New SAT Regulation Comes Into EffectBy Pamela Benítez | Thu, 12/02/2021 - 11:34
The Bill of Lading Complement regulation aims to reduce cargo theft and contraband in Mexico due to a US$7 billion loss per year on uncollected taxes from counterfeit goods. However, it raised deadline discussions as it came into effect December 1.
While the Mexican Service Tax Administration’s (SAT) new bill, also known as Carta Porte supplement has set new customs requirements for shipments in the country as a measure to recover lost tax revenue, Mexican trade authorities discussed the necessity of extending the due date to allow cross-border operators to adapt to the new regulations.
“We are concerned about the short time remaining for the mandatory start of this provision. We make a call to consider the extension of the deadline for the entry into force of this complement only for the time strictly necessary to resolve some pending technical aspects,” said José Abugaber, President, National Confederation of Industrial Chambers (CONCAMIN), in November.
The petition was mainly encouraged by the CONCAMIN, since it represents more than 50 industrial chambers from different sectors in Mexico while supporting policy initiatives guaranteeing that the extension is also intended to benefit small and medium enterprises (SMEs) that are not yet familiarized with the new bill.
Due to these efforts, the SAT decided to make the bill mandatory until January 1, stating that as of December 1 the new regulation will come into effect. In other words, the administration can now begin trial enforcement without liability with the possibility of beginning full enforcement of the waybill information until next year.
In a press release, CONCAMIN stated its appreciation concerning the SAT's decision to extend the due date while reaffirming its compromise of fighting contraband in the country, one of the main objectives of the new regulation.
The release also mentions that this decision benefits the Mexican freight industry as it grants them more time to prepare and train to prevent informality, contraband and illegal trade.
“This decision will allow more coordination among the entities involved so that our industrial sectors, including all means of transportation, have a better opportunity to prepare and train in a regulatory, operational and technological manner and meet this new challenge posed by the Bill of Lading Complement and its traceability for the transportation of goods in our country,” reads the CONCAMIN’s press release.
However, this new regulation has also generated discussions in other regions, like in the US. New York-based Nuvocargo, digital logistics platform for the US-Mexico cross-border trade, hosted a customer event where the Bill of Lading Complement was addressed among its attendees.
At the event, Nuvocargo mentioned how the Carta Porte supplement reinforces the shift from the vetting being focused on the price including compliance as well.
This means that shippers, carriers and other parties, should be perceiving suppliers beyond their economic benefits, but considering also the strategic advantage that providers could bring to the rest of the players.
However, as reported earlier by MBN, this new regulation represents a technological challenge for the transportation business in Mexico, mainly for SMEs, including microbusiness owner-operators of trucking companies.
This becomes more challenging when failing to comply with the new regulations, such as providing correct documentation including modified electronic invoices (CFDI) and the Carta Porte supplement, the SAT could fine shippers, carriers, and other parties that transport goods within Mexico up to MX$4,500.
On the other hand, the digitization issue has been reported by MBN. Mónica Vera, Managing Director, TMF Group, argues that the SAT’s electronic accounting system poses numerous complexities because it requires all transactions to be digitally recorded to facilitate traceability.
“Amid this uncertainty and a complex landscape, your best option is to have the help of local experts with the necessary knowledge to navigate the system, helping you keep your company in strict and disciplined compliance and, of course, to be successful in your business,” wrote Vera for MBN.
Other experts agree that there is a need for proper training to face the digitization challenge that comes with the implementation of the new bill, especially for SMEs, as transportation microbusinesses consider that filling out the Lading Complement is an unnecessary step aimed only at bigger companies.
“We are confident that the private sector can participate significantly in the necessary and urgent training and dissemination of the Carta Porte to a large percentage of service providers and users of all modes of transportation, including SMEs, which require regulatory and technological preparation,” said José Abugaber, President, CONCAMIN.