The Importance Of Pedimento Codes For The IMMEX Customs Regime – International Trade & Investment

In Mexico, a customs regime is the destination or treatment for
goods subject to customs control in accordance with the nature and
purposes of a customs operation. Companies with an IMMEX program
may perform operations under the so-called customs regime of
“temporary importation for elaboration, transformation or
repair under a maquila program”. This name by itself implies
several facts to consider. For example, since the importation of
materials is temporary, these should not stay in the country for
consumption because they must be returned abroad within a specific
period of time, and the specific reason they were imported into
Mexico must occur. Thus, if the IMMEX was authorized to produce
goods classified under a specific harmonized tariff code, it must
import and use the materials to produce such goods only and in
accordance with the authorized production process. Also, to be able
to control and monitor these as well as the destination of the
materials and goods, production processes, periods of times, import
duty, value added tax, etc., a detailed inventory and customs and
tax recordkeeping is needed.

To comply with these and any other requirements, IMMEX must
observe a broad set of rules and guidelines. However, all starts
with identifying the correct codes to be listed on the
corresponding pedimento¹, because depending on these,
one will be in a better position to identify those requirements,
including the data, information and documentation needed to manage
and trace operations, show consistency and comply with the law.

A considerable amount of information and data on the pedimento
is declared by means of various codes. The code that identifies the
IMMEX customs regime is “ITE”. This must be declared at
the very top of the pedimento corresponding to a customs operation.
Also, there are additional hundreds of codes to identify the
customs checkpoint, means of transportation, countries, currencies,
units of measure, trade and non-trade barriers, type of containers,
valuation methods, forms of payments, guarantees, hazardous
materials, identifiers for various operations, scenarios under
customs regimes, among others. These can be found under Annex 22 of
the General Foreign Trade Rules.

For example, 76 codes subdivided in 176 scenarios exist just to
identify the different scenarios under the various customs regimes.
The specific codes under the IMMEX customs regime are:

• IN
  

  • to temporarily import goods for the elaboration, transformation
    or repair

  
  

  • to return to Mexico goods produced by an IMMEX program after
    being rejected by the foreign recipient due to defects or different
    specifications.




• AF
  

  • to temporarily import fixed assets




• RT
  

  • To return goods produced under an IMMEX program

  
  

  • To return goods in the same condition as imported into
    Mexico

  
  

  • To return special options incorporated into vehicles exported
    by the automotive industry under an IMMEX program.

Within the above 76 codes and subdivisions, there are other
codes an IMMEX could use depending on the customs operation and
business transaction. For example, if the IMMEX performs a virtual
transfer² with another IMMEX, it could use code
“V1”, if the virtual transfer is performed by a certified
IMMEX to a Mexican resident that will import the good for
consumption, it could use code “V5”, or if the IMMEX
needs to correct a pedimento it could use the “R1” code,
or to transfer scrap for donation it could use code “V9”.
Thus, identifying the correct code may be a complex task because
there are many more different codes, and it could be possible that
a code for a specific IMMEX operation may not be available in the
law, or as the case may be, that two or more codes may seem to
potentially apply or even conflict with a single operation.

Regardless, depending on the codes declared on the pedimento,
the IMMEX will be required to show consistency between these codes
and the other information and data declared on the pedimento, as
well as in documentation to be attached to the pedimento and/or
maintained in its inventory and recordkeeping.

Therefore, selecting and declaring the appropriate code is
critical to identifying the requirements and documentation needed
to manage and trace IMMEX operations, ensuring conformity and legal
compliance. Having the assistance of experienced professional
advisors is crucial in this regard. In the event of an inspection,
audit, or review, a Mexican customs officer will typically examine
the pedimento codes to determine the specific customs regime,
operation, and circumstances involved. This, in turn, will help
assess the obligations and formalities that apply to the regime and
verify whether the IMMEX is in compliance with the law.

Disclaimer: This publication is presented to you for
informational purposes only and is not intended to provide legal
guidance or advice. Please email us if you need specific
information regarding the above or give us a call, we are happy to
speak with you.

¹A Pedimento is a MX customs document generated and
submitted before Mexican Customs electronically. It includes
information regarding the duties, taxes and fees including
regulations as well as the traffic, customs regime, and other data
about the compliance with formalities for the entry and extraction
of goods in and out of Mexico.

²A virtual transfer can be explained as a legal
fiction of the law about an import, export or return of goods
without the need to present the goods physically before MX customs.
Instead, the corresponding documents and data is submitted before
the authority. Generally, under a virtual transfer an IMMEX is
allowed to transfer the temporarily imported goods to another IMMEX
for specific purposes.

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The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.