Frequently Asked Questions

Foreign trade is the purchase/sale of goods and services between countries, as regulated by trade treaties, agreements, and organizations such as the WTO (which regulates international trade relations).

Customs clearance refers to the acts and formalities surrounding the entry/exit of goods between nations. Different customs traffic and systems are set forth in customs legislation by customs officers and consignees, addressees, owners, holders or payees in imports operations and senders in export operations, customs brokers and special customs clearance agents.

A free zone area is a building where the foreign trade merchandise handling, storage, custody, loading and unloading, taxation and customs-clearance activities are performed.

Merchandise may be introduced or extracted from national territory by ocean, land air, river, mail, pipeline, cable or satellite.

Official customs systems classifications include:

• Final (A1), (A3), (C1), (C2), (D1), (K1), (L1), (V2) and (V5)
• Temporary (A2), (A6), (J2), (H2),(H3) and (J1)
• In-Bond Warehouse (A4), (A7), (A8), (G1), (C3), (H4), (H5) and (K2)
• Transformation in In-Bond Warehouse (M1), (M2) and (J3)
• Internal Transit (T3), (T6), (T7), (T8) and (R3)
• Strategic In-Bond Warehouse

Major parties in the customs process include foreign trade governing bodies, customs brokers, and special customs clearing agents. Foreign trade operations are regulated by governing bodies such as the Secretariat of Revenue and Public Credit (through its decentralized agency, SAT) and the Secretariat of the Economy. Customs brokers are authorized by SHCP for third-party clearance of merchandise in accordance with customs law. Special customs clearing agents are similar to customs brokers, but they can only work from their employer's customs office, with the employer holding unlimited liability over the agents.

Customs taxes may be classified as:

• IGIE- Ad-Valorem, fixed and mixed rate
• IVA- fixed rate
• IEPS.- fixed rate
• COUNTERVAILING DUTIES- quota
• DTA - fixed rate, percentage
• ISR - Expenses (deductibility of purchases) and Income (accumulation of foreign sales)

This fiscal document proves that the merchandise was legally imported or exported. The taxpayer uses it to declare taxes, which permits he/ she is subject to, and the conditions of the declared customs operation.

The importing party must maintain a number of critical documents, data, and record-keeping processes. Examples include Foreign Trade Tax payments, registration in the Importing Party Roster (and the appropriate Specific Sector Roster), information to prove merchandise's place of origin, and the correct tariff information to import merchandise. This party is also responsible for processing its operations before customs, making use of customs declarations (and other related documents),and granting Letters of Appointment to the relevant customs broker.

Incoterms® are the terms commonly used in Foreign Trade, as established by international rules. They're used to express the importers’ and exporters’ responsibilities, determine the documents to be processed by each party, and help determine customs value for import tax calculations. The Incoterms® you'll see in customs transactions include:

• Ex-works, ex-factory, ex-warehouse
• FCA (free carrier)
• FAS (free alongside ship)
• FOB (free on board)
• C&F or CFR (cost & freight)
• CIF (cost, insurance & freight)
• CPT (carriage paid to)
• CIP (carriage and Insurance paid to)
• DAF (delivered at frontier)
• DEQ (delivered ex quay - duty paid)
• DDU (delivered duty unpaid)
• DDP (delivered duty paid)

More information on Incoterms® can be found on the International Trade Administration website.

Step 1: Determine the duty percentage rate on the goods you are shipping. The rate depends on the destination country. To find the duty rate, visit the U.S. Customs and Border Protection website’s trade tariff page. Duty rates can be found by using an HS code or product description.

Step 2: Calculate the duty on your shipment.  After you have the duty percentage rate, you can calculate the duty amount on a shipment. Add up the goods’ value, freight costs, insurance, and any additional costs, then multiply the total by the duty rate. The result is the amount of duty you will need to pay Customs for your shipment.

(Value of Goods + Freight Cost + Cost of Insurance + Additional Costs)

* Duty Rate = Total Duty Amount

Step 1: Determine the sales tax (VAT) rates of the destination country. VAT is the sales tax that applies to the purchase of goods and services and must be fulfilled by the importer.

Step 2: Calculate the Value Added Tax. To calculate the VAT of a shipment, add up the goods’ value, freight costs, insurance, import duties, and any additional costs.  Then multiply the total by the destination country’s applicable VAT rate.

(Value of Goods + Freight Cost + Cost of Insurance + Additional Costs)

* VAT Rate = Total Value Added Tax

The result is the amount of VAT (Value Added Tax) that will need to be paid to Customs for the shipment.

On June 7, 2022 the Mexican Ministry of Economy published the new import and export tax law decree.  The decree contains new tariffs, taxes, and provisions on Commercial Identification Numbers (NICO) and Harmonized Tariff Schedule (HS Codes).  This follows the implementation of the Seventh Amendment of the Harmonized System directed by the World Customs Organization (WCO) to their members.  The changes include international product codes for global trade.

For more information on Mexico’s Commercial Identification Numbers, please visit: https://www.trade.gov/market-intelligence/mexicos-import-and-export-general-law

For more information, please visit: https://www.dof.gob.mx/nota_detalle.php?codigo=5662042&fecha=22/08/2022#gsc.tab=0

For more information on the Harmonized Tariff Schedule changes, please visit: https://www.dof.gob.mx/nota_detalle.php?codigo=5658038&fecha=14/07/2022#gsc.tab=0