Trading With Mexico Transportation & Logistics Council Annual Conference March 21, 2017
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1 Trading With Mexico Transportation & Logistics Council Annual Conference March 21, 2017 Presented by: Arcie Jordan, Partner Gardere Wynne Sewell LLP 2017, Arcie Jordan GARDERE WYNNE SEWELL LLP AUSTIN DALLAS DENVER HOUSTON MEXICO CITY gardere.com
2 U.S.-Mexico Freight Dec % 0.9% 9.6% 15.2% 67.2% Trucks Rail Ocean Air Pipeline *Value of commodities moved by pipeline increased by 66.1%
3 Importing into Mexico Involved parties: Importer (consignee, recipient, owner, designated agent) Customs broker Customs (SAT/Tax Administration Service) Transportation companies (linehaul carrier, drayage carrier, logistics company) Others involved in handling, storing, etc. of foreign trade goods (freight forwarder, warehousemen)
4 Importing into Mexico Customs clearance Acts and formalities must be satisfied prior to or upon the entry of goods into Mexican territory. To be performed before the Customs House (Aduana) at the port of entry into Mexico. Formalities may vary according to the traffic mode and applicable customs regimes.
5 Importing into Mexico Preliminary steps Compliance with non-tariff requirements - (certificates of compliance with NOMS (official Mexican standards), labeling & phytosanitary inspections/certificates) Responsible Party: Importer; freight forwarder, or other designated agent
6 Preliminary Steps (cont d) Electronic transmission to Customs of cargo and transportation information (general rules): To chambers of commerce or sector associations Maritime Shipping Companies: 24 hours before loading at origin International Forwarders: 24 hours after the ship has sailed
7 Preliminary Steps (cont d) Electronic transmission to Customs of cargo and transportation information (general rules): To Customs Air Carriers Before departure (America) or 4 hours prior to landing (rest of the world) Railroads: Prior to arrival to the customs house of exit (12-2 hours before) No motor carrier requirements
8 Preliminary Steps (cont d) Verification of documents (invoice, bill of lading, certificate of origin, packing list, etc.) vs. goods - Customs broker Elaboration of COVE (proof of electronic customs value) -Electronic signature required - Customs broker Determination of importation duties and taxes to be paid upon importation - Customs broker
9 Preliminary Steps (cont d) Preparation of import declaration Customs broker Bank account funding (for duties payment) - Importer Electronic submission of import declaration via VUCEM (International Trade Single Window) (Electronic signature required) - Customs broker COVE, Certificate of Origin, Bill of Lading, qualifying certificates, etc. must be submitted/transmitted to Customs Customs broker
10 Preliminary Steps (cont d) Electronic verification and authorization of import declaration - Customs authorities through Customs Electronic Service (SEA) Duties and Taxes Payment through Customs Electronic Payments System - Importer
11 Customs Clearance Once payment performed, goods physically submitted to Customs for verification - Customs broker Upon physical submission, automated random selection system activated, determining whether shipment will be inspected or not - Customs If selected for inspection, import declaration and other documents are verified to detect inconsistencies - Customs
12 Clearance of Food Items Depending on the specific product and its tariff classification, Importer must comply with particular regulations like: Zoosanitary (animal health certificate) or phytosanitary (plant health control certificates) (SENASICA) Sanitary authorization (COFEPRIS) Aquatic health certificate CITES certificate, environmental authorization (SEMARNAT) & environmental inspection (PROFEPA)
13 Clearance of Hazardous materials When transmitting cargo and transportation information, class, division, UN No. & emergency telephone must be provided Shipper & Carrier Customs entry (Importation declaration) must also indicate class, division, UN No. & emergency telephone Material safety data sheets must be presented at time of cargo verification
14 HazMat Clearance (cont d) When materials require special facilities or equipment in order to obtain samples for customs analysis, Importer obligated to provide samples in advance (Customs won t extract samples) Exemption available if Importer registered with the Dangerous and Hazardous Goods Sampling Registry
15 Additional considerations Goods should be kept at in-bond facilities within Customs premises by Importers / Customs brokers, during clearance process Not all in-bond warehouses are equipped to handle hazardous materials or perishable food products Hazardous and dangerous materials must be stored in suitable and safe places
16 Additional considerations When goods are not extracted from in-bond facilities for clearance purposes, they will be deemed abandoned in favor of the Mexican Treasury: 2 months (general rule) 3 days: hazardous and dangerous materials, as well as perishable food products, among others
17 Southbound Transportation Flow Carrier delivers to Freight Forwarder (FFW) at border FFW inspects cargo FFW & Customs Broker prepare paperwork Duties & fees tendered to Customs with paperwork FFW arranges for Drayage Carrier After Customs clearance Dray Carrier delivers to MX linehaul carrier
18 Transportation into Mexico Mexican federal authorization (SCT) required for carriers to enter Mexico on cross-border basis (not available for HazMat carriers) Use of drayage companies SCT prescribes insurance levels & safety requirements Air & Maritime cargo liability per international conventions Limited cargo liability for surface carriers
19 Surface Carriers Mexican Cargo Liability Applicable Mexican Law: Ley de Caminos Puentes y Autotransporte Federal (Diario Oficial Dec. 22, 1993) Responsible for value of cargo up to amount declared, if declared in advance & agreement reached to pay for additional charges required to secure insurance coverage for such value
20 The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location. Questions? Arcie I. Jordan Partner t f m One American Center 600 Congress Avenue, Austin, Texas A U S T I N D A L L A S D E N V E R H O U S T O N M E X I C O C I T Y
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