IntelliTrans gives rail freight shippers guidance on Carta Porte

Non-compliance results in fines, seizure of goods, suspensions

IntelliTrans, a global multi-modal solutions that optimize supply chain operations for bulk & break-bulk companies, counsels its rail freight clients on the Carta Porte restriction, which went into effect January 1, 2022. After the grace period ends on March 31st, 2022, if carriers do not comply with these restrictions, they are subject to fines, seizure of goods, and suspension of the haulage company driving permissions. If a carrier is impacted, then the shipper using that carrier is also impacted. IntelliTrans has added features to help clients meet these requirements.

“Carta Porte is aimed at increasing the traceability of products moving inside of the Mexican territory, which in turn, will reduce the ability to evade relevant taxes,” said Brian Cupp, Director of Operations, IntelliTrans. Studies estimate Mexican authorities are losing as much as $7 billion a year in tax evasion as a result of goods smuggling.

Non-compliance to the mandate can result in:

• Seizure of Hauled Goods: If the vehicles transporting goods do not have the proper documentation, the authority may proceed to seize them until they comply with these requirements.
  
• Fines: Reported to be between $800 and $5,000 depending on the severity of the issue. Most infractions are detailed in Articles 84 and 85 of the Federal Fiscal Code and Annex 5 of the Miscellaneous Fiscal Resolution. 
  
• Suspension of haulage company driving permissions: The transportation authority may suspend or cancel the transportation permissions of the carrier if they feel it is warranted (3-15 day closures are allowed according to the documentation reviewed).
  
• Non-Deductible VAT: The VAT charged by the carrier will not be deductible for the owner of the goods being transported if all documentation is not in compliance.
  

Carta Porte information must be transmitted and received through Electronic Data Interchange (EDI) along with a Shipping Instruction application. IntelliTrans has developed TMS functionality and updated EDI mapping to allow shippers to transmit this data to the carriers properly. Additionally, IntelliTrans has been working with its customers to review relevant carrier updates on the Carta Porte requirements.

“Meeting the Carta Porte requirement is critical to avoid further supply chain disruptions in an already constrained network,” adds Cupp. “IntelliTrans wants our customers to avoid costly raw material disruptions and make sure they can get their finished goods to market to meet their customer’s needs.”