or consumer sector,' the document stated. The investigation began at the request of Mexichem Resinas Vinílicas, a Mexican company that denounced that US PVC was entering the country at prices so low that it affected domestic manufacturers. According to the results, the United States concentrated 98.1 percent of the imports of this material during the investigated period, comprising between October 2023 and September 2024.

In addition, purchases of the US product increased by 14 percent, while its prices decreased by 49 percent, forcing Mexican producers to lower their own prices to stay in the market. The situation also affected the revenues of the domestic industry, which recorded a 45 percent drop in their internal sales during the analyzed period. Why did Mexico decide to lower the fee on PVC? During the investigation, companies that import and use PVC warned that maintaining a high quota can make the manufacturing of plastic products in Mexico more expensive and affect their competitiveness. Therefore, Economy decided to establish a lower fee than the one provisionally applied in March, but sufficient to prevent US imports from continuing to harm domestic manufacturers.

'The Ministry evaluated price options that could be used as a non-injurious price,' the resolution established. This means that the Mexican government sought a balance point: protecting companies that produce PVC in the country without imposing unnecessary costs on those who buy it to manufacture other products. 

Therefore, the definitive quota will be collected by the Ministry of Finance and Public Credit (SHCP) on imports of PVC originating from the United States, even if they arrive in Mexico from another country, so companies that prove the material comes from a different nation will not have to pay this quota. In addition, the authority ordered the refund, when applicable, of the differences paid due to the application of the provisional quota. The resolution emphasized that the measure will enter into force on October 29 of this year in accordance with the publication in the DOF. 

Author: Giselle Soriano

Source: https://www.milenio.com/negocios/gobierno-frena-arancel-al-pvc-estadunidense-para-apoyar-industria