The introduction of the Mexican Carta Porte from 1st January 2022 is a significant development, and it’s the biggest change to Mexico’s electronic invoicing system since 2017. If your business regularly ships packages to customers in Mexico or you’re thinking about exporting there in 2022, you’ll need to know about the changes and how they’ll affect imports and exports to Mexico.
FedEx are experts in shipping services and they’ve helped us get to grips with the new regulations, but please bear in mind that info may be subject to change. Let’s take a look at what info you’ll need to prepare and comply with and how it’ll impact your business.
What is the new regulation?
SAT, the Mexican Tax Authority announced in May 2021 via a Bill of Lading Complement, that they were approving a new consignment note, a “Carta Porte” that must accompany any import, export and domestic shipment in an invoice, detailing the origin, destination and type of goods transported into and through Mexico.
- The origin and destination of goods will be recorded so that any goods moved via ground freight (road or railways), air freight, ocean freight or river freight will all be easily identifiable.
- The legal possession of moved goods and merchandise will be verified.
- The amounts of VAT produced by transportation services will be confirmed.
- Shipping and recipient information will be recorded, including location.
Why has it been issued?
The Mexican Carta Porte has been introduced for a few reasons:
These measures are being put in place to try and counteract the well-documented smuggling issues in Mexico and try to curb criminal activity, such as cargo theft and tax evasion on goods transported in and out of the country. By requiring imports and exports to record origins, midpoints, destinations, the owner, lessees and operators involved in the transport of goods, it’s anticipated that this will prevent the circumvention of tax obligations and smuggling.
Implementing the Carta Porte to improve transparency and increase traceability is a key cornerstone of the SAT’s efforts to tackle evasion, smuggling and theft.
It’s also being introduced so that it professionalises formal trade and provides an international benchmark for all businesses inside and out of Mexico that want to import and export goods.
When will it become mandatory and when should it be issued?
The regulation was announced 1st May 2021 and came into effect on 1st December 2021, but companies have an interim period until 1st January 2022, before the Mexican Carta Porte Supplement is being actively enforced by Mexican authorities and has been agreed as a trial period. Compliance must be adhered to no later than 1st January 2022.
This gives your business time to adjust and get the necessary shipping documentation in place prior to import and export.
The Carta Porte must be added to an Online Tax Receipt (Comprobante Fiscal Digital por Internet – CFDI). There are two types of CDFI, an Income CFDI (CFDI de tipo Ingreso) and a Transfer CFDI (CFDI de tipo Traslado). The CFDI Mexico is the electronic document.
Who needs to use the new supplement?
All businesses that ship packages and goods to and from Mexico will need to comply with the new regulations. This applies to the owners of the goods and the intermediaries supporting the logistics and transport. Any transportation, including land (federal highways, railways), air, sea or river is covered by the supplement.
Importation and exportation through Mexican territory must have the necessary documentation in advance and modes of transport must be able to show a valid Supplement of Carta Porte. The CFDI - Carta Porte is needed before transportation and during the transfer of goods to protect the transfer and possession of the goods.
CDFI of Transfer
- Owners of Merchandise in Mexico will require a transfer CFDI to transport goods through Mexico. So, if you are transporting goods from one location to another in Mexico or when shipping goods to customers abroad.
- If your business uses an intermediary company to arrange logistics and transport of goods via transportation companies then they will also need a CFDI of Transfer to function.
CFDI of Income
- Companies that transport goods by water, air, road and rail, on behalf of businesses will also be subject to regulation and will need a Carta Porte Supplement. They should also ensure that they have all of the current documentation that can prove the legal status of the goods in question.
It’s highly recommended that your business gets in touch and consults with partners in Mexico so that arrangements can be put in place and you can ensure your compliance with the regulations to avoid mistakes or non-submission.
The information detailed in the Mexican Carta Porte Supplement includes but is not limited to the transport used to move goods, category of product, the packaging, weight, quantity, insurance, driver and vehicle info, info about shipping location and recipient.
What are the Penalties and Sanctions?
A business could be subject to fines if it does not comply with the Mexican Carta Porte Supplement, which can be costly and could result in closures of the Mexican companies involved for three to fifteen business days, affecting supply chains and trade. Non-Deductible VAT can be applied, so that VAT charged by haulage companies can’t be deducted
This would have an effect on your ability to carry out business in Mexico, but also a knock-on effect on all of the other moving parts involved in the transfer and transportation of goods, such as removing driving permissions.
Checks can be carried out randomly by the Authority of Roads and Transportation if goods are being transported by public road and they have the power to seize goods without the correct documentation.
Do FedEx ship from the UK to Mexico?
Yes, you’ll still be able to make shipments into Mexico from the UK, but you must ensure that the Waybill (Carta de Porte) supplement is completed with the required information. Here you can find the info Fedex needs for each domestic or international transfer.
The Latin American team, known as CARE (Cartaporte Enabler) will help with shipments and the required supplemental data can be provided by the shipper via one of the following options:
- Fedex.com page for Mexico
- CARE API
- ShipFast software
Can I still ship from Amazon/Etsy/eBay to Mexico?
Amazon - AmazonGlobal Export allows businesses to send goods to Mexico. By using AmazonGlobal Export, your business authorises Amazon to confirm a Designated Carrier to act as your direct or indirect representative/agent with the necessary customs and tax authorities in Mexico, to clear your merchandise, process and remit your Import Fees (if any) for each item. Amazon and its fulfilment centres will not serve as the Importer Of Record (IOR) in Mexico, the importer of record must comply with all laws and regulations of the country in which you're receiving the goods.
It’s advisable that if you need further details regarding documentation or receipts in connection with customs clearance, you should contact the Carrier that Amazon will send you details for.
eBay - When shipping from eBay, you can send shipments via the Global Shipping Programme, but an item’s price cannot exceed £2,500 to Mexico. You can send it to the UK Shipping Centre where the rest of the process and international tracking will be taken care of. There may be additional eBay listing fees that apply to you and your buyer.
Etsy - When you ship via Etsy you must comply with all local and international delivery and customs regulations and the label you download acts as both your postage label and customs form. Documentation requirements vary by country, so for Mexico, you should consult with the postage carrier for further details.
Shiptheory is fully integrated with FedEx and enable extensive international delivery services, including Mexico, that can be managed from an easy-to-use platform for a seamless shipping process.