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General Information


Currency

MXN - Mexican Peso    




FOREX Rate - MXN to USD

18.7548    




USD

     




MXN

     




Lending Rate

     




Corruption Index

     




Banking Standard

CLABE (Clave Bancaria Estandarizada)    




Business Practices

LINK TO A-Z    




Government Invoice Process

   
  What are common cultural business practices?
    In person meetings  
    collect in  person  
    Very relationship based - take time to build the relationship




  Best credit reporting resource  
    Bureau de Credito (membership required, submission of trade data required)
    FCIB  
    D&B  
    Coface?  
    Kreller?  




  Required government invoice process?  

Import Requirements


 

Customs Documents


 

Description


 

Customs Documentation

Mexico requires import and export documentation including a completed "pedimento," or import/export form, for all commercial crossings. This document must be accompanied by a commercial invoice (in Spanish), a bill of lading, documents demonstrating guarantee of payment of additional duties for undervalued goods, if applicable, and documents demonstrating compliance with Mexican product safety and performance regulations, if applicable. The import documentation may be prepared and submitted by a licensed Mexican customs house broker or by an importer with sufficient experience in completing the documents.

   



  Import Application (Pedimento de importación) The basic Mexican import document is the "pedimento de importación." 



  Entry Summary  



  Certificate of Origin (CoO) Products qualifying as North American must use the NAFTA Certificate of Origin in order to receive preferential treatment. This must be completed by the exporter and does not have to be validated or formalized. 



  Bill of Lading  



  NAFTA CoO (US & Canada) Must be in Spanish



  Commercial Invoice (CI)  



  Freight Document  



  Packing List (P/L)  



  Customs Export Declaration  



  Electronic Value Voucher/COVE number (Comprobante de Valor Electrotico)   



  Additional Documents guarantee of payment of additional duties for undervalued goods



    product safety and performance regulation compliance documents 



Official  Register  of 
Importers (Padrón de Importadores)

For tax purposes, all Mexican importers must apply and be listed in the Official Register of Importers (Padrón de Importadores), maintained by the Secretariat of Treasury and Public Finance (SHCP). In addition, the Secretariat of Treasury and Public Finance maintains special sector registries. To be eligible to import more than 400 different items, including agricultural products, textiles, chemicals, electronics, and auto parts, Mexican importers must apply to the Secretariat of Treasury and Public Finance to be listed on these special industry sector registries.

   



Import Regulations/Customs Brokers

Beginning in 2015, any Mexican importer in the Official Register of Importers can be in charge of all of their own import paperwork and compliance with Mexico's customs regulations. Use of a customs broker for import transactions is no longer a requirement. Mexican customs law is very strict regarding proper submission and preparation of customs documentation. Errors in paperwork can result in fines and even confiscation of merchandise as contraband. As a result, a customs broker’s services may still be needed for the import process. U.S. exporters are advised to ensure that Mexican clients employ competent, reputable Mexican importers or customs house brokers. Because customs brokers are subject to sanctions if they violate customs laws, some have been very restrictive in their interpretation of Mexican regulations and standards.

   



Source

EXPORT.GOV

   

Payment Security


 

Item


 

Description


 

Benefits


 

Costs


 

Commercial Pledge

May be pledged under Mexican Law:      
  Bank Accounts      
  Equipment      
  Animals      
  Crops      
  Timber      
  Inventory      
  Leases      
  Receivables      
  Contractual Rights      
  Vehicles      
  Cash      





Mortgage Guaranty (Hipoteca)

       





Conditional Sale

       





Bond (Fianza)

       





Pagares (Promissory Note)

  Can be pursued legally for collection.   Must have assigned value.   Must be notarized.  Provides security interest.     





Pledge Guaranty (Prenda)

  Provides creditor with security interest.    More costly to supplier than a pagare. 





Personal Guaranty (Aval)

       





Other Security Contracts

conditional sale contract (venta con cláusula rescisoria)      





 

title retention contract (venta
con reserva de dominio
)
     

Nonpossessory Pledge

  Agreement executed in writing to create security interest in moveable assets of debtors to guaranty payment obligation.   (AR and Inventory)    





Collateral Trust

       

Floating Lien Pledge

  A floating lien pledge can ideally be documented in a notarial instrument and be registered in the Sole Guarantee Registry (Registro Único de Garantías Mobiliarias) (SGR) so that it can be enforceable against third parties. However, there are some cases where the security does not require registration before public record offices and a direct notification to the debtor of the collector's rights is sufficient.    





Guarantee trusts

  The guarantee trust must be documented in a notarial instrument if, within the trust, immovable property is being incorporated or if the movable assets transmitted to the trust exceed the amount provided by law (that is, MXN250,000).    





Government Programs

US Agriculture USDA Export Credit Guarantee Program (GSM-102) Covers credit terms up to three (3) years. Under the GSM-102 & GSM-103 programs, the Commodity Credit Corporation guarantees payments due from foreign banks—typically, 98% of principal and a portion of interest at an adjustable rate. Because repayment is guaranteed, U.S. financial institutions can offer credit on competitive terms to foreign banks, usually with interest rates based on the LIBOR.





      Intermediate Export Credit Guarantee Program (GSM-103) Guarantees longer term credits up to 10 years. 





Mexico

    National Financial (Nafin/Nainsa) Equivalent of EXIM for Mexico





    Mexico's Development Bank in charge of financing international trade Bancomext  





Cross Corporate Guarantee

       





Letters of Credit

       





Reverse Factoring

       





Cash against Docs

       





Documents against Acceptance

       

 


Financing Tools

Government Programs

US Agriculture USDA Export Credit Guarantee Program (GSM-102) Covers credit terms up to three (3) years. Under the GSM-102 & GSM-103 programs, the Commodity Credit Corporation guarantees payments due from foreign banks—typically, 98% of principal and a portion of interest at an adjustable rate. Because repayment is guaranteed, U.S. financial institutions can offer credit on competitive terms to foreign banks, usually with interest rates based on the LIBOR.
         
      Intermediate Export Credit Guarantee Program (GSM-103) Guarantees longer term credits up to 10 years. 





  Mexico   National Financial (Nafin/Nainsa) Equivalent of EXIM for Mexico
      Bancomext Mexico's Development Bank in charge of financing international trade





Personal Guarantee

       
         
         

Payment Methods


 

What is the country's FX?


 

Pesso


   

Cash In Advance

         

Confirmed Letter of Credit

An LC in Mexico is expensive. Local banks charge a commission of 3 to 4% plus additional charges that can go from $10 to $30 dollars per LC depending on the bank.    The National Bank for Foreign Trade (BANCOMEXT) offers LCs to Mexican Importers   should also be on security tab


 
 

Export Finance by US Commercial Bank (USD (dollar) denominated

Is this a financing method vs. a payment method?        


 
 

Import Finance by Mexican Bank (MXN (peso) denominated)

Is this a financing method vs. a payment method?        


 
 

Lines of Credit Available from Mexican Development Banks

         


 
 

Documents Against Payment (D/P) & Documents Against Acceptance (D/A)

         


 
 

           

 www.2016.export.gov

         


 
 

Secured

         


 
 

Open Credit

         


 
 

Electronic bank payments?

         


 
 

Are there any FX restrictions
in the country?

     


 
 

Are there any special payment
regulations that must be followed
for payment processing?

 

COLLECTIONS


Third party agencies used by FCIB members

Reference

www.eulerhermes.com/
 
 

Ordinary Proceedings

Can take 1-3 years.   Attorneys may take on a contingency basis.   Can be pursued if no pledges or pagares in place.   
 
 

Power of Attorney 

required
 
 

Judgments

Cannot immediately file judgments.   Must be expertly translated into Spanish.