Basics of foreign economic activity in Mexico - Customs of Mexico

General information about Mexican customs authorities

Legal basis

The legal basis for companies to carry out foreign economic activities and the work of customs authorities in Mexico is:

— Customs Code and its provisions,

— Foreign Trade Law and its provisions,

— General rules of foreign economic activity,

— Resolution according to which the Ministry of Economy issues General Rules and Criteria in Foreign Trade,

— Customs agreements (bilateral, multilateral),

— Free trade agreements signed by Mexico

— Law on General Taxes on Imports and Exports and itstariff part,

— Federal law on fees,

— Value Added Law,

— Internal regulatory acts of the tax administration service,

— Internal regulatory acts of the Ministry of Finance and State Credit, etc.

Basic members

Importer / Exporter

An individual or legal entity who has the right to import/export goods of foreign/national origin through customs into national/foreign territory for the purpose of placement there permanently or temporarily.

The importer must be registered in the register of importers — more on that later.

Customs agent

An individual who has the right to clear goods for export and import and is responsible for the reliability and accuracy of the data and information provided, determination of the customs regime of goods, correct classification of goods and tariffs. It is in addition responsible for ensuring that the importer or exporter has all the documents confirming compliance with all obligations associated with non-tariff rules and restrictions on such goods, in accordance with the provisions of customs legislation and other laws and applicable regulations (1).

(1) According to Article 56 of the Customs Code. The same article provides exceptions where the customs agent in Mexico will not be held liable.

Customs (aduana)

Customs in Mexico — These are government administrative institutions located at the borders, coastal zones and important cities of the state, which are responsible for collecting taxes on the export or import of goods to the treasury.

The General Administration of Customs (AGA) is an entity of the federal government, subordinate to the Service of Tax Administration (SAT), which, in turn, acts as a decentralized body of the Ministry of Finance and Public Credit (SCHP), whose main function is the supervision and control of the import and export of goods, ensuring compliance with the provisions of the SHCP on foreign trade issues, as well as other ministries and federal executive authorities with relevant competencies. In addition, the AGA is also designed to help maintain national security, protect the country's economy, public health and the environment by preventing dangerous or illegal goods from entering Mexico.

Based on Article 10 of the Customs Code, the import or export of goods from the national territory, operations of loading, unloading, transhipment and storage, boarding or disembarking passengers and inspection of baggage must be carried out at an authorized place, in other words at customs, on a certain day and time (2).

(2) The work schedule of customs authorities in Mexico is defined in Appendix 4 of the General Regulations on Foreign Economic Activities.

The following 49 customs offices are identified on Mexican territory through which the import or export of goods is permitted:

1. Aduana de Aguascalientes.

2. Aduana de Ensenada.

3. Aduana de Mexicali.

4. Aduana de Tecate.

5. Aduana de Tijuana.

6. Aduana de La Paz.

7. Aduana de Ciudad del Carmen.

8. Aduana de Ciudad Acuña.

9. Aduana de Piedras Negras.

10. Aduana de Torreón.

11. Aduana de Manzanillo.

12. Aduana de Ciudad Hidalgo.

13. Aduana de Ciudad Juárez.

14. Aduana de Chihuahua.

15. Aduana de Ojinaga.

16. Aduana de Puerto Palomas.

17. Aduana del Aeropuerto Internacional de la Ciudad de México.

18. Aduana de México.

19. Aduana de Acapulco.

20. Aduana de Guadalajara.

21. Aduana de Toluca.

22. Aduana de Lázaro Cárdenas.

23. Aduana de Colombia.

24. Aduana de Monterrey.

25. Aduana de Salina Cruz.

26. Aduana de Puebla.

27. Aduana de Guanajuato.

28. Aduana de Querétaro

29. Aduana de Cancún.

30. Aduana de Subteniente López.

31. Aduana de Mazatlán.

32. Aduana de Agua Prieta.

33. Aduana de Guaymas.

34. Aduana de Naco.

35. Aduana de Nogales.

36. Aduana de San Luis Río Colorado.

37. Aduana de Sonoyta.

38. Aduana de Dos Bocas.

39. Aduana de Altamira.

40. Aduana de Ciudad Camargo.

41. Aduana de Ciudad Miguel Alemán.

42. Aduana de Ciudad Reynosa.

43. Aduana de Matamoros.

44. Aduana de Nuevo Laredo.

45. Aduana de Tampico.

46. Aduana de Tuxpan.

47. Aduana de Veracruz.

48. Aduana de Coatzacoalcos.

49. Aduana de Progreso.

The busiest customs offices in Mexico are Veracruz (sea on the Gulf of Mexico), Manzanillo (sea on the Pacific Ocean), Laredo (land on the US border) and Mexico City International Airport (for goods arriving by air).

Customs clearance of goods

An important part of exporting to Mexico is the customs receipt process, which consists of performing acts and formalities at customs when importing goods into the country. To do this, the Mexican importer submits to Customs, through a customs agent or customs representative, a petition (application) for import for a specific transaction. In addition, import duties must be determined and paid unless otherwise provided.

Customs clearance procedures are carried out only through a customs agent and after payment of duties applicable to the product or service. Duties usually make up a percentage of the cost of the goods, agency services too, for this reason it is recommended that you find out the amounts of both before registering the goods. This practice of paying for the services of customs agents is recognized by the Confederation of Associations of Customs Agents of the Mexican Republic (CAAAREM).

Documentation for import and export

According to Article 36 of the Customs Code, everyone who imports or exports goods is required to submit an application (3) to the customs authority through a customs agent along with the following documents:

a) In the case of import (Article 36, Part I), a commercial invoice must be attached to the application; transport document (bill of lading for sea transport, instructions for air transport, letter for transportation by land transport); papers confirming compliance with rules and non-tariff restrictions on imports; certificate of origin; a document confirming the guarantee by a deposit made to the customs account, as specified in Article 84-A of the Customs Code; if the declared price is lower than the estimated price — justification for this; weight or volume certificate; if moving bulk cargo — materials, which provides identification, analysis and control of cargo.

When importing/exporting machinery and equipment (goods that can be individually identified), you must provide serial numbers, parts, make, model or, if applicable, technical or commercial specifications necessary to identify the goods and distinguish them from similar ones. This material may be recorded on the application, on the invoice, on the shipping document, or on an attached document indicating the relevant application number, signed by the importer, agent or customs representative.

b) When exporting (Article 36, Part II), the application must be accompanied by a contract, invoice or any document determining the commercial price of the goods, and in addition to this, papers confirming compliance with rules and non-tariff restrictions.

(3) This is actually a customs declaration. The customs declaration represents tax evidence that all taxes have been paid to SAT for the import/export of goods into or from the national territory. It also serves to verify the legality of goods that have been imported into the country. Contains the following data: name of the importer/exporter, customs clearance of goods, customs regime, name of the customer/supplier, state of origin of the goods, tariff rules, quantity and units of measurement, number of packages, invoices and other data. For more information on filling out the application, see Appendix 22 of the General Rules of Foreign Trade.

Subtleties of import

Anyone wishing to import goods into the country must be registered as a natural or legal person with the Tax Administration Service (SAT), in the register of importers (El padrón de importadores).

It must be taken into account that when importing certain goods, the importer must be registered in the register for the import of these particular goods according to their tariff classification article, that is, in a certain (industry) section of the register of importers. Goal — identify or prevent the negative consequences of the import of such goods for the economy of the state, as well as for the protection of public health and national security. These products are:

1. Chemical products.

2. Radioactive and nuclear substances and products.

3. Chemical precursors and key chemicals.

4. Firearms and their spare parts, accessories and ammunition.

5. Explosives, materials related to explosives.

6. Chemicals, materials for pyrotechnic purposes and devices associated with the use of explosives.

7. Other weapons and accessories; edged weapons and accessories; fuses.

8. Machines, devices, accessories, etc., related to weapons.

To register in the general or sectoral register of importers, you must be registered in the Federal Register of Taxpayers (RFC), have an electronic signature (FIEL) and patents of customs agents with whose participation imports and / or exports will be carried out.

Customs regimes

All goods imported or exported from Mexico must be cleared according to the customs regime determined by the importer, based on the purpose of the foreign economic transaction on national territory or abroad.

When goods are presented to customs for entry or exit from a country, the application must indicate the destination.

Mexican legislation provides for six customs regimes with their options (4):

1. Permanent

— Import

— Export

2. Temporary

— Import

a) return abroad in the same condition

b) for processing, transformation or repair

— Export

a) return to the country in the same condition

b) for processing, transformation or repair

3. Tax deposit

4. Transit of goods

— Interior

— International

5. Processing, transformation or repair in a controlled customs area

6. Responsible tax storage

(4) Article 90 of the Customs Code

Customs duties

General Import Tax «IGI» (rate)

The general tax (tariff) on imports can be: Ad-valorem (as a percentage of the customs value of the goods), specific (in monetary terms per unit of measurement) and mixed (a combination of the previous two).

The IGI must be the same as the tariff code under which the imported product is classified under the General Import and Export Tax Law Tariff or the Mexican Free Trade Agreement Tariff List.

Value Added Tax (VAT)

Import VAT is 16%. If the import value of tangible goods used for general import tax purposes is increased by the amount of this tax, the remaining charges you must pay on the import, such as countervailing duties, are added. VAT is charged on top of the final amount.

Tax on new cars (ISAN)

ISAN arises when motor vehicles are imported and is determined by applying the rate established in the ISAN Law to the value applicable for the purposes of the general import tax, plus the amount of this tax and other taxes payable on import, excluding VAT.

Special tax on production and services (IEPS)

IEPS applies to the import of certain goods (alcoholic beverages and beer, spirits, denatured alcohol, energy drinks, non-crystallizable honeys, stylized tobacco, gasoline, diesel fuel, etc.) and is determined by applying the rate specified in Articles 1, 2 and 2-A of the IEPS Law.

Special customs procedure (STA)

DTA (special rate) (5) applies to customs operations that are carried out using the relevant customs document providing for such a rate. To find out the payment amount, you should refer to Articles 1 and 49 of the Federal Fee Law, since the amounts are updated every six months.

(5) DTA — This is a fee, it does not constitute a tax and should be subject to VAT on the basis of Article 1 of the Value Added Tax Law.

Customs tariffs, non-tariff rules and restrictions

Customs tariffs — These are taxes that importers and exporters must pay at the customs office of a country to import or export goods. Finding out the customs tariff for a specific product is quite simple, since they are all located in the Customs Tariff. The Customs Tariff Law is an instrument that provides transparency and certainty to the exporter and importer. In Mexico, the law regulating customs tariffs is the Law on General Taxes on Imports and Exports (LIGIE), more precisely, its tariff partTIGIE

Non-tariff rules — these are measures established by governments to control the flow of goods between states, to protect domestic producers, for the needs of the national economy or to preserve the environment, protect public health, animal and plant health, to provide consumers with good quality goods, etc. In general, it is not important for what purpose they are established, the main thing is that they have the right to influence foreign economic activity.

Mexico has several rules and non-tariff restrictions:

Quantitative non-tariff rules

— Export and import permit

— Quotas

— Measures against unfair international trade practices: discriminatory prices and subsidies

Quality non-tariff rules

— Official Mexican standards (labeling, packaging and packaging, methods, toxicity, etc.).

— State of origin marking

— Sanitary rules

— Quality standards (ISO)

— Environmental standards

Next, we will look at the rules and non-tariff restrictions on the import of healthcare and food products.

Import and export of goods and services related to the health and food sectors

Health sector

According to the General Law on Health, the Ministry of Health exercises powers of regulation, control and protection of health through the Federal Commission for the Protection against Sanitary Risks (COFEPRIS) (6), which relate in particular to the sanitary control of products, services during their import and export, and in addition to enterprises involved in the processing of products; carries out sanitary control over the processing, use, maintenance, import, export and final disposal of medical equipment, prostheses, orthoses, functional aids, diagnostic aids, consumables for dental use, surgical materials, therapeutic and hygienic products in institutions where such products are used.

(6) COFEPRIS — an independent body with administrative, technical and operational autonomy. The head is the Federal Commissioner, appointed by the President of the Republic on the proposal of the Minister of Health, who oversees COFEPRIS.

Processes that must be performed according to the regulations of the Federal Commission:

Import of products and materials affecting health and materials from cells, tissues, blood and derivatives:

— sanitary permit for the import of medical goods (medicines, medical devices and raw materials);

— permission to transplant cells, tissues, blood and derivatives;

— preliminary sanitary permit for import: food, food additives, soft drinks, tobacco, pesticides, organic and mineral fertilizers, toxic substances.

Export of products and materials affecting health and materials from cells, tissues, blood and derivatives:

— export certificate for health products and similar;

— permission to export cells, tissues, blood and derivatives.

Food products, food additives and their raw materials, cosmetic products and additives:

— export permit;

— Product Analysis Certificate;

— Certificate of Good Practice;

— export certificate.

Pesticides and fertilizers:

— export permit;

— export certificate.

Food products

The National Service for Health, Safety and Quality of Food (SENASICA) under the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), through the Directorate General of Plant Health, is responsible for establishing the phytosanitary requirements that plants, their products and by-products must meet for import and circulation in the domestic market, in order to prevent the introduction and spread of pests that pose a pest risk to the state or any region, based on technical study of the issue. It is also responsible for certifying the phytosanitary conditions of plants, their products and by-products to be exported or re-exported, in accordance with the phytosanitary requirements of importing countries. These functions are granted to it by the Federal Plant Health Act.

The import of vegetables, their products and by-products into Mexico is regulated by the Federal Plant Health Law, the Agreement establishing a set of phytosanitary requirements for the import of goods regulated by the Ministry of Agriculture from the point of view of plant health, and in addition the Agreement, which establishes the classification and codification of goods the import of which is regulated by the Ministry of Agriculture through the National Service of Health, Food Safety and Quality of Food.

Animal health

SENASICA, through the General Directorate of Animal Health, establishes, from a scientific and technical point of view, animal health criteria that all import and export operations must comply with. In addition, it negotiates and concludes animal health recognition agreements with states interested in trade exchanges.

Subject to export, the following functions are performed: application of standards, guidelines and programs to ensure compliance with animal health protocols for export; coordinating the development of formal rules that provide legal certainty to these standards and guidelines; making proposals for animal health protocols and agreements with states interested in trade exchanges.

Animal health criteria established by Mexico apply for the import of animals and livestock products. They are designed to ensure compliance with animal health requirements.

In order to prevent the importation of pests and diseases that are not common in the national territory and/or to prevent an increase in their numbers, animal health guidelines are issued to determine the quarantine of imported animals. In addition, restrictions apply in the event of animal health emergencies or suspected risk.

Commercial trade processes are administered and assessed using computer systems to issue animal health export certificates, lists of requirements (imports) and associated process manuals.

Free trade agreements between Mexico and other countries of the world

Liabilities

Above we discussed what an import tariff (IGI) is. In Mexico, import tariffs may also apply in the following ways:

I. Tariff quota — when a tariff rate is established for a certain quantity or value of goods exported or imported and a different percentage for the export or import of those goods which exceed a certain volume or tariff;

II. Seasonal rate — when different tariff rates are established for different periods of the year;

III. Other tariffs — by decision of the Federal executive authority.

In accordance with the provisions of Article 14 of the Foreign Trade Law, certain tariffs may differ from the general tariffs if they are established in international trade agreements or conventions to which Mexico is a party.

Mexico has signed 13 free trade agreements with 44 countries (TLC), 28 agreements for the promotion and reciprocal protection of investments (APPRI) and 9 trade agreements under the Latin American Integration Association (ALADI).

If you want to export to Mexico a product that has tariff preferences from countries with which Mexico has signed treaties or commercial agreements, it is important to present a certificate of origin to take advantage of these tariff preferences.

Certificate of Origin

Certificate of Origin — it is formally a document that states that a product originates from a certain power or region and is therefore eligible for preferential tariff treatment. It is a necessary document for customs clearance of goods anywhere in the world when it comes to preferential tariff rates.

Forgery, falsification or alteration of the certificate of origin can be the basis for economic and criminal sanctions for both the exporter and the importer. The competent authorities of countries that grant preferential treatment have the right to verify the origin of goods based on the guidelines of the relevant sections of the same treaties. That is why it is recommended to carefully study the origin of the goods and be careful when filling out the certificate of origin.

Free Trade Agreement between Mexico and the European Union (TLCUEM)

In July 2000, the Mexico-European Union Free Trade Agreement (TLCUE) came into force. For products originating in the EU, in order to benefit from tariff preferences in Mexico, each export shipment must be accompanied by a certificate of origin EUR.1.