When talking about foreign trade compliance in Mexico regarding raw materials and fixed assets on a temporary basis, one of the key references is Annex 24 of the General Rules of Foreign Trade (Reglas Generales de Comercio Exterior). While the name may sound technical, Annex 24 is essentially about how companies must control their temporary inventories electronically when operating under special programs like IMMEX and/or VAT Certifications.
What Annex 24 Requires Companies to Register
This system must register in detail, among other points:
Common Mistakes When Managing an Annex 24 System
Some of the most common mistakes companies make when managing Annex 24 include:
The Risks of Non-Compliance
Without proper compliance, a company is exposed to significant risks, such as fines or penalties from customs authorities and cancellation of their IMMEX authorizations.
These type of systems are often provided by specialized software vendors who understand both customs compliance and inventory management, and having the right combination of technology and trained personnel is what makes an Annex 24 system reliable over time.
Why Annex 24 Is the Backbone of Foreign Trade Compliance
Annex 24 may seem like just another regulation, but in reality, it is the backbone of compliance in Mexico’s foreign trade programs. Companies that invest in a strong Annex 24 system and external advisors not only meet their legal obligations, but also improve their internal control and efficiency.
Annex 24 may seem like just another regulation, but in reality, it is the backbone of compliance in Mexico’s foreign trade programs. Companies that invest in a strong Annex 24 system and external advisors not only meet their legal obligations, but also improve their internal control and efficiency.
Annex 24 is part of Mexico’s General Rules of Foreign Trade, requiring companies operating under IMMEX or VAT Certification to electronically control their temporary import inventory, including raw materials, parts, and machinery.
It must register goods temporarily imported into Mexico, how those goods are transformed or transferred (mainly through BOMs and customs declarations), and their final destination, whether they remain in Mexico or are exported.
Non-compliance can lead to fines or penalties from customs authorities, and in more serious cases, the cancellation of a company’s IMMEX authorization.
Outdated BOMs are one of the most frequent issues, along with importing raw materials that aren’t properly controlled or failing to cross-check monthly government data stage reports against internal records.
Start your business in Mexico with confidence – DIMSA is here to guide you every step of the way. Contact DIMSA for more information.
Miguel Tamez – Import/Export Manager
