Due to the broad activity that Mexico had at the end of 2018 in relation to the signing of the USMCA and the entry into force of a new Free Trade Agreement, such as the CPTTP, TMC considers is important to return to the topic of how to take advantage of a wide network of Treaties and Commercial Agreements, and the proper way to apply the tariff preferences under their application.

In the framework of Free Trade Agreements and International Commercial Agreements signed by Mexico today, is established the elimination or reduction of import taxes in the countries to which goods obtained or manufactured in Mexico are exported and qualify as originating.

The process to determine that a good qualifies as originating is known as Certification of Origin, which consists, depending on the case, of one or two stages.

When in the Treaty or International Commercial Agreement it is established that the certificate of origin applicable to such Treaty or Agreement, only be completed and signed by the Exporter or by the Producer of the good, only the Validation stage must be fulfilled Certificate of origin, which is made only by the exporter.

On the other hand, if in the Treaty or Agreement, it is specifically established that the applicable certificate of origin must be completed and signed by the Exporter or the Producer of the property and additionally be stamped and signed by the competent governmental authority (Ministry of Economy), the following two stages must be managed:

1. Product registration.

2. Validation of Certificate of origin

It is important to highlight that the steps mentioned above, its processing must be done through the Single Window System (VUCEM), web portal through which the Mexican authority will be handling the respective approval of the registration of products as well as the issuance and approval of the respective certificates of origin.
With the purpose that the interested parties correctly locate the manner in which the process to apply a tariff preference should be handled under the FTAs and Trade Agreements that Mexico has to date, pursuant to the aforementioned mechanism, below A breakdown of this process is presented:


• North American Free Trade Agreement (NAFTA).
• Free Trade Agreement between Mexico and Israel.
• Free Trade Agreement between Mexico and Costa Rica, El Salvador, Guatemala,
Honduras and Nicaragua.
• Agreement of Economic Complementation N 66 celebrated between Mexico and


• Trans-Pacific Partnership Treaty (CPTTP): Certification to be handled in any


• Free Trade Agreement between Mexico and Colombia.
• Free Trade Agreement between Mexico and European Union.
• Free Trade Agreement between Mexico and Uruguay.
• Free Trade Agreement between Mexico and the States of the European Free
Trade Association.
• Agreement for the Strengthening of the Economic Association between
Mexico and Japan.
• Commercial Integration Agreement between Mexico and the Republic of Peru.
• Free Trade Agreement between Mexico and Panama.
• Agreement of Economic Complementation No. 6 celebrated between Argentina
and Mexico.
• Economic Complementation Agreement No. 51 between Cuba and Mexico.
• Economic Complementation Agreement No. 53 between Brazil and Mexico.
• Agreement of Economic Complementation No. 55 celebrated between Mercosur
and Mexico.
• Partial Scope Renegotiation Agreement No. 29, concluded between Ecuador and
• Partial Scope Renegotiation Agreement No. 38, concluded between Mexico and
• Regional Tariff Preference Partial Scope Agreement No. 4.
• Countries that grant us a tariff preference under the Generalized System of
Preferences, GSP: Canada, New Zealand, Russia and Belarus.
• Treaty between the Countries of the Pacific Alliance.


The Declaration in invoice is an option that provides the authority so that those shipments abroad that are greater than €6,000 euros, in the body of a commercial invoice or in the delivery order or in any other commercial document, can be handled a declaration together with an authorized exporter number, through which it can be identified as a proof of origin for the application of tariff preferences.

In order to make use of this option, the interested party must obtain the approval from the respective authority (Ministry of Economy), which grants a number that exporters can use in their operations. The modalities that exist for the use of this mechanism are mentioned below:

• Exporters that operate under the IMMEX Decree.
• Exporters that send products abroad worth $ 150,000 USD.
• Exporters of perishable products.
• Exporters of artisan products.

The Treaties signed by Mexico which consider the use of an invoice declaration are the follows:

• Free Trade Agreement with the European Union.
• Free Trade Agreement between Mexico and the States of the European Free
Trade Association.


In the case of Mexican exporters who have business relationships with companies abroad, as part of the process of interaction with these partners, there is a need for a certificate of origin to be requested as part of the required documentation. According to the client’s needs, it can be used to:

• Application of tariff preferences.

• Demonstrate that the product (s) that it protects were manufactured in Mexico
and not to obtain reductions in import taxes in the destination markets.

The certificate of origin formats are established in each of the Free Trade Agreements and International Trade Agreements signed by Mexico and there is no Single format applicable to all the International Trade Agreements or Agreements of reference.

The benefit for having a certificate of origin is to obtain a competitive advantage in international markets since the importer of products abroad can obtain a reduction of up to 100% of import taxes.

In order to obtain a certificate of origin, it is necessary that in principle the interested parties (exporters) have authorized a Product Registry, as mentioned in previous lines, with which they are able to issue such certificate guaranteed (certificate) by the Mexican authority.

It is important to mention that not all certificates of origin are freely reproduced. The following formats are made with special features and can’t be reproduced:

Treaty, Agreement or Scheme Format Name
FTA with European Union Certificate of Movement of Goods EUR-1
FTA with European Free Trade Association Certificate of Movement of Goods EUR-1
Countries that grant tariff preferences in the Generalized System of Preferences (GSP) Form “A”
Agreement for the strengthening of the Economic Association between Japan and Mexico Certificate of origin Mexico – Japan Agreement.


As part of the commitments covered by all the Agreements and Commercial Agreements signed by Mexico, there is one that implies to preserve documentation and information that serves as the basis for the issuance of certificates of origin, invoice declarations or certificates of origin (evidence of origin) based on which preferences are applied by the clients.

Keeping the aforementioned information and documentation is due to the authorities in charge of monitoring the correct handling and use of the aforementioned evidence, at all times have the power to carry out reviews, so it is always recommended to have well organized, classified and available this information.

It is also necessary to mention that as part of the commitments that are held at the time of issuance of a proof of origin, it is related to keeping the material / BOM (Bill of Materials) list up-to-date at all time and area responsible for feeding such system, notify the person in charge of issuing the proofs of origin, any change in relation to the supply of inputs for the manufacture of the object of the emission of the proof of origin, since such change could alter the analysis for compliance with the rule of origin and with it the issuance of the aforementioned documents, in such case, the issuer would have the obligation to inform its clients to those who have issued a proof of origin, which from the day on the change of supply was made, the good that sells it, is no longer susceptible to receive preferential treatment under the FTA or Commercial Agreement through which it has issued the proof originally.

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



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:


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


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


(GFTR 2018 / 3rd AMENDMENT)

On November 30th, 2018, the Third Resolution of Amendments to the General Foreign Trade Rules (GFTR) for 2018 was published in Official Federal Register (OFR), such changes became effective as of December 1st, 2018, except as indicated at the end of this document.

The main modifications made to GFTR are presented below:

• The following acronyms are included in the list of these terms and are related with recent Trade Treaty published in OFR between Mexico and CPTTP´s countries:

o TIPAT: Integral and Progressive Treaty of the Trans-Pacific Partnership.

• Rule 1.4.17 is added, which considers the procedure to be followed for the appointment and granting of the patent of a customs agent by substitution is integrated.

• Rule 1.5.4. is modified in order to provide an extension until April 1st, 2019, for the purpose of the importer being required to provide additional documents/information (annexes) to the manifestation of value, established in Article 81 of Customs´ Law Regulation, which as a reminder, are mentioned below:

o Commercial invoice;
o Bill of lading;
o Document that proves the origin, when applicable;
o Document which the guarantee is stated; in case;
o Document which the payment of the goods is recorded (electronic transfers /
letter of credit);
o Document related to transportation expenses, insurance and related expenses;
o Contracts related to commercial transaction;
o Documents that support the incremental concepts; and
o Any other documentation / information necessary for the determination of the
customs value.

• Rule 1.8.1., Includes the obligation for companies that have authorized electronic pre-validation services, which must comply with the provisions of the “Guidelines that must be observed by those who have authorization to provide the services of electronic data´s prevalidation, contained in pediments and those interested in obtaining it, which can be consulted on SAT´s portal page.

Rule 3.1.8, regarding to invoicing in third countries when preferential tariff treatment is applied, it is included the consideration of manage this option in the case of operations carried out under the CPTTP Treaty. Likewise, it is established that in the case of this treaty, a certification of origin that is issued according to the aforementioned Treaty, may not be presented in the invoice issued by a commercial operator located in a non-member country, but may be provided in any other document.

• Rule 3.1.11, related to the application of preferences in merchandise with origin other than that of its origin, the CPTTP Treaty is included for the purpose of allowing the importer to prove that the goods that have been in transit, with or without transhipment or temporary storage, through the territory of one or more non-member countries, were under the supervision of the competent customs authority in those countries, with the submission of any of the following documents:

o Air waybill;
o Bill of lading;
o Letter of carriage;
o Customs document that proves that the goods remained under customs guard;
o Any other supporting document issued by the customs authority or another
private entity.

• Rule 3.1.39 is created, for the purpose of establishing the procedure to be followed in the case of business imports by air transported by courier and parcel companies, so that they can carry out the advance clearance of goods, the foregoing through compliance with the “Operation Guidelines for Early Dispatch, published on SAT website.

• Rule 3.1.40 is also created to establish the procedure to be followed for the purposes of importing by sea with the handling of advance clearance and in which it is specified that the merchandise using this option will not be able to:

o Be the object of deconsolidation;
o Transfers between controlled premises;
o Being examined due to ignorance of the characteristics of the goods.

It is specified that the advance clearance of merchandise, can’t be done in the case of those that are difficult to classify, which require physical or chemical analysis to know their composition, nature, origin and other characteristics necessary to determine their classification.

• In Rule 3.7.1., with respect to the operations of postal deliveries, the customs value is modified from 300 to 50 usd, in order to be able to import without the use of the “Customs Ballot” format, nor the services of customs broker, customs representative or accredited legal representative, as well as, without the payment of IGI, VAT and DTA.

Likewise, it establishes that merchandise whose value at customs, by recipient or consignee, is equal to or less than the equivalent in national or foreign currency of 50 usd and such goods are subject to the payment of contributions other than IGI, VAT or DTA, must be imported with the use of Customs Ballot, without the services of customs broker and without payment of DTA.

• In Rule 3.7.3, it is clarified that the courier and parcel companies, which have the “Registry of Courier and Parcel Companies”, will be able to carry out the clearance of the goods transported by them, when the value in customs of the goods does not exceed 1,000 usd per recipient or consignee.

• Rule 3.7.35 is added and establishes the mechanism and the requirements to be followed by the courier and parcel companies for performing the clearance of goods transported by them, including the realization of imports through the use of a request. and simplified procedure, when the customs value of the merchandise exceeds 1,000 usd.

• Rule 3.7.36 establishes obligation for courier and parcel companies that require operations by pediment and simplified procedure, so that they can be registered in the “Registry of Courier and Parcel Companies”, making known/public the requirements and format to be used for such purposes. In the same way, cancellation causes are specified within the aforementioned record.

• Within Rule 5.1.5, regarding the application of the fixed DTA payment in the definitive imports and regime changes made under the protection of some treaties signed by Mexico, the imports that are made under the CPTTP are included.

• In Rule 7.1.4, regarding the requirements that must be met by those interested in obtaining the registration of a Certified Company in the modality of Marketing and Importer or Authorized Economic Operator, the Logistics Outsourcing modality is included. Likewise, a section is created (subsection G), through which the requirements to be met for obtaining the registration of a certified company under the heading of Logistic Outsourcing are indicated, and for which the following should be accredited:

o Have an IMMEX register of Services in force in the VAT and IEPS Modality.

o Have at least one facility for the provision of services and safekeeping of foreign
trade documentation.

o Participate directly in the handling of goods and cargo management, with
transport, distribution centers and own warehouses.

o Obtain the favorable opinion issued by the authorized Civil Association,
Chamber or Confederation, in accordance with the “Electronic System Guidelines
for the Control of Temporary Imports Inventories”, applicable to those companies
interested in obtaining the SECIIT item.

To obtain the registration of Certified Company in the form of authorized economic operator, item SECIIT, the requirement of submitting a favorable opinion issued by an authorized Civil Association, Chamber or Confederation is added, through which the fulfillment of the provisions is accredited in the “Guidelines of the Electronic System for the control of inventories of temporary imports”.

• Rule 7.1.13 is created and established the requirements so that the cameras, civil associations and/or confederations, can request an authorization for issuing the opinion of compliance with the “Guidelines of the Electronic System for Control of Temporary Imports Inventories”.

• Rule 7.1.14 is added, it establishes the requirements that must be met by the interested companies in order to request a SECIIT compliance report from the Civil Associations, Chambers or Confederations in accordance with the “Electronic System Guidelines for the Control of Inventories of Temporary Imports “.

Likewise, it is indicated that for purposes of renewing records in the Business Certification scheme, in the form of Authorized Economic Operator, item SECIIT, the opinion referred to in the previous paragraph must be presented and will have to be issued 2 months prior to the date of submission of the renewal application.

• In Rule 7.2.1., 3 new obligations are included that must be fulfilled by companies registered in the business certification scheme, applicable to those under the heading of Logistics Outsourcing, which are mentioned below:

o The provision of services by these companies through third parties, must be
made exclusively through these third parties.
o Notify the authority the registration and cancellation of the contracted third
parties to provide the services of customs management, storage, transfer and/or
distribution of foreign trade merchandise on their behalf.
o Terminate the third party that has expired or is canceled its registration in the
certification scheme of companies under the modality of Certified Commercial

Finally, as a part of this publication, the following precisions are made:

• Until March 1st, 2019: The entry into force of electronic handling and transmission of a payment guarantee (bond policy), is extended for temporary imports of sensitive goods imported under the IMMEX program.

• Amendments to Rules 3.1.8, 3.1.11 and 5.1.5. will come into effect on December 30th, 2018.

• Amendment to Rule 3.7.1. and 3.7.3 will enter into force on March 1, 2019.
• The addition of the obligation to submit a favorable opinion by an authorized Civil
Association, Chamber or Confederation, to which Rule 7.1.4 refers, will become effective 3 months after the publication of this Resolution.

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