CIRCULAR 1/25 IAF® – Preventive Foreign Trade Audit

-Enforcement Measures-

The consequences of non-compliance with tax and customs regulations are not limited to the imposition of fines. Authorities also have the power to apply other enforcement measures provided for in the Customs Law and the Federal Tax Code. These measures are coercive tools used to enforce compliance and overcome resistance or disobedience.

However, in many cases, such measures can jeopardize the survival of companies. For example, a business that depends on importing raw materials for domestic production could be suspended from the Importers’ Registry for a regulatory violation, thus losing its ability to import and severely damaging its commercial structure.

Main enforcement measures applied by the authorities include:

-Imposition of fines.
-Seizure of foreign-origin goods.
-Suspension or cancellation of VAT/IEPS certification.
-Request for suspension of the IMMEX Program.
-Suspension from the Importers’ Registry.
-Request for the freezing of bank accounts.
-Cancellation of digital tax stamps.
-Filing of criminal complaints.

-Constant Changes in Tax and Customs Regulations-

Foreign trade is an area that undergoes frequent modifications in its multiple regulatory frameworks, such as the Customs Law and its Regulations, the General Rules for Foreign Trade, the General Import and Export Tax Law, the Foreign Trade Law and its Regulations, international treaties, Ministry of Economy rules, decrees, and even the Federal Tax Code itself.

For this reason, companies must perform preventive audits regularly to avoid non-compliance caused by the volatility of such regulatory changes. In case of irregularities, companies should correct them immediately, before it is too late and the authorities initiate an audit procedure.

-Solutions-

Given the many challenges caused by constant changes in tax and customs regulations, and to prevent and/or correct irregularities, IAF® is committed to helping companies avoid the most common compliance issues detected by regulatory bodies.

We have developed a software solution called SIAP (Sistema Integral de Auditoría Preventiva – Comprehensive Preventive Audit System). SIAP segregates the “data stage” records, enabling strategic analysis based on selective filters to detect irregularities and/or improvement opportunities in a company’s foreign trade operations.

Once irregularities or improvement opportunities are identified, a detailed report is issued specifying:

-Each observation detected.
-The potential fine the company could face if it fails to correct the issue.
-The corrective measures the company should take before the authorities exercise their audit powers.

-Conclusion-

According to projections from the Federal Government regarding tax revenue for fiscal year 2025 (MXN $5,297,812.9 million), it is clear that auditing bodies have direct instructions to increase enforcement actions. This is one of the most effective methods to accelerate revenue collection and to strengthen fiscal oversight, thereby encouraging taxpayers to comply with their tax obligations voluntarily.

Therefore, it is essential to anticipate and mitigate irregularities in tax and customs compliance. Preventive audits are a fundamental tool for these purposes, as they also support the company’s internal control by assessing its current fiscal standing.

“Complying with the law may seem costly, but failing to comply will cost far more.”