A Quick Glance at Mexico’s Foreign Trade Requirements
Being surrounded by distinctly developed and excitable emerging economies, Mexico enjoys the close proximity of two continental markets. It ranks in the best top three emerging markets in which business can be done. Mexico is a country that has tremendous opportunities for foreign investors who are interested in conducting business here. With nearly 12 bilateral agreements with over 43 countries, it has more free trade agreements than any other nation in the world. The demand for imports here in Mexico has grown along with the economy. Compared to other developing countries, there is a level of economic stability that makes it a more attractive place to do business.
Mandatory Electronic Reporting of Customs Information
The recent modifications to Mexico’s foreign trade rules make it mandatory for export and import businesses to file information regarding customs transactions electronically. Export and import businesses in Mexico will not have the option of manually submitting customs information using paper forms, starting March 1, 2012.
Mexico has very comprehensive import/export declaration forms. As it is very strict about customs documentation, small mistakes can often result in excessive fines. Also, lack of prior notification of procedural changes and inconsistent interpretation of trade requirements at different ports of entry is a cause of major concern to exporters.
Customs Information Required for Electronic Reporting
The information that businesses need to include in the reporting system are:
- Customs documentation – date and place of issue
- Name and address of the receiver of the merchandise
- Details of the recipient and vendor
- The taxpayer identification number of the voucher issuer
- Identification number of the document
- Commercial description of the merchandise in detail
The online reporting system has been open for importers and exporters since January 16, 2012.
Partner with an expert while doing business in Mexico
As Mexico is very stringent about customs documentation, it is best to take the help of an expert as small mistakes can often result in excessive fines. Besides the obvious language and cultural barriers in Mexico, there is also Mexican bureaucracy, labor laws and a complicated tax regime that can be tremendously challenging. A business expert can provide the necessary expertise all the areas of your business like intercompany transfer pricing,, international accounting, etc. Your business can also enjoy the best advice on the overall operational, administrational and executive aspects of your business.
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