mexican customs law amendments and latest developments · 2014. 11. 3. · immex are responsible...

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Mexican Customs Law

Amendments and Latest Developments

Adrienne Braumiller, Partner www.braumillerlaw.com

http://www.braumillerlaw.com/


I. Mexican Customs Law Amendments

Ley Aduanera • Amendments published on December 9, 2013 • Some articles became effective the day after publication (Dec

10, 2013) Mexican Customs Broker: • Exporter/importer may conduct customs operations

o on their own; or o through a customs broker; or o through a legal representative

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Pedimento • Filed electronically • Can be corrected as many times as needed

o Prior to activating the automated selection system o No sanctions will be imposed o SAT may still audit corresponding customs operations

Mexican customs may: • Send electronic notifications and request information • Audit company’s electronic files • Confiscate goods when:

o False name or address of foreign supplier is declared, or o Foreign supplier cannot be located abroad

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IMMEX and bonded warehouses were VAT exempt January 1, 2015, 16% VAT has to be paid A, AA or AAA certifications, provide a credit for the VAT already paid • Significant impact is expected on the IMMEX finances and cash

flow • IMMEXs, their Mexican and foreign suppliers and clients need

to be well informed and advised on how to: o Minimize their finances and impact on cash flows o Obtain the certification o Seek a VAT credit or reimbursement from the Mexican customs

authorities

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II. IMMEX .

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II. IMMEX IMMEX’s responsibilities: • Maintain goods in the facility • Keep complete and accurate records • File reports • Implement automated inventory control system • Determine and pay the corresponding customs duties

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II. IMMEX IMMEX are responsible for paying customs duties as set forth under: • Mexican Harmonized Tariff Schedule

o Ley de los Impuestos Generales de Importación y Exportación (LIGIE)

• Industry Promotion Sectors o PROSEC – reduction of duties for specific industries o 8th Rule – duty free for PROSEC entities

• Trade agremeents signed by Mexico o NAFTA:

NAFTA Article 303 for IMMEX Mexican general customs rules Rules for implementing NAFTA in Mexico * Is your company determining/paying the correct duties?

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Mexico - the most free trade agreements in the world representing 90% of Mexican trade with more than 44 countries Most influential FTA is NAFTA Mexico’s FTA audit department is also the largest of its kind in the world • Over 170 employees exclusively dedicated to country of

origin audits to determine FTA eligibility

III. NAFTA Audits

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Visits • Visits require:

o Written notification o Written consent o If an exporter or producer has not consented within 30 days,

preferential treatment may be denied • May include:

o The site that the goods or materials were produced o The place where records are stored and/or o The site from which the goods or materials were distributed

III. NAFTA Audits

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Mexico’s FTA audit conducted 1000 NAFTA audits in 2013 • 99% of these audits involved American companies • 98% failed to provide adequate evidence of NAFTA

eligibility o Deficient recordkeeping by American companies o Some simply neglected to respond to the Mexican Government’s

requests for information and documentation, resulting in an automatic NAFTA certificate invalidation

III. NAFTA Audits

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In most audits, Mexican Customs goes directly to the Producer of the good for the required evidence • If a U.S. producer fails to demonstrate NAFTA- originating

status, Mexican Customs will in turn invalidate all NAFTA certificates provided to its Mexican customers (i.e., Mexican importers).

If recordkeeping inadequate, Producer can request a production facility visit to prove originating status If goods don’t qualify, the Producer must notify all parties to whom a NAFTA certificate was sent to avoid penalties

III. NAFTA Audits

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III. NAFTA Art. 303

Restricts the refund, waiver or reduction of import duties applicable to non-NAFTA originating goods imported in MX, CA or the US: • Used in the production process of goods • Substituted by similar or identical goods used in the

production process of goods o Subsequently exported to MX, CA or the US

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III. NAFTA Art. 303 .

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Importation into Mexico

Importation into US or CA

Exportation from Mexico


III. NAFTA Art. 303 Article 303 restriction does not apply to: • Non-NAFTA Originating goods imported by an IMMEX

and subsequently exported outside the NAFTA region

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III. NAFTA Art. 303

Article 303 restriction does not apply to: • NAFTA originating goods imported by an IMMEX and

subsequently exported to the NAFTA region

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III. NAFTA Art. 303

Mexican Customs will begin conducting NAFTA Article 303 audits The objective of these audits is to verify that duties are paid on non-NAFTA originating goods imported into Mexico and incorporated into a NAFTA-originated finished product.

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III. NAFTA Art. 303

Recommendations • Implement an assesment to determine if your finished good

exported by IMMEX and imported into the US or CA have non-NAFTA materials

• Review customs records, bills of materials, invoices, contracts with suppliers

• Request NAFTA certificates from suppliers and ensure they are accurate and correct

• Do not wait until you are audited. Be proactive • If you do not know, ask!

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Questions?

Adrienne Braumiller

Braumiller Law Group 5220 Spring Valley Rd., Suite 200

Dallas, TX 75254 (214) 348-9306

[email protected]

www.braumillerlaw.com

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http://www.braumillerlaw.com/

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