Deductions: how to legally reduce your customs value

What are deductions

Deductions are amounts subtracted from the price paid or payable to determine customs value. They are established in Article 66 of the Customs Law. Unlike additions (which add), deductions reduce the taxable base, meaning you pay less import taxes.

Inland transportation costs within Mexico

Freight from the point of entry into Mexico (customs) to the importer's final destination is deductible if included in the invoice price. International freight to the entry customs is NOT deductible; it always forms part of customs value.

Post-import construction or installation costs

Construction, assembly, mounting, maintenance or technical assistance costs performed after import are deductible. This is especially relevant for industrial machinery where the price includes installation and commissioning.

Financing interest

Interest payments for financing granted by the seller are deductible if distinguished from the goods price, the financing agreement is in writing, and the buyer can demonstrate that the actual price does not differ from the cash price.

Expenses that are NOT deductions

• International freight to the entry customs
• International transport insurance
• Import taxes and tariffs
• Marketing and advertising expenses
• Internal distribution commissions
• Warehousing costs in Mexico
• VAT and other Mexican taxes

How to document deductions

For a deduction to be accepted by the authority, it must be documented: a contract specifying the concepts, an invoice with post-import service breakdown, and proof that the price includes the concept being deducted.