QUESTION/ANSWER FORUM: MEXICO CUSTOMS AND REGULATIONS

THE SCARBROUGH GROUP Est. 1984 International Freight / U.S. Customs Est. 1988 Own Trucking Fleet Est. 2003 NVOCC Operations Est. 2014 NAFTA Truck Brokerage Est. 2015 Freight Forwarder / Mexican Customs

ABOUT THE SPEAKERS ADAM HILL LCB, CCS VICE PRESIDENT, OPERATIONS SCARBROUGH INTERNATIONAL, LTD. SCARBROUGH DE MEXICO DE S. DE R.L. DE C.V. AHILL@SCARBROUGH-INTL.COM T: 816-584-2409 RITA GONZALEZ US-MX OPERATIONS MANAGER SCARBROUGH INTERNATIONAL, LTD. SCARBROUGH DE MEXICO DE S. DE R.L. DE C.V. RITAG@SCARBROUGH-INTL.COM T: 956-791-9504

MX PORTS OF ENTRY 19 PORTS ON THE USA BORDER 17 OCEAN PORTS Acapulco Altamira Cancún Ciudad del Carmen Coatzacoalcos Dos Bocas Ensenada Guaymas La Paz Lázaro Cárdenas Manzanillo Mazatlán Progreso Salina Cruz Tampico Tuxpan Veracruz 11 INTERIOR PORTS Intl Airport México City Aguascalientes Chihuahua Guadalajara Guanajuato México Monterrey Puebla Querétaro Toluca Torreón 2 PORTS ON THE SOUTH BORDER Ciudad Hidalgo Subteniente López Agua Prieta Ciudad Acuña Ciudad Camargo Ciudad Juárez Ciudad Miguel Alemán Ciudad Reynosa Colombia Matamoros Mexicali Naco Nogales Nuevo Laredo Ojinaga Piedras Negras Puerto Palomas San Luis Río Colorado Sonoyta Tecate Tijuana

SCARBROUGH INTERNATIONAL, LTD.

VUCEM Ventanilla Unica de Comercio Exterior Méxicano Single Window for International Trade and Paperless Customs

ARTICLE 036A Information required to transmit or to scan electronically: Commercial Invoice (COVE) Requirement details next page Packing List Product Identification Numbers (part numbers, serial numbers, ISBN, etc.) Certificate of Origin Permits, Licenses, Certifications, etc. Importer Declarations Mexico Exportations (North-bounds) As of January 2014 is mandatory to submit to the Mexican authorities the commercial invoices electronically (CFDI = Digital Internet Tax Receipt). Effective July 2016, the Mexican shipper must declare the government tax receipt seal in all their final exportations. Example: Seller invoice # MX1234 SAT # 9EE08EAE-6CEE-42A2-A55E-87B76921E32A

COVE Comprobante de Valor Electronico Commercial Invoice (COVE) Place and date Invoice number Consignee s name and address Product ID and Detailed description of the goods Quantity, unit, and value for unit Total commercial value and currency Seller s name and address

MEXICAN CUSTOMS REGULATIONS Documents required in support of the valuation of the imported goods. (Reference: Article 81) The importer must provide to the broker: Commercial Invoice Bill of Lading Packing List Certificate of Origin Warranty Customs Account (goods under benchmark price) Proof of Payment: wire transfer or letter of credit Freight Forwarding, Transportation, & Insurance bills Buyer & Seller Contracts to the purchase of the goods Bills for other charges: packaging material, handling fees, etc. Documents must be available prior to importation.

NON-TARIFF REGULATIONS & RESTRICTIONS New measures to prevent undervaluation of imported goods Footwear Industry (Chapter 64) Textile Industry (Chapter 50-63) Metallurgic (72-73) The importers must be registered in the Specific Importers Registry Estimated prices are determined Permit to import steel products (5 days to get approval) Secretary of National Defense (SEDENA) Products governed by the provisions of SEDENA not to be used for arms, ammunitions and explosives: General permit Official notice filed 20 days prior to importation

MAQUILADORA / IMMEX Allows raw materials to enter MX duty-free as long as they are used to manufacture (or assemble) products for exports. Beginning of 2015, the VAT exemption is eliminated 16% VAT applies to maquiladora imports Apply for VAT certification: A AA AAA File for a refund claim

TRADEMARKS Rule 3.1.34 Trademark (Annex 30) Cigarettes Alcoholic beverages Perfumes Handbags Footwear Articles of apparel Headgear Sunglasses Watches Codes: The importer is the holder of the trademark rights The importer has authorization to use and distribute the brand The products do not have a brand The products have a brand, but are not registered with the IMPI

TRADEMARKS Types of Brands: 1. Nominative: Names 2. Innominate: Symbols or images Nike, Reebok, Apple, Coca-cola 3. Tridimensional: Container or tridimensional figure: 4. Mix: Name and symbol

ARTICLE 227 & 228 Failure to comply with any Non-Tariff Regulation or Restriction will be a cause for the Mexican authorities to initiate the process to cancel the broker s license and the importer s authorization. This involves all OGA requirements such as: Permits, Licenses, Disclaimers, Labeling, Marking, Dual Use, Vulnerable Activities, etc.

ABOUT THE SPEAKERS Best to Buy on Best to Sell on KEVIN EKSTRAND LCB, CCS VICE PRESIDENT, SALES & MARKETING SCARBROUGH INTERNATIONAL, LTD. KEKSTRAND@SCARBROUGH-INTL.COM T: 816-584-2414 KATE MELLOR INTERNATIONAL ECONOMIST OFFICE OF TRADE NEGOTIATIONS & ANALYSIS U.S. DEPARTMENT OF COMMERCE INTERNATIONAL TRADE ADMINISTRATION KATE.MELLOR@TRADE.GOV T: 202.482.5456

MEXICO REGULATIONS QUESTION/ANSWER FORUM: MEXICO CUSTOMS AND REGULATIONS