TITLE: CUSTOMS PROCEDURES FOR EXPORTING

TO MEXICO
SUBJECT COUNTRY(IES): MEXICO
POST OF ORIGIN: TIJUANA
SERIES: INDUSTRY SECTOR ANALYSIS (ISA)
ITA INDUSTRY CODE: ZRG
DATE OF REPORT (YYMMDD): 020329
DELETION DATE (YYMMDD): 050329
AUTHOR: JUDITH VALDES
APPROVING OFFICER: RENATO DAVIA
OFFICER'S TITLE: COMMERCIAL OFFICER
NUMBER OF PAGES: 20
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2002. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
SUMMARY:

The following guide presents the customs regulations, formalities and practices to be followed when exporting to Mexico from the U.S. All products exported go through a customs clearance before entering the country. This clearance includes the consent of the U.S. Customs authority to export the products from the U.S. and the corresponding authorization of the Mexican Customs authority to import them. Before shipping the products to Mexico, the exporter must be sure the Mexican company importing the products is properly registered with the Mexican authorities as an importer. A Mexican Customs broker (MCB) is required to process all commercial exports and the use of a U.S. Customs broker (USCB) is strongly recommended. The MCB will prepare the customs entry form, better known as ‘Pedimento de Importacion’ the only document Mexican Customs Office (MCO) will accept for clearing the import of products into the country. He will also make sure the products comply with all regulations and standards. The USCB prepares the Shipper Export Declaration (SED), a document required by US Customs to expedite the shipment. He will also make sure that products under export controls comply with them. A significant part of this report makes reference to the North American Free Trade Agreement (NAFTA) that came into effect on January 1, 1994. Nafta is a preferential agreement between the United States, Canada and Mexico which will lead to the elimination of tariffs on the majority of the products originating in the participating countries over a period of fifteen years. U.S. exporters should keep in mind that only the Nafta text itself and the customs regulations are definitive in the export process of U.S. products to Mexico. End Summary.

  1. Following is a glossary of terms mostly used in the export process to Mexico:

Aduana (Mexican Customs Office). It is part of the Servicio de Administracion Tributaria, a branch office of Mexico’s Ministry of Treasure (Secretaria de Hacienda y Credito Publico -SHCP) in charge of direct inspecting all imports of products into the country. Mexico has 46 ports of entry for commercial purposes, including land, air and sea.

Agente Aduanal Mexicano (Mexican Customs Broker). Individual authorized by SHCP to handle on behalf of a US company the import of products into Mexico. He is a specialized agent in international trade and is responsible for the veracity and accuracy of the information provided. This includes the determination of the customs regimen under which the merchandise is being imported, the correct classification of the products, and the fulfillment of all regulations and restrictions not related to import duties (according to the Mexican Customs Law and other laws that may apply).

Arancel Ad-Valorem (Ad-Valorem Import Duty). It is a duty charged to a product imported into Mexico based on a percentage of the value of the product. It is published in Mexico’s Duty Tariff Book.

Base Gravable (Taxable amount to the General Import Tax). It is the value of the product considered for import duty purposes. In some cases, the amount paid by the buyer and reflected in the invoice does not correspond to the real value of the goods. In those cases, MCO estimates the value based on a recent import of a similar product in any other commercial port of entry in Mexico. According to an officer of Mexican Customs, it is a common practice to reduce the price of the goods imported to avoid paying high import duties, and in an attempt to control this, his office is creating a database with all imports into Mexico and the corresponding price. When there is an issue on the price of a product, MCO contacts other ports of entry for costs of similar products imported and takes it as the taxable cost for import duties.

Bien Originario (Originating Good). A product that complies with the rules of origin established in Nafta and receives best preferable import duties when imported to Mexico.

Cuotas Compensatorias (Compensatory Quotes). Duties imposed on certain products originated in a country (ies) that are being imported violating international trade laws, such as dumping.

Cupos de importacion (Import Quotas). Quantity of products and periods of time in which imports of certain products are allowed into Mexico.

Fraccion Arancelaria (Customs Tariff Classification). It is the numeric description of the product based on the Harmonized Tariff Code.

Franja Fronteriza (Boder Zone). The territory that extends from the border line inland for 20 kilometers (approx. 13 miles).

Normas Oficiales Mexicanas - NOMs (Official Mexican Standards). All products imported into Mexico must comply with applicable standards and requirements. Mandatory and proposed standards are published by the Mexican Government in the Diario Oficial de la Federacion (Official Gazette) - the Mexican equivalent of the US Federal Register. They are published in the form of a Norma Oficial Mexicana (NOM) (Official Mexican Standard), or a Proyecto de Norma Oficial Mexicana (Proposed Official Mexican Standard). For specific information on the NOMs that apply to a product please refer to the Direccion General de Normas, web page address is Go to the ‘Catalogo de Normas’ section to search for proposed and enacted standards. Most used NOMs refer to labeling, packaging, commercial and nutritional information (for food).

Pedimento de Importacion (Customs entry form). It is the only document MCO accepts for clearing products imported to the country.

  1. Mexico has 46 commercial ports of entry and trade is regulated both by the U.S. government and the Mexican government through their respective Customs offices.
  1. U.S. Customs manages the export of merchandise, including the verification of export licenses for those products that may need them. Before leaving the U.S., every shipment must present before U.S. Customs the Shipper’s Export Declaration (SED) form filled out by the vendor of the merchandise, along with the proper attachments, such as export licenses, if required. This form can be obtained from the Customs District Office. For additional information please call the Customs Office at 1-800-829-1906 or contact the Bureau of Export Administration at
  1. Exports with a commercial value of US$5,000 or more require the participation of a MCB to process the export. U.S. companies are advised to work closely with the Mexican importer in the selection of a Customs Broker. He will make sure the merchandise is properly classified and documented to gain the best import duties and that it complies with all requirements and regulations before it is sent to MCO. Some Customs Brokers specialize in servicing the different sectors of the Mexican market, such as temporary imports for the maquiladora industry, or definitive imports for general consumption. A listing of MCBs and contact information is available at
  1. U.S. companies must have a Mexican importer with a valid import permit. This permit is issued by SHCP. Not all companies in Mexico have this permit and without it, they have to contract the services of an export-import marketing office, known as ‘comercializadoras’. The import permit is specific for certain products and is valid for a period of time, therefore it is important to make sure that the Mexican counterpart has the proper documentation to import the products being exported, otherwise the shipment may be retained or confiscated by MCO.
  1. In an attempt to reduce uncertainty and abuse at the commercial ports of entry, Mexico instituted a system for the customs clearance of merchandise. It combines a two-level customs inspection, with a “random selection device” at each level. This device determines whether the customs inspection of merchandise is performed. If affirmative (red light), the customs official will inspect the shipment in the presence of the person who carries out the import. Independently of the outcome of the random selection device, importers must activate a second device to determine a second inspection by private sector examiners. If it results negative (green light), the merchandise will be delivered immediately, and the shipment may proceed into Mexico.

If irregularities are found in either the first or second customs inspection, it may lead to a cautionary seizure of the merchandise, a fine and the temporary or permanent cancellation of the import permit or license to the MCB.

  1. To expedite the import process of the merchandise by MCO, U.S. exporters should review the following information and make sure their shipment complies with it:

a)The invoice should have a detailed description of the merchandise included in the packages or containers;

b)Prepare the invoices carefully and clearly. Do not leave any spaces in between lines and keep the information required in the column that corresponds;

c)When the description of the products in the invoice is written in other than English, Spanish or French, it should be accompanied by a translation to Spanish in a document attached to the invoice;

d)Make sure the invoice has the same information on the products included in the shipment form and customs entry form;

e)Mark and number every package, bottle or container in such a way that it could be identified with the corresponding numbers in the invoice;

f)Mark the merchandise with the country of origin, even if the products are exempted of payment of import duties.

g)Be alert of any requirement that applies to the export of your product to Mexico. Most common cases are pharmaceuticals, alcohol, cosmetics, food and reactive materials;

h)Carefully observe all regulations pertaining to invoices, packaging, labeling, etc. They are known as NOMs. Make sure you work closely with your customs broker who should verify that all requirements are met before the shipment is sent to MCO.

i)Take security precautions not to allow the insertion of forbidden products into the packages.

  1. Mexico allows the import of products to Mexico under different regimens, including:

a)Permanent Import;

b)Temporary Import, to be exported back to the country of origin in the same condition or processed, transformed or repaired under the maquila program or for companies enrolled in the export program (Pitex);

c)Fiscal deposit;

d)Merchandise in transit (in-bond);

e)To be processed, transformed and/or repaired in a fiscal area.

  1. Following is a description of the two import regimens that relate to commercial transactions and the documented needed to process the export from the U.S.:

Permanent Import Regimen:

It is considered a permanent import of merchandise the one that will stay in Mexico for unlimited time. Whoever imports into the country under this regimen is subject to the payment of import duties and must comply with all regulations pertaining to the products, as per articles 96 and 101 of the Mexican Customs Law.

To process this type of export, the following is the procedure and documentation needed:

a) Customs Entry Form (Pedimento de Importacion). It is the only document MCO use for clearance of imports into the country. In it, the exporter must declare the following information:

1)The Customs regimen under which the merchandise is being imported;

2)Information sufficient to determine the import duties applicable to the products and compensatory fees;

3)Documentation proving that all regulations and standards are met, special permits/authorizations, country of origin of the merchandise, weight and volume, including serial number, brand, model and/or technical specifications;

4)The bar code, confidential number or electronic signature of the Customs Broker who confirms that the merchandise meets all requirements to be exported into Mexico.

b) Commercial Invoice. The customs entry form must be accompanied by a commercial invoice for the merchandise that is being exported, when the value of the merchandise in MCO exceeds US$300. The invoice must contain the following information:

1)Place and date of issuance;

2)Name and address of Mexican importer of the merchandise;

3)Detailed commercial description of the merchandise, including specifications of the products per class/type, quantity, identification numbers (when available), individual value and total value of the transaction in the invoice;

It should also include the transaction value of the merchandise: cost, packaging, transportation and insurance costs. No codes should be used instead of the product’s description and it must be in English, Spanish or French otherwise will have to be accompanied of formal translation to Spanish.

4)Name and address of the vendor.

If the invoice lacks any of above information or if it has any alterations to the original information provided/written, the invoice is considered altered by MCO and is automatically voided. There are cases in which the modification is valid if accompanied by a sworn declaration stating the truth by the importer or the Customs Broker. This declaration must be presented before the automatic selection mechanism is activated (fiscal traffic light).

c)Certificate of Origin. It is a uniform document used by the Nafta countries to demonstrate when a product is originated in one or more of the Nafta countries. This certificate will guarantee the best import duty to U.S. products and is used to qualify goods for Nafta preferential duty treatment. It is advantageous and worth claiming if your product qualifies since this can save your Mexican importer money by securing a lower or no import tariff rate, often making your product more competitive in Mexico against 3rd country suppliers. As a result of the Nafta agreement, approximately 85 percent of all U.S. exports enter Mexico duty-free. Please refer to section two of this report on Instructions for Completing the Exporter's Certificate of Origin.

10. With all the above documentation, the MCB obtains the permit to import the merchandise into Mexico. This permit or clearance is carried out electronically simultaneously between the MCB and the MCO. The information is encoded and reflected in a bar code place in the customs entry form. Once the merchandise is cleared by MCO, the next step is the payment of the appropriate import taxes and duties involved in the import process. Taxes are paid upon presentation of the customs entry form for processing and prior to activating the random selection device.

11. The general import tax is based on the customs value of the merchandise, which is the total value paid by the importer including expenses such as:

1)the brokerage fees and expenses (between 1.5 and 2 percent of the shipment’s value);

2)the costs of packing or wrapping incorporated into the merchandise;

3)the cost of transportation, insurance and related expenses such as handling, loading and off-loading rising from the transportation of the merchandise.

Following is an example of the procedures to follow in processing a permanent export into Mexico:

Mr. Smith is a U.S. manufacturer of paper cups and has a buyer in Guadalajara, Mexico interested in distributing his products. The steps to follow are:

a)Make sure the Mexican buyer has an import permit that allows him to import the paper cups;

b)Contact a MCB to process the export;

c)Contact a U.S. Customs Broker to process the Shipper’s Export Declaration;

d)Provide the MCB the invoice with detailed information on the shipment and description of the products and the certificate of origin;

e)The Customs Broker prepares the customs entry form with information provided by the manufacturer;

f)Mr. Smith should make sure his products are getting the Harmonized Code classification that guarantees that the best import-tariff is given to him. To guarantee the best (lower) import duties assures his products will remain competitive in the Mexican market. The imposition of a duty to the imports is immediately added to the price paid by the end user of the product. An easy way to get the exact classification is to find out the translation of the product in to Spanish and access the Ministry of Economy’s web site ( By providing the term in Spanish you will get all the possible HS codes that apply to the product and the import duties from the different countries. For example, paper cups are classified under HS 48236001 and has an import duty of 2 percent. It does not have any additional duty, but it must comply with NOM-050-SCFI-1994. This NOM refers to the commercial information on the product, such as volume, capacity, use, resistance, among others.

g)The plastic cups are made in the U.S. with Canadian components, so they classify as a Nafta product (Criterion C). Mr. Smith should fill out a certificate of Origin and provide it to the Mexican buyer to have it available upon request.

h)Mr. Smith verifies that the packages are sealed and that no forbidden products are inserted into his packages.

Following is an example and breakdown of the duties and taxes paid in the importation of a product to Mexico:

1.Customs Duty2 percent

2. Value-Added Tax10 percent for the border states and 15 percent

for the rest of Mexico

3.Customs Agent Duty1.2 percent (approximately)