What is missing to your Foreign Trade file?

In case your company’s business activity includes tangible property importing and exporting, it is important to be aware of the necessary information and the essential documents support that shall be included in the Foreign Trade file and you can rely that such file is complying with fiscal obligations stated in this paragraph and authorities can verify it without any problem.

In case your company’s business activity includes tangible property importing and exporting, it is important to be aware of the necessary information and the essential documents support that shall be included in the Foreign Trade file and you can rely that such file is complying with fiscal obligations stated in this paragraph and authorities can verify it without any problem.

The legal frame of foreign trade  in Mexico grants the rights and establishes obligations to the tax payers. One of these obligations is to keep a hard file of importing and exporting operations from a period from 5 to 10 years and that can be subject to authority revision when necessary.

According to Customs Law, it is mandatory to have a hard file with all original documents following listed, even though the Foreign Trade Unique Window is in operation easing the customs and foreign commerce paper work, turning them digitally and remote.

–       Documents issued by corresponding authorities
–       Documents to be performed by the importer or exporter.
–       Documents to be sent from abroad or they have probative value, such as the expenses made abroad by concept of transportation, storage, or others for customs valuation purpose.

The following documents shall be included in the Foreign Trade file pursuant to Customs Law:

• Importing:
• Commercial invoice for imported properties.
• The documents evidencing the expenses made abroad (among others: transportation, maneuvers, loading and unloading).
• The Bill of Landing (BL) in traffic sea or air waybill (AWB) revalidated by the shipping or transport company.
• The documents evidencing the compliance of regulations and non-tariff restrictions to importing (Mexican Official Standards, certificates and/or permits issued by federal entities).
• The documents determining the origin of the properties for the purposes of customs preferences application (the observance origin certification or the declaration in invoice, both of them pursuant to applicable Free Trade Agreement).
• The documents including the information permitting the identification, the analysis, and the control of imported goods. In applicable cases, the series number, part, brand, model or if necessary commercial or technical specifications shall be indicated.
• The format “Value Manifestation” elaborated by the importer and signed by legal representative.
• The format “Spreadsheet” elaborated by the importer and signed by the legal representative.

• Exporting:
• The commercial invoice or the document stating the goods value.
• The documents stating the compliance of the regulations and non-tariff restrictions to importing (Mexican Official Standards, Certifications and/or permits issued by federal entities).
• The document which determines the origin of the goods for the application of preferential customs tariffs, by (Origin Certificate in invoice, both of them as per applicable Free Trade Agreement).
• The documents containing the information that permits the identification, analysis, and control and in applicable cases, the series number, part, brand, model or if necessary commercial or technical specifications shall be indicated.
• Penalties

It is important to mention that having a hard file is mandatory, therefore, by not doing so the breaching taxpayer can be subject to the following penalties:

• A fine from $2,930 to $4,400, if the documents are not shown by express authority petition. Nevertheless, the amount will be reduced to 50% when the payment is performed out of the term established by the authority. Some of the following documents are following mentioned:
• The documents preserving the importing and exporting goods.
• The documents preserving the goods transportation or storage.
• Requirements
• Invoices
• Copies of exporting bills
• Statements
• Declarations or air waybills
• Notices
• Relation between goods and luggage
• Authorizations
• Documents whereby the guaranty is granted in the customs account of security, in case the law sets forth such obligations.
• The documents or informs required by customs authorities within a term indicated in the requirement or pursuant to Customs Law.
• When it comes to consolidated requirements. The authority could request that the invoice or request is attached to the required documents as per international agreements undersigned by Mexico.
• A fine from $2,450.00 to $4,090.00, when the taxpayer by express requirement from the authority shows the documents evidencing the compliance of the obligations regarding regulation and non-tariff restrictions, when the taxpayer has obtained mentioned documents before the filing to customs requirement presentation.
• Regarding the omission of the presentation of one Mexican Official Standard which is reliable to the user as per Customs Law, the goods shall be subject to an attachment prior to judgment, an Administrative law action in Customs Matters (PAMA) would start, and the authority could impose a fine that will be from 70% to 100% form the goods commercial value, and the goods would pass to authority property.

This is a calculation that the authority would perform by documents omission:
Documents missing:                   3
Applicable fine:                         $2,930
Total amount of the fine:            $8,790
Documents missing:                   15
Applicable fine:                         $2,930
Total amount of the fine:             $43,950

It is important to mention that Customs Law does not state what the documents that the authority could request for are, since the authority has the complete criteria to request any class of document; therefore, the taxpayer shall not have any legal right to claim for.
In view of above mentioned, it is highly recommended that mentioned documents file shall be performed. Each and every document missing could help you to have a clear idea of the risk that your company can pass through.

Should you require further information on this publication, do not hesitate to contact Eduardo Pérez,P.A., Partner: [email protected], or by telephone: + 52 (55) 3687 2700 ext. 2710; or José Ángel Blanco, Foreign Trade Manager: [email protected], or by telephone:  + 52 (55) 3687 2700 ext. 2787.