Mexican Tariff Classification (Fracción Arancelaria, NICO & TIGIE) Explained
When a US manufacturer prepares to ship raw materials, sub-assemblies, or production machinery to a plant in Mexico, a common operational mistake is emailing a spreadsheet of 10-digit US HTS codes (Harmonized Tariff Schedule of the United States) to the Mexican customs broker and expecting those exact 10 digits to appear on the Mexican pedimento.
Use the product specifications to determine each national classification. In Mexico, the eight-digit fracción arancelaria and the two-digit Número de Identificación Comercial (NICO) together form the ten-digit identifier. The US schedule has its own national tariff lines and statistical reporting numbers.
1. What can the two brokers share?
The schedules use the international Harmonized System through the six-digit subheading. Give both brokers the same product facts and have each record the national classification for the condition in which the item enters that country. When a casting enters Mexico and a machined housing enters the US, give the brokers two descriptions and identify the machining steps between them.
For a steel machine screw, heading 7318 and subheading 7318.15 are possible starting points for research. Record the thread, material, dimensions and application before selecting a national line. The chapter (digits 1–2), heading (through digit 4) and subheading (through digit 6) provide an international structure. Digits 7–8 identify national tariff lines, and the final two digits identify the US statistical suffix or Mexican NICO. Compare each country’s legal notes and the article as entered. SNICE NICO resources
| Handoff field | What to put in the part record |
|---|---|
| Product identity | Purchase-order line, part number, drawing revision and effective lot. |
| Condition at each border | Material and composition, dimensions, function, and a description or drawing of the item as imported. Identify whether it is unfinished, assembled or shipped with other components. |
| Mexican result | Eight-digit tariff fraction, two-digit NICO, applicable unit of measure, schedule version and review date. |
| US result | HTSUS reporting number, schedule revision, entry date or planned entry date and reviewer. |
For the planned entry date, record the applicable HTSUS revision and check Chapter 99 and any relevant measure, description, exclusion and effective date. For Mexico, keep the TIGIE and NICO publication or amendment applicable to the Mexican entry. If shipment timing changes across a revision, rerun the affected checks and retain both versions. Use the origin rules for Mexican manufacturing to address marking, preference or trade remedies once the product facts are established. USITC HTS archive
Send a changed specification back to the reviewer when a revision alters material, function or condition at import. Purchasing can use the same revision reference in the supplier RFQ worksheet. USITC classification guidance · SNICE tariff resources
2. How LIGIE and TIGIE Work Together (22 Sections, 98 Chapters, and National Notes)
In Mexican trade compliance, you will hear two acronyms used constantly: LIGIE (the federal statute) and TIGIE (the tariff table inside Article 1 of that statute):
- Article 1 of the LIGIE (The TIGIE Table):
- Contains 22 Sections and 98 Chapters.
- Chapters
01through97follow the international WCO Harmonized System (with Chapter77reserved). - Chapter
98is unique to Mexico (Operaciones Especiales): It contains heading98.02, which houses the 24 special tariff fractions (9802.00.01to9802.00.24) used for Regla Octava prior permits, allowing PROSEC manufacturers to import machinery and unlisted raw materials at 0% IGI.
- Article 2, Section I of the LIGIE (The 6 General Rules of Interpretation: RGI 1a to 6a):
- The universal legal rules for classifying goods by heading text, Section/Chapter legal notes, incomplete/unassembled goods (RGI 2a), essential character of mixtures/sets (RGI 3b), and subheading comparison (RGI 6a).
- Article 2, Section II of the LIGIE (Mexico’s 10 Complementary Rules: Reglas Complementarias 1a to 10a):
- Complementary Rule 3a (Notas Nacionales): Establishes that Mexico’s National Explanatory Notes (Notas Nacionales), published jointly by the Ministry of Economy (
SE) and the Ministry of Finance (SHCP), are legally binding for interpreting the TIGIE. - Complementary Rule 8a (Regla Octava): Authorizes importing goods in one or multiple shipments under heading
98.02with a Ministry of Economy permit. - Complementary Rule 10a (NICO): Governs the 2-digit Commercial Identification Number.
- Complementary Rule 3a (Notas Nacionales): Establishes that Mexico’s National Explanatory Notes (Notas Nacionales), published jointly by the Ministry of Economy (
3. The Five Downstream Impacts of Your 8-Digit Fracción Arancelaria
Why can’t your Mexican customs broker simply pick a convenient “catch-all” (“Los demás”, .99) tariff fraction when a part description is vague? Because five regulatory engines in Mexico read that 8-digit code simultaneously:
| Regulatory Engine | How the 8-Digit Fraction (+ 2-Digit NICO) Controls Your Operation | What Goes Wrong If Misclassified |
|---|---|---|
1. General Import Duty (IGI) & Temporary Tariff Decrees | Determines whether the MFN tariff is Ex. (0%) or 5% to 50% (including the 2024–2026 Presidential Tariff Decrees on steel, aluminum, plastics, textiles, and electronics). | Underpaying IGI on non-originating inputs under USMCA Article 2.5 triggers a 130% to 150% fine on the omitted duty under Article 178, Section I of the Customs Law. |
2. Non-Tariff Regulations (RRNA) & Safety NOMs | The Acuerdo de RRNA maps exact 8-digit fractions + NICO to mandatory Automatic Steel Import Notices (Aviso Automático Siderúrgico), COFEPRIS health permits, SEMARNAT chemical permits, and safety NOMs. | Discovering at the Laredo bridge that the real tariff fraction requires a 15-day prior steel notice or NOM certificate triggers an immediate PAMA seizure under Article 151, Section II. |
| 3. IMMEX Annex I (Prohibited) & Annex II (Sensitive Goods) | Determines whether the material is barred from IMMEX (Annex I) or classified as a Sensitive Good (Annex II: steel, aluminum, textiles), requiring heightened certification and shorter retention windows. | Importing an Annex II steel or textile fraction without the corresponding Annex II authorization invalidates the temporary import and blocks the pedimento. |
4. Official Tariff Unit of Measure (UMT) | Every 8-digit fraction in the TIGIE mandates a single official UMT (Kg, Pza, M2, L). | If your ERP tracks the item in Pieces (UMC) and fails to maintain an accurate weight conversion to the fraction’s Kg (UMT), your Anexo 24 will generate negative balances. |
| 5. SCCCyG (Anexo 30/31) VAT Credit Bucket | SAT’s SCCCyG ledger tracks 16% VAT credits strictly by 8-digit Tariff Fraction. | If Broker A imports part PN-100 under 8536.90.99 and Broker B imports the same PN-100 under 8538.90.99, your SCCCyG discharge reports will over-discharge one bucket and leave the other stranded! |
4. Engineering Spec Sheets (Cartas Técnicas): How to Prevent Broker Guessing
Under Article 54 of the Mexican Customs Law, the customs broker is responsible for the accuracy of the tariff classification, except when the error results from incomplete or inaccurate information supplied by the importer.
When US purchasing teams send commercial invoices that say only " PN 44902-B / ASSY BRACKET / $14.50 ", the Mexican broker’s classifier has no way to know whether that bracket is stamped steel (7326.90.99), cast aluminum (7616.99.99), a motor vehicle chassis part (8708.29.99), or a dedicated part of an industrial machine (8466.93.99).
Before shipping any new part number or piece of machinery to Mexico, require your engineering and trade compliance teams to complete a Bilingual Technical Classification Sheet (Carta Técnica de Clasificación) containing:
- Exact Material Composition (
Materia Constitutiva): For metals, plastics, chemicals, and textiles, specify the exact alloy/grade (e.g., Cold-rolled carbon steel AISI 1018, thickness 1.5 mm, hot-dip galvanized), CAS numbers for chemicals, or fiber percentages for textiles. - Manufacturing Process: Whether the part is forged, stamped, sintered, die-cast, extruded, or injection-molded (this frequently dictates the heading/subheading in Chapters 72–76 and 39).
- Specific Function & End-Use Machine (Uso y Función): Under Note 2 to Section XVI of the TIGIE, whether a mechanical or electrical part is classified in its own heading (
8481,8482,8536) or as a “part suitable for use solely or principally with a particular machine” (8466,8503,8708) depends entirely on its technical drawing and engineering function. - Net Unit Weight (to 6 Decimals) & Photographs/CAD Drawings: Locks in the exact
UMC-to-UMTconversion factor for Anexo 24 before the first truck ever reaches Laredo. - Single Master Catalog Across All Customs Brokers: Once your compliance team and lead Mexican customs broker sign off on the 10-digit code (
Fracción + NICO), lock that code in your ERP/Anexo 24 Master Catalog and prohibit secondary or air-freight brokers from altering the classification without written compliance approval.
Connect this task to the US entry
Frequently asked questions
Can we use our 10-digit US HTS code on a Mexican import pedimento?
Classify the item as imported under each country’s schedule. Both schedules use the international six-digit HS structure. Mexico adds national tariff subdivisions and a two-digit NICO. A US statistical reporting number cannot establish the Mexican classification.
What is the difference between the 8-digit Fracción Arancelaria and the 2-digit NICO?
Under Articles 1 and 2 (Complementary Rule 10a) of Mexico's General Import and Export Tax Law (LIGIE), the first 8 digits constitute the legal Fracción Arancelaria, which determines the import duty rate (IGI), the official Tariff Unit of Measure (UMT), and whether the item is listed in PROSEC or IMMEX Annex II. The 9th and 10th digits are the NICO (Número de Identificación Comercial), created for statistical precision and used alongside the 8-digit fraction to pinpoint exact Non-Tariff Regulations (RRNA) and Official Mexican Standards (NOMs).
What is the legal difference between LIGIE and TIGIE in Mexico?
LIGIE (Ley de los Impuestos Generales de Importación y de Exportación) is the federal statute enacted by the Mexican Congress. It contains two articles: Article 1 contains the complete tariff schedule table of 22 Sections and 98 Chapters (known operationally as the TIGIE: Tarifa de la LIGIE), while Article 2 contains the 6 WCO General Rules of Interpretation (RGI 1 to 6) and Mexico's 10 national Complementary Rules (Reglas Complementarias 1a to 10a).
Why does the Mexican tariff code dictate how our Anexo 24 and SCCCyG (Anexo 30/31) work?
Every 8-digit Fracción Arancelaria in Article 1 of the LIGIE has a mandatory Tariff Unit of Measure (UMT, such as Kilogram 'Kg', Piece 'Pza', or Square Meter 'M2') and serves as the exact bucket key inside SAT's SCCCyG (Anexo 30/31) VAT credit ledger. If two customs brokers classify the same imported component under two different 8-digit fractions, your SCCCyG VAT credits and Anexo 24 inventory balances will fracture into two incompatible buckets.
Who is legally liable if the Mexican customs broker assigns the wrong tariff classification?
Under Article 54 of the Mexican Customs Law, the customs broker is jointly liable for the accuracy of the tariff classification, UNLESS the inaccuracy stems from incomplete, false, or omitted technical information provided by the importer. Even when the broker is at fault, the importer remains directly liable to SAT for any omitted import duties (IGI), 16% VAT differences, 130%–150% fines (Article 178), and PAMA seizure if the correct fraction required an unfulfilled safety NOM or prior import permit (Article 151, Section II).
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