Thursday, May 22, 2014

How to import a car into Mexico




How to import a car into Mexico - V3.0
Recent changes in the law governing what non-Mexicans may or may not drive
in Mexico are fairly clear. Yet essential communication on this important
subject is not readily available in English. Furthermore, several important administrations including Immigration, Customs, Border Control, State and local tax offices, not to mention a bewildering number of police forces are involved, so very few have the broad picture covering each potentially hazardous step. Hopefully this document, based on direct experience will provide you with the facts you need to legally drive your car in Mexico.
Your visa
It all starts with your visa. The old FM2 and FM3 no longer exist. You can
only be granted a temporary visa (
Visa Temporal) or a permanent visa (Visa Residente). This is a purely consular matter so for first timers, you will apply at a Mexican
consulate of your choice. This means at least two visits outside Mexico at least two weeks apart
1.

If you acquired your visa before the law changed, you were able to apply
for what was then an FM3 here at the INM office in Mazatlán (National Immigration Institute)
2. Extensions are still obtained at the local Mazatlán INM office.

Temporary visas allow you to drive your own USA-tagged vehicle until the
last of three annual extensions expire. If in any doubt, look at the back of your Visa Temporal card. If you see “
renovation” number 3, you will no longer be able to get your temporary status extended beyond the expiration date. At that point, you may apply for resident status.
Your TIP
Any car showing US tags must also have a TIP hologram stuck on the inside of the vehicle windshield. It links the personal Visa Temporal number to the VIN of the vehicle. The TIP e.0xpires when the visa extensions are used up. This entry document for your vehicle is issued only at the Banjercito checkpoint close to land borders such as Nogales, Nuevo Laredo, Piedras Negras etc.

To obtain the TIP
(Tramite Permiso de Importación Temporal de vehiculo => Temporary Import Permit – a.k.a TIP), you need clear title to the vehicle, proof of insurance both in Mexico (from entry onward) and the US (up to date of entry), a current passport and driver’s license. You will be required to leave a US$400.00 deposit which is refunded if the vehicle’s stay in Mexico is shorter than 180 days. As a non-resident temporary visa holder, there is no restriction
as to the brand, age or VIN of the vehicle as long as it has current US tags.

Temporary visa holders may only bring one vehicle into Mexico and can only
obtain one single TIP in their name. For as long as you keep the car
in Mexico, make
sure you have on board a color copy of the TIP with copies of the title and
proof of insurance. Vehicles bearing a TIP may only be sold to non-Mexicans. That could be someone you know here in Mazatlan. But you cannot just hand over the vehicle in exchange for money or another vehicle.
Both the seller and the buyer will need to return to a border Banjercito checkpoint to “de-import” the car to complete the sale. The seller will want to make sure that the TIP linking the vehicle to his visa is cancelled by a Banjercito “tramitador” thus freeing him to bring in to Mexico another vehicle under the same conditions (just as long as his Visa Temporal extensions allow). Make sure to keep the Comprobante de retorno Auto Americano given by the “tramitador” which records a number and a time stamp of exit. This is proof absolute that the TIP car is no longer in Mexico.3

After three annual extensions or four years, the bearer of a Visa Temporal
will probably elect to apply for a Visa Permanente. This application does
not require returning to a Mexican consular office outside the country. It
can be made at the INM office in Mazatlán least 15 days before the expiry of
the final extension of the Visa Temporal.

The bearer of a Visa de Residente Permanente may not own a vehicle in Mexico with a TIP
which is only granted to temporary visitors. Instead,
before4 applying for
the Visa Permanente, the applicant wishing to own, drive and obtain
insurance for a vehicle may only do so with Mexican (in the case of
Mazatlán, Sinaloa) plates.
Buy a car in Mexico?

There is no limit in Mexico as to the brand, country of origin and age of a
vehicle or vehicles purchased in Mexico, even while the buyer is still a
Visa Temporal holder. Any automobile dealer will be happy to make the sale.
Just as long as brutally high taxes and duties are paid. Naturally, the previous vehicle
with its TIP status cannot be used as a trade
-in in Mexico. However, purchasing a
vehicle in Mexico can end up being a very costly solution. New or Certified
Pre-owned (semi-nuevos) vehicles cost about 50% more than they do in the
USA.
The better solution is to import a vehicle from the USA using the current
US-tagged TIP-linked vehicle as a trade-in back in the USA.
NAFTA trade agreement defines what can be freely imported into Mexico. Two basic filters apply.

1.      The vehicle must be six model years old or older. Thus in 2014 only vehicles of MY 08 or older can be considered.

2.      The vehicle must have a VIN beginning with a number; usually 1 thru 5. This denotes a US domestic brand or a
US-built European or Asian brand.
So what kind of vehicle can you import into Mexico?
To qualify as an acceptable import into Mexico, the 17 digit VIN of the vehicle must begin with a number. The following link shows the World Manufacturer Identifier list of vehicle brands and their corresponding first three digits. In North America, the first digit is a number from 1 thru 5. Predictably, this features the usual US domestic brands. But interestingly, foreign brands built or assembled in North America also have VINs beginning with a number. This is the case for Nissan, Toyota, BMW, Volvo to name but a few.

This insight flies in the face of rumors and most preconceived notions. You have a bigger choice than just Ford or GM. Just so long as the vehicle was built in North America.
Before committing to a trade-in, if in doubt check the VIN with the border customs broker.

The border experience
Bringing the vehicle through a land frontier requires an expert customs
broker. His job is to get the new owner and his vehicle through the land
border checkpoints quickly, efficiently with all the necessary inspections,
stamps and the blue SSP hologram (
Registro Publico Vehicular) which goes on the windshield. The vehicle importer will allow at least three hours to cover the three or four inspection points at a border like Nogales, probably much more at Laredo.

Once through the border vehicle import system, the owner will then drive
into Mexico with everything summarized and approved on the crucial
Pedimento, a document required by the Sinaloa DMV plus a Mexican Factura issued by the broker which replaces the US Title to issue local Mexican plates to the now officially imported vehicle. The customs broker takes a fee which covers costs, stamps, time and knowledge. It is money well spent.
About 20km south of the border, you must take your vehicle and pedimento to booth number 7 at the Banjercito inbound checkpoint. An essential formality which will allow you to get to the next and hopefully final hurdle.
At this point, you are half way there.


Getting your Sinaloa plates
Next step is to get the plates5. These are issued by the State (Sinaloa in the case of Mazatlan6). At the same time, the State issues a Tarjeta de Circulation7. Like the TIP you just cancelled, it links the owner to the vehicle and is essential. Keep it with you at all times.

The new owner of a Sinaloa-tagged vehicle will have the same insurance
coverage for the same (high) premium as any Mexican. The four years of
Visa
Temporal
status with a 50% subsidy on insurance premium no longer applies.
So is it all worth it?
Clearly, as you pupate from a Temporal chrysalis into a brilliant Mariposa Monarca Residente butterfly, it would be far less hassle to walk into a dealer’s showroom in Mazatlán and drive away in a new or CPO car. Easier, but eye-wateringly more expensive. And that doesn’t solve the issue of your TIP temporarily imported US-tagged car. You cannot avoid the drive back to the USA/Mexico border to de-import it.

As a non-Mexican, you can import a vehicle from the USA. A quick look at Truecar.com or Kelley Blue Book are all you need to see that you can have your pick of any six year old US built brand at highly competitive prices. Every ad gives the VIN as well as a detailed description of the vehicle.

Two factors contribute to keep prices high in Mexico: the tax burden and a very complacent competitive environment. As long as both those factors continue to be a major feature of the Mexican car market, non-Mexicans will be thankful that they at least have options.

So despite the need to make a long road trip entailing gas, food, hotels and tolls, despite the need to be piloted through the labyrinth of red tape by paid professionals, despite the fact that you will probably make your trade-in double blind8, there is no doubt that the whole thing is most certainly worth your time and trouble.


Feel free to contact malcolmpepper@me.com if you have questions.

© Malcolm Pepper 5/2014
1 Like any other country, Mexico requires temporary visa applicants to enroll at or near their city of residence. And like any other country, the application is sent on to the Immigration authorities in the capital. Once approved, the Visa Temporal is made available for collection at the initial point of application.


2 INM address: Prol. Aquiles Serdan s / n Esq Fracc with Twin Beaches. Playa Sur, CP 82100 Mazatlán, Sinaloa. 
Telephone: 01 (669) 981-3813
   Fax: 01 (669) 981-3813   Public Hours: 09:00 to 13:00 hrs


3
If you “de-import” your vehicle at Nuevo Laredo (cancelling the TIP), use Puente International II, the only one with a Banjercito checkpoint.


4
Sinaloa State DMV only issues plates to those who already have Visa Permanente status. This means that you have to “de-import” your TIP vehicle before expiry of your Visa Temporal. Then import your next vehicle as a permanent resident. That requires careful timing.

5
From the moment of import, you have 15 days to get your plates after which the State hits you with an Mx$800.00 fine.

6
The Sinaloa State tax and administration office is in downtown Mazatlan about 1km south of the Aquarium.

7
The Tarjeta de Circulation is issued on production of a verified pedimento, a verified factura, a Visa de Residente Permanente, a proof of address (CFE bill), a valid drivers’ license and an inexhaustible supply of patience. Don’t even think of running this obstacle course without the help of a facilitator. She will make it quicker, more painless and if necessary know when and upon whom to apply a little goodwill where required. Another good investment.

8
That simply means that both your existing vehicle and the one you choose to import will be traded-in sight unseen. If your current vehicle is in good shape and your presentation truthful, you can be sure that a respectable dealer at the other end will behave the same way. There should be no unpleasant (deal-breaking) surprises when you meet up.



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