TITLE: CUSTOMS PROCEDURES FOR EXPORTING TO MEXICOSUBJECT COUNTRY(IES): MEXICOPOST OF ORIGIN: TIJUANASERIES: INDUSTRY SECTOR ANALYSIS (ISA)ITA INDUSTRY CODE: ZRGDATE OF REPORT (YYMMDD): 020329DELETION DATE (YYMMDD): 050329AUTHOR: JUDITH VALDESAPPROVING OFFICER: RENATO DAVIAOFFICERS TITLE: COMMERCIAL OFFICERNUMBER OF PAGES: 20INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2002. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.SUMMARY: The following guide presents the customs regulations, formalities and practices to be followed when exporting to Mexico from the U.S. All products exported go through a customs clearance before entering the country. This clearance includes the consent of the U.S. Customs authority to export the products from the U.S. and the corresponding authorization of the Mexican Customs authority to import them. Before shipping the products to Mexico, the exporter must be sure the Mexican company importing the products is properly registered with the Mexican authorities as an importer. A Mexican Customs broker (MCB) is required to process all commercial exports and the use of a U.S. Customs broker (USCB) is strongly recommended. The MCB will prepare the customs entry form, better known as Pedimento de Importacion the only document Mexican Customs Office (MCO) will accept for clearing the import of products into the country. He will also make sure the products comply with all regulations and standards. The USCB prepares the Shipper Export Declaration (SED), a document required by US Customs to expedite the shipment. He will also make sure that products under export controls comply with them. A significant part of this report makes reference to the North American Free Trade Agreement (NAFTA) that came into effect on January 1, 1994. Nafta is a preferential agreement between the United States, Canada and Mexico which will lead to the elimination of tariffs on the majority of the products originating in the participating countries over a period of fifteen years. U.S. exporters should keep in mind that only the Nafta text itself and the customs regulations are definitive in the export process of U.S. products to Mexico. End Summary.1. Following is a glossary of terms mostly used in the export process to Mexico:Aduana (Mexican Customs Office). It is part of the Servicio de Administracion Tributaria, a branch office of Mexicos Ministry of Treasure (Secretaria de Hacienda y Credito Publico -SHCP) in charge of direct inspecting all imports of products into the country. Mexico has 46 ports of entry for commercial purposes, including land, air and sea. Agente Aduanal Mexicano (Mexican Customs Broker). Individual authorized by SHCP to handle on behalf of a US company the import of products into Mexico. He is a specialized agent in international trade and is responsible for the veracity and accuracy of the information provided. This includes the determination of the customs regimen under which the merchandise is being imported, the correct classification of the products, and the fulfillment of all regulations and restrictions not related to import duties (according to the Mexican Customs Law and other laws that may apply).Arancel Ad-Valorem (Ad-Valorem Import Duty). It is a duty charged to a product imported into Mexico based on a percentage of the value of the product. It is published in Mexicos Duty Tariff Book.Base Gravable (Taxable amount to the General Import Tax). It is the value of the product considered for import duty purposes. In some cases, the amount paid by the buyer and reflected in the invoice does not correspond to the real value of the goods. In those cases, MCO estimates the value based on a recent import of a similar product in any other commercial port of entry in Mexico. According to an officer of Mexican Customs, it is a common practice to reduce the price of the goods imported to avoid paying high import duties, and in an attempt to control this, his office is creating a database with all imports into Mexico and the corresponding price. When there is an issue on the price of a product, MCO contacts other ports of entry for costs of similar products imported and takes it as the taxable cost for import duties.Bien Originario (Originating Good). A product that complies with the rules of origin established in Nafta and receives best preferable import duties when imported to Mexico.Cuotas Compensatorias (Compensatory Quotes). Duties imposed on certain products originated in a country (ies) that are being imported violating international trade laws, such as dumping.Cupos de importacion (Import Quotas). Quantity of products and periods of time in which imports of certain products are allowed into Mexico.Fraccion Arancelaria (Customs Tariff Clas