US Shippers and Intermediaries Take Note: New Requirements for Transportation Services Provided in Mexico | Benesch
Mexican tax authorities have issued new tax documentation requirements for transporting goods within Mexico. Operators operating in Mexico are required to issue an income or digital transfer invoice (in Spanish, Internet tax agreement Where CFDI [i] by Ingreso / Traslado) where applicable, in accordance with Mexican tax provisions, to which a Additional Door Card, or Bill of Lading Supplement, must be added, and these documents must accompany the cargo transported within Mexico.
When do the new regulations come into force? Since January 1, 2022, shipments transported within Mexico, both nationally and as part of an international shipment, must be accompanied by a CFDI of income / transfer and a complementary bill of lading. However, according to the Miscellaneous tax resolution for 2022 published in the Federal Official Journal on December 27, 2021, from January 1 to March 31, 2022, the Income / CFDI Transfer with Bill of Lading Supplement will be considered compliant, and the Tax Administration will not impose any sanction on Taxpayers, even if these documents contain errors or do not include all the requirements listed in the instruction manuals and catalogs published on the Administrative Tax Service (SAT) website.
What information is required in the complementary bill of lading? Among the information to be provided in a complementary bill of lading are the specific product codes (clave del catálogo) of the cargo, as these codes are described in the “Complementary Catalogs” (Complemento Catálogos) published in the tax administration website, as well as information regarding the origin, destination and weight of the cargo, among others.
Who is affected by the new requirement? This new requirement affects shippers, intermediaries and carriers involved in transportation to Mexico.
Road hauliers will be required to issue a revenue CFDI to which they must incorporate the complementary bill of lading. These tax documents – in print or digital format – must be in the driver’s possession at all times during the transport of the cargo as they may be subject to inspections by federal authorities.
Intermediaries, such as brokers or other 3PLs, must obtain specific product information from the shipper and pass it on to road carriers before a trip, so that carriers can issue the documents. The intermediary must confirm that the carrier issues the appropriate revenue CFDI and complementary bill of lading prior to shipment.
Shippers must provide either to the intermediary or to the carrier the exact and complete information of the goods to be transported, as specified in the Instructivo de Llenado del CFDI al that it was incorporated el Complemento Carta Porte. It is important to consider that there are different instructions for the realization, according to the applicable mode of transport: land, air, rail or sea. Each of the completion instructions specifies the information that the CDFI and the Complementary Bill of Lading must contain, as well as the catalogs that must be taken into account for their completion.
What are the consequences in the event of non-compliance? If the CFDI and Bill of Lading Supplement are not properly completed and issued, the party hiring the transport services (either the intermediary or the shipper) and the carrier may be liable to the Mexican authority. These responsibilities include fines, non-deductibility penalties and even the seizure of cargo.
[i] CFDI, which stands for Internet Digital Tax Agreement, is the electronic invoicing scheme defined by the Mexican Federal Tax Code. It has been mandatory for companies doing business in Mexico since 2011.