White Papers

Mexican Tax Law

INTRODUCTION Mexican companies (including subsidiaries of foreign companies), as well as permanent establishments in Mexico of foreign companies are subject to: (1) federal taxation, including income tax, value added tax (VAT), and asset tax; (2) applicable foreign trade taxes, including customs processing fees, countervailing duties, if any, general import tax (import duties), and VAT; and…

Mandatory Standards and Labeling Requirements

Two of the more complicated aspects of importing products into Mexico involve compliance with mandatory standards and labeling rules.   Mandatory Standards (NOMs) Standards are official rules, technical specifications, guidelines and definitions that ensure that materials, products, processes, and services are harmonized and standardized. Mexican standardization procedures are established by the Methodology and Standardization Law,…

Payment, Collections and Enforcing a Contract

The best way for U.S. exporters to avoid collections problems in Mexico is to demand payment prior to shipment or delivery. The second most important suggestion might be to conduct legal, reputational and financial due diligence on your customer before extending credit or terms. Other tools available to mitigate the risk of non-payment or make…

Mexico’s Anti-Money Laundering Law

Because of several financial compromises in Mexico during former President Felipe Calderón Hinojosa’s term last year, Mexican authorities have created a federal law to combat money laundering and prevent terrorist financing. On Oct. 17, 2013, the Ministry of Finance published the Federal Law for the Prevention and Identification of Transactions from Illegal Funds (Money Laundering…

Market Entry Vehicles and Agreements

In defining a market entry strategy, U.S. exporters should evaluate both the risks and potential rewards associated with each available option. Although some market entry vehicles may involve less risk—both legal and commercial—these strategies also tend to offer the lowest potential returns and market staying power. Oftentimes, companies will choose a hybrid strategy, depending on…

Letters Rogatory in Mexico

Mexico, a signatory to the Inter-American Convention on Letters Rogatory, has a well developed set of rules for presenting letters rogatory in Mexican courts, both federal and state, pursuant to the Mexican Federal Code of Civil Procedure (the “Law”). In addition to outlining the general rules for presenting letters rogatory in Mexican courts, the Law…