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Fiscal Restrictions

MEXICO

Reported in 2017

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Preference for local content
The OECD has reported that, in Mexican public procurement contracts, there is an explicit preference for bids in which national labour and resources are employed. This is the case on a sectoral level, for a number of industries.
Coverage Horizontal
Fiscal Restrictions

MEXICO

Since August 2014

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Law DOF
On 11 August 2014, the Mexican president Enrique Peña Nieto signed a new law (DOF: 11/08/2014) partially opening the domestic electrical market for foreign companies. Art. 91 of the law empowers the Ministry of Finance to introduce local content requirements for new projects. In case these requirements are not met (Art. 165 VIII), the law sets out the payment of a fine of 10% to 20% on the value of the purchased inputs.
Coverage Insulated wire, cable & other insulated electric conductors; optical fibre cables, made up of individually sheathed fibres (HS Code 8544)
Fiscal Restrictions

MEXICO

Since 2010

Chapter Taxation & Subsidies  |  Sub-chapter Taxation on data usage
IEPS (Impuesto Especial Sobre Producción y Servicio)
All mobile services, including calls, SMS, mobile broadband, m-Money and devices are subject to the standard VAT rate of 16%. On top of the standard VAT, there is a mobile-specific tax, the IEPS (Impuesto Especial Sobre Producción y Servicio), which is applied to mobile calls and SMS. The IEPS tax was extended to include mobile services in 2010 and is levied at a rate of 3%. Hence the total tax rate levied by Mexican authorities for mobile services stands at 19%.

The IEPS tax was criticised by the OECD in its Review of Telecommunications Policy and Regulation in Mexico, stating that “It is difficult to justify a specific sectoral tax, such as the IEPS, as it places a needless burden on the telecommunications industry unless used to support the sector in some form (universal service, the regulator, etc.).
Coverage Telecommunication sector
Fiscal Restrictions

MEXICO

Since 2010

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
IEPS (Impuesto Especial Sobre Producción y Servicio)
All mobile services, including calls, SMS, mobile broadband, m-Money and devices are subject to the standard VAT rate of 16%. On top of the standard VAT, there is a mobile-specific tax, the IEPS (Impuesto Especial Sobre Producción y Servicio), which is applied to mobile calls and SMS. The IEPS tax was extended to include mobile services in 2010 and is levied at a rate of 3%. Hence the total tax rate levied by Mexican authorities for mobile services stands at 19%.

The IEPS tax was criticised by the OECD in its Review of Telecommunications Policy and Regulation in Mexico, stating that “It is difficult to justify a specific sectoral tax, such as the IEPS, as it places a needless burden on the telecommunications industry unless used to support the sector in some form (universal service, the regulator, etc.)
Coverage Telecommunication sector
Fiscal Restrictions

MEXICO

Imposition: 11.8.2012

Chapter Tariffs and Trade Defence  |  Sub-chapter Antidumping, CVD & Safeguards
Antidumping measure
The definitive antidumping duty is USD 4.32/kg for all Chinese exporters.
Coverage Product: Radio guide (RG)-type coaxial cable with or without messenger (HS Code 854420) (coaxial cable is used as a transmission line for radio frequency signals); Country: China
Sources
Fiscal Restrictions

MEXICO

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
2.19%
Weighted average MFN rate
0.95%
Maximum tariff rate
15%
Coverage rate of zero-tariffs
79.69%

Coverage: Digital goods

Trading restrictions

MALAYSIA

n/a

Chapter Online sales and transactions  |  Sub-chapter Domain name (DNS) registration requirements
Physical presence requirement
The registrant of a .my domain must have a valid proof of residence in Malaysia.
Coverage Horizontal
Trading restrictions

MALAYSIA

Reported in March 2018

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
De minimis rule
According to Malaysia's de minimis rule, goods with a value of up to 88 SDR / 500 MYR / 128 USD are exempted from taxes and duties collected by customs.
Coverage Horizontal
Trading restrictions

MALAYSIA

Since 2006

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Digital Signature Act and Electronic Commerce Act
The Digital Signature (Amendment) Act and Electronic Commerce Act set regulations on e-signatures and e-commerce. They stipulate that digital signatures are equivalent to traditional ones and affirm the legal validity of commercial transactions conducted by electronic means.

The Electronic Commerce Act is based on the UNICTRAL Model Law. One academic report, however, claims to have found that certain significant provisions are missing in the Act, and that its provisions lack harmony and many legal issues have not been properly spelt out.
Coverage Horizontal
Trading restrictions

MALAYSIA

Reported in 2014

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Purchase limit on e-commerce
There are quota limits on the amount that can be imported by customers through e-commerce. For example, only a maximum of three pieces of new clothing and up to one unit of electrical equipment can be imported into the country.
Coverage E-retailing
Trading restrictions

MALAYSIA

Since 2013

Chapter Standards  |  Sub-chapter Product safety certification (EMC/EMI, radio transmission)
Lack of self-certification
SIRIM QAS International is the sole certifying agency appointed by Malaysia authority. Type Approval is a mandatory requirement for a communications product before it is allowed to be sold in Malaysia. Among the products that need to be certified there are: netbook, tablet PC, mobile phone, security devices, smart TV, WiFi/3G/Bluetooth module and broadcasting equipments.

Foreign applicants shall appoint a local management representative in Malaysia to be responsible for Type Approval application. However, as a member of the Asia Pacific Economic Cooperation Mutual Recognition Arrangement (APEC-MRA), Malaysia accepts product approvals from APEC members.
Coverage Several electronic products
Trading restrictions

MALAYSIA

Reported in 2014

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Procurement policies for government-linked companies (GLC)
Government-linked companies (GLC) procurement practices are officially governed by their respective acts and they are under the purview of their respective board of directors. Thus, GLCs are not governed by the public sector's government procurement rules and regulations. De facto, however, procurement policies for GLCs are similar to those of ministries and other government bodies and GLCs are encouraged to procure from local sources with a view to supporting local and national economic development.
Coverage Horizontal
Source
  • WTO TRADE POLICY REVIEW REPORT BY THE SECRETARIAT, Malaysia, Document WT/TPR/S/292/Rev.2, 8 April 2014
Trading restrictions

MALAYSIA

Since October 2015

Chapter Quantitative Trade Restrictions  |  Sub-chapter Import restrictions
Amendment to Customs Act
The Malaysian government amended its Customs Act to require import licenses for hybrid ICT products. These include those devices with multiple features including toys, medical devices and computer products.
Coverage Hybrid ICT products
Trading restrictions

MALAYSIA


Chapter Quantitative Trade Restrictions  |  Sub-chapter Import restrictions
Purchase limit on e-commerce
There are quota limits on the amount that can be imported by customers through e-commerce. For example, only a maximum of three pieces of new clothing and up to one unit of electrical equipment can be imported into the country.
Coverage E-retailing
Restrictions on data

MALAYSIA

Reported in 2013

Chapter Content access  |  Sub-chapter Bandwidth, net neutrality
Throttling
According to a news report of 2013, alternative news portals (both domestic and foreign) are being throttled in Malaysia when they contain politically sensitive content.
Coverage Websites