CASAS International - International Trade News

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MAQUILADORA 2001 CUSTOMS CHECKLIST
	NAFTA article 303 takes effect in January 1, 2001, however Mexico will start duty collection procedures on November 1, 2000, to take advantage of the 60-day collection duty clause on the revised Maquiladora Decree. The decree also being fully implemented on January 1, 2001 will affect many Mexican manufacturing facilities working under the current "Maquiladora Program" structure. Please note this is a Mexican issue and should be dealt directly with your Mexican Customs Broker. CASAS International Brokerage, Inc. has provided the following summary and "Maquiladora 2001 Customs Checklist." We have been actively involved with various organization committees to prepare for the upcoming changes. We feel this issue may also affect your US Customs NAFTA claims. Although this is a Mexican government issue and nothing has been clearly defined by them as of April 2000, we will be informing you of the latest news and updates. If you have any questions please email or call Arturo Martinez at a.martinez@casasinternational.com or 619-661-6162, ext. 423. A. What's happening in 2001? Why is it important? How are manufacturing facilities in Mexico going to be affected? 1. NON-NAFTA territory components or raw materials imported to Mexico will be paying duties 60 days after incorporation in the finished product and its exportation from Mexico. B. Information gathering process by traffic department 1. Pin point and list outside NAFTA territory raw material components. 2. Confirm with US and Mexican brokers that these outside NAFTA territory Harmonized Tariff Schedule (HTS) classification numbers are classified correctly. 3. Make sure proper classifications match to the sixth digit for both US and Mexican customs. 4. Make sure proper classifications are listed and being used for NAFTA analysis of finished product. 5. If classification does not match and / or is incorrect make sure product is physically inspected. If proper classification does not match after discussing with brokers and customs make sure other legal measures are taken. 6. Apply commodity classification for duty reduction to Secofi under a "Sector Program" [Programa Promocion Sectorial (PPS)] 7. Once proper classification procedures have been taken care of on the Mexican side, make sure NAFTA analysis of finished products are updated. C. Follow documentation procedures under Article 8A of Maquiladora decree as published in the Mexican Diario Oficial on November 13, 1998 (see excerpt from Decree) when presenting duty payment to Hacienda. 1. Provide copy of importation "pedimento" of raw material 2. Provide copy of exportation "pedimento" of finished product, which uses the previously imported raw material (NON- NAFTA territory) classification. 3. The exporter of record (Mexico) must provide a letter under penalties of perjury, that the documentation obtained from the importer of record (US) is correct. Attachment of 7501 may also be necessary as proof for finished product classification.

IF YOU NEED ASSISTANCE ANALYZING YOUR PARTICULAR PRODUCT PLEASE EMAIL OR CALL ARTURO MARTINEZ AT services@casasinternational.com
619-661-6162, Ext. 423

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