Mexico custom audits
One major benefit of Mexico’s IMMEX program is the ability to temporarily import most fixed assets for the life of the IMMEX program without incurring value added taxes or import duties. In addition, raw materials or subassemblies may be temporarily imported and receive the same benefits for a period not to exceed 18 months. However, there are many compliance requirements including keeping an inventory system in accordance with the IMMEX rules, proper segregation of goods, and submitting all necessary customs paper work on a timely basis. If the Company does not follow the compliance requirements for the assets temporarily imported under its IMMEX program, penalties may include a fine of up to 500 percent of the value of the goods. Most recently, we have seen the Mexican Customs authorities are increasing their number of random audits.
Have you seen an increase in requests from customs authorities? Is your company keeping up on the compliance requirements?