**Used Car Dealers Urge Extension of Import Decree at the Border**
Used car dealers are calling for an extension of the decree that allows them to import vehicles at reduced tax rates. If not renewed, dealers could face import taxes as high as 60%. The decree, which has benefited dealers by allowing them to purchase more affordable cars without impacting the new car industry, only requires them to pay a 1% tariff on each vehicle.
Katia Torres from Grupo Logistics explained that under the decree, vehicles that are five to nine years old can be imported with a 1% tariff and a 16% VAT. Without the decree, these vehicles could face nearly a 66% tax on their value when considering additional taxes and VAT.
The decree has been extended without issue since 2011, but its expiration coincided with the end of President Andrés Manuel López Obrador’s administration. Dealers warn that without an extension, importing vehicles will become prohibitively expensive, as they would have to pay triple the current taxes.
**Developments on Import Policies for “Chocolate” Cars**
In recent discussions, the decree to regularize so-called “chocolate” cars has been extended until September 2026. This move comes as a response to the demands from local businesses that a workable import policy is essential for the economy.
Baja California ranks as the third highest state for revenue from “chocolate” cars, yet only fourth in terms of paving advancements. The extension is expected to ease the process for importing these vehicles, but dealers remain keen on the reimplementation of the favorable terms of the expired decree to sustain their businesses.
For more insights into new and impactful import policies, stay tuned to TJGringo.com for the latest updates.