Abc Logistics

Get a quote for our services

We have the perfect solution for your warehousing, inventory and fulfillment needs.

Keep your products in a secure and well-organized environment, while we manage the order preparation and shipping process.

The guide to Tax Warehousing in Mexico: Definition, benefits and excluded products

Every year Mexico moves more than 455 billion dollars in imports and some 460 billion dollars in exports according to World Bank figures, all this large movement can be subject to tax warehousing.

In fact, importers, exporters, distributors or marketers of imported goods have in the tax warehouse the bonded warehouse a tool that optimizes not only their logistics, but also their finances. 

A logistics operator or tax warehouse service provider becomes the ally that companies use for their international operations and let's see in this post why. 

Let's get down to basics, let's discuss the definition of tax warehouse, its advantages and benefits for your company and some products that according to the Mexican Tax Administration Service (SAT) regulations are excluded from tax warehousing

Every year, close to US $560 billion enters Mexico. The vast majority of this colossal flow of goods is eligible for bonded warehousing. Photo by Griffin Wooldridge.

We offer you a small guide to choosing a 3PL operator for your imports and exports..

What is the tax warehouse? 

The term tax warehouse can have a couple of meanings, but both are related to the operations involved.  

In the first place, the bonded warehouse refers to the facilities, general warehouses for the storage of goods, authorized by the competent customs institution to receive and store goods subject to international trade (mainly imports).

Secondly, tax warehouse also refers to the mechanism contemplated in national and international customs laws, according to which the storage and safeguarding of national or imported goods is authorized , deferring the application and payment of import taxes, contributions, customs duties and other countervailing duties applicable to foreign trade, until the sale or movement of the goods within or outside the national territory is completed. 

Thus, the tax warehouse allows the storage of goods subject to international operations, without having to pay taxes and tariffs at the time of entry into the national territory, deferring the payment until the moment when the sale or withdrawal from the warehouse materializes.

Transactions that may be subject to tax warehousing in Mexico

The foreign trade operations that may give rise to a tax deposit in Mexico are , according to the SAT

  • Definitive imports
  • Final exports
  • Temporary imports (for goods passing through the national territory)
  • Return abroad or reincorporation into the markets of origin.

All as long as:

  1. The warehouse is authorized by SAT
  2. A contract for the safekeeping of goods is in place
  3. The service is paid for the time the goods remain in storage.
  4. The goods are not altered or modified in nature.   

In the Mexican context, a broad definition of a bonded warehouse, as well as its legal framework, can be found in the Customs LawChapter IV, Articles 119 to 123.  

Benefits and advantages of the tax warehouse service

As you may have deduced from the definition, the tax warehouse provides important benefits to anyone who aspires to extend their operations to or from abroad. Let us review some of them. 

Increased safety

It is a fact that you can count on space and storage in the customs offices themselves, but this is limited and security could be compromised.

Hiring an authorized private bonded warehouse service is synonymous with security and reliability. 

You will be able to concentrate on doing business within the country, seeking or forging marketing channels while your merchandise finds optimal and safe storage conditions.   

Tax deferral

An important benefit of this customs regime is that the bonded warehouse allows for a temporary deferral or suspension of taxes and tariffs applicable to international operations, depending on the country where the merchandise enters or is located. 

This deferral of the specific import regime, in turn, acts as a source of financing that will then be offset by the gradual sale of the goods once they materialize. 

And at this point it should be noted that by regulation, the maximum period to nationalize, return or import your merchandise definitively is 24 months

The deferral of taxes and/or duties, translates into resources that otherwise would have to be immediately and fully paid on the value of the import, representing funds that you can use to optimize the treasury, cash flow or maintain the liquidity of the company to cover normal operations.   

In some cases, if marketing does not materialize, you may be able to return the goods to the country of origin without having to pay fees. 

Access to specialized logistics services

When you hire the services of a the services of a logistics operator specialized in bonded warehousing, you can access a series of valuable benefits such as: 

  • Tests or samples 
  • Exhibit 
  • Labeling for regulatory compliance
  • Other commercial identification signs
  • Packaging or repackaging  
  • Palletizing 
  • Strapping 
  • Other forms of handling and transportation that do not alter the nature of the products. 
  • Including fulfillment for ecommerce and nationwide distribution. 

In addition, there is a series of documentation and paperwork that will be simplified by the management and advice of the logistics operator

More about it: Learn about the advantages of a Third Party Logistics 3PL operator

Items allowed and excluded from bonded warehousing

The list of items allowed for bonded warehousing is so long that it is more convenient to talk about the omitted or excluded items. 

According to current regulations, this is a non-exhaustive list of items that cannot be subject to tax warehousing

  • Ammunition and weapons
  • Explosives
  • Radioactive or nuclear material
  • Chemical precursors
  • Most of the gemstones
  • Pearls
  • Jade, coral and ivory
  • Jewelry articles consisting of precious metals 
  • Cigars
  • Finished vehicles with some exceptions. 

Several exceptions apply according to the General Foreign Trade Rules 2017 and chapters 50 to 64 of the Tariff of the General Import and Export Tax Law (TIGIE).

Finally, if you want an integral logistic service ABC Logistics can be the ally you need for your business in Mexico, we have a certified fiscal warehouse authorized by the SAT, the national authority in customs and tax matters. 

Scale your operations in Mexico with the support of the best in national and international logistics! 

More Articles

This site uses cookies to ensure you get the best experience on our website.

× How can I help you?