18 Jun The Tax Administration Service (“SAT”) warns about irregular imports made by courier and parcel companies
With the “First Resolution of Amendments to the Foreign Trade General Rules for 2024 and its Annexes 2,5, 9, 17 and 22” recently published, SAT has identified that some courier and parcel companies have carried out improper practices in the importation of goods, avoiding the payment of taxes and compliance with Non-Tariff Regulations and Restrictions (“NTRRs”), which could lead to smuggling and fiscal fraud.
On May 30th, 2024, SAT reported that some courier and parcel service companies are carrying out irregular imports, thus avoiding the payment of the General Import Duty (“GID”) and the Value Added Tax (“VAT”).
This derived in an increase of imports of products such as clothing, jewelry, toys, electronics, among others, carried out by e-commerce platforms and courier and parcel service companies, detecting the alteration of such operations, through the manipulation of packages with the purpose of segmenting shipments or undervaluing the goods or altering their description, to avoid compliance with NTRRs, and the payment of GID and VAT.
SAT concluded that the practice of such companies is carried out in violation of the provisions set forth in rule 3.7.35., section I, of the Foreign Trade General Rules (“FTGR”), avoiding compliance with NTRRs, and the payment of GID and VAT, whichs derives on smuggling and fiscal fraud, in terms of the Federal Tax Code.
By virtue of the foregoing, on June 6th, 2024, SAT published the “First Resolution of Amendments to the Foreign Trade General Rules for 2024 and its Annexes 2,5, 9, 17 and 22” was published, through which Annex 5 of the FTGR (Compilation of normative and non-binding criteria in customs and foreign trade matters) considering the following activities as illegal practices: (i) Altering foreign trade operations, manipulating orders, separating them into individual packages with the purpose of undervaluing the customs value of the original order; (ii) Courier and parcel service companies that assist, support, contribute or participate, directly or indirectly, to alter foreign trade operations, in order to unduly apply the customs clearance of the goods in terms of rule 3.7.35, section I, of the FTGR, omitting the payment of GID and VAT, as well as omitting or incorrectly describing the imported goods to avoid compliance with NTRRs; and (iii) Whoever advises, counsels, provides services or participates in the performance or implementation of any of the above practices.
The above will generate greater scrutiny by SAT in operations carried out by parcel and courier companies that could generate negative implications in their operation.
At Cuesta Campos we can assist our clients to undertand the implications of the above. Should you have any comments or questions, please do not hesitate to contact us.
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Alejandro Martínez
Victoria Parra
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