Mexico's new customs rules could expose bad supply-chain data, CrimsonLogic warns
Mexico's new customs rules could expose bad supply-chain data, CrimsonLogic warns.
Mexico's mandatory electronic customs value declaration requirements taking effect Aug. 1 are likely to expose longstanding data-quality problems across cross-border supply chains, according to CrimsonLogic executive Winnie Lau.
"It's quite a bit of a change from the paper process to electronic," Lau, head of region North America and senior director of group commercial at Singapore-based customs technology provider CrimsonLogic, told FreightWaves.
The new Manifestación de Valor Electrónica (MVE) requirement shifts Mexico's customs value declaration process from paper to digital, requiring importers to electronically submit shipment values along with supporting documentation before freight clears customs.
Mexican authorities have repeatedly delayed enforcement, but the latest extension expires July 31, making compliance mandatory beginning Aug. 1.
Lau compared the transition to earlier electronic manifest requirements introduced for North American trucking, when many carriers were unprepared for electronic customs filings.
"Usually when it launches, everyone is scrambling," Lau said. "They face a lot of issues, raise their concerns with the associations, and the associations go talk to customs and try to find some common ground."
Mexico's customs modernization effort comes as authorities tighten documentary requirements and increase penalties for inaccurate customs filings.
Customs professionals in Mexico have warned that incomplete or incorrect documentation can result in significant fines, shipment delays and administrative proceedings, underscoring the importance of accurate data as enforcement begins.
Importers could face fines of up to $6,000, depending on the violation, along with shipment delays and additional customs penalties.
While many companies have focused on the mechanics of filing the new declaration electronically, Lau said the larger challenge is ensuring every document associated with a shipment contains consistent information.
"What we see with our customers today is that there are always inconsistencies between different documents," Lau said.
Examples include generic product descriptions on commercial invoices, incorrect units of measure on bills of lading, mismatched Incoterms between shipping documents and invoices, incomplete country-of-origin documentation, and customs values that don't properly account for freight and insurance charges under CIF shipments.
Under the MVE system, those inconsistencies can trigger customs rejections, requiring importers to correct documentation before shipments are released.
"They have to go figure out with whoever the stakeholders are, validate the information and then resubmit," Lau said.
Industry experts have similarly warned that the MVE represents far more than any other electronic filing. Instead, it effectively creates a documentary audit of each import transaction, requiring contracts, invoices, payment records, certificates of origin and other supporting documents to remain consistent throughout the import process.
Lau said one of the biggest challenges facing multinational supply chains is that manufacturers, freight forwarders, customs brokers and carriers often maintain separate systems using different document formats and business definitions.
"People have different meanings to different data," Lau said. "It's very difficult for companies to align."
Rather than relying solely on manual reviews, Lau said companies should establish a "single source of truth" by standardizing data exchanged among trading partners and using technology to identify inconsistencies before customs filings are submitted.
