General Rules Relative to the Application of the Customs Provisions of the Treaty between Mexico, the United States of America and Canada

Dear Clients and Friends,

On September 10, 2020, the  Federation’s Official Gazette published the RESOLUTION that modifies the one that established the General Rules relative to the application of the customs provisions of the Treaty between Mexico, the United States of America and Canada, with the corresponding annexes. Said Resolution entered into force on September 11, 2020.

The most important modifications are the following:

Rule 24.1. Pertinent documents

This rule is added to establish that if the merchandise is embarked or transshipped outside the Parties’ territories, the pertinent documents that may be shown or requested by the customs authorities to verify that the merchandise was under control of the customs authority of such non-Party countries, are the following:

1. Storage documents.
2. Copy of the customs control documents.
3. Import and export customs documents.
4. Documents that demonstrate the customs control issued by a competent authority of a non-Party country, different from the customs authority.
5. Documents that demonstrate the customs control issued by an entity authorized by a customs authority that allows it to issue such documents.
6. Any other evidence that satisfies the customs authority.

Rule 25.1. Caption in the origin certification of merchandise considered as originating by article 2.10(2) of the Treaty

This  Rule establishes that when merchandise referred in article 2.10(2) of the Treaty is imported to national territory (Merchandise imported to its territory from the territory of another Party), the certifier must indicate in the valid origin certification the caption “Annex II of the Uniform Regulations regarding the USMCA Origin Rules”. In this case, it will not be necessary that such certification contains the “Origin Criterion” element of  Annex 1 of the Resolution.

Rule 25.2. Certification in a Digital Tax Receipt (CFDI)

This rule is added to establish that an origin certification may be provided in a Digital Tax Receipt (CFDI for its Spanish acronym), as long as the minimum elements of information established in Annex 1 of the Resolution, are included in the complement “Tax Captions” of the Digital Tax Receipt issued according to articles 29 and 29-A of the Federal Tax Code

Rule 28.1. Electronic or digital certification

This rule is added to establish that when a customs authority receives electronically or in digital document a valid origin certification, it will not require its presentation in paper before the merchandise’s dispatch.

Rule 30. Origin certification issued by the exporter

This rule is reformed, to specify that when an exporter, who is not the producer, certifies the origin of a merchandise, such certification may be issued under the basis that the exporter has the following:

1. The necessary information, including the documents, that demonstrate that the merchandise is originating, or,
2. The reasonable confidence in the written declaration of the producer, as well as in the origin certification, that the merchandise is originating. Therefore, for this second case it is clarified that the exporter that is not the producer must have in any case the origin certification issued by the producer.

Rule 31.1. Origin certification. Shipments

This rule is added to establish that the origin certification may cover:

1. Only one shipment of merchandise reflected in one or more customs declarations, or
2. More than one shipment of merchandise reflected in one customs declaration.

Rule 32.1. Impossibility to use origin certification upon an adverse origin verification.

This rule is added to establish that when a customs authority, as a result of an origin verification, determines that a merchandise backed up by a an origin certification applicable to multiple identical merchandise shipments does not qualify as originating merchandise, such certification cannot be used to  import identical merchandise under preferential tariff treatment as of the date in which the determination from the customs authorities produces effects.

Rule 39.1. Notification of negative result from an origin verification

This rule is added to establish that when a customs authority, as a result of an origin verification, provides an exporter or a producer of a merchandise an origin determination, in which it resolves that the merchandise is not originating, the exporter or producer must communicate such determination without delay to all persons to which he provided an origin certification was provided regarding that merchandise.

No sanctions will be imposed to the exporter or producer in national territory that  provided incorrect information if he voluntarily notifies this in writing to each person and authority to which he provided the origin certification, before the authority initiates its audit powers.

Rule 40. Errors or discrepancies

This rule’s second paragraph is amended to specify  that an origin certification cannot be rejected when it is because of  a difference between the “Tariff Classification” indicated in the origin certification and the tariff code declared in the customs declaration.

*Previously the text stated “Tariff Code”

Rule 41. Illegible or defective origin certification

This rule is amended reiterating that in case the customs authority determines that an origin certification is illegible, defective in its pages, or has not been filled out according to  Chapter 5 of the Treaty and the commented Resolution, it will grant the importer a term no less than 5 working days as of the next day of the requirement notification, to exhibit a copy of the origin certification to the customs authority  which corrects the detected irregularities.

Rule 42.1.- Origin documents and registries

This rule is added to establish that for the documents and registries that the importers, exporters and producers must keep to demonstrate that the merchandise is originating, they will be kept to allow the customs authority that performs an origin verification according to  article 5.9 or 6.6 of the Treaty, to make detailed verifications of such documents and registries, to review the information with which the origin certification was completed, and with which the preferential tariff treatment request was made.

Rule 43.1.- Books

This rule is added to establish that for purposes of article 5.8 of the Treaty and rules 42 and 43 of the
Resolution subject to comment, the registries include the  books referred to in the Uniform Regulations.

Rule 44.1.- Obligation to exhibit documents and registries in origin verification

This rule is added to establish that importers, exporters and producers obliged to keep registries according to  article 5.8.(1) and (2) of the Treaty, must provide documents and registries to the customs authority that is performing an origin verification for their review and, in case of a verification visit, they must provide premises for such  review.

Rule 44.2.- Documents and registries without NIF compliance. Correction term

This rule is added to establish that when in the course of an origin verification the customs authority notices that an importer, exporter or producer has not maintained its registries or documents to determine the origin of a merchandise according to the Generally Accepted Accounting Principles in the territory of the country in which the importer, exporter or producer is located, or under any other accepted method of inventory management, the customs authority will grant a 30 days term to register the costs according to  article 4.13 of the Treaty and Annex VIII of the Uniform Regulations.

Rule 59.- Preliminary results report of an origin verification and rejection of preferential tariff treatment

This rule is amended to establish that in case the customs authority has the intention of denying the preferential tariff treatment of the merchandise under origin verification, prior to the issuance of the corresponding determination, it will inform the importer, exporter or producer under verification, the preliminary results of the verification, granting a 30 day term to provide  additional information and documentation that demonstrate that the merchandise is originating.

In case the importer, exporter or producer under verification does not provide additional information or documentation that demonstrates that the merchandise is originating within the abovementioned term, the customs authority will proceed to confirm that the merchandise is not subject to a preferential tariff treatment, according to rule 60 of the Uniform Regulations.

Rule 60.1.- Protection of confidential information in origin verifications

This rule is added to establish that once the customs authority issues an origin determination in writing to the exporter or producer under verification, it must provide the importer of the merchandise such determination, protecting the confidential information received.

Rules 60.2 y 60.3.- Origin verifications of materials

These rules are added to establish the procedure that must be followed by the customs authority , when in the performance of an origin verification of a merchandise imported into national territory it requires to verify the origin of a material used to produce the merchandise.

Also, it is established that, while verifying the origin of  material used in the production of a merchandise, the customs authority may consider such material as non-originating, if the producer or the supplier of such material does not allow access to the information required to determine the material’s origin, for any of the following causes:

1. Denies the access to its registries.
2. Does not respond an information request or a questionnaire; or
3. Does not grant its consent to perform the verification visit within the following 30 days after receiving the notification.

Rule 63.- Customs authority notifications

This rule is amended to establish that the sending and notification of any document issued by the customs authority to the exporter, producer or customs administration of another Party, may also be done by tax mailbox (Buzón Tributario), as it may correspond.

Rule 63.1.- NIF o GAAP use

The rule is added to establish that when the customs authority performs origin verifications, it will admit and apply the Generally Accepted Accounting Principles (NIF in Mexico) applicable in the territory of the Party in which the merchandise is produced or where the exporter is located, depending on the case.

Rule 63.2. Notice of exercise of the option to calculate the Regional Value Content of Vehicles

This rule is added to establish that when a producer of passenger vehicles, light trucks or heavy trucks or other vehicles that are imported to national territory opts to average its calculation of the regional value content, it must notify its election to the customs authority  in the terms established by the Tax Administration Services (“SAT” for its Spanish acronym) through general rules, including the information established in the Uniform Regulations, with at least 10 days before the first day of the producer’s tax year, during which the vehicles will be exported, or a shorter period that the customs authority may accept.

Such notification must be filed before the Central Administration for Audit of Foreign Trade Operations of the SAT, located in Av. Paseo de la Reforma, No. 10, floor 26, Torre Caballito, Col. Tabacalera, Zip code. 06030, Alcaldía Cuauhtémoc, Mexico City and also be sent via email to:  [email protected].

63.3 Notice of exercise of the option to calculate the Labor Value Content of Vehicles

This rule is added to establish when a producer of a passenger vehicle, light truck or heavy truck opts to average its calculation of the labor value content, it must file its election  before the customs authority, including the information established in the Uniform Regulations, at least 10 days before the first day of the producer’s tax year, or a period shorter than the customs authority may accept.

Such notification must be filed before the Central Administration for Audit of Foreign Trade Operations of the SAT, located in Av. Paseo de la Reforma, No. 10, floor 26, Torre Caballito, Col. Tabacalera, Zip code 06030, Alcaldía Cuauhtémoc, Mexico City and also be sent via email to:  [email protected].

Rule 73.1 Anticipated resolutions

This rule is added to establish the possibility to request the issuance of an anticipated resolution regarding the tariff classification of a material; the application of the customs value criteria of a material, or if a material is originating.