Re-printed from
www.BajaInsider.com
Car Importation MexicoUpdated April 2, 2014
The short answer is wait - enforcement of non-imported cars has been
suspended.
Like many countries have done since the economic turn of the early
century, Mexico has been closing loopholes in existing tax sources
to raise more money for expanding social programs. In 2014 the rules
and fees for importation of vehicles from north of the border were
significantly changed, dramatically increasing fees, paperwork
required and who would be allowed to act as agent.
Border residents that had made their living for decades as vehicle
importers suddenly found themselves 'unqualified' and those that
continued in the business found it reduced by 30% over the number of
cars usually imported in that half of the year. The result was a
number of border-crossing closing demonstrations by dealers and
importers that shut down both Otay Mesa and San Ysidro. You can only
imagine the chaos resulting.
This is an election year in Mexico and everything becomes a
political football. The PRI wrestled control of the presidency from
PAN of Fox and Calderon, and many feel that the PRI has reverted to
its outdated conservative polices and protectionism. The importation
law changes have been pointed out to benefit the wealthy in forcing
purchase of new cars imported or locally manufactured cars, while
denying access to used cars potentially protected under NAFTA and
affecting the 85% of Mexicans who will never own a new car.
As the effects of a reduction of 30% in the availability of quality
used cars the values of existing imported cars rose about 20%.
Where it stands now...
On March 16, 2015 Aduana stated there would be no adjustment to the
new importation rules and fees and restrictions would remain as
revised in 2014, despite protests. The requirement of a document
stating country of origin would also be required. Since most North
American car owners have no idea where the original of that document
may have ended up, it required additional filing.
On March 18, 2015 the Used Car Dealers & Importers of the Border
Region won an injunction against the current importation
requirements.
Later the same day Aduana announced that enforcement of driving
non-imported cars will be suspended through the end of 2015 or until
the fee structure and requirements can be resolved.
On Monday, March 23, 2015 the PAN jumped right on this and pointed
out that the protectionist policies of the PRI was affecting "the
85% of Mexicans that will never own a new car" and need to purchase
quality import from north of the border. and how it was affecting a
large number of car dealers and importers that had made their living
from this business, reducing imports by 30% in a 6 month period.
Remember, this is an election year.
The proposed new structure is amazingly similar to what had existed
before, with a limit on how old a car may be and how young. Fees are
determined on book value of the car, not what you may present a
doctored receipt for what you bought it from your uncle for.
So, for right now cars may be imported, through the new system at
inflated fees with special requirements, or you can wait., because
they won't be enforcing driving an non imported car for the rest of
2015 or... now here is the tricky part... until the situation is
resolved.
How this will play out will likely be in a way that give some leeway
to cars already in the country, but know there is a good chance that
sometime in the next year you will have to take a car back to the
border for a couple of days to be imported, should the old system be
returned.
Who must drive an imported vehicle?
AT THIS MOMENT April 2, 2015 – Nobody. The rules have been
suspended. Even Mexicans can drive a non-imported car, for now.
What is likely to happen and who will need to import their vehicle
It is probable that the rules on importation will be returned to
very close to what they were prior to 2014. The concession is likely
to be enforcement to increase revenue. Local police can ticket and
impound your vehicle once the tags are out of date, but they will
not be able to establish your residency in relation to the
importation of the vehicle. The state of issue of your driver
license will have to match your plates and also be current.
However, if you are stopped by a federal highway officer,
immigration officer, military or Aduana officer you can be required
to show proof of visa, being tourist 180 day, Temporary or
Permanent. You will be required to show proof of Mexican liability
insurance to drive on Federal highways. Previous enforcement
included Permanent Resident Visa holders in those that must drive
imported vehicles.
This presents a problem for some "permanent" residents, as the visa
no longer has a time limit on how long you can be out of the
country. A legitimate permanent resident card holder could spend 6
months or more with the same car north of the border.
I am certainly not a mind reader of the Mexican congress, but if you
are going to bring a vehicle into the country under this suspension
I would anticipate that the rule affecting permanent residents to
drive imported cars will fall in the favor of the tax man in the
compromise.
For as long as I can remember I have been told that a person holding
a Mexican driver's license can not drive a car with foreign plates.
I would expect this to stand. There may be a grace period after the
importation issue is resolved, but the suspension of enforcement
will leave a big hole in government income, it will be resolved
quickly I think.
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Below is information from the previous update of this information by
Publisher James Glover. Everything is suspended as of right now, but
it will give you a frame work to see how the previous rule was
enforced and what to expect in the near future...
Recently, a good friend of mine that lives at the border and she is
Mexican yet has U.S. Driver's licenses and drove an American plated
car into TJ and was detained. She has done this with friends many
times before and yet yesterday she was detained and is not only
looking at a $3000USD fine but jail time and the confiscation of the
vehicle! The vehicle was borrowed from an American friend she was
doing a favor for and if the vehicle is consider to be of greater
value than $10,000 she must go to jail even if it is just for a few
days. Pretty tough for a young single mother. Yes, they are now even
cracking down on people at the border like they never have before!
I called the owner of ACV concerning this yesterday to find out that
he not only could not help her out of this mess, but that a good
friend of his just did go to jail for driving an American plated
vehicle. So, take your chances if you like but we suggest you import
your vehicle and get insurance and be legal.
It has also been against the law for anyone to store a foreign
vehicle in Mexico unless it is in a bonded storage lot of which
there are very few in Baja. Many foreigners leave their foreign
plated extra car behind at their second home or a friend’s and while
few have been in trouble for doing so it is not legal and you can
have your vehicle confiscated if it is found to be left on private
property. This too has been debated by many ... People just because
you and or others get away with something even for years does not
make it legal.
Import cars more than 5 years old So, for whatever reason you may
want or need to import a vehicle these are the steps that you must
make in order to properly import, register and insure your foreign
vehicle from the United States or Canada.
First you must use a customs broker or freight forwarder to complete
these steps and be sure when you contact them that you receive an
estimate of the total costs to do so, which will require you
providing the VIN (Vehicle Id number) make, model and year of
manufacture. These costs to import should include all charges the
bulk of which is the 16% IVA (Sales tax) based on vehicle value
(Vehicle value determined by Mexico's Aduana many times is less than
“Blue Book”) and then the broker’s fees and a few government fees.
Confirm with the broker that this is the total costs with no extra
charges later so that you know exactly what they will want for
payment and in many cases cash is what they will require, so confirm
the method of payment as well. They will also let you know if there
is any problem with importing your vehicle at this time.
Not all vehicles can be imported into Mexico. Your car for example
must be at least 5 years old and not over 30 years old FOR Baja and
Baja California Sur. Over 30 years old is considered a classic and
may still be imported with additional permits required. The age of
vehicle for obtaining Mexican National plates for the mainland of
Mexico must be 8 years old and only NAFTA vehicles (VIN begins with
a 1,2,3,4,or5) with some exceptions. For example my VW Touareg can
only be imported as a vehicle for the Frontera (Baja) since the VIN
begins with a “W” and yet you may purchase a new one in Mainland
Mexico that was imported as new by Volkswagen of Mexico.
We recommend using the ACV Import Export Company as I personally
used them in October of 2013 and they handle it very professionally
and quickly.
The next step is to have your vehicle cleared by U.S. customs if it
is coming from the U.S. and this can take up to a week to complete.
You may wait at the border while this step is being done or you may
send your original title to the freight forwarder so that they can
do this before you arrive with your car. My vehicle was recently
purchased and not registered in my name so I also provided a copy of
the Bill of Sale but since the titled had been signed over it was
not necessary. If you send your original title in advance to the
importer your car could possibly be exported from the U.S. and
imported into Mexico on the same day. It is the American or Canadian
side that requires up to a week, generally less, to be sure the car
is not stolen and is prepared to be properly exported. The Mexican
brokers can if prepared in the morning have your car imported and in
Tijuana the same day. It is this checking and exporting of the car
from the U.S. That requires the car be at the border. You may find
however importers that can do this after the car is south of the
border but they are either not exporting your or getting it exported
by paying somebody off which of course is not completely legal But
is being done and allowed on the Mexican side because of the
quantity of cars that are so far south of the border already.
The next step after forwarding your title is to take everything out
of your car. Leave nothing but the spare tire and jack. Everything
else must be out of the car or the brokers and authorities will
refuse to do the job. That means if you are traveling south and have
a car full of stuff you will have to arrange to leave it in the U.S.
till the car arrives on the Tijuana side and then you will have to
cross back into the U.S. to pick up your goods. The car being empty
is really for your protection while it can be a hassle no one wants
to be responsible for your personal goods. You may also of course
leave your goods on the Mexican side of the border and then cross
back just to import the empty vehicle.
TrooperYou should now prepare copies of your Mexican driver license
or a Government issued Photo ID (Valid US License is accepted) which
is required. When you leave your vehicle the broker should
photograph the entire care inside and out. This is for your
protection so that you and the brokers are sure if there has been
any damage done to your car while it is in their hands.
Leave your copy of Drivers license and make your payment and be sure
to get a receipt or factura if needed and be sure to remove your
U.S. or Canadian plates before you leave your car. Once notified you
may go pick up your car on the Mexican side. The folks at ACV
offered to deliver mine to me at my hotel and in most cases will
help get your car to you if need be. Now it is my recommendation to
get a bid for your insurance before you import your car. Once you
have your car imported you will need to fax or email copies of the
Hojas de Pedimiento de Importacion (Green Sheets) to the insurance
broker and your payment to activate your Mexican insurance. We
recommend West Coast Insurance agents as we actually insure our
Mexican plated vehicles with them and have been satisfied with their
price, coverage and service.
Paperwork to Save
You will receive a factura (official receipt) for your importation.
Hold on to this document in a safe place, as it can be useful when
you in turn sell the car in Mexico.
The final import papers or Pedimiento de Importacion will either be
green for Frontera or White sheets for National plated vehicles. The
majority of what you will pay is for the I.V.A. (Sales tax) and it
will be based on the value of the import set by the customs agents
many times using the U.S. “Blue Book” values. The difference between
Frontera plates used to be partly the taxation but they will require
16% IVA for either but the national plates will cost more and are
for use in all of Mexico. The Frontera plates are only for Baja
California and Baja California Sur and will be treated as foreign
plates if you go to mainland Mexico. This means a bond is required
just as if you had U.S. plates and therefore the National plates do
have greater value at resale.
You will get your original title back and it will be stamped with
the date of export and is therefore no longer valid in the U.S. and
the vehicle would have to go through the process of being exported
if you want U.S. or Canadian plates again. It is legal to drive
Mexican plated vehicles in the U.S. and there is tourist insurance
from Mexican carriers for those that want to take their vehicles
back to U.S. for a trip. My Mexican plated insurance that I
purchased from West Coast Insurance Agents is a Qualitas Insurance
policy that already has extended liability (only)coverage for the
U.S. and Canada.
Once you have the car imported you want to go to the area you live
in Mexico to register it not at the border unless you live there. In
order to legally drive your vehicle without plates from the border
you should go to the Transito and obtain a temporary 30 day permit.
If this is not easily feasible you may copy your Hojas de Pedimiento
and put the first page in the back window for the police to see. I
drove my car south to Cabo with no problems and then obtained a 30
day permit at Tranisto in Cabo till I had time to get my Baja
plates. The following week I registered the car in one day once I
paid the fees (tenencia) at Secrataria de Finanzas del Gobierno de
Estado. These Tenencia fees are not that much and depend on the age
and type of car I then returned to the Transito office to finish the
inspection, registration and obtained my plates. You will need to
have a comprabante (Bill from your Mexican residence to prove your
address) copies of your driver’s license, your immigration documents
(tourist card, temp. or permanent resident card) the importation
papers (green sheets) and factura (Invoice from importer) that you
will be given when you pick your car up
You may only import one vehicle a year without having to become a
dealer. If you want to put the car in your business name then have
copies of your corporation (persona morale) or papers from Hacienda
for your sole proprietorship (persona fisica).
It is not that daunting of a process and once you have done it like
a lot of things it is much easier the second time. If you have
further questions you may email me or speak directly with a freight
forwarder like ACV imports. Happy and safe driving and be sure to
look at our most current Bajainsider Road Report) before driving
long distances in Baja.
By James Glover