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The US and Mexico will recognize each other’s customs certification program

The US and Mexico will recognize each other’s customs certification program

Customs certification program recognition will benefit both trading partners

Mexico’s tax authority, the Secretaría de Hacienda y Crédito Público (SHCP), recently announced that the United States and Mexico have recently agreed to recognize each others customs certification program beginning in 2015. Both parties believe that the measure will provide mutual benefits, the expediting of cross-border trade in both directions principle amongst them.

Representatives from both companies coordinated their activities in order to produce one certification form that can be utilized by each nation’s exporters. For instance, the new document is cleared for use for companies to participate in Mexico’s New Certification Regime, or in Spanish, the ” Nuevo Esquema de Empresas Certificadas (NEEC),” as well as in the Customs Trade Partnership Against Terrorism, or C-TPAT.

In Mexico, according representatives of the SHCP, participation in their customs certification program has the tangible benefit of reducing time consuming inspections. Exporters that participate in the NEEC have their imports and exported are audited less than one percent of the time, while those that are not affiliated with the program are audited seventeen percent of the time, on average. One the US side of the ledger, participating in the C-TPAT program affords importers and exporters similar benefit of reduced inspections. Currently there are approximately three hundred companies participating in Mexico’s NEEC customs certification program, and two thousand firms certified by the US with its C-TPAT.

According to Mexican officials, expedition of shipping under the NEEC customs certification program occurs as a result of the existence of administrative and operational facilities at the border that include such things as “fast lanes” for program participants. C-TPAT offers companies that carry its certification access to similar infrastructure.

Both Mexican and US customs certification programs were born of security concerns. C-TPAT was rolled out in 2002, as a response to the September 11th terrorist attacks of the prior year. Mexico’s NEEC customs certification program took effect in 2012, but has its roots in a prior regime that was initiated in 2002, as well.

According to Emilio Cadena, the president of Mexico’s National Maquiladora Association, which is also known by its acronym, INDEX, “Mutual recognition of customs certification programs is an issue of trust that will result in greater productivity and efficiency.”

Read the primary source for this post in its original Spanish at El Economista.

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