Nuvocargo’s SIMPLIFIED: New Regulations in Mexico disrupting Carriers and Shippers in 2021-2022

At Nuvocargo we care about simplifying, making it easy to understand for anyone and getting straight to the point that’s relevant for our partners. For that reason, we’re starting our own “simplified” explanations on supply-chain topics with the new tax and transportation regulations taking place in Mexico.

Are you still unsure about how your business will be affected by the Supplement to the Bill of Lading or “Complemento Carta Porte” that will soon be enforced by federal authorities for any cargo moving within Mexico? If you’d like to understand what needs to be done and when, look no further! Once we’ve clarified the process, we will tell you how to take advantage of these new circumstances, so make sure to read all the way to the end. 

Changes in Mexico’s logistics regulations are coming and adaptation is inevitable. The Mexican Taxing Authority (SAT) estimates that 60% of cargo shipped in the country could be contributing to contraband and smuggling, and is taking certain measures that will imply more time and coordination from Shippers, Carriers, and Intermediaries. The Miscellaneous Tax Resolution for 2021 sets forth new requirements that will be enforced as of January 1st, 2022, and failure to comply could result in fines, penalties, operational delays, and the embargo of shipments starting December 31st 2022. “The regulation of contraband is a very positive step forward,” says Josefina Blanco, Legal and Compliance Lead at Nuvocargo. In addition to reducing irregularities in the sector, by adapting and applying the tools necessary to comply and quickly respond, companies in the industry could differentiate themselves and could turn this into a competitive and operational advantage. 

If so far you’ve found some of the changes overwhelming, remember we’re here to make it easier for you. First, be sure to check out the general context of these new reforms here. If you’re ready to understand in simplified terms how this will work, keep reading. 

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¿What are the new documents required under the new regulation?*

1. Transfer Invoice (CFDI “de Tipo Traslado”) with a supplement to the bill of lading (“Complemento Carta Porte”) to be issued by shippers or intermediaries moving their own cargo in Mexico. 

2. Income Invoice (CFDI “de Tipo Ingreso”) with a supplement to the bill of lading (“Complemento Carta Porte”) to be issued by carriers transporting cargo in Mexico. 

These requirements are in addition to all other documents that are currently required of taxpayers providing transportation of goods services, whether they are foreign or domestic goods. 

* Please note that the requirements under the resolutions published by the SAT are still under review and are subject to change. Also, the SAT portal hasn’t been updated with the corresponding bill of lading supplement section, which means that there is still uncertainty as to what information will have to be shared. 

What happens when?

Carriers

What documents do I need? 

1. Income Invoice (“CFDI de Tipo Ingreso”) 
2. Supplement to bill of lading (“Complemento Carta Porte”)
   

When and where?

• The Income Invoice is required to be issued via the SAT portal at the time the shipment will leave its origin.
• The supplement to the bill of lading needs to be ready to go with the shipment. This document can be evidenced to the authorities at border cross and other inspection sites in physical or digital form (QR code). 
  

How?

• By selecting the invoice option in the SAT portal, you simply need to make sure you select the right invoice type, which in this case is “I” for Income. 
• The information that must be filled out in the supplement to the bill of lading includes detailed information on the origin of the goods, the shipper or intermediary requesting the transportation services, the destination, the route, description of goods, and carrier permits, among others. However, please note that the form is not yet available on the SAT’s website.

Intermediaries*

What documents do I need? 

1. Transfer Invoice (CFDI de Tipo Traslado) 
2. Supplement to bill of lading (“Complemento Carta Porte”)
   

When and where?

• The Transfer Invoice is required to be issued by intermediaries transporting goods by their own means via the SAT portal by the time the shipment leaves its origin.  
• The supplement to the bill of lading needs to be ready to go with the shipment.
  

How?

• By selecting the invoice option in the SAT portal, you simply need to make sure you select the right invoice type, which in this case is “T” for Transfer.  The information that must be filled out in the supplement to the bill of lading includes detailed information on the origin of the goods, the destination, the route, description of goods, and transportation permits if moving your own cargo, among others. However, please note that the form is not yet available on the SAT’s website.
  

NOTE: If you’re an intermediary transporting goods by your own means, you’re required to issue a supplement to the bill of lading in addition to the transfer invoice issued at value zero.

You might be interested in: FAQs about the Bill of Lading Supplement

Shippers*

What documents do I need? 

1. Transfer Invoice (CFDI de Tipo Traslado) 
2. Supplement to bill of lading (“Complemento Carta Porte”)
   

When and where?

• The Transfer Invoice is required to be issued by shippers moving their own cargo via the SAT portal by the time the shipment leaves its origin.  
• The supplement to the bill of lading needs to be ready to go with the shipment.
  

How?

• By selecting the invoice option in the SAT portal, you simply need to make sure you select the right invoice type, which in this case is “T” for Transfer.  
• The information that must be filled out in the supplement to the bill of lading includes detailed information on the origin of the goods, the destination, the route, description of goods, and transportation permits if moving your own cargo, among others. However, please note that the form is not yet available on the SAT’s website.
  

NOTE: If you’re a shipper moving your own cargo, you’re required to issue a supplement to the bill of lading in addition to the transfer invoice issued at value zero. If you're a shipper moving with Nuvocargo, you will not have to issue a supplement to the bill of lading- we will take care of that! All you will need to do is provide us with details regarding the cargo before shipment leaves its origin and you're set! We will make sure the carrier has the information and documentation necessary so that your cargo arrives safely and is complying with regulations.

*Requirements apply when shippers or intermediaries are transporting goods with their own units. 

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Now that we’ve simplified, let’s get to the good stuff. 

How can swift adaptation to the new regulation be an opportunity?

Selecting and applying the correct tools that will help create quick coordination and operation will set you apart from the competition. Nuvocargo advises shippers, carriers, and intermediaries operating in Mexico -as well as U.S. companies moving goods to and from Mexico- to use this to their advantage by:

• Leveraging technology to make sure the information exchange between all parties involved in a shipment happens swiftly and without generating additional delays. 
• In-house and external legal counsel to manage any risks and consequences related to compliance and errors on documents. 
• Quickly train financial departments to prepare the required documents and ensure compliance. 
  
  

What is Nuvocargo doing in response to these adjustments?

If you’re interested in knowing how to leverage technology and getting legal counsel to help you face these challenges, let’s talk. Nuvocargo’s CEO, Deepak Chhugani, says that the company will be updating its software to help clients get ahead of the new regulations. Stay tuned for more on this very soon! 

Nuvocargo is also working on keeping partners informed and up-to-date on the modifications happening around these regulations. Register below and watch our live webinar with Josefina Blanco, Legal and Compliance Lead at Nuvocargo, and Carlos Sesma Jr., partner at Sesma, Sesma & McNeese, both experts on the subject from the legal and logistical standpoint. 

Want to learn about how to turn the new regulations into a competitive and operational advantage?

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Don’t miss our on-demand webinar!

Register here for the Spanish recording

Register here for the English recording