Western Maquila Trade Association August 17, 2011

Foreign Trade Rules for 2011

Background Published June 29, Effective as of July 31, Basically the same as last year.

Highlights Electronic Information. –It is deemed that any information that is sent electronically is filed by the taxpayer. –If there is any discrepancy between the information that is sent electronically with the information stated in the pedimento, the first will prevail.

Highlights No need to perform transfers. No need to perform virtual transfers in the event of a merger or spin-off. Cancelled IMMEX Programs. Can now transfer goods once a company request the cancellation of its IMMEX program. This only applies if the Ministry of Economy has not began a cancellation process.

Highlights Transfers. –Several changes. –Minimizing some risks of exposure and allowing companies to file import/export documents outside the prescribed term, provided that no audit has began. –Now only 3 things to prove for the actual transfer. Be aware of the documents that need to prove that the goods were shipped.

Certified Companies A favorable opinion by the Hacienda about compliance of tax obligations is now required to request registration. Rules about sales from US entity and having the certified company virtually delivering the products to a Mexican entity have been postpone until October 1 st., 2011.

Certified Companies The benefit of applying a 70% reduction in fines for the virtual return of goods that have exceeded the 18 month period has been extended to October 31, 2011.

Rectifications Importers will have 30 days to request authorization to the customs authorities to rectify information with “evident errors” that implies that with such errors it is impossible to carry out. 3 months to rectify tariff item number (fraccion arancelaria).

Rectifications Introduction of value reconciliation. The purpose is to adjust teh value for permanent import declarations filed within a tax year. –One complementary import declaration can be file.

Thank you. Leobardo Tenorio-Malof Blvd. Sanchez Taboada No Torre Platino Zona Rio Tijuana, Tijuana, B.C E. San Ysidro Blvd. Suite B3-808, San Ysidro, CA MX (664) US (619) TP Legal S.C. es miembro de PROLEGAL, una alianza profesional con oficinas en las ciudades de Monterrey, Chihuahua, Guadalajara, Cancún y Ciudad de México.