Electronic Audits by the Customs Authority in Mexico
Based on the Customs Valuation Agreement of the World Trade Organization, the customs authority of any country has the power to doubt the veracity of the information presented regarding the value of imported goods. In this sense, following the faculty granted by the mentioned International Agreement, the Mexican customs authority has determined the causes that will take into account to reject the customs value of imported goods. The table below shows a summary of some of the most important causes:
Accounting of the Mexican enterprise
Documents provided by the suppliers aboard to the Mexican importer
The importer opposes the exercise of the verification faculties of the customs authorities, or it is detected that the importer has incurred in any of the following behaviors:
Not keeping the accounting, or not keeping it according to the principles and legally applicable precepts; not make the accounting available to the customs authority.
Omitting or altering the records of foreign trade operations.
Omitting the presentation of the tax return exercise of any contribution until the moment at which the exercise of verification faculties begins.
Not meeting the requirements of the customs authorities to present the documentation and information proving that the declared value was determined according to the legal provisions.
If it is established that the value declared by the importer was not determined following the customs laws, upon updating any of the following assumptions:
In the documentation or information provided to justify the customs value of the merchandise that has been declared, it is not possible to corroborate its veracity or accuracy. In the case of having used the method of the transaction value for their determination, it is not reliably proven the price that was actually paid or will be paid for the mentioned merchandise;
Any payment not justified to suppliers and exporters of the merchandise is detected in their accounting. It is known, derived from an international certification, that the alleged supplier of the merchandise did not make the sale operation to the importer or denies having issued the invoice presented by the importer in the petition; or
When the value declared in the petition is 50% or lower than the transaction value of identical or similar goods determined following the customs laws.
The Mexican tax and customs authorities will have full faculty of electronic revision. They will be able to review all payments made abroad related to the purchase of foreign merchandise imported into Mexico.
In this sense, the situation becomes delicate when the Mexican customs authority reviews the movements of money abroad and when the movements of money do not exist in the accounting records or are not justified to the satisfaction of the mentioned authority. Then, there will surely be a rejection of the customs value of the merchandise, which could lead to the omission of taxes, having to be paid along with their accessories, and the consequent payments of the corresponding fines.
In the case that your enterprise has branches in Mexico, such as trading companies or manufacturers, we recommend you to ensure that accounting is carried out following the applicable legal principles and precepts; make correct payments abroad that are related to merchandise imported into Mexico and relate them to the accounting entries, to avoid unnecessary inconvenience from the Mexican tax and customs authorities.
If you have any questions about the incremental or decrementable concepts that must be declared in the import petition or the accounting, please do not hesitate to contact our team of professionals.
Written by Baker Tilly Garza García,
Members of Allinial Global
Jorge Hernandez Parra
M: +52 1 81 8396-3872
Alejandro Angeles Acosta
M: +52 1 81 1707 5378
José Ángel Blanco M.
M: +52 1 56 1584-0019
Juan Carlos Castro
M: +52 1 442 154 99 54