On 14 October 2008, the Mexican government published a regulation that established so-called “transition duties” on imports of a range of mainland Chinese products. Among other provisions, this regulation exempted certain toys and Christmas articles from the transition duties, including goods entered under a special tariff-rate quota or having an “exclusive product” exemption. This special TRQ covers merchandise classified under HTSMX 9503.00.01, 9503.00.02, 9503.00.03, 9503.00.05, 9503.00.06, 9503.00.10, 9503.00.18, 9503.00.19, 9503.00.23, 9503.00.99, 9504.90.06, 9505.10.01 and 9505.90.99. It was originally set at US$85 million per year but the Mexican government subsequently increased it to US$185 million, with a five percent annual growth rate. This special TRQ was implemented effective from 18 December 2008 and will expire on 11 December 2011.

Mexican authorities recently decided to amend the TRQ allocation procedures in order to streamline their operation. Under the new procedures, 2.4 percent of the TRQ will be reserved for national and international public organisations and/or parties authorised to receive donations and the remaining 97.6 percent will be allocated through public bidding. The Ministry of Economy will provide notice of every TRQ public bidding process at least 20 working days before the start of the registration period.