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Importing cars into Mexico

By Hiram Cervera, Customs Broker.  

www.cervera.com.mx, agencia@cervera.com.mx

 

This article provides information on current options for importing automobiles into Mexico.  There are mainly two ways for importing automobiles into Mexico, The first is under the definitive import regime and the second is under the temporary import regime, which shall be discussed in the following paragraphs[1] .This information is provided in good faith and is valid at the time of writing this article, but should be validated with your customs broker before you incur any expense, as import conditions may change from time to time without prior notice, particularly in a the so sensitive automotive industry.

 

1.  DEFINITIVE IMPORT means that the automobile is entering Mexico, for an indefinite amount of time with no set purpose and will use Mexican license plates. Automobile owners wishing to use this regime must pay import duties and other related taxes by means of a customs declaration known as a “pedimento”, paying same through an authorized Customs Broker at the point of entry. In the case of used automobiles, an Import Permit issued by the Secretariat of Economy is required beforehand. These permits are given only in specific cases, as in the case of vehicles modified for use by disabled persons, and other individual cases; these permits are not given to the general public[2]. There are three situations where definitive importation is allowed without it being necessary to present any Import Permit.

a) New automobiles. [3]

b) Classic automobiles (over 30 years old).

c) Used automobiles allowed by Presidential Decree.

New and classic vehicles can be imported without a permit issued by the Secretariat of Economy, but must pay high duties, ofapproximately 75% of their value.  Moreover, new automobiles should also pay a specific tax known as a Tax on New Automobiles (Impuesto sobre Automóviles Nuevos or ISAN in Spanish). So in practice, very few new or classic automobiles are imported into the country, except for those new cars imported by car assembly plants operating in Mexico, who which have access to with preferential rates and use their own dealer networks to sell and service them.

The Presidential Decree[4] allows importing of 8 and 9-year old automobiles without submitting an import permit. In the Decree, the model year of a car is considered to begin on the 1s of November of each year, so from Nov 1st, 2011 to Oct 31st, 2012, only 2003 and 2004 models will be allowed to be imported, and from November 1st, 2012 to October 31st, 2013, the automobiles allowed will be the 2004 and 2005 models.  Although the Decree allows for a lower percentage payment with a factor of 29%, the price used to determine the duties is not the invoice value, but rather the value appearing in the Estimated Price Resolution published by the Ministry of Finance, which is usually higher than purchase value. Moreover, 54 USD for inscription in the REPUVE (Public Registry of Vehicles) must be paid to BANJERCITO (Mexico's Banco Nacional del Ejército Fuerza Aérea y Armada - the government authority who issues vehicle permits) at the point of entry into the country as well as other import expenses, like the customs brokerage professional fees and other logistical expenses. For a specific (price) quote, please contact your customs broker.  

 

2. TEMPORARY IMPORT means automobiles enter Mexico for a specific purpose and a specific period of time, and afterwards will return to a foreign country. Those residing abroad are allowed to import an automobile into Mexico for their personal use for the duration of their immigration status. Vehicles imported temporarily do not pay import duties, and keep their foreign license plates. These vehicles may not be sold, and the there must be a guarantee (security deposit) provided, which is given back upon the vehicle’s return abroad. Moreover, these vehicles may only be driven by their foreign owners and their direct family members. Mexicans may not drive these cars if one of the persons authorized to drive the vehicle is not in the car. The unauthorized use of these vehicles may imply seizure or same. 

Temporary Import Permits are issued by the Banco Nacional del Ejercito Fuerza Aerea y Armada (BANJERCITO) which is a government authority that issues vehicle permits. The Bank charges $44 USD per permit, and also retains the guarantee (security deposit). Currently, these deposits are in the amount of $400 USD for automobiles, model years 2007 and newer; $300 USD for automobiles, model years 2001 to 2006; and $200 USD for model years 2000 or older[5].  

If foreigners obtain an extension of their immigration status in order to remain longer in the country, then the import permit is also deemed extended, so it is necessary to keep those documents. Finally, when the car is returned abroad, you need to go to BANJERCITO, in order to show proof that the vehicle is definitively returning abroad and so that the guarantee (security deposit) is returned. They will issue a “definitive return” document, allowing the subsequent import of another car if you keep your immigration status in Mexico.

In the case an automobile that falls under the temporary regime in the country, meets the requirements of the Presidential Decree,  it may change to the definitive regime and obtain Mexican license plates, by paying the corresponding duties with the customs broker. Given that case, the guarantee (security deposit) given to BANJERCITO will be forfeited, given that the car will not be returned abroad. In order to make this change, the original Bank permit must still be valid, as expired temporary permits are not allowed for this change, even if the foreigner renewed his immigration status. Nevertheless, the applicable rate for vehicles 2010 and older is 75% applied to the reference value published by the Government.