The present tariff was established in 1856. Since that time numerous
modifications have been introduced, but no general measure has been
passed. Since the return of the liberal government to this city, in
1867, it submitted proposals to congress for a radical reform in the
tariff law, and successive committees of finance have also presented
projects to the same end, but, after protracted and exhausting
discussions, in which Minister Romero has taken an active part, the
Mexican congress has not yet been able, nor would it be able for years
to come, to agree upon the necessary points of reform.
Under these circumstances, President Juarez would seem to have taken a
judicious step in “cutting the Gordian knot,” by issuing a carefully
considered and liberal tariff, from which great benefits to foreign
commerce in Mexico may reasonably be expected.
I herewith inclose a copy and translation (A and B) of the explanatory
circular of Minister Romero, which accompanies the tariff.
[Inclosure B.—Translation.]
[Circular.]
treasury department—first section.
I have the honor to send you copies of the tariff for the maritime
and frontier custom-houses of the republic, which the President has
to-day decreed, by virtue of the faculties granted him in the third
article of the law of December 1, 1871.
The President believes that he could not have used the faculties with
which congress invested him in a manner more advantageous to the
interests of legitimate commerce and of the federal treasury than by
establishing the tariff which has so long been pending, and the lack
of which paralyzed commercial operations and considerably diminished
the receipts of the treasury.
The President has not deemed the present crisis a proper time to
introduce radical changes in the existing tariff, and has judged
that, on the contrary, the task of the executive should rather be
limited to its simplification and codification, accepting, in
general, as the basis of the new tariff, the provisions of the
existing ordinance and laws.
The new tariff has been formed upon this principle, and by it the
executive believes that the following advantages will be gained:
- I.
- To reduce to a single amount the various duties now paid,
under different names, by foreign goods, on their
importation into the republic, some in the maritime
customhouses, and some in other offices, either levied
directly upon such goods or upon the Mexican products
exported for their payment, and to make, at the same time, a
reduction upon the amount paid.
- II.
- To fix the import duties, as a rule, in a given amount,
employing the ad valorem basis only
in cases where a specified duty cannot be provided.
- III.
- To add to the tariff-list many articles not found in the
present ordinance, thus avoiding the inconvenience of the
arbitrary imposts now collected on such goods. The number of
articles classified in the present ordinance is 525, while
in the new tariff it is more than 800.
- IV.
- To abolish prohibitions.
- V.
- To increase, as far as possible, the list of free goods,
exempting them from all dues, while the present tariff only
frees them from a part. In the ordinance of January 31,
1856, the number of articles on the free list is 34, while
in the new tariff they number 63.
- VI.
- To abolish onerous restrictions upon the internal
circulation of foreign goods that have paid importation
duties.
- VII.
- To establish uniform duties upon foreign goods, which
produces the advantage of equalizing mercantile operations
throughout the nation.
- VIII.
- To exempt national vessels from light-house dues, and
collect them from foreign vessels only in the ports where
light-houses exist.
- IX.
- To provide that pilotage dues be paid only by vessels that
call for pilots.
- X.
- To grant all possible privileges to foreign commerce, thus
facilitating the exportation of Mexican products, and
opening our coasts to exportation trade.
- XI.
- To authorize the exportation of bullion, in so far as the
good faith of the nation, pledged to the lessees of mints,
will allow.
- XII.
- To authorize the transit of foreign goods across Mexican
territory.
- XIII.
- To simplify, as far as possible, the operations of
custom-houses to the advantage of importation.
- XIV.
- To comply with the law of March 15, 1857, which
established the decimal-metrical system of weights and
measures; and
- XV.
- To combine in a single ordinance the various provisions
concerning foreign commerce that are scattered through many
laws now in force, which cannot readily be consulted,
especially by exporters in foreign countries.
At first sight, it would appear that the tariff rates have been
increased, since, on comparing them with the present tariff, they
are in fact found to be higher. This difference is explained in two
ways. Firstly, in the new tariff all the importation duties on
foreign goods now paid into the federal treasury, under different
names, and which do not appear in the lists of the present tariff,
are brought together; and, secondly, the new duties are based upon
the meter and kilogram as units of measure and weight, instead of
the yard and pound, now employed for that purpose. Foreign goods now
pay to the federal treasury upon their importation into the republic
the following duties:
| Importation duty |
$100 00 |
| Public works duty |
20 00 |
| Railroad duty |
15 00 |
| Internal transit duty |
10 00 |
| Counter-registration duty |
25 00 |
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| Municipal duty |
$3 00 |
| Substitute for tolls, equivalent to |
9 00 |
| Excise duty |
15 50 |
| Export duty on coin at 8 per cent, ad valorem, equivalent to |
35
00 |
| Total |
232
50 |
The operation of reducing all these duties to a single impost was
therefore equivalent to that of adding 132. 50 per cent, to the
present importation duties. From this amount a deduction of 12. 50
per cent, was made, so that the actual increase was 120 per
cent.
It may be alleged that the excise duty is only paid by goods consumed
within the federal district, and that, by consolidating it with
importation duties, it is really imposed upon goods consumed outside
of the district. This consideration diminishes in importance when we
remember that the goods consumed in the federal district form the
greater part of those imported at Vera Cruz, and that the latter
amount to half of those consumed in the republic. It is also a fact
that, in most of the States, if not in all, excise duties are levied
equivalent on the average to those of the federal district.
Nevertheless, the President, believing that a prudent reduction of
the importation duties, along with the other provisions of the new
tariff in favor of commerce, might be efficacious to increase the
customs receipts, determined to make the said reduction of 12.50 per
cent., which may be held to represent the excise duty, and to be
equivalent to its abolition.
If the new importation duties appear higher than the present ones,
let it be remembered that the additional duties above mentioned,
amounting to 132.50 per cent., and also those upon cotton and
tobacco, are included therein, and will cease to be collected
separately from and after the 1st of July, 1872.
The term designated for the new tariff to be put in force is thought
to be sufficient to protect commerce from loss in its pending orders
for goods. In order to facilitate the observance of the new tariff,
the President has sanctioned a code of regulations for maritime and
frontier custom-houses, drawn up in consonance with the new tariff
and which is also promulgated this day.
The President trusts that the practical results of the new tariff
will abundantly prove the advantages it offers to legitimate
commerce, and to the federal treasury.
Independence and liberty!
M. ROMERO.
Mexico, January 1,
1872.
