Continuing the series on Customs Law in Mexico that began with the entry Customs Regulation in Mexico, it’s now time to delve into the different customs regimes recognized in our country. This is intended to show the reader how goods enter and leave our country.

In this first part, you will find information related to definitive import and export regimes and temporary import regimes. Based on the law, its regulations, and the general rules of foreign trade, you will learn the rules regarding the entry and exit of goods under these regimes.

It is important to emphasize that this information is intended for those new to customs law and foreign trade, as it is intended for informational purposes only. Therefore, if you are a professional in these areas, do not expect to find information beyond that outlined in the current regulations. I’d be writing essays on this and other subjects on my personal blog, which I invite you to read, and whose link is at the end of this post.

List of Contents

• Translation
• 1) General Rules
• A) Duty to Indicate the Customs Regime
• B) Return of Goods Abroad
• C) Withdrawal From the Customs Procedure
• D) Exemption For Destruction
• E) Destruction of Waste
• 2) Definitive Import Regime
• A) Definition of the Definitive Import Regime
• B) Return of Imported Goods Due to Defects
• C) Origin Review Procedure
• D) Regularization of Goods
• 3) Final Export Procedure
• A) Definition
• B) Exemption From Payment Upon Return to the Country
• 4) Temporary Imports
• A) Return Abroad in the Same Condition
• B) Donation of Temporarily Imported Goods
• C) For manufacturing, Processing, or Repair in Maquila or Export Programs
• D) Information Regarding Maquila Programs
• E) Products of Transformation, Manufacturing, or Repair
• F) Temporary Transfer of Goods

Translation

This is an English translation of my entry Regímenes aduaneros en México parte I.

1) General Rules

As I have already pointed out in other sections of this series, the following customs regimes are recognized in Mexico:

I.- Definitive

A) Import.

B) Export.

II.- Temporary

A) Import, whether for return abroad in the same condition or for processing, transformation, or repair in maquila or export programs.

B) Export, whether for return to the country in the same condition or for processing, transformation, or repair.

III.- Bonded Warehouse

IV.- Transit of Goods

A) Domestic

B) International

V.- Processing, Transformation, or Repair in a Bonded Facility.

VI.- Strategic Bonded Facility.

A) Duty to Indicate the Customs Regime

Those who introduce or extract goods from the national territory must indicate in the customs regime for which they request the goods and declare under oath that they have complied with the obligations and formalities inherent to it, including the payment of compensatory duties.

B) Return of Goods Abroad

Goods held in storage at customs before the automated selection mechanism is activated may be returned abroad, provided that none of the following situations apply:

I.- The goods are prohibited from import.

II.- The goods are weapons or substances harmful to health.

III.- There are outstanding tax debts.

C) Withdrawal From the Customs Procedure

As a general rule, withdrawal from a customs procedure will be possible before the automated selection mechanism is activated. However, the interested party may withdraw from the export procedure in all cases, except when there are discrepancies, inaccuracies, or falsities between the data contained in the customs declaration and the goods it refers to.

On the other hand, in the case of exports carried out at air or sea traffic customs offices, withdrawal will be possible even after the automated selection mechanism has been activated. In this case, the goods may be transported to a different customs office or to a bonded warehouse.

The change of customs procedure will be possible provided that the contributions and compensatory fees, as applicable, the non-tariff regulations and restrictions, and the estimated prices payable for the new procedure requested on the date of the regime change are paid.

For the purposes of the preceding paragraph, the following must be observed and complied with:

I.- Process the respective customs declaration (pedimento) in accordance with Articles 36 and 36-A of the Customs Law (which I already discussed in the entry in the aforementioned introduction).

II.- Applicable non-tariff regulations, restrictions, and prohibitions will be those in effect on the date of the regime change.

III.- Pay the corresponding contributions and compensatory fees, by the applicable legal provisions, considering the customs value declared in the customs declaration with which the merchandise entered the country.

To calculate the payment provided for in the preceding paragraph, the adjustment of the general import tax, compensatory fees, and other corresponding contributions, in accordance with Article 17-A of the Federal Tax Code, must be considered, starting from the month in which the merchandise temporarily entered the country until the change of regime is made.

D) Exemption For Destruction

If merchandise subject to any of the temporary import or export regimes, bonded warehouse, or transit regimes is accidentally destroyed, payment of foreign trade taxes or compensatory duties will not be required, but the remains will continue to be destined for the initial regime, unless the customs authorities authorize their destruction or a change of regime. Likewise, persons who have temporarily imported merchandise that cannot be returned abroad due to damage may consider such merchandise returned, provided it meets the control requirements established by the Ministry of Finance and Public Credit through general rules.

For these purposes, the interested party is required to notify the customs authority within 15 days of the accident and attach a copy of the report of the events prepared by the competent authority.

In the case of the transit regime, the notice referred to in the previous paragraph will be forwarded to the customs office of destination and may be submitted by the transport company transporting the goods, or by the importer, exporter, legal representative, assistant, customs agent, agent, dependent or authorized employee who promoted said regime.

E) Destruction of Waste

When imported goods undergo production and generate waste as a result, if the taxpayer chooses to destroy them, they must meet the following requirements:

I.- Submit a notice to the customs authority at least 30 days before the destruction.

Destruction must be carried out at the location indicated in the notice, on a business day and during business hours, whether or not the customs authority is present.

II.- Prepare a report of the events, including the quantity, weight, or volume of the destroyed waste, a description of the destruction process, and the import documents used to introduce the goods into the national territory. This report must be prepared by the customs authority and, in its absence, by the importer.

III.- Record the destruction of the waste in the accounting records for the fiscal year in which it is carried out and retain it for the period specified in the Federal Tax Code.

IV.- The destruction of waste will be permitted in all cases, except when it constitutes toxic or health-hazardous substances and materials that are hazardous or harmful to public health or safety, the environment, flora, or fauna, as well as those that harm agricultural and food safety, in which case prior authorization from the competent authority will be required.

2) Definitive Import Regime

A) Definition of the Definitive Import Regime

The definitive import regime is understood to be the entry of goods of foreign origin to remain in the national territory for an unlimited period.

B) Return of Imported Goods Due to Defects

Once the goods have been definitively imported, they may be returned abroad without paying the general export tax within a maximum period of 3 months from the day following the day on which clearance for definitive import was made, or 6 months in the case of machinery and equipment, provided that the customs authorities verify that they are defective or of different specifications than those agreed upon.

The return’s purpose is to replace the goods with others of the same class that correct the aforementioned situations.

The substitute goods must arrive in the country within 6 months of the return of the replaced goods, and the customer will only pay the difference when they incur a higher general import tax than the returned goods. If they arrive after the authorized deadlines or it is verified that they are not equivalent to the goods, they will incur the full general import tax, and the penalties established by the Customs Law will be imposed.

Finally, the return of imported goods may be authorized in exceptional cases similar to those previously provided, or the extension of deadlines may be granted when duly justified.

C) Origin Review Procedure

Companies may import goods through the origin review procedure. This procedure consists of the following:

I.- The importer verifies and assumes, under their own responsibility, the information on the goods provided by their supplier, necessary to prepare the corresponding customs declaration, which they must provide to the customs broker who performs the clearance.

II.- The customs broker who performs the clearance of the goods is released from any liability, including those arising from the omission of contributions and compensatory fees or from non-compliance with other non-tariff regulations and restrictions, when they have faithfully entered the information provided by the importer in the customs declaration and keeps the document in which said information was provided at the disposal of the customs authorities.

III.- When, as a result of customs inspections, inspections of goods in transit, or home visits, customs authorities determine failures to pay taxes and compensatory duties incurred due to the importation of goods, payment of these taxes and compensatory duties and any related fees shall be required. In this case, no other penalties for such failures provided for in the Customs Law or the Federal Tax Code shall apply to the importer or customs broker.

IV.- The importer must also pay any applicable taxes and compensatory duties.

V.- The importer may spontaneously pay any failed taxes and compensatory duties arising from importing goods imported under this procedure. These updated contributions will be subject to surcharges at the rate applicable to the extension of tax credits for the month in question, provided such payment is made within 30 calendar days following the month the corresponding import was made. If payment is made after this deadline, surcharges on the updated contributions will be levied at the applicable rate in accordance with Article 21 of the Federal Tax Code. In both cases, contributions will be adjusted between the penultimate month before the contribution was omitted and the month immediately preceding the month in which the payment is made.

VI.- The importer must register with the Tax Administration Service the designated customs agents and transporters who will operate under this scheme.

Furthermore, to import goods through the origin inspection procedure, importers must apply for registration in the company merchandise clearance registry, which the Tax Administration Service will manage, provided they meet the following requirements:

1. They must be companies that, in the calendar year before the one in which they apply for registration in the aforementioned registry, had revenues or imports exceeding $154,928,940 pesos; this amount may vary depending on the type of activity the companies carry out or the type of merchandise being imported.

Importers must renew their registration in the merchandise clearance registry annually by submitting a notice within 30 days before their registration expiration, provided they demonstrate continued compliance with the stated requirements.

However, maquiladoras or companies with export programs authorized by the Ministry of Economy may request registration in the merchandise clearance registry without complying with the aforementioned requirements.

Furthermore, customs authorities may suspend registration for up to six months when they detect any maneuver intended to evade compliance with tax obligations in exercising their inspection powers.

Under no circumstances will the renewal of registration or authorization for a new registration be granted if the importer has previously been suspended from the business registry three times for reviewing merchandise at origin.

D) Regularization of Goods

Persons who possess, by any means, foreign merchandise that has been brought into the country without undergoing the clearance formalities established by the Customs Law for any of the customs regimes, or in the case of merchandise that has exceeded the return period in the case of temporary imports, may regularize such merchandise by permanently importing it upon payment of the corresponding taxes and compensatory fees, and upon compliance with other obligations regarding non-tariff regulations and restrictions, without prejudice to the infractions and sanctions that may apply when the authorities have already initiated the exercise of verification powers, and without the application of regularization when the merchandise has become the property of the Federal Treasury.

3) Final Export Procedure

A) Definition

The final export procedure involves departing goods from the national territory to remain abroad indefinitely.

B) Exemption From Payment Upon Return to the Country

After the final export of national or nationalized goods has been carried out, they may be returned to the country without paying the general import tax, provided that they have not been modified abroad and that more than one year has passed since their departure from the national territory. Customs authorities may authorize an extension of this period when there are duly justified reasons and upon request from the interested party before its expiration.

When the return is due to the goods being rejected by an authority in the country of destination or by the foreign buyer because they were defective or had specifications different from those agreed upon, the interested party will be refunded the general export tax paid.

In both cases, the refund of any tax benefits received due to the export will be credited before authorizing the delivery of the returned goods.

Finally, maquiladoras or companies with an export program authorized by the Ministry of Economy that have returned products resulting from transformation, manufacturing, or repair processes abroad may return them to national territory when rejected for the reasons indicated in this section. In this case, only the general import tax corresponding to the value of the raw materials or foreign goods originally imported temporarily under the program will be paid, according to the percentages of incorporation in the returned product, when the regime changes to definitive imports.

4) Temporary Imports

Temporary imports of foreign merchandise shall be subject to the following:

I.- Foreign trade taxes shall not be paid.

II.- Obligations regarding non-tariff regulations and restrictions and, where applicable, countervailing duties shall be fulfilled.

III.- Ownership or use of merchandise destined for temporary import may not be transferred or alienated, except between maquiladoras, companies with export programs authorized by the Ministry of Economy, and foreign trade companies registered with the same agency.

A) Return Abroad in the Same Condition

A temporary import regime is understood to mean the entry of goods into the country for a limited period and a specific purpose, provided they are returned abroad in the same condition, for the following periods:

I.- For up to one month, for trailers and semi-trailers, including platforms adapted to the means of transport designed and used exclusively for the transport of containers, provided they transport within national territory the goods brought into the country or those being transported for export.

II.- For up to 6 months in the following cases:

A) Those carried out by residents abroad, provided they are used directly by them or by persons with whom they have an employment relationship, except in the case of vehicles.

B) For merchandise containers, provided they contain the goods brought into the country within the national territory.

C) Vehicles belonging to foreign diplomatic and consular missions and headquarters or representative offices of international organizations, as well as those belonging to officials and employees of the Mexican Foreign Service, for importation under diplomatic duty, provided they meet the requirements established by the Tax Administration Service through regulations.

D) Samples or sample collections intended to promote merchandise, provided they meet the requirements established by the Tax Administration Service through regulations.

E) Vehicles, provided the importation is carried out by Mexicans residing abroad or who prove they have been working abroad for one year or more, can prove their immigration status authorizing them for this purpose through official documentation, and is carried out only import one vehicle per 12-month period. In these cases, the 6 months will be computed as multiple entries and exits made within the 12 months starting from the first entry. Vehicles may be driven within the country by the importer, their spouse, ascendants, descendants, or siblings, provided they are permanent residents abroad, or by a foreigner with the indicated immigration status. However, when driven by someone other than those authorized, the importer of the vehicle must invariably travel on board.

III.- For up to one year, provided that the control conditions are met in the following cases:

A) Those intended for international conventions and congresses.

B) Those intended for cultural or sporting events sponsored by public entities, national or foreign, as well as by universities or private entities authorized to receive deductible donations under the Income Tax Law.

C) Those belonging to props, equipment, and other equipment necessary for filming, provided they are used in the film industry and imported by residents abroad. In this case, the established period may be extended for one more year.

D) Those belonging to test vehicles, provided that an authorized manufacturer resident in Mexico imports them.

E) Those belonging to international agreements to which Mexico is a party and those for official use by foreign diplomatic and consular missions when there is reciprocity.

F) Goods are intended for research purposes imported by national and foreign public organizations and non-taxpaying legal entities authorized to receive income tax-deductible donations, under international treaties to which Mexico is a party or applicable inter-institutional agreements.

IV.- For the duration of their stay status, including renewals, under the terms and conditions established by the Tax Administration Service through regulations, in the following cases:

A) Vehicles owned by foreigners entering the country with the status of visitor and temporary resident, provided that it is a single vehicle.

Vehicles may be driven in national territory by the importer, their spouse, ascendants, descendants, or siblings, even if they are not foreigners, by a foreigner who meets any of the stay conditions referred to in this section, or by a national, provided that in the latter case any of the persons authorized to drive the vehicle travel on board, and they may make multiple entries and exits.

In addition, they must comply with and attach the following:

I. Documentation proving their status of residence, following applicable legislation.

II. Documentation proving legal ownership or possession of the vehicle, as follows:

a) Current title or license plate registration certifying them as the vehicle owner, issued by the competent authority of the foreign country.

The interested party may complete the corresponding procedure even if the document proving ownership is in the name of their spouse, ascendants, or descendants.

b) The lease agreement is in the importer’s name, and the letter from the lessor authorizes the use of the vehicle abroad.

c) Credit agreement in the name of the importer.

d) Document proving the importer’s employment relationship with the company that owns the vehicle, and the document confirming the company’s ownership of the vehicle.

III. The guarantee determined by the SAT through general rules.

IV. Declaration under oath, in which the interested party agrees to return the vehicle within the authorized period and to refrain from committing acts or omissions that constitute infractions or crimes due to improper use.

V. Payment for the processing fee for the temporary importation of vehicles.

Finally, it is important to know that only vehicles with a maximum weight capacity of three and a half tons may be temporarily imported.

B) Household goods containing used merchandise owned by temporary residents and temporary student residents, provided they meet the requirements established by the Regulations and the Tax Administration Service through rules.

V.- For up to ten years, in the following cases:

A) Containers.

B) Airplanes, light aircraft, and helicopters intended for use by airlines with a concession or permit to operate in the country, as well as those for public passenger transport, provided that, in the latter case, they provide, in February of each year and electronically, the information established by the Tax Administration Service through regulations.

C) Vessels dedicated to transporting passengers, cargo, and commercial fishing, special vessels, and naval vessels, as well as recreational and sporting vessels that are boats, yachts, or tourist sailboats of more than 4.5 meters in length, including trailers for their transport.

The boats, yachts, or tourist sailboats in this section may be subject to commercial exploitation, provided they are registered with a tourist marina.

D) Imported motorhomes temporarily imported by permanent residents abroad. Motorhomes may be driven or transported within the country by the importer, their spouse, ascendants, descendants, or siblings, provided they are permanent residents abroad, or by any other person when the importer is traveling on board.

E) Locomotives, railroad cars, and specialized equipment related to the railroad industry established by the Tax Administration Service through regulations.

B) Donation of Temporarily Imported Goods

Persons who have temporarily imported goods, instead of returning or destroying them, may donate them to the federal treasury, according to the following procedure:

I.- Submit a request to the customs authority closest to the location of the goods to be donated.

II.- Submit the requested goods, or a sample thereof, to the request so that the customs authority can issue a resolution determining whether to accept or reject the donation.

When the customs authority does not issue the resolution indicated in the preceding paragraph within one month of the respective request’s submission, the donation to the federal treasury shall be deemed accepted. The foregoing provisions shall not apply to explosive, flammable, corrosive, polluting, radioactive, or perishable goods, except for those determined by the Tax Administration Service through general rules.

C) For manufacturing, Processing, or Repair in Maquila or Export Programs

Maquiladoras and companies with export programs authorized by the Ministry of Economy may temporarily import merchandise to return abroad after it has been used for manufacturing, processing, or repair, as well as merchandise to be returned in the same condition, under the terms of the authorized program, provided that they comply with the control requirements established by the Tax Administration Service through regulations (which I will discuss in a later post).

Merchandise temporarily imported by maquiladoras or companies with export programs authorized by the Ministry of Economy, under their respective programs, may remain in the national territory for the following periods:

I.- For up to 18 months, in the following cases:

A) Lubricants and other materials will be consumed during the production process of the exported merchandise, except petroleum products.

B) Raw materials, parts, and components that will be fully used to make up exported merchandise.

C) Containers and packaging.

D) Labels and brochures.

II.- For up to 2 years, in the case of containers and trailer boxes.

III.- For the duration of the maquila or export program, in the following cases:

A) Machinery, equipment, tools, instruments, molds, and spare parts used in production.

B) Equipment and devices for pollution control, research or training, industrial safety, telecommunications and computing, laboratory, measurement, product testing, and quality control, as well as those involved in the handling of materials directly related to export goods and others linked to the production process.

C) Equipment for administrative development.

In cases where country residents transfer products to maquiladoras and companies with export programs authorized by the Ministry of Economy, as well as to foreign trade companies registered with the Ministry of Economy, the goods will be considered temporarily imported, and the definitive export of the transferor’s goods will be considered completed, provided proof of export is available.

Finally, temporarily imported merchandise must be returned abroad or assigned to another customs regime within the established timeframes. Otherwise, the merchandise will be deemed illegally in the country, as the temporary import regime to which it was assigned has expired.

D) Information Regarding Maquila Programs

Maquiladoras and companies with export programs authorized by the Ministry of Economy must submit a declaration to customs authorities providing information on the merchandise they are returning, the proportion they represent of the temporarily imported merchandise, any losses and waste not returned, and those destined for the domestic market.

Notwithstanding the foregoing, taxpayers may convert temporary imports into permanent imports, provided they pay the compensatory fees in effect at the time of the regime change, the general import tax updated following Article 17-A of the Federal Tax Code, starting from the month in which the merchandise was temporarily imported until the regime change is made.

E) Products of Transformation, Manufacturing, or Repair

Products resulting from transformation, manufacturing, or repair processes that are returned abroad will incur payment of the general export tax corresponding to the raw materials or domestic or nationalized merchandise incorporated into them, according to the tariff classification of the finished product.

To calculate the general export tax, the percentage of the finished product’s weight and value corresponding to the aforementioned raw materials or merchandise incorporated will be determined.

Finally, when the planned transformation, manufacturing, or repair of temporarily imported merchandise is not carried out, its return will be permitted without payment of the general import tax, provided that the maquiladoras and companies with export programs authorized by the Ministry of Economy verify the reasons for the return of the merchandise in cases where the authority so requests.

F) Temporary Transfer of Goods

Maquiladoras or companies with export programs authorized by the Ministry of Economy may transfer the goods they have imported temporarily to other maquiladoras or companies with export programs authorized by the Ministry of Economy that will carry out the transformation, manufacturing, or repair processes, or return said goods, provided they process an export customs declaration (pecuniary) in the name of the person making the transfer. This declaration determines and pays the general import tax corresponding to the goods of foreign origin according to their tariff classification. This declaration considers the value of the goods at the exchange rate in effect on the date of payment. A temporary import customs declaration (pecuniary) is also processed in the name of the company receiving the goods.

When the company receiving the goods submits, along with the import declaration, a document in which it assumes joint liability for the payment of the general import tax corresponding to the foreign-origin goods temporarily imported by the person making the transfer and its suppliers, the payment of the general import tax due on the transferred goods will be deferred under the terms of Article 63-A of the Customs Law.

Furthermore, when the person receiving the goods transfers them to another maquiladora or to companies with export programs authorized by the Ministry of Economy, they will pay the tax for which they have assumed joint liability unless the person to whom they transferred the goods in turn assumes joint liability for the transferor and their suppliers.

Finally, the transformation, production, or repair processes for temporarily imported goods that can be carried out by a person other than the company with a manufacturing, maquila, or export services program authorized by the Ministry of Economy must submit a notice to the Tax Administration Service, an electronic or digital document indicating and accompanying the following documentation:

I.- The name or business name, federal taxpayer registration, program number of the transferring company, and the address of the plant or warehouse of origin where the goods to be transferred are located.

II.- The name, business name, address, and federal taxpayer registration number of the individual or legal entity that will carry out the industrial process, and the location where it will be carried out.

III.- The third party’s commitment to carry out or continue the industrial process and its acceptance of joint liability for all obligations of the beneficiary of the regime.

IV.- A copy of the authorization letter issued by the Ministry of Economy to carry out the aforementioned processes.

By Omar Gómez

Partner

Visit my website at ogomezabogado.com

Contact the law firm at [email protected]