Mexico is the 2nd largest economy in Latin America. In 2016 Mexico imported $380 billion worth of goods and services, making the country the 12th largest importer in the world. With the recent EU-Mexico free trade deal, the import opportunities are expected to rise further, especially in the agri-food sector. As such, if you’re looking for your next investment and you want to take advantage of these opportunities brought on by the FTA, we’ve compiled this article to give you the ins and outs of importing into Mexico.
International Trade – What Are the Requirement to Import into Mexico?
When importing into Mexico, you must register your business with Mexico´s Registry for Specific Industries, run by the Mexican Tax Authority ‘SAT’ (Servicio de Administración y Tributaría). To do this, you must be up to date with your companies tax obligations, prove to the customs authorities that you are listed on the Federal Registry of Taxpayers, and meet all other requirements set by Customs Law and SAT´s general rules on foreign trade. You also must have a method of inventory control.
You need to present documentation to prove the country of origin of your goods for the purposes of preferential tariff treatment, marking the country of origin, applying countervailing duties, meeting quotas, and other applicable measures according to the Law of Foreign Trade.
Documentation for Importing into Mexico
All Mexican importers have to register and be listed with the Official Register of Importers. The basic Mexican import document is the Pedimento de Importación maintained by the Secretary of Finance and Public Credit. The impedimento has to be completed along with an import form for all commercial trade. The impedimento proves that your goods are in the country legally, so remember to keep this document!
Along with the impedimento, the following documents are required:
COMMERCIAL INVOICE: Issued by the supplier, should state their business name and address, description of the goods, price, and terms of the sale.
PACKING LIST: List created by the supplier specifying the content of the shipment. This must identify the number of pieces (units), total weight, dimensions of the pieces, and references (if possible).
BILL OF LADING: This document is issued by the shipping agent and submitted to the supplier. The supplier will send the document once the payment has been effected (or before, if a credit account has been sent up). The shipping agent uses this document to deliver the goods.
CERTIFICATE OF ORIGIN: If your goods are subjected to excise tax, either because of the type of goodo or because of their origin, this document must prove said origin. More documents may be needed depending on the type of product imported (food, seafood products, cosmetics, agricultural or animal, clothing, shoes, etc.)
VOLUME/WEIGHT CERTIFICATE: This certificate must be issued by the company authorized by the Ministry of Finance and Public Credit to certify this type of document.
Before importing into Mexico you must submit a written manifest to your customs agent detailing the value of your goods for customs purposes. You need to keep a copy of this and obtain information and documents to prove that the value you declared was determined in accordance with the provisions of Customs Law.
Lawyer Advice – Find out More About Import Requirements in Mexico
Mexico is an attractive and growing economy, importing into Mexico is a great way to expand your business. However, the business environment can be complex and challenging. At Biz Latin Hub, we have a team of trade experts that can help you when doing business in Mexico and other Latin-American countries. Get in contact with Alex here at Biz Latin Hub and see how we can assist you with your importation needs.
Watch the following video to learn more!