UPS 2016 Customs Brokerage Webinar Series

29 September 2016

US – Mexico Trade and Trade Compliance

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

U.S. – Mexico trade

Changing the global trade landscape

• Presenters

• Host

• Greg Maddaleni, LCB

• Customs Brokerage Manager

• Panelist

• Bill Ansley, LCB

• Vice President, UPS Trade

Management Services

• U.S. Panelist

• Stuart Schmidt, LCB

• Trade Compliance Manager

• Mexico Panelist

• Javier Martinez

• UPS Mexico Customs

Compliance Manager

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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U.S. – Mexico trade

Agenda

Regional trade trends

Mexico trade regulations today

U.S. trade regulations changes and Mexico

Global programs

UPS® Tradenomics viewpoint

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Mexico’s impact on regional tradeMexico continues to play a larger role in the NAFTA+China trade space

• U.S. Import

• Slow but steady

• Mexico

• From 20% to 70%+

• China

• Declining off of a peak

• Canada

• Heading back up

• Evolving trend

• Mexico playing a larger and larger role within the region

% of

GDP

Source: World Bank (May 2016)

Trade Openness (N. Amer. & China)(Trade as a percent (%) of GDP)

0

10

20

30

40

50

60

70

80

90

1960 1970 1980 1990 2000 2010

CAN MEX USA CHN

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Mexico trade regulations today–brief overview

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

The “Law” and the “Reglamento de la Ley Aduanera”

Key elements

• Mexican Custom Law

• Most recently updated: December 2013

• Reglamento de la Ley Aduanera (Mexican Customs Law Regulations)

• Most recent update: April 2015

• 249 articles

– previously contained 198 articles

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Source: (1) LEY ADUANERA MEXICANA, Última Reforma 09-12-2013; (2) REGLAMENTO DE LA LEY ADUANERA, 20-04-2015

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Mexico regulatory highlight areas

Clearance Process

Legal representative

New Padrones requirements

Customs inspections best practices

Duty Free Movements

IMMEX credits

Deposito fiscal

(bonded warehouse)

Recinto fiscalizado estrategico

Recordkeeping / Documentation

Recordkeeping simplification

Articulo 81

• Valuation documentation

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Mexico clearance process

• Legal representative

• Importers may designate to clear their shipments as an alternative to a broker

• Padrones requirements

• Existing:

– General padron approval (similar to U.S. 5106 form)

– Specialized commodity certification (particular list of goods)

– General approval may take 3 days; specialized certification – 3 days to 2 months

• New:

– New specialized commodity lists approved

• Customs inspections best practices

• Customs manual updates

• Not legally enforceable (procedural)

What are the implications for a

new or existing importer into

Mexico?

Source: REGLAMENTO DE LA LEY ADUANERA, 20-04-2015

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Duty free movements

• IMMEX changes

• Prior: no VAT applied to import shipments

• New: credit process implemented

– If goods re-exported within a given timeframe VAT taxes avoided

• Deposito fiscales (bonded warehouse)

• Prior: no time limits for how long goods could remain in a warehouse

• New: 24 month time limit

• Recintos fiscales estrategicos (Foreign trade zones)

• Prior: Locations limited to at/near Customs locations

• New: expansion to more locations (similar to U.S. sub zone process)

• Note: Recintos do not have time limits but do require authorization for the importer to use

Source: REGLAMENTO DE LA LEY ADUANERA, 20-04-2015

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Record keeping / documentation

• Record keeping simplification

• Elimination of paper records requirement for importers who electronically file

• Articulo 81

• New: extensive list (transaction level) documentation to be electronically available to

validate the valuation of the shipment

• List includes whichever other information and documentation necessary:

– “Cualquier otra información y documentación necesaria”

• Implementation of article has been delayed twice previously

• Implementation set of October 17

– No indication at time of webinar for an additional delay

Source: REGLAMENTO DE LA LEY ADUANERA, 20-04-2015

Source: Trade Facilitation and Trade Enforcement Act of 2015

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

U.S. Trade Facilitation and Trade Enforcement Act of 2015

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Key aspects of the U.S. 2015 Trade Facilitation Act as they pertain to

U.S. Mexico Trade

Clearance

De minimis

Trusted trader programs

Technology / Process (Industry

segment)

ACE

CEE’s

Post Entry Process

Returned goods

Drawback

Enforcement

Customs letters

Anti-dumping

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Clearance / Process and Technology

• Clearance

• De minimis

– Change in number and composition of inbound shipments from Mexico

• Trusted trader programs

• Enhancements

• Process and technology

• CEE’s

– Industry specialization and alignment

• ACE

– Support of the multiple PGA’s who are generally aligned to specific industries

Source:U.S. Trade Facilitation and Trade Enforcement Act of 2015; 2/24/2016

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Post Entry Process

• Returned goods

• Changes to allow much broader application that greatly increases the number of

transactions

• Applicable to a wider array of goods

• Drawback

• Drawback simplification provisions in the Act apply to drawback claims filed on or after

February 24, 2018

• Drawback claims can be filed under the new statutory framework and the old statutory

framework during a one year transition period between February 24, 2018 and February

24, 2019

Source: U.S. Trade Facilitation and Trade Enforcement Act of 2015; 2/24/2016

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Enforcement

• Recent US CBP letters to the trade

• Enforcement of anti-dumping / countervailing duty

• Implemented “importers” notices

• New rules to augment enforcement

Source: U.S. Trade Facilitation and Trade Enforcement Act of 2015; 2/24/2016

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Other regional and global programs

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Other regional and global programs

Multi-country Agreements

Trans Pacific Partnership

WTO Trade Facilitation Agreement

Other agreements

AEO/C-TPAT

Mexico’s multitude of FTA agreements

US/Mexico Cooperation

Unified cargo inspection

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Multi-country Agreements

• Trans Pacific Partnership

• Optimizing the best solution

• Mexico’s multitude of bi-lateral/multilateral FTA agreements

• WTO Trade Facilitation Agreement

• Process benefits beyond duty reduction benefits

• AEO/C-TPAT

• Supply chain optimization

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

US/Mexico Cooperation

• Pre-inspection / unified cargo inspection

• Expanded to three locations

– Otay Mesa

– Laredo

– Chihuahua

Source: CBP.gov/pressroom (Sept. 16, 2016)

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

US – Mexico Trade

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• Trade openness continues to broaden the US – Mexican trade relationship

• Inquire about your own Tradenomics discussion

• Available at checkout

• Questions: Greg Maddaleni - gmaddaleni@ups.com 678-746-6494

The material and information contained in this document is for general information purposes only. UPS does not act as a customs law adviser. You

should not rely upon this material or information as a basis for making any business, legal or any other decisions. UPS makes no representations or warranties

of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the material and information contained in

this document for any purpose. UPS will not be liable for any false, inaccurate, inappropriate or incomplete information presented in the document.

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Previous UPS® Customs Brokerage Webinars Still Available to View

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• If you were unable to attend any of our previous 2016 webinars, you can still access complete recordings of

each by following the links below:

• New US and Mexico Trade Acts Webinar – Sept 2016

• Global Trade Compliance Webinar – Aug 2016

• The Trans-Pacific Partnership (TPP) Webinar – June 2016

• UPS’ Automated Commercial Environment (ACE) Update – May 2016

• Europe’s New Union Customs Code: How It May Affect Your Trade – Apr 2016

• Automated Commercial Environment (ACE): How It May Affect Your Exports – Mar 2016

• What can be expected from the Trade Facilitation and Trade Enforcement Act of 2015? – Mar 2016

• All slides are available on http://www.slideshare.net/UPS/.

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Q&As

• Can articles that were previously imported and duty paid be reimported duty free by a party other

than the original importer?

Yes, the requirement of original importer no longer exists in this provision.

• Do you believe that 'core returns' for the automotive industry can be now imported back to the US

from MX duty free, regardless if original goods were US or Foreign origin?

Assuming by ‘core returns’ you mean goods removed from vehicles such as batteries, brake pads/shoes etc. these

would not have a direct export from US / reimport to US heritage. They may be eligible for duty free entry under

NAFTA though.

• Do the documentation requirements associated with the expanded 9801 provision include the

export manifest? Or only export invoice / packing list / AWB?

CBP HQ has not published an official regulation on how this will be administered. We recommend the export manifest

be included or the SED filing. On the import side it would be good to state the goods have not been advanced in value

or improved in condition outside the US.

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

24

Q&As

• Where can I get a list of the items that require special permits?

http://www.aduanas-mexico.com.mx/claa/ctar/leyes/anexo10.html

• Legal Representative – How is this different from a licensed broker?

A licensed broker can work for any importer and in just 4 customs ports, The Legal representative ca only perform

clearances for the company that he/she works for;

• Can a US based company hire a Legal Representative in Mexico to perform clearance?

No, the Legal Representative has to be assigned to a MX Importer of record.

• Does the Padrones certification apply to all wood products, or only certain products containing wood?

3 MX hts codes: 4707.20.01; 4707.30.01; 4707.90.01.

Full list in http://www.aduanas-mexico.com.mx/claa/ctar/leyes/anexo10.html

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

25

Q&As

• Can goods previously exported from MX to US be re-imported to MX duty free?

Yes, Article 103 from Customs Law.

”ARTICLE 103.- Carried out the definitive export of national or nationalized goods, you may return to the country without payment of the general import tax, you

have to prove that the goods have no suffer any modification and it has not been more than a year since his departure from Mexican territory. The customs

authorities may authorize the extension of the period when there are justified reasons and upon application prior to expiration.”

• How are Related Parties viewed by Mexican Customs? Is there a required transfer price % that is

acceptable? We have a new sister company in Mexico, who will be sending goods, such as displays

cases, shelving and also goods that are for retail.

You only have to make that declaration (that the operation its between related parties) on an specific field of the import

“pedimento” that is known as “vinculacion” but there is no required transfer price % for this kind of related party. There

is a required transfer price for certain goods (textiles, footwear) but it is applicable for any importer.

Thank you

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