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Modifications to the Foreign Trade General Rules

Modifications to the Foreign Trade General Rules. WMTA Monthly Meeting January 2011. INTRO . Dated December 24, 2010, Mexican IRS Ministry issued modifications to the Foreign Trade General Rules, which imply important changes to the foreign trade and customs activity.

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Modifications to the Foreign Trade General Rules

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  1. Modifications to the Foreign Trade General Rules WMTA Monthly Meeting January 2011

  2. INTRO Dated December 24, 2010, Mexican IRS Ministry issued modifications to the Foreign Trade General Rules, which imply important changes to the foreign trade and customs activity. The aforementioned modifications became applicable last December 25, 2010.

  3. Payment of Authorizations • One of the most important modifications to these General Rules relies on the new payment method known as “e5cinco”. • e5cinco is an electronic payment method that can be made at banks or over the internet. • Most payments, except duties involving customs and foreign trade shall be paid using the e5cinco procedure. (For Example the authorization for Certified Companies). • Rule 1.1.13

  4. Nuclear and Radioactive Goods • Rule 1.3.2 was modified in order to request importers of nuclear and radioactive goods to obtain an authorization before the National Ministry of Nuclear Safety. • In the event that the authorization given to an importer of nuclear or radioactive goods is revoked, the authorization in the specific importer registry of such importer shall be suspended. • In the event that an importer of radioactive or nuclear goods is suspended, it shall attach the authorization given by the National Ministry of Nuclear Safety to its reauthorization request. • Annex 10.

  5. Bonded Warehouses • Section X is added to Rule 2.3.7, mentioning that individuals authorized to run bonded warehouses shall present before their Customs Office the price list regarding their services. • The aforementioned price list shall be visible to anyone and shall be presented before the Customs Office for its approval, not later than January 15.

  6. Import of Several Goods and Vehicles • Rule 3.2.4 lists several tariffs regarding the import of cigarettes and spirits are modified. Such tariffs are also modified for mail delivery companies. • Individuals will not be able to definitely import a vehicle per year.

  7. Certified Companies (Rule 3.8.3) • In the event of imports of minerals of a same species, Import Customs Declarations known as “Parts II” may be corrected due to discrepancies of 2% between the amount registered in the weight systems and their respective invoice.

  8. Certified Companies (Rule 3.8.4) • Section IX allows importers to correct their customs declaration, when discrepancies due to a surplus in the merchandise value not exceeding of $15,000.00 Dollars or 20% of the total value of the goods. • Section XV is modified in order to mention that Consolidated Customs Declarations shall not apply to definite imports.

  9. Certified Companies (Rule 3.8.4) • Section XXVI increases from 10 to 30 days the term to correct Temporary Import Customs Declarations in order to increase data for the easier quantification of the goods, except virtual transfers.

  10. Certified Companies (Rule 3.8.4) • Section XXVII, increases from 18 to 36 months the term for Certified Companies to return abroad the goods temporary imported under their authorization. • Certified Companies who have previously imported goods may apply the 36 month term established on Section XXVII, as long as their original 18 month term has not expired.

  11. Virtual Transactions • Rule 4.3.7 States that Maquiladoras may send temporary imported goods to other companies without a Maquiladora Authorization for its repair. Maquiladoras shall inform the Authority of these transactions. (Aviso de traslado) Term 6 months.

  12. Virtual Transactions • Rule 4.3.25 indicates the procedure for virtual transactions, mentioning that for goods transported in one vehicle, the maximum weight shall be 25 Tons. In the event of double containers, the maximum weight shall be 50 tons.

  13. Virtual Transactions • Rule 4.3.25 establishes the limitation for industrial IMMEX to transfer goods in the same state as they were imported, unless they are Service IMMEX. This limitation is not applicable to Certified Companies. • Companies who receive transfers shall return the goods received or import them definitively within a 6 month period as from the date the transaction took place. (A3)

  14. Customs Authority may request the following documents in which is evidenced: • The transportation of the goods. • The payment of transportation. • The physical exit of the goods of the Company that transfers them. • The physical entry of the goods to the Company that receives them. • The transformation and reparation processes before its transfer.

  15. Resolutive Articles • Nineteenth: Certified Companies may apply the 36 and 60 month terms established on Rule 3.8.4 to the goods located at their warehouses, as long as such goods fit into the 18 month period indicated on Article 108, Section I. • If goods have exceeded the 18 month period, Companies may legalize such goods within a 6 month period as of December 25, 2010, with a 70% discount of the applicable fines.

  16. Exhibits • Exhibit 1, which states the templates for several procedures is modified due to the new e5cinco payment procedure. • Certain chemical products may only be imported at Mexico City’s Int’l Airport, Manzanillo, Nuevo Laredo and Veracruz Customs Agencies.

  17. Exhibits • Appendix 8 of Exhibit 22 modifies several identification codes used in Customs Declaration Forms.

  18. Modifications to the IMMEX Decree

  19. In order to complete the modifications applicable to Maquila Companies, the IMMEX Decree was modified last December 24, 2010. Most of these modifications will be applicable 90 days after its publication in Mexico’s Federal Official Diary.

  20. Goods Related to Steel • Article 4 includes Exhibit I Ter, in order to establish Chapter 72 of the Tariff (steel) as a sensitive product, reducing from 18 to 9 months the term to return abroad these goods temporary imported (Not applicable to Certified Companies). • Article 5 states that only Certified Companies are able to perform services activities related with steel.

  21. IMMEX Benefits • Article 6 eliminates some benefits applicable to Certified Companies, but makes such benefits extensive to all IMMEX Companies, Certified or not. • Article 6 Bis states that IMMEX Companies do not need to make additions to their programs, nor to register themselves in the Special Importers Registry.

  22. IMMEX Authorizations • Article 11 establishes that IMMEX Companies shall notify the authority about any change related to their shareholders and legal representatives. • In the event of new IMMEX Companies related to the steel industry, the Ministry of Economics and the Tax Ministry will inspect the new Company. The new Company will have a 3 month term in order to import machinery. After those 3 months, both Ministries will visit the new Company Again and will decide if the new Company is able to obtain a definite authorization.

  23. IMMEX Obligations • IMMEX Companies related to the Steel Industry may only import the specific goods authorized by their program. • Article 27 is modified in order to state two new cancelation causes, such as: • When the imported goods are not located at the registered address (There are no minimum or maximum quantities). • A new cancelation cause states that when authority detects shareholders or legal representatives related to a canceled Company are related to a second Company, the Second Company may also be canceled.

  24. IRS and TAX Issues • Article 33 was modified in order to state the operations considered as Maquila for IRS purposes. (Exclude some services) • Article 34 states the operations considered as Maquila for TAX purposes.

  25. Contact Info. • Ricardo Rebeil • Brokerage & Logistic Solutions, Inc. • rr@bls-usa.com • (619) 671-0276

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