RULE 7.2.2: CAUSAL REQUIREMENTS FOR REGISTRY IN THE BUSINESS CERTIFICATION SCHEME

The General Administration of Foreign Trade Audit (Administración General de Auditoría de Comercio Exterior) will require taxpayers, when derived from the corresponding follow-up to the Registry in the Business Certification Scheme, granted in accordance with the rules 7.1.2. (RGCE 2020: Regla 7.1.2), 7.1.3. (RGCE 2020: Regla 7.1.3), 7.1.4. (RGCE 2020: Regla 7.1.4) and 7.1.5. (RGCE 2020: Regla 7.1.5), detect the breach of any requirement or update any of the following assumptions:

A. General:

I. The company is not up to date in complying with tax obligations.

II. Failure to comply with the obligation to retain and pay the Income Taxes (Impuestos Sobre la Renta) of the workers.

III. It is located on the list published by the Service Tax Administration (Servicio de Administración Tributaria) in terms of articles 69 (CFF: Art. 69) with the exception of the provisions of section VI, and 69-B, fourth paragraph (CFF: Art. 69B) of the Federal Fiscal Code (Código Fiscal de la Federación).

IV. Be on the grounds provided for in Article 17-H Bis (CFF: Art. 17H Bis) of the Federal Fiscal Code (Código Fiscal de la Federación).

V. When they stop complying with the obligations established in rule 7.2.1. (RGCE 2020: Regla 7.2.1), that are applicable to them in accordance with the registry obtained.

VI. When the companies that have the Registry in the Business Certification Scheme, in any modality, have not made the payment of duties through the e5cinco electronic scheme provided for in Article 40, subsection m) (LFD: Art. 40) of the Federal Rights Law (Ley Federal de Derechos), annually or by renewal; as appropriate.

B. For the purposes of companies that have registration in the certification scheme in terms of the rules 7.1.2. (RGCE 2020: Regla 7.1.2) and 7.1.3. (RGCE 2020: Regla 7.1.3), in addition to those established in Section A of this rule, the following is detected:

I. The partners, shareholders, as appropriate, legal representative, and members of the administration in accordance with the constitution of the company, are not up to date in the fulfillment of their tax obligations.

II. Those who do not comply with the number of workers required, according to the modality and rubric obtained, are not up to date in the payment of worker-employer fees before the Mexican Social Security Institute (Instituto Mexicano del Seguro Social) or do not retain and pay the Income Taxes (Impuestos Sobre la Renta) of their workers.

III. That their suppliers of inputs acquired in the national territory are not up to date in the fulfillment of fiscal obligations.

IV. Stop proving that they continue to have the legal use and enjoyment of the property or buildings where the production processes or the provision of services are carried out, as the case may be.

V. Have the registration in the rubric AA or AAA and a tax credit is determined and notified.

VI. Resolutions of inadmissibility of the Value-Added Tax (Impuesto al Valor Agregado) refund are issued, the amount of which represents more than 20% of the total authorized refunds, and / or the amount denied exceeds $ 5,000,000.00 (five million pesos 00/100 mn) individually or as a whole during the last 6 months prior to the date of issuance of the requirement.

VII. When the report of the existing inventory or initial inventory of the operations that on the date of entry into force of the certification are not transmitted to the affected customs regime, as well as the discharge reports in accordance with the provisions of rule 7.2. 1, second paragraph, section IV. (RGCE 2020: Regla 7.2.1)

VIII. Failure to prove that inventory control is in accordance with article 59, section I (LA: Art. 59) of the Law and other provisions established by the Service Tax Administration (Servicio de Administración Tributaria) for this purpose.

IX. That its suppliers are on the list of companies published by the Service Tax Administration (Servicio de Administración Tributaria) in terms of article 69-B, fourth paragraph (CFF: Art. 69B) of the Federal Fiscal Code (Código Fiscal de la Federación).

C. For the purposes of companies that have the Registry in the Business Certification Scheme in terms of rule 7.1.4. (RGCE 2020: Regla 7.1.4), in addition to those established in Section A of this rule, the following is detected:

I. That it has stopped complying with the minimum-security standards established in the "Company Profile" according to the corresponding rubric.

II. When there is knowledge of the introduction, possession or extraction into national territory of weapons or any narcotic of those indicated in article 193 of the Federal Penal Code (Código Penal Federal), or it is a prohibited merchandise and does not present the corresponding notice in accordance with rule 7.2.1. (RGCE 2020: Regla 7.2.1)

III. When the U.S. Customs and Border Protection (Oficina de Aduanas y Protección Fronteriza) suspends or cancels the certification of any facility that was accredited for obtaining in the Registry in the Business Certification Scheme, with the U.S. Customs and Border Protection (Oficina de Aduanas y Protección Fronteriza) validation report.

IV. (Repealed).

D. For the purposes of taxpayers who have the Registry in the Business Certification Scheme, in terms of rule 7.1.5. (RGCE 2020: Regla 7.1.5), in addition to those established in Sections A and C, sections I and III of this rule and the following is detected:

I. When, there is knowledge of the introduction, possession or extraction into national territory of weapons or any narcotic of those indicated in article 193 of the Federal Penal Code (Código Penal Federal), or it is a prohibited merchandise and does not present the corresponding notice in accordance with rule 7.2.1. (RGCE 2020: Regla 7.2.1)

II. In the case of customs agents, that their mandataries are not up to date in compliance with tax obligations.

For the purposes of this rule, the customs authority will notify taxpayers in accordance with the provisions of Articles 134 (CFF: Art. 134) of the Federal Fiscal Code (Código Fiscal de la Federación), and / or 9-A (LA: Art. 9A) and 9-B (LA: Art. 9B) of the Law, the requirement indicating the causes that motivate it and will grant a period of 20 days to remedy or disprove the inconsistency.

When the companies do not correct or disprove the inconsistencies, the General Administration of Foreign Trade Audit (Administración General de Auditoría de Comercio Exterior) will proceed to initiate the procedure for canceling the Registry in the Business Certification Scheme that is in force, provided for in rules 7.2.4. (RGCE 2020: Regla 7.2.4) or 7.2.5. (RGCE 2020: Regla 7.2.5)

Law, 9-A (LA: Art. 9A), 9-B (LA: Art. 9B), 59-I (LA: Art. 59), Federal Rights Law (LFD) 4 (LFD: Art. 4), 40 (LFD: Art. 40), Federal Penal Code (Código Penal Federal) 193, Federal Fiscal Code (CFF) 17-H Bis (CFF: Art. 17H Bis), 69 (CFF: Art. 69), 69-B (CFF: Art. 69B), 134 (CFF: Art. 134), Federal Fiscal Code (CFF) 70 Regulation, General Rules of Foreign Trade (RGCE) 1.2.1. (RGCE 2020: Regla 1.2.1), 7.1.2. (RGCE 2020: Regla 7.1.2), 7.1.3. (RGCE 2020: Regla 7.1.3), 7.1.4. (RGCE 2020: Regla 7.1.4), 7.1.5. (RGCE 2020: Regla 7.1.5), 7.1.6. (RGCE 2020: Regla 7.1.6), 7.2.1. (RGCE 2020: Regla 7.2.1), 7.2.4. (RGCE 2020: Regla 7.2.4), 7.2.5. (RGCE 2020: Regla 7.2.5), Miscellaneous Fiscal Resolution (RMF) Annex 19