If you're just starting out in the Importers Registry, you'll quickly realize the overwhelming amount of information, regulations, and procedures involved. For someone new to the field, it can be intimidating to navigate such a complex system. However, there are ways to make your transition into this new world of customs easier—one of them is by working with a customs broker.
Every professional field is complex and requires a trained expert with extensive knowledge to streamline processes and achieve the best possible outcomes.
According to Mexico’s Customs Law, Article 159, a customs broker is defined as:
"An individual authorized by the Tax Administration Service (SAT), through a license, to promote the clearance of goods on behalf of third parties under the different customs regimes established by this law."
In simple terms, a customs broker is a licensed individual who specializes in managing customs procedures. They are highly knowledgeable about the required steps and regulations since, by law, they must have at least five years of experience in the field.
One crucial factor for a customs broker to perform their job is obtaining certifications and permits, known as a Patente (license), which legally authorizes them to represent third parties before Mexico’s Tax Administration Service (SAT). This license is similar to a professional certification, allowing them to operate independently.
Currently, there are approximately 814 licensed customs brokers operating through customs agencies in Mexico.
Because customs brokers are backed by customs agencies, they are a great solution for individuals or businesses looking to import or export goods. Their experience and expertise help expedite the entire customs process by ensuring compliance with regulations and streamlining the necessary administrative procedures.
With the support of a customs broker, businesses can efficiently and safely engage in international trade, allowing new companies to expand globally with confidence and speed.
A customs broker's primary role is to advise clients on legal procedures based on their specific needs. However, their duties go beyond simple guidance.
Their skills and responsibilities vary depending on the client's unique requirements, but some of their key functions include managing the following tasks and documentation:
This document is a sworn statement provided to tax authorities, declaring the true monetary value of the traded goods, including quantities and operational costs related to importation or exportation.
This document contains detailed information about the imported or exported goods, validating their legal status and the identity of the importer. It helps determine:
This process involves classifying goods to determine applicable taxes, policies, obligations, and rights.
This refers to the final destination of the goods abroad. The applicable legal procedures are determined based on the regulations of the destination country.
This document is crucial for international trade, as it certifies the country of manufacture of the goods. It allows businesses to obtain approval and benefit from preferential tariffs.
Additionally, a customs broker must ensure that the importer's information is accurate and up to date throughout the process. This is especially important in case of a customs inspection—if the customs traffic light system triggers a red light, having everything in order will help expedite inspections and approvals, avoiding issues such as a Preventive Administrative Procedure (PAMA).
Deciding between hiring a Customs Broker or a Customs Manager isn't always easy. However, based on our years of experience in Mexican imports, we recommend choosing a service that ensures a smooth import process with minimal risks.
Here are the main differences between the two:
|
Feature |
Customs Broker |
Customs Manager |
|
Legal Authorization |
Licensed by SAT |
Not required |
|
Representation |
Can represent third parties in customs procedures |
Cannot represent importers before customs |
|
Expertise |
Specialized knowledge and experience in customs law |
Administrative management of customs operations |
|
Required by Law |
Required for most international trade operations |
Optional, depending on the company’s needs |
There are currently more than 900 customs brokers in Mexico. The Confederation of Customs Brokers Associations of the Mexican Republic (CAAAREM) represents over 800 customs brokers through 38 Customs Brokers Associations.
On November 22, 2023, the National Customs Agency of Mexico (ANAM) opened a call for applications to obtain a customs broker license. The registration window was initially open for only two days, closing on November 23 at 11:59 PM.
Due to high demand, the registration period was extended until 6:00 AM on November 24, 2023.
This initiative is part of the Mexican government’s plan to issue new customs broker licenses in 2024—something that hadn't been done since 1997. ANAM reopened the registration process for a very limited time, and 430 applicants initially registered in hopes of becoming customs brokers.
This process is crucial to maintaining the efficiency and transparency of the country’s customs operations.
To summarize: A customs broker is a licensed legal representative, but they are also experts in handling customs procedures. Through customs agencies, businesses can hire their services to simplify the import and export process.
Their main responsibilities include providing legal guidance and managing customs paperwork, requiring attention to detail, knowledge, and experience. By working with a customs broker, businesses can expedite procedures, reduce errors, and significantly streamline international trade operations.
If you're interested in expanding into international trade, keep in mind that 90% of import/export operations in Mexico are handled through customs brokers. Partnering with a customs broker and their affiliated agency could be a great opportunity for you!