For those shipping freight within Mexico using any modality, Mexico’s new Carta Porte supplement is a requirement. Regardless of which route you take, what product you ship, or what mode of transportation employed, the new customs requirements are now in effect.
Mexico’s tax administration, SAT, estimates that approximately 60% of all goods transported within the country are smuggled. Latin America faces substantial loss of tax revenues, thanks to smuggled and undocumented goods.
Therefore, SAT has been working on a solution to crack down on goods of illegal origin and strengthen formal trade. The solution comes in the country’s waybill regulations as the Carta Porta supplement, and should help enhance traceability to reduce the incidence of stolen, counterfeited, or smuggled goods being transported in Mexico.
This bill of lading, which changes digital customs requirements, should reduce cargo theft and even make Mexico a benchmark for global, intermodal cargo transport, according to the Mexican Institute of Transportation. Additionally, it is hoped that this new supplement requirement will reduce or eliminate the annual tax loss of approximately $7 billion USD.
Existing paperwork requirements for shipping cargo in Mexico will not be changed or eliminated. However, the Carta Porta supplement will only be added to the list of requirements. This special type of bill of lading can be added to invoices for the following purposes:
Prior to this requirement, other documents were required to demonstrate and prove ownership, destination, midpoints, etc. These documents are still required as per usual. However, the Carta Porte supplement is also required as an add-on to these.
Depending on who is transporting the goods, the supplement may be added to either the Income (or Revenues) CFDI (for owners moving their own goods) or the Transfer CFDI (for freight forwarders or hauling services). When the supplement is added to the Income CFDI for shipment for shipment by a haulage service, the product value should list the value of the haulage service. When the supplement is added to the Transfer CFDI for shipment through an intermediary or agent of transport, the product value should be zero, and description should include the object of transfer.
With upwards of 160 questions to fill out, this addendum is now required for all freight of any size, regardless of the modality of transport – road, rail, air, or sea. If the products are being moved in Mexico, the shipper, carrier, and involved suppliers are responsible for carrying and providing this documentation at checkpoints throughout the country.
Originally set to take effect in June of 2021, the implementation was eventually extended to December 1. This is when trial enforcement began. However, authorities recognized the need to give cross-border operators more time to comply. So, full enforcement of the waybill requirements begins on January 1, 2022.
At that time, the fine for non-compliance will be up to approximately $4500 USD, depending on the severity of the infraction. This fine is payable by the carrier, shipper, or other parties. The transporter should carry in the vehicle at all times a copy of the digital CFDI with the Carta Porte supplement properly validated by SAT prior to transportation begins.
Besides the fine, there are other penalties that can be imposed for non-compliance. At random port checks, highway stops, or other verification checkpoints, proper documentation must be produced. If the papers are not in order, the Authority of Roads and Transportation is empowered to seize the goods being transported and hold them until documentation of compliance is produced.
Haulage companies may additionally lose their driving privileges. And the owner of the goods may not deduct the VAT charged by the hauling company.
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