Mexico, with the purpose of increasing its economy and as a commercial strategy, decided to become a member of the GATT (General Agreement on Customs Tariffs) in 1986. The main idea was to increase income through the sale of goods and services produced in the country through exports and imports. To achieve this objective, the country had to comply with the rules and disciplines set by the World Customs Organization (WCO) to increase the efficiency of customs administration and contribute to the economic well-being and social protection of its members.
Today, customs in Mexico have been modernized, with a good infrastructure to expedite the entry and exit of goods. For this reason, the inspection points have the latest technology to verify that contributions have been paid correctly and that tariff and non-tariff regulations have been complied with.
Among the obligations of those who import or export goods from the national territory is to allocate them to a customs regime and provide the documents that prove they are legally imported according to the tariff specifications. Some common issues that arise in non-compliance are the determination of transactional value, incorrect documents for non-tariff regulations and restrictions, incorrect documents for the origin of goods, countervailing duties, quotas, marking of origin, and incorrect tariff classification.
The Customs Law, in its article 42, establishes the preliminary recognition of goods when their characteristics are unknown. By applying this right, the reliability of the information declared in the "pedimento" (Mexican customs declaration document) is guaranteed, avoiding fines and penalties. Knowing the characteristics of the goods before preparing the “pedimento” helps to confirm:
For this reason, it is very important to carry out the preliminary recognition to confirm the information that will be declared in the “pedimento.” There are two ways to do this:
The tariff classification depends on the correct identification of the goods. If at the time of the customs preliminary recognition, the goods are different from those declared, the tariff number will change, requiring compliance with new tariffs and restrictions. Any noncompliance with these points would be in violation of the law, resulting in sanctions such as fines or the embargo of the goods for the importer or exporter.
Noncompliance with any of the points listed above will result in the customs authority imposing a precautionary embargo. According to Article 151 of the Customs Law, cases of omission are included, such as:
When an administrative procedure is initiated by the authority, not only is an embargo imposed, but fines are also applied, resulting in added costs and delays in the release of the goods, as well as increased logistics costs.
Conducting a preliminary review is a useful tool for ensuring that the information declared in the "pedimento" and the imported goods are in compliance, and to avoid any delays or additional costs. It is important for those responsible for this task to be well-trained, constantly updated on regulatory changes, equipped with the necessary tools for proper execution, and knowledgeable about the types of goods they are inspecting, including their use, function, and nature.
Enrique Álvarez Huerta is a graduate in International Trade from the National Polytechnic Institute and a student of the Master’s degree in Customs Law and Foreign Trade at CUEJ (University Center for Legal Studies). He currently works as Classification Analyst at CATTS Americas, as part of our global team of trade experts. The above article was recently published in Spanish in the CUEJ - research and legal studies magazine.