On July 14, 2021, the executive branch published at the Federal Register the Decree whereby the National Customs Agency is created as an agency of the Ministry of Finance and Public Credit, which shall have technical, administrative, and operational autonomy to act as customs and tax authority on all matters within its scope of authority.

The creation of the National Customs Agency entails an important structural change that had been proposed for a long time by all sectors involved in international trade in order to facilitate foreign trade operations and be consistent with modern international trade rules and the obligations acquired by Mexico as part of the World Trade Organization, and more recently, under Free Trade Agreements that include trade facilitation chapters, such as the UMCA.

Nevertheless, the Decree provides that it will become effective once the legal reforms shifting to the National Customs Agency the authority currently vested on the Internal Revenue Service on tax and customs matters become effective. This means that certain statutes shall be amended in order for the National Customs Agency to become operational, providing certainty to the continuous flow of foreign trade and clearance of goods, and avoiding disruptions in the supply chains of industries that depend on foreign inputs, and exports in strategic sectors of the economy.

What follows is a summary of the most relevant features of the new agency:

I. Scope of Authority.

(a) Collect the taxes and other fiscal charges applicable to foreign trade operations.

(b) Perform the verification of foreign trade goods and seize the goods whenever their legal stay or possession is not evidenced in terms of the Customs Law.

(c) Manage the importers and exporters registry, including those related to specific sectors.

(d). Participate in the negotiation of international agreements on customs matters.

(e). Carry out its verification powers in accordance with the Customs Law.

II. Structure.

According to the Decree, the Head of the National Customs Agency shall be appointed and removed by the President of Mexico.

The Decree provides that the National Customs Agency shall have such administrative units as necessary throughout the various states of the country, as provided by the Organizational Regulations to be enacted, which shall establish the scope of authority and jurisdiction of the current customs offices.

Likewise, Decree provides that the staff of the National Customs Agency may include personnel that belongs or has belonged to the army.

This document is for informative purposes only and it does not constitute legal advice. For further information, contact us.