Important changes to benefits to companies with Registration in the Companies´ Certification Scheme in the VAT and IEPS modality
Edmundo Elías- Fernández
On July 24, 2020, the Secretary of Finance and Public Credit published in the Federal Official, the First Resolution of Modifications to the Foreign Trade General Rules for 2020 (“Modifications to the FTGR 2020”), which, except for some rules, entered into force on July 25, 2020.
With the entry into force of the Modifications to the FTGR 2020, changes are made that will dramatically impact IMMEX companies with the VAT and IEPS Registration.
As for the requirements for obtaining and permanent compliance for certified companies, an annual payment of fees is established (to date, the amount is MXN $ 28,889.87).
Regarding the benefits for certified companies that were previously divided, depending on the modality that was granted to the company (A, AA, or AAA), these benefits were reduced to only five benefits applicable to all certified companies regardless of the modality granted.
What are the benefits that remained for VAT and IPES Certified companies?
The 5 benefits established in the Modifications to the RGCE 2020 are the following:
1. Tax credit for VAT (Value Added Tax) and IEPS (Special Tax on Production and Services) on temporary imports.
2. Joint customs clearance for IMMEX companies in the electrical or electronic, auto parts, aircraft sectors, and the terminal automotive industry.
3. Change from temporary to permanent regime of companies with IMMEX Program service modality, of the parts and components that a company transferred by a company in the auto parts industry, for its transfer/sale to the terminal automotive industry.
4. Companies with IMMEX Program that manufacture recreational and sports boats may deliver them within the national territory.
5. IMMEX companies in the auto parts industry will be able to register in their inventory control system, goods that were sold to the terminal automotive industry.
What benefits were eliminated?
Among the benefits eliminated, following is the list of those which we consider will affect certified companies significantly:
1. Elimination of preferential terms for VAT refund.
· A modality: 20 days.
· AA modality: 15 days.
· AAA modality: 10 days.
2. The term to return temporarily imported goods (the 36 months is reduced to the standard prescribed term established in the Customs Law of 18 months).
3. Immediate registration with the Importers/Exporters´ registry of Specific Sectors.
4. No obligation to file the Customs Value Declaration.
5. The term of 60 days for compliance with non-tariff regulations for the replacement of the preliminary seizure of goods.
6. Submission of a letter with the spontaneous compliance on irregularities on foreign trade transactions.
7. Invitation letters for compliance of Customs obligations (AA and AAA modality).
8. The period of 3 months to rectify the pedimentos without authorization (AA and AAA modality).
9. Virtual transfers with pedimentos code V5 (AAA modality).
When will these modifications take effect?
The modification became effective a day after its publication, except as otherwise provided.
Regarding the annual payment of fees for the authorization and/or renewal, they will become effective, with the entry into force of the Modifications to the FTGR 2020.
Regarding the modifications to the benefits for companies with Registration in the Companies´ Certification Scheme in the VAT and IEPS modality, the following will be applied:
· For companies that obtain their authorization after the entry into force of the Modifications to the FTGR 2020, the provisions set forth in the Modifications to the FTGR 2020 will be applicable.
· For companies that have their registration in effect and during the validity indicated in the last official letter (1, 2, or 3 years), the FTGR 2020, published on June 30, 2020, in the Federal Official Gazette, will be applicable.
In the following link you can find the Modifications to the FTGR 2020:
http://dof.gob.mx/nota_detalle.php?codigo=5597284&fecha=24/07/2020
We are at your service with any questions, as well as for the implementation of strategies for compliance with the new provisions.
For more information in this regard, please do not hesitate to contact the members of our Tax and Foreign Trade team.
Lic. Edmundo Elías-Fernández
