Mexico City. The Treaty between Mexico, the United States and Canada (T-MEC) will grant a period of seven years to adjust the rule of origin of the autoparts used in the production of heavy trucks.
This is a longer period than the transition from the rule of origin for three years to passenger and truck vehicles.
For parts used in heavy duty trucks, the rules of origin are divided into two categories. The first corresponds to the main automotive parts, with a regional content value (VCR) of 70% and the second includes the complementary parts with a value of regional content of 60%.
Among the main automotive parts are: engines, pistons, engine parts, fuel pumps, fans, air pumps, air conditioning, transmission shafts, gearboxes, steering wheels, chassis, bodies, defenses, safety belts, shafts Control with differential, wheels, shock absorbers, radiators, silencers, exhaust pipes, clutches, air bags and seats.
In 2017, Mexico produced autoparts worth $ 92,000 million, while in the same segment, exports totaled $ 73,500 million and its imports reached 49,100 million dollars.
As of 2019, heavy truck manufacturers will have to buy steel and aluminum in the region, to reach 70% of US content and to comply with retroactive certification of the automotive rule, as stipulated in the new treaties.
Some of the complementary automotive parts are hydraulic hydraulic fluid pumps, electronic brake systems, including ABS and ESC systems, clutch coupling and shaft, lithium ion batteries and ignition equipment.
The VCR is a percentage that indicates the extent to which a merchandise has occurred in the producer's local area. The origin of the components or materials of the merchandise, the location of the production of this and other factors influence that percentage.
In general, the rules of origin refer to the criteria agreed in a free trade agreement to define when it is considered that a good originates (due to its level of regional content) to enjoy tariff preferences.
The main worldwide manufacturers of trucks that have manufacturing facilities, spare parts workshops and maintenance workshops in Mexico are: Cummins, Daimler Commercial Vehicles, Detroit Diesel Allison of Mexico, Dina de México, Freightliner México, Foton México, Isuzu de México, Kenworth Mexicana, Mack Trucks Inc, Man Truck and Bus, Volkswagen México, Scania de México and Volvo México.
Finally, the manufacturers of passenger buses have the longest manufacturing tradition in Mexico, with several production facilities throughout the country.
Rule for trucks. As of 2019, manufacturers of heavy trucks (Daimler, Hino, Kenworth, Volvo, Man, among others) will have to make steel and aluminum purchases in the region, to reach 70% of US content and to comply with the retroactive certificate of the norm of automotive origin, as stipulated in the Treaty between Mexico, the United States and Canada (T-MEC).
Miguel Elizalde, president of the National Association of Producers of Buses, Trucks and Tractors (ANPACT), said that Mexico, EE. UU. And Canada should retroactively make the certificate of regional steel and aluminum value to begin the purchase of inputs from the region.
The purchase of 70% of steel and aluminum to be manufactured by factories of heavy trucks in the three countries will enter into operation one year before the entry into force of the T-MEC, for which the heavy goods industry and the Ministry of Economy You must complete the definition of the tariff fractions of the inputs of metals before the signature.
In an interview, ANPACT's leader explained that, in the case of Mexico, there is no important problem, because 98% of its truck production is exported to North America, but the US. UU. You must reconfigure your purchases.
In the coming days, Economy will define the tariffs of steel and aluminum (materials only) used by the assembly companies, without including auto parts, to comply with the rule of origin, from January 1, 2019 – in the case the T-MEC will enter in force in 2020. "In two months, plants will have to buy steel and aluminum from the region because it is a retroactive year to begin the following year (with the Treaty)."