Annual Report of Foreign Trade Operations for 2019

NEXT EXPIRATION DATE: Annual Report of Foreign Trade Operations for 2019
The Annual Report of Foreign Trade operations for 2019 is an obligation of companies that have an authorized IMMEX or PROSEC Programs, and through it, the company reports the operations carried out of the previous year.
Below a detailed explanation of the manner of compliance of this report, as well as the scopes of the relative obligations.
a) Deadline:

1. IMMEX: Companies that have an authorized IMMEX program, in any of its modalities, must submit the annual report electronically no later than May 29, 2020.
2. PROSEC: Companies that have a Sectorial Promotion Program, according to the type of products they manufacture or the export services they carry out, will have until April 30, 2020, to present this report.
3. IMMEX and PROSEC: In the case of the companies that have the IMMEX and the PROSEC program authorized, must submit the annual report no later than April 30, 2020. 

b) Consequences of NOT submitting the Annual Report of Foreign Trade operations for 2019 on time.
In case of not submitting the annual report within the corresponding legal period, the following consequences will be enforced:

1. IMMEX: The benefits of temporarily importing goods will be suspended.
2. PROSEC: The validity of the program will be temporarily lost, preventing the company from maintaining its benefits.
3. IMMEX and PROSEC: In the event that the report is not submitted within the established period, these companies will have until June 30, 2020, to correct the omissions otherwise the programs will be canceled and will lose definite the validity of both of the programs.

NOTE: In both of the cases, the consequences will be updated until the correction of omissions they incur.
c) Assumption in which the omission is not rectified on time:

1. If the omission is not rectified, by August 31, 2020, the IMMEX program will be canceled definitely as of September 01, 2020.
2. In case of the PROSEC program, if by June 30, 2020, the report has not been submitted, the program will permanently lost its validity.

NOTE: In the case of the companies with IMMEX program, on June the Secretary of Economy, will publish a list of the suspended programs in the Official Journal, and on September; the list of the companies with the canceled programs.
d) Additional sanctions of omission of presenting the Annual Report of Foreign Trade Operations for 2019
In additional to the cancellation and total loss of validity of the programs, it should be considered that the omission of submitting the report also produces the following:  

• It is a cause for cancellation of the VAT Certification in accordance with the General Rules of Foreign Trade 7.2.4., seventh paragraph, fraction I.
• A fine will be imposed in accordance with article 184 fraction II and 185 fraction I of Customs Law, the fine derives from $3,730.00 to $5,590.00 MXP. 

e) Ways of complying:
The report must be submitted through the corresponding module in the following link:  https://www.ventanillaunica.gob.mx/
f) Information that must be included in the Annual Report of Foreign Trade operations for 2019:

1. Trade balance (thousands of pesos)
2. Total Sales: Enter total sales in Mexican currency, which are indicated in the company’s financial statements or in the annual income tax declaration. Companies with IMMEX programs will be able to determine their total sales taking into account only the total turnover (domestic and export market) of the products registered in their program at the same registered addresses.
3. Total exports: Enter the sum of the list of direct and indirect export requests in pesos. In the case of the companies that work under a consignment merchandise scheme, that is, they do not own the inputs with which they produce the merchandise, the object of this report, they should only record the added value of the merchandise (actual invoicing from exportation).
4. Total imports: Enter the sum of the definitive, temporary direct and indirect imports in pesos. In this space it should be considered only raw materials, parts and components that are owned by the company titled under the program.
5. Balance: Total exports minus total imports. This field will be automatically filled by the system.
6. Export percentage: Total export among total sales. This field will be automatically filled by the system.

NOTE: Companies that only account with the IMMEX program, must only fill in the spaces a) total sales and, b) total exports.
II. Personnel

1. Total personnel employed: Account the total number of employees, considering both administrative personnel as well as the operational personnel at the end of the last two semesters of the fiscal year to which it is being reported.

NOTE: If you are a company that only has the PROSEC program, you are not required to comply with the Personnel section.
III. List of goods produced by product indicating tariff code.

1. Produced goods: Submit the description of the manufactured product according to the tariff code of the Tariff authorized under your program, according to your commercial invoice.
2. Tariff code and unit of measure: Indicate the tariff code and the unit of measure according to the Tariff, of the good referred to in the previous subsection contemplated in article 4 of the PROSEC Decree.
3. Sector: Indicate the sector to which each asset belongs in accordance with the PROSEC Decree.
4. Total foods produced: Indicate the volume, in terms of the unit of measure of Tariff, for each of the products manufactured.
5. Domestic Market: Indicate the volume, in terms of the unit of measurement of the Tariff, for each of the final goods destined for exportation.
6. Exportations: Indicate the volume, in terms of the unit of measurement of the Tariff, for each of the final goods destined for exportation.

NOTE: Companies that only have the IMMEX program do not need to fill in the list of goods produced by product, indicating the tariff code.

Ultimately, it is not omitted to state that in addition to the aforementioned Annual Report of Foreign Trade operations for 2019, companies with the IMMEX Program must present the INEGI Annual Report for statistical purposes within the same period, which is submitted electronically.
Legal basics:
Decree for the promotion of the manufacturing, maquiladora and export services industries. (Published in the Official Journal on November 1, 2006). Last reform published Official Journal December 21, 2019). Articles: 25 of the Decree establishing various Sector Promotion Programs (Published in the Official Journal on August 2, 2002) (Last reform published Official Journal 29-11-2012). Article: 8
How can we help you file on time the Annual Report of Foreign Trade Operations for 2019?
At Asesores Stratego, we provide specialized support to companies, consisting of the precise and correct filling and presentation of the Annual Report of foreign Trade Operations of the authorized companies, in order to guarantee compliance with the obligations in the IMMEX and PROSEC Decrees and avoid the imposition of the sanctions.
1) We fully analyze the supporting information of the Annual Report of Foreign Trade Operations.
2) We carry out the integration of all the information necessary to generate the Report.
3) The filling of the Report.
4) The Submission/Presentation of the Report is formulating.
5) The acknowledgment of receipts is obtained, which prove compliance with the relative obligation.
6) We provide attention to doubts or comments derived from the presentation of the Report.

This document does not constitute a particular consultation, and therefore, Asesores Stratego SC, is not responsible for the interpretation or application given to it. The total or partial reproduction of this publication, by any means or procedure, is prohibited without the prior, express and written authorization of the author. Any form of unauthorized use will be prosecuted in accordance with the provisions of the Federal Copyright Law. We are at your service to answer your questions or comments, for more information on this subject and our services, please contact us at: info@asesores-stratego.com