Tag Archives: Aduana

U.S. Ex Pats taxes in Mexico

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I honestly had no idea there was so much, and so little about U.S. Ex Pats and their taxable consequences both to the U.S. and to the country they now live.

I found a wonderful article, and author, who appears to have fulfilled quite a niche as far as Mexico is concerned.

They basically cover questions such as bank accounts, Mexican Customs, and sales tax, or IVA (16%) as it is called in Mexico. No wonder so many Mexican citizens “flee” to the border cities of the U.S. (El Paso, Laredo, Brownsville, etc.) to shop.

The Frontera (frontier or border) use to impose a 11% tax, now the country has implemented a level sales tax rate of 16% sales tax. WOW, remarkably high! There is possibly 5-7 million people who live on the Mexico/U.S. border and who knows how many have a Tourist Visa to avoid this tax by shopping in the U.S.?

The name of the article that contains great information about the Mexican Tax code as well as other important and timely information is “New 2014 Tax Laws for Mexico that Affect Expats and Foreigners”.

IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article

You can find more information about the above at:
YucaLandia/Surviving Yucatan.© Steven M. Fry

Hope this might help you if you are considering moving to Mexico.

Remember, for all of your Mexico Tourist Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!

What happens if we cannot turn in our Mexican Temporary Import Permit or TIP?

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Unfortunately, that is one of the pitfalls of operating a foreign vehicle in Mexico. There are obviously circumstances that occur where this might affect your ability to turn in the TIP.

One such scenario includes the possibility of your vehicle being stolen while in Mexico. If that occurs, then you obviously no longer posses the TIP, as it is with the car. That is why it is important, I would suggest critical, that you do a few logical things to help you in as many differing scenarios as possible.

For example, use your Smart phone, I Phone or whatever phone you posses that has photographic capabilities to photograph:

  1. All of the necessary documents needed to personally travel in Mexico. Your Visas and U.S. Passport for example.
  2. The same for all of your Vehicle documents, including a copy of your Temporary Vehicle Importation Permit or TIP as it is called.
  3. A copy of your Mexico Tourist Auto insurance

I would send this file (copies of documents) to your E Mail account as well. If you lose the phone, or the vehicle containing all of the paperwork, you still would have access to the documents.

If your vehicle is stolen, then you will need to contact the local police and request a physical hard copy of the Theft Report. If the vehicle is suffers a total loss, you will still need a Police Report, and hopefully you can have them or your Mexico insurance adjustor to scrap off the vehicle permit. Do not lose the TIP. You MUST still visit the Aduana / Banjercito office that issues these TIP, hopefully the same one you acquired your TIP at.

You must then provide them with a copy of the Police Report, copies of the aforementioned documents, and an Adjustors Report. When you go through the process of turning in your TIP, make absolutely certain that you get an original receipt from the Aduana / Banjercito office that you turned in (cancelled) your TIP.

If you don’t turn it in, you will forfeit your “Bond” you most likely paid with your credit card, the amount which is determined by your vehicles manufactured date:

Vehicle Year Model
2007 and later 400 USD $
2001 until 2006 300 USD $
2000 and earlier 200 USD $

You are also subject to possible fines, and permanent duties that Aduana might levy. There is also the probability that you will not be allowed to apply for a TIP on a future vehicle you may want to take again into Mexico, until you get the current one “cancelled”.

You may think, that Aduana will not know from one Port to another if you have an outstanding non cancelled TIP. Wrong! They, like every other nation, are networked nationwide. They go by your Passport, which is unique only to you.

If, for whatever reason you have not achieved any resolution to this requirement, or if you have forgotten to “cancel” the TIP and are in the U.S. you should be able to get the needed help by calling:

Within Mexico  01 – 800 – 463 – 6728 Don’t forget the 0 before the 1. Must use a Mexican phone to call this #

From the U.S.    1 – 877 – 448 – 8728 Be sure to follow the prompts, for TIP, 7, 2, 2, 1, 1

We hope this helps you! Please feel free to call us with any questions you may have regarding this process.

For all of your Mexico Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!

What is needed to apply for a Vehicle Permit in Mexico?

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According to the Official site for Aduana/Banjercito, the following Fee, and deposit for your vehicles Temporary Import Permit (TIP) is as follows:

$ 48.84 USD$ is the cost of the Temporary Import Permit or TIP for short.

Car Permits

This service is provided to foreigners and foreign legal Mexican Residents who wish to enter Mexican territory with a vehicle from abroad with foreign license plates. (Other than Mexican license plates)

Only Sonora Car Permits

This service is provided to foreigners and foreign legal Mexican residents wishing only to the state of Sonora, with a vehicle from abroad.

Boat Permits

This service is provided to foreigners and Mexicans who wish to enter Mexican territory a vessel of foreign origin.

Mobile Home Permits

This service is provided to foreigners and foreign legal Mexican residents who wish to enter Mexican territory with a mobile home from abroad.

In addition to the aforementioned TIP, there is yet another charge that is determined by your vehicles year model. This is a “Bond” that is charged against your Credit, Debit (VISA or MasterCard) or if preferred, cash ($) This charge will be converted into pesos at the current exchange rate. Below is the table that reflects the amount of the applicable bond. This amount will be returned or credited, in the manner in which the bond was paid, upon your cancellation of the permit. Note: Turning in or cancelling of your vehicles TIP needs to occur prior to the expiration of the permits date, because if not, you will forfeit the bond. Your refund will be applied to the same card used for your Bonds payment, the next business day.

Amount to be paid in Mexican Pesos based on applicable exchange rate

Vehicle Year Model
2007 and later 400 USD $
2001 until 2006 300 USD $
2000 and earlier 200 USD $

Again, a very important item to remember is this. You must turn in your Vehicle Permit/paperwork prior to it’s expiration date. If you do not, you will forfeit the Bond, and you will not be allowed to import a vehicle in the future into Mexico. In the old days, it wasn’t as much a problem because not every Aduana/Banjercito office was networked nationally…they are now!

Please feel free to call us with any questions you may have regarding this process.

For all of your Mexico Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!

When do I need a Vehicle Permit to travel into Mexico?

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Technically, it is referred to as a Temporary Import Permit, but from here forward, will be referred to as Vehicle Permit. You are temporarily importing the vehicle into the Republic of Mexico, for your personal use when traveling into the interior of mainland Mexico.

There is NO need for a Vehicle Permit if you are traveling anywhere in Baja California.
NO Vehicle Permit is needed if traveling to what is referred to as the “Frontera” or immediate border that contacts Mexico to the U.S mainland of Mexico (NOT Baja California) This area generally covers all mainland Mexican border cities and towns, such as Cd. Juarez, Nuevo Laredo, Matamoras, customarily up to 26 kilometers…You only need a Vehicle Permit along the Frontera if your stay is going to be longer than 72 consecutive hours.

You will need a Vehicle Permit when traveling into the interior of mainland Mexico, generally just outside of each Mexican border city, heading into the interior of mainland Mexico. Left click your mouse onto the Map of Mexico below. Note: This is informational only, and subject to change, as everything is. It is your responsibility to verify requirements prior to your trip.

WARNING: if you proceed past the last Port of Entry outside of the Free Zone or Frontera, as mentioned above or denoted on the map, without applying and acquiring the Vehicle Permit, your vehicle will be subject to confiscation, which is NOT a covered condition on your Mexican Tourist Auto Policy.

Vehicle Permit Expirations are determined by the type of visit you are making in Mexico. As a tourist/visitor to Mexico, they are good for up to 180 days. It is important that you know when your Permit is scheduled to expire, and that you not be in the mainland interior of Mexico with an expired permit. You are also required, by Mexican law, to turn in your Vehicle Permit prior to its expiration date, and prior to reentering the U.S. You can do this at any Port of Entry while exiting Mexico, but the Port that issued your Permit is best. Failure to follow this requirement could lead to fines, revocation of the importation bond you purchased when getting your Vehicle Permit, and quite probably a huge inconvenience if you ever visit the interior of Mexico in the future. Advice: DON”T DO IT!

If you leave Mexico to reenter the U.S. prior to your Permits expiration with plans to reenter Mexico in the future, you (the owner) should stop at the Aduana (Banjercito) offices at the border to request a permit to exit and return multiple times, or have Aduana remove the import-sticker. Most people accustomed to frequenting Mexico do not do this, as it is an inconvenience. However, and I saw this on another blog, and it is correct, if your permitted vehicle is stolen, totaled, or sold while in the U.S. then you have lost the opportunity to properly turn in your Mexico Vehicle Permit, and brother, you are already in the system! Your Bond is forfeited, and your right to import another future vehicle is jeopardized and possibly permanently terminated.

All countries have their sovereign laws, and some might seem quirky, or unnecessary. The primary reason(s) behind Mexico’s vehicle laws is because for years hundreds of thousands of U.S. Registered vehicles were sold illegally in Mexico without the proper importation duties and taxes paid. This is how they combat that…

We are here to assist, advise, council, and educate our friends who travel, and not just sell them a piece of paper.

Now go enjoy your adventure! If you have any questions, please feel free to call or E Mail.

For all of your Mexico Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!

What documents are needed to travel in Mexico

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The process for entering into Mexico via Automobile (land), by sea, or air is as follows.

As of January 2007, the United States will require U.S. citizens to present a valid U.S. passport or other accepted identification when entering or departing the United States by air or sea travel to or from Mexico or Canada.

U.S. Citizens are required to show proof of citizenship when traveling to and from Mexico. Each visitor needs a valid picture I.D. and one of the following:

* a state-issued birth certificate with an affixed seal, or
* a naturalization certificate, with a laminated naturalization card, or
* a valid U.S. passport

If flying into Mexico, you will receive a Mexico Tourist Card and a Mexico Customs Declaration form to be completed prior to your reaching your destination. All visitors, including all minor infants and children, must be in possession of a Tourist Card. Don’t lose or misplace your Tourist card as it is needed for your return flight.

Minors – In addition to possessing one of the forms of documentation mentioned above, an unaccompanied U.S. or Canadian citizen under 18 years of age must have the following:

* If traveling alone, the minor must carry a notarized letter signed by both parents giving permission to do so.
* If traveling with one parent, he or she must have a notarized letter from the absent parent giving permission for the traveling parent to take the minor out of the country, or an original court order indicating that the traveling parent has full custody.
* If the minor is traveling with one parent, and the other is deceased, the deceased parent’s Death Certificate must be presented.

Listen, these procedures are not always followed verbatim, especially in Mexico. It is however, wise to posses everything in order to proceed with as little difficulty and sometimes irritation as possible.

Mexico Travel Documents To enter Mexico you will need the following:

As previously mentioned, a valid passport or your birth certificate with embossed seal and government issued photo ID, generally a valid Drivers License. It is a good idea to have at least 3 copies of these documents, allowing you to save some time at the Port of Entry, or in dealing with Aduana. They are the “Mexican Customs” located approximately 18 miles into the interior of all Mexican border cities and towns from Texas, New Mexico, Arizona, and California. That allows you to not stand in line so long, and to avoid paying for extra copies.

We suggest you keep an extra set of all your important documents, such as passports, vehicle registration, titles, etc. at home with one of your emergency contacts, if needed. In addition, if you have E Mail, you might want to scan a copy of your important documents and save them in your PC or cell.

Vehicle Permits

IMPORTANT NOTE:

You do not need a Vehicle Permit in the “Free Zones”. That is the Mexican states that border California, and most of Arizona. Along the Texas, New Mexico, border is considered “free” or Frontera as well. However, once you arrive at a Port of Entry generally between 18 to 26 kilometers, then you have to acquire the vehicle permit.

* If you are a Mexican Citizen, you need to prove your citizenship by providing a Passport, Proof of Work Authorization in the U.S., your Resident Alien Card, or Naturalization Certificate.
* If traveling beyond the frontera, or border, then you will also need to provide a copy of your Registration, or cars Title (if you have one, Canadians provide only Registration) A bill of sale is not valid proof of vehicle ownership.
* A credit card for the temporary importation of your vehicle, which includes the vehicles permit, good for up to 180 days. NOTE: You MUST return the permit if you are not going to re-enter Mexico prior to your vehicle permits expiration. Failure to do so will cost you the “bond” that has been charged to your credit/debit card.
*IMPORTANT: For financed, leased, rental or company owned vehicles, you must obtain a letter from the actual owner authorizing you to take the vehicle into Mexico, which will typically entail the purchase of a full coverage Mexico Tourist Auto policy. You should always purchase at least a 3rd party Mexico insurance policy from a legally licensed Mexican insurance company. That can be purchased in the U.S.

As in all Gov’t sanctioned requirements, they can be changed by the Mexican, or U.S. Gov’t at any time.

Now go enjoy your adventure! If you have any questions, please feel free to call or E Mail.

For all of your Mexico Auto and International health insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!