The economics of foreign economic transactions largely depends on the correct determination of customs duties. Not sure how to determine the amount of customs duties when importing goods and services into Mexico? Now we will tell you briefly about this.
When importing, Mexico applies the following taxes and fees.
General Import Tax (IGI). Mexico applies customs duties in accordance with established international laws and agreements concluded by the country, therefore it is important to know where the goods are being imported from. Fees are divided into:
- ad valorem — as a percentage of the customs value of the goods,
- specific — in monetary terms per unit of measurement,
- mixed — a combination of the previous two.
Value added tax (VAT). This is a mandatory tax for all individuals and legal entities who import goods or services into the territory of the state. The VAT rate is set at 16%.
Tax on new cars (ISAN). It is levied on vehicles that are imported into the country for commercial purposes on a permanent basis. It is better to read about the calculation of this tax in Articles 1 and 2 of the Federal Law ISAN, and the tax rates are presented in Section 3.
Special tax on products and services (IEPS). Applies to the import of certain goods with a variable rate that depends on the type of goods.
Customs Clearance Act (DTA). The amount that is paid for the use of customs facilities and temporary storage of goods while they are being sent to the buyer. The tariff will depend on the duration of customs clearance.
The tariff part of the General Taxes on Import and Export (TIGIE) law defines the unit on which the tariff will be charged on the price of a product.
There are several technological tools that can help you calculate customs duties when importing or exporting goods from Mexico.
1. Search for tariff positions — Bylink
The tool provides a rough definition of the code of the commodity item to which the duties established by the Customs Tariff will be applied. In fact, this is simply a search using a classifier of foreign trade codes. In practice, the customs code should be specified as accurately as possible, but such a search will also work as a first approach.
If you need to determine the exact code, you should refer to the Tax Administration Service page(SAT). The consultation is free, they even issue an official confirmation, but you need to register in the system, which is available only to those who have an RFC taxpayer number. It is necessary to attach documentation (catalogs, technical specifications, labels, samples, photographs, plans, etc.) that illustrate and describe in detail the physical and technical characteristics of the product, quantitatively and quantitatively, and in addition an approximate code of the product item. In some cases, it may be necessary to provide physical samples or test results from a Mexican laboratory, then the process becomes more complicated.
2. Fee calculator — Bylink
First you need to enter the name of the product you are going to import. Then a list of all product item codes in which the product you selected can be found will be displayed. If you know the exact code, select it from the list. Next, you can model the duties applicable to the specified tariff line.
Now you will be asked to fill out a short form with data relating to the trade transaction: quantity, value indicated in the invoice, cost of freight, insurance and storage, state of origin and some others, based on the specifics of the goods.
You will eventually see an estimate of the duties, taxes and fees you will have to pay based on the information you provide. As we have already said, this will be an approximate calculation, which, however, will give the opportunity to assess the prospects for import costs.
Importing any goods into Mexico is possible only with the involvement of a customs agent. Only the agent has the right to contact customs on behalf of the importer. In addition, accurate calculation of duties and payments can be done through an agent and, in fact, this is one of his tasks. You can find a list of agents working for Mexican customs in thispublications.