Mexico’s new customs rules could expose bad supply-chain data, CrimsonLogic warns

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.

Technology isn’t the problem

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.

Finding a “single source of truth”

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.

“What we see with some of our customers is they make use of technology,” Lau said. “It can’t solve all the problems, but it definitely can help.”

How importers can prepare

Lau recommends companies focus on three priorities before Aug. 1:

• Audit shipment documentation to ensure invoices, bills of lading, certificates of origin and declared customs values are consistent.
• Meet regularly with suppliers, logistics providers and customs brokers to establish common data standards.
• Use technology to identify and eliminate recurring documentation errors before submitting information to customs.

“The feedback loop is very important,” Lau said. “Otherwise the same mismatch is going to happen every day. It’s important to fix it at the root.”