Legal considerations in light of COVID-19 in Mexico: International Trade - Imports & Exports

Due to the recently declared pandemic due to the coronavirus called "COVID-19" worldwide and the current situation in our country, it is important to analyze the possible implications in terms of international trade, specifically with respect to imports and exports of products in accordance with the provisions of the Mexican Customs Law (Ley Aduanera) and other applicable legal provisions.

Let us remember that the importation of merchandise is the operation through which a goods of foreign origin is regulated and supervised in tax matters to be destined for use, production or consumption and there are two types of importation: (i) definitive, when the entry of goods of foreign origin is subject to stay in the national territory for an unlimited time, and (ii) temporarily, when the entry of goods into the country is for the purpose of staying for a limited time and for a specific purpose.

Regarding exports, it is the operation by means of which national goods are sent abroad, for use, production or consumption, legally regulated by tax and customs laws, and can also be of two types, definitive, when exported to stay abroad for an unlimited time, and temporary, when the departure of goods from the national territory is to stay a limited time for a specific purpose abroad and then return to the country of origin.

Today, the Tax Administration Service (Servicio de Administración Tributaria) -The authority in charge of supervising imports and exports- has not issued any restriction on the import or export of goods; however, customs are taking hygiene and safety measures to protect all people involved in international trade operations.

Customs are operating regularly, although it is known that there are delays in the shipment of goods due to the lack of means of transportation in Asian and European countries that have been affected by COVID-19 and which have also increased with the closing of its borders.

In virtue of the foregoing, it will be important to consider in all international trade operations during this period, to include acts of god and force majeure provisions under the relevant agreements and to establish the most appropriate Incoterm 2020 so that the responsibility is shared by the parties in their operations of international sale of goods.

Likewise, what the authorities in matters of foreign and health trade in Mexico and abroad determine as possible measures for a more adequate control of the entry and exit of goods in protection of importers and exporters must be monitored.