U.S. Customs and Border Protection (CBP) and Mexico’s Tax Administration Service (SAT) signed a Joint Work Plan yesterday that lays out the path to mutual recognition of the two countries’ Authorized Economic Operator programs: CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT) and SAT’s New Certified Companies Scheme (NEEC). The plan, expected to be implemented in two [...]
U.S. Customs and Border Protection (CBP) and Mexico’s Tax Administration Service (SAT) signed a Joint Work Plan yesterday that lays out the path to mutual recognition of the two countries’ Authorized Economic Operator programs: CBP’s Customs-Trade Partnership Against Terrorism (C-TPAT) and SAT’s New Certified Companies Scheme (NEEC). The plan, expected to be implemented in two years, was signed by CBP Deputy Commissioner David V. Aguilar and SAT Director Aristóteles Nuñez Sánchez.
The Joint Work Plan lays out the path forward to mutual recognition between the two programs. Mutual recognition allows for companies enrolled in one program to receive reciprocal benefits from the other with the result of both further securing the international supply chain and facilitating trade between the United States and Mexico.
C-TPAT is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. C-TPAT recognized that U.S. Customs and Border Protection can provide the highest level of cargo security only through close cooperation with the ultimate owners of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers.
While U.S. and other companies manufacture in Mexico to save money, it is not wise to skimp on customs compliance, one expert asserts. Jim Clarke is vice president of new business development for FOCUS Business Solutions, Inc., a Michigan-based firm assisting companies in more effectively handling their import processes. “I have been working 18 years [...]
While U.S. and other companies manufacture in Mexico to save money, it is not wise to skimp on customs compliance, one expert asserts.
Jim Clarke is vice president of new business development for FOCUS Business Solutions, Inc., a Michigan-based firm assisting companies in more effectively handling their import processes.
“I have been working 18 years in this program and see how many companies struggle in this area,” Clarke notes. “Resources and expertise – or knowledge they once had to ensure compliance with NAFTA and other free-trade agreement requirements – are no longer at the company,” he adds. “In such instances, companies that manufacture in Mexico need customs assistance.”
Companies manufacturing in Mexico routinely moving items across the border in both directions usually operate smoothly when they have professional assistance in navigating customs, Clarke observes. But it is not uncommon for companies without guidance to issue incorrect tariff classifications for their manufactured goods, or to claim an item qualifies for NAFTA status without proper substantiation. If values of shipped goods are stated incorrectly or other errant information is supplied, it starts to raise red flags with customs personnel.
Most often, audits are a product of recurring errors, Clarke says.
“Usually there is some ability to understand that an investigation is under way; formal information requests will be sent to a company,” he notes. “If a knowledgeable customs specialist is not on staff, sometimes (audit notices) can sit on a desk within the company for a prolonged period of time. The customs service will get annoyed. When this happens, they begin to pay close attention. Sometimes this is how the investigation ball gets rolling.”
The Offshore Group recently spoke with Jim Clarke, vice president of new business development, with Taylor, Michigan-headquartered FOCUS Business Solutions. FOCUS has assisted companies involved in international trade to move their products into and out of the U.S. for the past twenty-five years, and has developed a particular expertise in servicing manufacturers located in Mexico, [...]
The Offshore Group recently spoke with Jim Clarke, vice president of new business development, with Taylor, Michigan-headquartered FOCUS Business Solutions. FOCUS has assisted companies involved in international trade to move their products into and out of the U.S. for the past twenty-five years, and has developed a particular expertise in servicing manufacturers located in Mexico, as well in the rest of the NAFTA region.
During the session, Clarke talks about five challenging issues that confront companies navigating Customs related issues. They include:
• Tariff Classification – It is critical that companies use the correct Customs classification for the goods that they are importing and/or exporting.
• NAFTA Claims – Manufacturers must correctly substantiate claims that their goods are subject to preferential duty treatment.
• Customs Valuations – Parties involved in international trade between Mexico and the U.S. must make sure that they state the value of their merchandise correctly.
• Customs Reconciliation – Importers and Exporters must understand the process by which information submitted to Customs in error can be corrected.
• Audits – Manufacturers must understand what is required to successfully pas audits and examinations conducted by the Customs service.
According to Clarke, “Many times there are very common errors related to U.S.-Mexico trade in the area of Customs. It doesn’t matter what the size of the company is. If importers and exporters don’t have direct knowledge of critical issues or someone on staff that has the experience in this area, they can run into difficulties.”
Click here to listen to the 40 minute podcast.
Source: The Offshore Group
I.E.Canada introduces its International Webinar Series. These three, ninety minute sessions will cover the basic customs processes and procedures in the three key markets of Brazil, Mexico and China. Hear from experts on the ground in each country and learn tips and tricks to ensuring your goods flow smoothly. The sessions are: 1) Importing into Brazil, [...]
I.E.Canada introduces its International Webinar Series. These three, ninety minute sessions will cover the basic customs processes and procedures in the three key markets of Brazil, Mexico and China. Hear from experts on the ground in each country and learn tips and tricks to ensuring your goods flow smoothly.
The sessions are:
1) Importing into Brazil, July 18, 2012 1:00 pm – 2:30 pm EDT
Speaker: Arnon Melo, Managing Director, Mellowhawk
.
2) Mexican Customs 101, August 23, 2012 1:00 pm – 2:30 pm EDT
Speaker: Edmundo Elias, Partner, Baker McKenzie
3) Customs in China, October , 2012 1:00 pm – 2:30 pm EDT
Speaker: Eugene Lim, Baker McKenzie
Click here for the International Series webinar pricing and registration information!
The Mexican government has begun using reference prices to prevent the undervaluation of imported goods. This policy currently applies to textile, apparel and footwear items but within the next few months could also be extended to products such as toys, electronics, bicycles and steel. Shipments of affected goods not accompanied by documentation sufficient to confirm [...]
The Mexican government has begun using reference prices to prevent the undervaluation of imported goods. This policy currently applies to textile, apparel and footwear items but within the next few months could also be extended to products such as toys, electronics, bicycles and steel. Shipments of affected goods not accompanied by documentation sufficient to confirm the correct value could be seized and/or subject to penalties . Although this mechanism was created in December 2011 after the elimination of transitional duties, the number of associated seizures has increased recently.
Mexico’s Tax Administration Service (SAT) determined that in 2011 68% of textile, apparel and footwear items imported from China, Hong Kong, Taiwan and other countries were entered at prices lower than the cost of raw materials used in their production. To discourage this practice, SAT has implemented a program called “Precios de Referencia” (reference prices) with respect to 413 tariff lines for textile items and 59 tariff lines for footwear . These reference prices are determined on a computed value basis but will not be published in the Diario Oficial ( Official Gazette ) and importers will not have access to them.
SAT officials have emphasized in several forums in Mexico that the reference prices are only used to analyze the risk of importers using lower values and are not used in deciding whether to reject or accept the value declared in entry summaries ( pedimentos ). However, if the merchandise is imported at a price lower than the reference price, Mexican Customs will require the importer to have a guarantee of import duties based on the reference price.
When an importer becomes aware that the price agreed with its supplier is low it must obtain the proper documents to support that price and notify the customs broker of this situation. The broker will then include in the pedimento the code “PV” ( prueba de valor ) indicating that it has the documentation to prove the transaction value and clear the shipment through customs. In this context Mexican Customs may require the commercial invoice as well as the following documents.
• customs value declaration
• title of credit related to payment
• proof of payment/transfer of funds
• lease agreement
• insurance payment
• export declaration
In light of this new practice and the fact that the reference prices will remain unpublished, foreign suppliers of affected goods are advised to provide Mexican importers proper documentation to demonstrate the accuracy of the value declared during the import transactions. Otherwise, the merchandise could be seized and penalties could apply. Moreover, when goods are seized the importer’s import license is temporarily suspended, preventing the importer from conducting import operations for up to four months.
Source: STTAS de Mexico | Evelyn Almaraz – Manager, Consulting Practice
Earlier this year, Mexican Customs (Administración General de Aduanas) began a pilot for its new trusted shipper program designed to accelerate the crossing and inspection process at international bridges. The Nuevo Esquema de Empresas Certificadas, or NEEC, is a voluntary trusted shipper program that offers participating companies fewer inspections and faster clearances for meeting specified [...]
Earlier this year, Mexican Customs (Administración General de Aduanas) began a pilot for its new trusted shipper program designed to accelerate the crossing and inspection process at international bridges.
The Nuevo Esquema de Empresas Certificadas, or NEEC, is a voluntary trusted shipper program that offers participating companies fewer inspections and faster clearances for meeting specified requirements at international ports of entry.
The program is modeled after the U.S. C-TPAT (Customs-Trade Partnership Against Terrorism) certification program that allows bridge-crossers to use the FAST lanes, skipping to the front of long lines and potentially bypassing time-consuming inspections. Short for Free and Secure Trade, the post-9/11 program was a joint effort between the U.S. government, the truck driver, the carrier, the manufacturer and the importer.
While C-TPAT has been in place for northbound traffic from Mexico since 2002, there has not been a similar program for southbound traffic. The Tax Administration Service, or SAT, the Mexican agency that oversees customs, worked to develop its own program; one that U.S. trade officials say will benefit trucks carrying U.S. exports across the border.
The NEEC, program is expected to officially open up to all interested participants later this month. Companies with business operations in Mexico that are already C-TPAT certified will be well positioned to take advantage of participation in NEEC – but is your company ready for this?
To find out more about the NEEC and if your company is ready to participate, join Karen Lobdell, Director – Global Solutions at Integration Point Inc. for a one-hour webcast on November 30th, as she discusses:
• Program history and objectives
• Requirements for participation
• Minimum security standards
• Application procedures and scope
• Next steps
• Tools available to assist with participating in the NEEC and other security programs
This webcast will be held on Wednesday, November 30, 2011 at 11:00 a.m. EST/ 8:00 a.m. PST.
For more information and to register, click here.
(World Trade Interactive) Mexico is expected to suspend 50% of its retaliatory tariffs on U.S. exports as of July 8 after the U.S. and Mexico signed July 6 a memorandum of understanding resolving their longstanding dispute over Mexican trucks. U.S. officials cast the MOU as an agreement that will ensure roadway safety, create jobs in [...]
(World Trade Interactive)
Mexico is expected to suspend 50% of its retaliatory tariffs on U.S. exports as of July 8 after the U.S. and Mexico signed July 6 a memorandum of understanding resolving their longstanding dispute over Mexican trucks. U.S. officials cast the MOU as an agreement that will ensure roadway safety, create jobs in the U.S. and support economic development in both countries.
Mexico currently imposes tariffs of 5-25% on $2.4 billion worth of goods imported from the U.S. in retaliation for Washington’s failure to allow Mexican long-haul trucks to operate beyond U.S. border zones, as required under NAFTA. In April the Department of Transportation announced details of a new phased-in pilot program that will allow Mexico-domiciled motor carriers to operate throughout the U.S. for up to three years and grant U.S.-domiciled motor carriers reciprocal rights to operate in Mexico for the same period. Read more here.
(DFAIT) Bilateral trade between Canada and Mexico has increased by over 400% since NAFTA took effect in 1994, surpassing $27 billion in 2010. Through the years, Canadian firms secured a strong Mexican presence in various sectors such as banking, aerospace, communication technologies, mining, automotive and advanced manufacturing. However, Mexico has witnessed an increase in violence [...]
(DFAIT)
Bilateral trade between Canada and Mexico has increased by over 400% since NAFTA took effect in 1994, surpassing $27 billion in 2010. Through the years, Canadian firms secured a strong Mexican presence in various sectors such as banking, aerospace, communication technologies, mining, automotive and advanced manufacturing. However, Mexico has witnessed an increase in violence and insecurity in recent years.
Is this a game changer for trade and investment?
This webinar will look at the insecurity situation; its impacts; and will address how companies can best mitigate risks. Whether you already are active in Mexico or simply considering investment or export opportunities, this webinar will provide important information that will help you adapt your strategies and reduce your exposure to potential threats.
This webinar is organized in collaboration with the Canadian Embassy in Mexico and Multilaten Advisors, a security consulting company.
Learn More About This Webinar, and register here.
Date: Thursday, June 2nd, 2011
Time: 1:00 to 2:00 p.m. EDT (Ottawa Time)
Cost: Free
Please register by June 1, 2011.
After the presentation, there will be a 10-minute Q&A period. The presentation will be in English but the speaker will take questions in both French and English. We invite you to provide your questions in advance to marie-pier.brunelle@international.gc.ca. Through the Virtual Trade Commissioner, a) the webinar will be made available for on-demand viewing following the live session; b) participants may also download the presentation slides, in both French and English.
For additional information, please email Marie-Pier.Brunelle@international.gc.ca.
The DOC has extended from April 4 to April 18 the deadline for public comments on ways to address unnecessary regulatory divergences…
(World Trade Interactive)
The Department of Commerce has extended from April 4 (not June 1, as originally reported) to April 18 the deadline for public comments on ways to address unnecessary regulatory divergences in North America that disrupt U.S. exports. Methods under consideration include information-sharing agreements, technical assistance, memoranda of understanding, mutual recognition agreements, collaboration between regulators before initiating rulemaking proceedings, agreements to align particular regulatory measures, equivalency arrangements, and accreditation of testing laboratories or other conformity assessment bodies. Comments received will serve as a basis for discussions with the U.S.-Mexico High-Level Regulatory Cooperation Council and the U.S.-Canada Regulatory Cooperation Council.
