How to prepare for customs audits in Mexico and avoid penalties

International trade in Mexico requires strict compliance with customs laws and regulations. Customs audits are reviews conducted by tax authorities to ensure that import and export operations are carried out in accordance with established rules. Being unprepared for an audit can result in penalties, fines, and even the suspension of commercial activities.

In this blog, we’ll explain how to prepare for a customs audit in Mexico and what to keep in mind to avoid penalties, according to the country’s laws and regulations, such as the Customs Law and the Federal Tax Code (CFF).

What Is a Customs Audit?

A customs audit is a process in which tax authorities, like the Tax Administration Service (SAT), review the documentation and operations of a company’s imports or exports to ensure all customs and tax regulations have been followed. These audits can be either scheduled or random, and their goal is to verify that:

• Taxes, duties, and tariffs have been properly paid.
• The declared products match the physical merchandise.
• Customs procedures have been followed as required by law.

How to prepare for a Customs Audit

1. Keep Your Documentation Organized One of the most important requirements to avoid penalties is to have all documentation complete and accessible. This includes:
   • Import or export customs declarations.
   • Commercial invoices.
   • Certificates of origin (if applicable).
   • Proof of payment of duties and taxes.
   • Transport documentation, such as air waybills or shipping invoices.
   The Customs Law requires that documents related to customs operations be kept for at least five years, so ensure everything is in order and easily accessible in case of an audit.
2. Correct Tariff Classification Proper tariff classification of products is essential. Make sure you are using the correct Harmonized System (HS) Code to avoid penalties for misclassification of goods. If you are unsure about the classification, working with a customs broker can help prevent costly mistakes.
3. Compliance with Non-Tariff Regulations In many cases, paying the correct duties is not enough. Mexico has non-tariff regulations that include special permits, health certificates, and licenses that may be required depending on the type of merchandise. Make sure you are complying with all these regulations to avoid issues.
4. Use of Strategic Bonded Warehouses If you use bonded warehouses to store goods before they are cleared by customs, ensure compliance with the regulations governing storage and declaration of goods. Improper use of these facilities can lead to additional penalties.
5. Monitor Legal Changes Mexican customs legislation is constantly evolving. Stay informed about any changes to regulations that may affect your operations. Working with legal advisors or a trusted customs broker is key to keeping your company up to date with new legal requirements.

Penalties for Non-Compliance with the Customs Law

Failure to comply with customs regulations can result in significant penalties. Some of the most common penalties include:

• Fines: These can vary depending on the severity of the infraction, such as errors in tariff classification or failure to pay duties.
• Seizure of goods: Authorities can seize merchandise if they detect serious irregularities until the issue is resolved.
• Suspension of customs operations: In more severe cases, companies can be temporarily suspended from conducting foreign trade operations.

Penalties are outlined in the Federal Tax Code (CFF) and the Customs Law, so it is vital to comply with all regulations to avoid these risks.

At Remar International, as experts in customs agency in Mexico City (CDMX), we specialize in helping you comply with all legal requirements for the clearance of goods, both for imports and exports. Our specialists guide you through each step of the customs process, ensuring that all your documentation is in order and that you comply with Mexican regulations.

From the correct classification of your products to handling permits and certifications, we provide reliable service so you can avoid penalties and keep your business running smoothly. Trust Remar International to manage your customs processes with maximum efficiency and peace of mind.

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