Case History: shipping from Milan to Cuautitlán, Mexico, with Door-to-Door Intermodal Service
In collaboration with our Mexican international freight forwarding agent, we manage a monthly traffic of container shipments by sea, with final destination in Cuautitlán, DAP incoterm. The goods primarily consist of spirits and wine made in Italy.
Containers stuffing occurs in the Milan area, port of departure Genoa, while the port of discharge is Veracruz, Mexico. From there, containers are forwarded by train to their final destination in Cuautitlán.
Mexico and the preferential rules of origin
Mexico has preferential origin agreements with the European Union, under which goods accompanied by an Eur1 certificate issued by an European freight forwarder can enjoy exemption/reduction of import duties in Mexico.
This certification can also be substituted by a simple declaration on the invoice for shipments valued less than €6,000.
In our case, as the invoice amount is usually more than €6,000 and the shipper is an Approved Exporter, he can attest the preferential origin of goods directly on the commercial invoice.
Exporting Alcohol: Suspensive Excise Duty Regime
The alcoholic products of our Italian exporter are subject to excise under duty suspension,: they originate from a tax warehouse and are destined to a place of export from the EU.
Excise is a tax about making and selling a particular categories of products, which are alcoholic drinks, wine and beer.
A ‘duty suspension arrangement’ is a tax arrangement applied to the production, processing, holding, storage and movement of excise goods whereby excise duty is suspended.
Moving excise goods under duty suspension arrangement begins as soon as they leave the exporting tax warehouse.
Excise Movement and Control System (EMCS)
Consignment of excise goods is considered to take place under a duty suspension arrangement only if it takes place under an electronic administrative document (e-AD) in the Excise Movement and Control System (EMCS), which is supported by the System for Exchange of Excise data (SEED) – used for registering excise economic operators.
The EMCS in practice
The Consignor prepares the draft e-AD and submits it to to his national administration.
The administration validates the e-AD against reference data (e.g. the registration number of the consignor and of the consignee).
After validation, the e-AD receives a unique reference code called ARC (Administrative Reference Code), which, together with the draft submitted by the Consignor, constitutes the e-AD.
The Consignor provides a printed copy of the electronic administrative document or any other commercial document that clearly indicates the Administrative Reference Code to the person accompanying the goods.
Goods movement under duty suspension arrangement ends once goods itself leaves the European Union territory.
This situation is certified by the export note issued by the export Customs Office based on the exit customs office’s clearance.
Do you need to ship wine or spirits from Italy? Contact us!
