Month: January 2019

Newsletter

NEWSLETTER

On December 30th, 2018, the Trans-Pacific Partnership Comprehensive and Progressive Treaty (CPTTP) entered into force for the following countries: Australia, Canada, Mexico, Japan, New Zealand and Singapore, also joining Vietnam on January 14th, 2019, so what until now 7 of the 11 countries that signed this Treaty, are already operating it.

With this entry into force of the CPTTP , the option is opened for importers in Mexico to apply tariff preferences under the option that best suits them, according to the previously signed FTA´s, with the following countries:

• Canada.
• Japan.

And once they are incorporated, with the following:

• Chile.
• Peru.
• Pacific Alliance (Peru, Chile and Colombia).

Therefore, it is important to review the proper way which this document must be issued in order to apply preferences under CPTTP, in accordance with the provisions of the Annex to the Resolution that establishes General Rules Relating to the Application of the Provisions in Customs Matter of this treaty, published in the Official Federal Register (OFR) on December 28th, 2018:

MINIMUM REQUIREMENTS OF INFORMATION FOR CERTIFICATION OF ORIGIN.

A certification of origin must include the following elements:

I. Certification of Origin by the Exporter or Producer. Indicate whether the certifier is the exporter or producer in accordance with Article 3.20 of the Treaty.

II. Certifier. Provide the name, address (including country), telephone number and email of the certifier.

III. Exporter. Provide the name, address (including country), email and telephone number of the exporter, if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter. The address of the exporter will be the place of export of the goods in a Treaty country.

IV. Producer. Provide the name, address (including country), email and telephone number of the producer, if different from the certifier or exporter or, if there are multiple producers, indicate “Miscellaneous” or provide a list of producers. A person who wants this information to be confidential may indicate “Available at the request of the importing authorities”. The producer’s address will be the place of production of the goods in a Treaty country.

V. Description and Tariff Classification in HS of the Merchandise.

a) Provide a description of the merchandise and the tariff classification in HS of the merchandise at the 6-digit level. The description should be sufficient to relate it to the merchandise covered by the certification, and

b) If the certification of origin covers a single shipment of a merchandise, indicate, if known, the number of the invoice related to the export.

VI. Criterion of Origin. Specify the rule of origin according to which the merchandise qualifies.

VII. Coverage Period. Include the period if the certification covers multiple shipments of identical merchandise for a specified period of up to 12 months as established in article 3.20 (4) (b) of the Treaty.

VIII. Authorized Signature and Date. The certification must be signed and dated by the certifier and accompanied by the following declaration:

“I certify that the merchandise described in this document qualifies as originating and the information contained in this document is true and accurate. I assume the responsibility to verify what has been stated here and I undertake to keep and present, if required or make available during a verification visit, the necessary documentation to support this certification. ”

In accordance with the aforementioned Customs Rules, the following provisions are established for the purposes of handling the certification of origin under CPTTP treaty:

 It may be issued by boarding or, where appropriate, by multiple shipments, which does not exceed 12 months.

 The importer must transmit and present a copy of the valid certificate of origin, in electronic or digital document as an annex to the pediment.

 In the case of the import of original textile goods or clothing, incorporating a material listed in Appendix 1 relating to the List of Low-Supply Products or of Annex 4-A in which the Specific Rules of Origin are included by Product for Textiles and Clothing, the certification of origin must contain the Product Number or the description of the material in accordance with information indicated in the Appendix or Annex above mentioned.

 The certification must be kept by the importer for a period of five years, counted from the day following the date of import operation, including the documentation related to such certification.

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade

NEWSLETTER (Northern Border Fiscal Stimuli)

On December 31st, 2018, a Decree of fiscal stimuli for the Northern Border Region of Mexico was published in Official Federal Register (OFR), which enters into force on January 1st, 2019 and will be in effect during 2019 and 2020.

The aforementioned Decree forms part of the integral strategy of the Mexican government and establishes fiscal benefits consisting in a reduction of both the rate of Value Added Tax (VAT) as well as the Income Tax (IT) to companies and individuals with business activity, with the aim of promoting the generation of greater resources for investment, generating jobs and increasing the competitiveness of the Mexico´s northern border region.

The aforementioned fiscal incentives will be applied both to individuals and companies resident in Mexico and to residents abroad with permanent establishment in Mexico, who generate and receive income in the northern border region from business activities and which consist of the following reductions:

I. Income Tax (IT): tax credit equivalent to one third of the income tax (20%) caused in the fiscal year or in the provisional payments, which will be credited against the income tax caused in the same fiscal year in the provisional payments of the same fiscal year, as applicable;

II. Value Added Tax (VAT): credit equivalent to 50% of the rate to the value added tax, to those acts or activities of alienation of goods, rendering of independent services or granting the use or temporary enjoyment of goods, in the premises or establishments located within the northern border region.

In order to have access to the aforementioned tax benefits, the Decree establishes the following requirements that must be fulfilled by the interested individuals and companies:

o Proof of having a tax address, agency or establishment in the border region, with a minimum validity of 18 months, on the date of its application for registration in the “Register of beneficiaries of the stimulus for the northern border region.”

o In the case of new companies, they must verify that they have the economic capacity, new assets and facilities to carry out their activities and business operations in the northern border area, as well as estimate that their total income for the year in that region will represent the less 90% of total income for the year.

o Not having already granted a prior fiscal stimulus within the northern border region.

o Receive income generated in the northern border region and that they represent at least 90% of their total income in the immediately preceding fiscal year.

o Request the authority and be accepted, its registration in the “Register of beneficiaries of the stimulus for the northern border region.”

o Have an advanced electronic signature.

o Access to the Tax Box.

Once the registration request has been received, the authority has a period of 30 days to answer to it and, if favourable, make the registration in the “Register of beneficiaries of the stimulus for the northern border region. ”

The authorization issued by the authority with respect to the registration in the aforementioned list, will have an annual validity and this will have to be renewed by the interested parties once they accredit the fulfilment of the requirements, having as limit to present the request the term that is established for the presentation of the annual tax return for the immediately preceding tax year (March 31 of each fiscal year).

In relation to the fiscal stimulus related to the value added tax, the authority makes the following precisions:

 Taxpayers may apply the stimulus provided they make the material delivery of the goods or the provision of services in the northern border region.

 It is not applicable to VAT paid on imports of goods and services, since importers can recover the tax burden paid on importation through the mechanism of crediting the tax paid.

 Nor is it applicable to the alienation of real estate as well as to the alienation of intangible assets or the supply of digital goods, such as audio and video.

 Similarly, it is not applicable to taxpayers who have engaged in fraudulent behaviour to evade compliance with tax obligations.

Finally, it is established that the authority will issue General Rules for the correct application of this Decree, which we will inform you once they are published.

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade

NEWSLETTER (GRCFT Ammentment)

On November 30th, 2018, was published in Official Federal Register (OFR) an Agreement that modifies the General Rules and Criteria regarding Foreign Trade issued by the Ministry of Economy (GRCFT), which entered into force on December 3rd2018.

The main changes that are considered in the above mentioned publication are described below:

• In Rule 4.1.1. The reference of the National Foreign Trade Information Service (SNCE) is included as the official foreign trade information consultation portal and are indicated the 7 modules of which it is composed.

• Likewise, the electronic address www.snice.gob.mx is included, for purposes of indicating the procedures in which it will be mandatory to present annexes in a digitalized manner, as well as to make inquiries regarding the procedures to be performed to the Ministry of Economy.

• In rule 3.3.1. the obligation to request an authorization that entails the fulfillment of specific requirements for the merchandise that is required to import temporarily through the use of prior import permits under Rule 8th, when these are classified in the list of sensitive products of the Annex II of the IMMEX Decree, or of those indicated in Annex 3.3.2. of the Agreement by which Rules and Criteria of General Character in Foreign Trade Matters are issued by the Ministry of Economy.

• sSubmit permits and/or automatic import notices in the case of temporary imports of sensitive products made by IMMEX companies.

• In Rule 5.3.1., Regarding the importation of coffee under Rule 8th, through the use of classification 9802.00.22:
o code 0901.11.99. is added.
o It is included as a requirement, that the process of solubilisation and decaffeination of coffee be indicated, within the Public Accountant Report that will have to be presented in digital form to Ministry of Economy.
o For coffee imports under code 0901.12.01, the Public Accountant report must contain the following:
 Tax domicile of the company.
 Productive process.
 Relation of pediments of the export of the green coffee in grain together with the pediments of return of the decaffeinated coffee.
 Free writing that includes the details of the decaffeination process, including percentage of waste and waste generated.
 Copies of BL’s, bill of lading or air waybills and invoices that show the export abroad.

• Annexes 2.2.1 and 2.2.2., 107 tariff codes are added to the automatic import notification of steel products, related to the temporary increase of tariffs for 186 fractions and the suspension of preferential tariff treatment and tariff increase import of various goods originating in the USA.

• In Annex 2.2.2. codes 0901.11.99 and 0901.12.02 are added, so that the Ministry of Economy authorizes their import under Rule 8th, as well as the criteria and requirements to be complied with in each case are broken down.

• In the same Annex 2.2.2, the following criteria and requirements to be met are added for the case of the export of iron ore:

 Criteria:
o Imported iron ore will be given the same treatment as domestic iron ore, so that its export will be authorized for export.

o The validity of the permit for the temporary export of iron ore will be 1 year.

 Requirements:
• Of the imported iron ore, it should be:

o Demonstrate its legal import;
o Property;
o The project for which it was imported; and,
o The reasons that give rise to his return to the foreigner.

According to the aforementioned publication, it is specified that the automatic import notices for steel products are required as of December 5th, 2018.

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade