Monterrey, Nuevo Leon November 1st, 2024
On October 14, 2024, the Second Resolution of Amendments to the 2024 General Foreign Trade Rules («2024 GFTR») and its Annexes 1, 2, 5, and 24 were published in the Official Gazette.
This Resolution introduces new requirements for companies registered or applying under the Certification Registry Scheme («CRS») in any of its modalities. Notably, a new “Section C” has been added to the requirements for implementing an Inventory Control System in accordance with Annex 24.
Section C stipulates that the automated inventory control system must electronically capture information on catalogs, entries, exits, materials used, and fixed assets within a maximum of 48 hours, with the remaining information to be provided at the time of customs declaration.
Furthermore, companies are required to submit a notice to the custom authority, disclosing the username and password for online access to the newly implemented Section C of Annex 24.
This measure has faced criticism for infringing upon fundamental rights by requiring taxpayers to grant authorities direct, real-time access to their automated systems, potentially leading to intrusive actions without a duly substantiated and motivated order. Such access may lead to penalties or even the suspension or cancellation of the CRS, violating taxpayer´s rights against self-incrimination and exceeding the regulatory powers granted by law.
According to the transitional provisions in the Resolution of Amendments, companies with pending applications or active CRS registrations (for VAT and Special Tax on Production and Services, categories A, AA, AAA, Trading Company, OEA Importer, and Certified Trade Partner) must comply with the requirements effective as of their application, with the exception of the new inventory control requirements under Section C of Annex 24, which must be implemented by November 15, 2024.
Therefore, applicants and registered companies with pending applications must now, in addition to the previous requirements, comply with Section C.
Non-compliance with this requirement could lead to the cancellation of the CRS, even if it was not applicable at the time of registration.
Taxpayers who view these new requirements as unconstitutional or non-compliant with international standards may challenge the 2024 GFTR through available legal means according to their specific circumstances, whether to obtain the CRS, maintain a pending application, or renew an active registration. It is important to remember that VAT and Special Tax on Production and Services Certification is valid for one year and must be renewed within 30 days prior to expiration.
The tax attorneys at the Firm are available to address any questions or concerns regarding this communication and to discuss potential defense strategies.
Sincerely,
Gerardo Nieto
Gil Zenteno
Alejandro Barrera
Victor Barajas
Francisco Matus
Norberto A. Ruiz
José Miguel Tuirán
