What is the Global Pedimento?
The global pedimento is an administrative benefit established in the Foreign Trade General Rules, by means of which it is possible to adjust the import customs value, or the export commercial value, declared in import and export pedimentos filed during a fiscal year, without the need to rectify each import and export pedimento subject to adjustments. [Note: pedimento is a Customs declaration.]
There are different causes that can trigger the need to adjust import and/or export values, such as the following:
- Due to variations in import or export prices, as a result of year-end transfer pricing adjustments;
- Adjustments to customs value additions for insurance fees, when companies have hired an annual insurance policy which covers international shipments;
- Adjustments to customs value additions pertaining to payments of royalties;
- Adjustments to the amounts of freight costs considered as additions;
- Differences or errors in the determination of the customs value and/or commercial value declared in import or export pedimentos.
What are the Benefits of Using the Global Pedimento?
The main benefits deriving from the use of the global pedimento include the following:
- Reduce customs broker fees and minimize internal administrative burden, by filing just one pedimento to correct the values declared in multiple import or export pedimentos, instead of filing multiple rectification pedimentos (one for each import or export pedimento subject to correction).
- Mitigate the exposure to fines and sanctions, by implementing timely, practical and efficiently self-corrective actions.
- Duly support income tax deductions of import purchases, by correcting customs values before filing the annual tax return.
Please note that to be able to apply this benefit, the value adjustments should not detonate a favorable balance of import or export duties.
Deadline to File the Global Pedimento
The global pedimento must be filed before filing the 2017 annual tax return, that is, no later than March 31, 2018. [Note: Since March 31, 2018 is Saturday, the deadline to file the annual tax return would be extended to Monday, April 2, 2018, in terms of article 12 of the Federal Tax Code.]
If the company misses out on the opportunity to file the global pedimento within the timeframe referred above, it is possible to file such global pedimento afterwards, if a complementary tax return is filed.
How We Can Help
Our Firm’s International Commercial Practice Group is highly experienced in assisting companies with the filing of global pedimentos and assessing the tax/ duty impact of the adjustments, based on industry best practices.
At Baker McKenzie we are at your service to assist you in this endeavor, and we will be pleased to address any inquiry related to this subject. Authors:
Dania Guerra Quezada, Andrea Diéguez Orozco and Fabian Navares Aguilera.
