Doing Business

Doing Business in Mexico 2015

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64 Tax and Legal Services - PwC Mexico Documentation procedures and technical barriers to trade Any special import license, when required, should always be obtained before the arrival of merchandise at a Mexican customs office and presented at the time of the customs clearance. Regular importers or exporters must be registered as a taxpayer. Aside from a customs declaration (pedimento), that is required for the customs clearance of goods, other documents that should be attached are the commercial invoice, freight and insurance. If the goods are imported from a country with which Mexico has a Free Trade Agreement, a "certificate of origin" of the goods is required in order to apply for preferential duties. Other charges In addition to import duties, the special production or excise taxes, and VAT are payable on imports. There are some countervailing duties for certain goods. Also, a customs processing fee is payable along with the import declaration, this fee is calculated depending on the type of import. For example, in the case of permanent or definitive imports the fee is 0.008 of the customs value of the goods. Review procedures Customs authorities are empowered to review any import or export operation and to carry out physical inspections of merchandise, wherever they are located within Mexican territory. Moreover, it is common to request information or support of the legal status of any foreign merchandise (including machinery and equipment). Therefore strict record keeping is recommended. Fines and other penalties Non-compliance with customs rules is severely punished in Mexico. Penalties include confiscation of the merchandise without possibility of recovery in extreme situations, late-payment penalties and assessment of omitted duties plus fines of up to 100% of the value of the goods may apply, in the worst case scenario, along with criminal prosecution. Customs and storage The customs handling system uses a computerized tracking and traffic control system, including warehousing. Customs and storage facilities are adequate and secure. Regular customs clearance should be made by the importer within two days up to two months 4 , depending of the type of good and arrival location. Shipments are subject to being declared as abandoned, after the deadline stated above. Customs authorities will grant a 15-working-day period for customs clearance. Once this second period expires, the property is automatically transferred to the Mexican Government. 4 For example: explosives, flammable materials, contaminating, radioactive or corrosive products, perishable goods, and live animals, in which case the goods must clear customs during the three days commencing one day after the date of arrival.

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