If you do business between Mexico and the United States, you should be aware of certain updates that will affect your logistics processes as a result of new foreign trade regulations enforced by the Mexican government since January 2022.
Mexico’s Tax Administration Service published in December 2021, new General Rules of Foreign Trade (RGCE from its acronym in Spanish) regarding changes on official documents and updated fines established for their current trade laws.
Here are the main modification you should know about for successfull trade activities with Mexico:
Carta Porte or a Complementary Bill of Lading
The “Carta Porte” is a new type of bill of lading that must be added to online invoices (CDFI) issued in Mexico.
The goal of this new document is to:
- Determine the origin and destination of goods or merchandise transported across the country via ground freight (road or rail), air freight or ocean freight.
- Demonstrate legal possession of the goods or merchandise.
The Complemento Carta Porte regulations went into effect on January 1st, 2022; but taxpayers have until March 31, to adjust to the change without fines or penalties.
All shipments transported within Mexico or traveling through the country before or after crossing the U.S./Mexico border must now have this document.
The “Carta Porte” is a new type of bill of lading that must be added to online invoices (CDFI) issued in Mexico.
Rules to Determine the Country of Origin for Imported Goods
On February the 4th, 2022, a Decree revising the accord by which the rules for determining the country of origin of imported goods and the conditions for their certification, was published in the Mexico Federal Official Gazette. This accord defines some clear rules to determine the country of origin and bring the evidence that such goods are not subject to the payment of antidumping or countervailing duties.
What changed in this Accord?
These were the 3 most important changes made to the accord:
- the requirement to submit the declaration of origin as an annex to the import customs form electronically;
- the inclusion of the official prescribed form for the declaration of origin and instructions on how to complete it;
- Mexican authorities now have the authority to verify the origin of goods from other countries.
Finally, this agreement also establishes that the Mexican Ministry of Economy will have the power to review, at least every 3 years, the Country of Origin Rules in order to exclude those cases that were not considered necessary.
What evidence is needed to prove the country of origin or country of precedence of goods imported into Mexico?
Importers must obtain and submit a “declaration of origin”, which is completed by the producer or exporter of the goods based on the official prescribed form of the declaration of origin of Chapter VIII of the Accord.
The declaration contains the following items, among other things, which are declared under oath:
- tariff classification of the goods;
- invoice number; and
- country of origin.
Country of origin rules had smaller changes in 2022.
Registration in the Business Certification Scheme
In accordance with the reforms established in the Mexican Federal Labor Law, the requirement to provide information on subcontractors has been eliminated, as well as the obligation to present the previously requested notice for the change of subcontractors.
Similarly, companies with the Registry in the Company Certification Scheme (RECE) under the modalities of VAT and IEPS, Certified Business Partner and Authorized Economic Operator, which have obtained their registration under the subcontracting scheme, established in Articles 15-A to 15-D of the Federal Labor Law, will have a maximum of 15 days to inform the General Administration of Foreign Trade Audit that they comply with the RGCE 2022.
IMMEX Companies Importing Sensitive Goods
IMMEX is an acronym that in Spanish stands for Industria Manufacturera, Maquiladora y de Servicios de Exportación (Manufacturing, Maquiladora and Export Services Industry). It is a program from the Mexican federal government focused on promoting foreign investment, exports, creation of jobs and technology development.
All companies related to the manufacturing, assembly and export services industry are required to guarantee the payment of taxes through a bond policy for the temporary importation of sensitive goods, according to Annex II of the IMMEX Decree. IMMEX companies can continue to engage in the temporary importation of “sensitive merchandise” until future guidance is issued. In other words, as long as new annexes to the RGCE are not published, the current ones remain in effect.
IMMEX companies can continue to engage in the temporary importation of sensitive merchandise.
Annex 13 of Mexico’s RGCE 2022
Since January 1st 2022, updates were announced regarding the fines and amounts established in the Customs Law and its regulations.
Likewise, since January the 23th, declarations, notices, forms, models, instructions for filling out and official procedures of Annex 1 of the RGCE 2020 have been enforced, as well as the implementation of the Postal Form.
The following are some of the most significant updates that can cause you a fine:
- Inaccurate data in Electronic Value Voucher
- Omission or untimely filing of documents
- Failure to pay foreign trade taxes
- Failure to prove compliance with non-tariff regulations and restrictions
- Failure to comply with the obligation to have an inventory control system
Final Notes
These changes were the most important ones to mention, but it would be good to go through the entire list. Understanding the new foreign trade rules in Mexico in 2022 is crucial for continuing a successful freight forwarding business and having a fruitful import/export company. The sooner the companies align to these changes, the better.