ANNEX 31 OF THE GENERAL RULES FOR FOREIGN TRADE FOR 2020

CREDIT AND GUARANTEE ACCOUNT CONTROL SYSTEM (SCCCYG)

The Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) will administer and control the tax credits and guaranteed amounts derived from temporary import operations subject to the benefits of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) Certifications; of the Registry in the Business Certification Scheme in the modality of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios); or of the guaranteed operations, from:

1. The existing inventory or initial inventory of the operations that, as of the date of entry into force of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) Certifications, of the Registry in the Business Certification Scheme in the modality of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios), or of the acceptance to operate the Guarantees Scheme, are pending return abroad, alienation, regime changes or regularization.

1.1. The taxpayer will transmit electronically, the existing inventory of those operations that are under the regime that is authorized, the day immediately prior to the entry into force of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) Certification, of the Registry in the Business Certification Scheme in the modality of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios), or the acceptance to operate the Guarantee Scheme, as appropriate, within a maximum period of 30 calendar days after said date, so that it reflects the status of "Valid", in accordance with the rule 7.2.1., second paragraph, section IV, third paragraph (RGCE 2020: Regla 7.2.1) of the General Rules of Foreign Trade (Reglas Generales del Comercio Exterior).

1.2. The existing or initial inventory must be transmitted even when no operations have been carried out under the regime that is authorized, reporting in zeros, in accordance with the "Technical manual for the integration of files "txt" of Initial Inventory and Discharge Reports for the Credit and Guarantee Account Control System" published for this purpose on the Service Tax Administration (Servicio de Administración Tributaria) Portal.

1.3. The existing or initial inventory consists of all those fixed assets and imported supplies prior to the date of entry into force of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) Certification, Registry in the Business Certification Scheme in the modality of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios), or the Guarantee Scheme.

1.4. Up to two corrections will be accepted within the following three months in which the existing inventory is sent electronically, provided that it has been submitted within the term of numeral 1.1. and reflects the status of "Valid".

If an additional correction is required outside the period indicated in numerals 1.1. and 1.4. of this annex, shall request it by free writing, before the General Administration of Foreign Trade Audit (Administración General de Auditoría de Comercio Exterior), as long as the Registry in the Business Certification Scheme in the modality of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios), is in force.

1.5. The taxpayer will transmit the inventory at customs declaration (pedimento) level and tariff fraction of the operations that are currently pending discharge or return, providing the following information:

a) Customs declaration (pedimento) number: Customs code / clearance section, patent, and document number.

b) Date of the customs declaration (pedimento): Date of payment of the customs declaration (pedimento).

c) Tariff fraction: The tariff fraction reported must coincide with that assigned at the time of temporary importation.

d) Commercial value: The declared commercial value of the tariff fractions associated with the import customs declarations (pedimentos) that are currently destined for the customs regime affected, pending discharge or return.

2. The operations carried out by applying the tax credit or guarantee for the payment of the Value-Added Tax (Impuesto al Valor Agregado) or the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) under the provisions and benefits established in the General Rules of Foreign Trade (Reglas Generales del Comercio Exterior) in force at the time of its Certification in matter of Value-Added Tax (Impuesto al Valor Agregado) and Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) or of the Registry in the Business Certification Scheme in the modality of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios).

2.1. The determination of tax credits or amounts guaranteed in accordance with articles 28-A (LIVA: Art. 28A) of the Value Added Tax Law (Ley del Impuesto al Valor Agregado) and 15-A of the Law on Special Tax on Production and Services (Ley del Impuesto Especial sobre Producción y Servicios), will be carried out under the following criteria:

a) The Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) will automatically incorporate the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) amounts declared by the taxpayers in the corresponding customs declarations (pedimentos) registered in Automated Integral Customs System (Sistema Automatizado Aduanero Integral).

b) The amount of Value-Added Tax (Impuesto al Valor Agregado) and Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios), for the purpose of credit and guarantee control, will be carried out automatically by tariff fraction, in accordance with payment methods 21 and 22, established in Appendix 13 (RGCE 2020: Apendice 13), of Annex 22.

c) In the case of fixed asset operations, the credits or amounts guaranteed will be those associated with the "AF", "BO" and "M4" customs declaration (pedimento) codes, and / or "AF" identifier specified in Appendices 2 (RGCE 2020: Apendice 2) and 8 (RGCE 2020: Apendice 8) of Annex 22.

(d) The rectifications of the import customs declarations (pedimentos) for the operations destined to the customs regime associated with the credits and guarantees will be automatically reflected within the Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías).

3. The discharge reports associated with the return customs declarations (pedimentos), regime changes, virtual transfers, extractions, regularization of merchandise, sections B and C of the proof of transfer of merchandise or, where appropriate, the fiscal receipts that cover the alienation of the merchandise to the companies of the automotive terminal or manufacturing of motor vehicles referred to in rule 7.3.1., section V (RGCE 2020: Regla 7.3.1), as well as to the notices of donation and destruction.

3.1. Taxpayers may transmit monthly and / or bimonthly electronically the discharge reports, within the calendar month following the one associated with the closing of the operations carried out by each of the types of customs destinations to discharge mentioned in this present annex.

3.2. Taxpayers may transmit the discharge report as of the entry into force of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) Certification, or of the Registry in the Business Certification Scheme in the modality of the Value-Added Tax (Impuesto al Valor Agregado) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios), or of the acceptance of the Guarantee Scheme.

3.3. The discharge report associated with each of the customs destinations to be discharged must contain the following information:

a) Type of customs destination to be discharged: Return, regime changes, virtual transfers, extractions, proof of transfer of merchandise, tax receipts referred to in rule 7.3.1., section V (RGCE 2020: Regla 7.3.1), destruction or donation notices.

b) Period to is discharged: Indicate the month and year associated with the closing date of the operations carried out in the customs destination to be discharged. The following closing dates will be understood as:

I. Payment date for the return customs declarations (pedimentos), regime change, virtual transfer, or withdrawal.

II. Date of issue for proof of transfer of merchandise or, if applicable, date of issue for the tax receipt referred to in rule 7.3.1., section V. (RGCE 2020: Regla 7.3.1)

III. Date of acknowledgment of the receipt for notice of destruction and donation.

c) Numbers of customs declarations (pedimentos): (customs code / clearance section, patent and document number) associated with the type of discharge or folio of registration of the proof of transfer of merchandise or, where appropriate, the fiscal folio of the tax receipt to which it refers to rule 7.3.1., section V (RGCE 2020: Regla 7.3.1), and the folio of registration of the destruction or donation notices that will be discharge.

(d) Tariff fraction: For each type of discharge, may be reported the tariff fractions declared in the customs declaration (pedimento) with which the merchandise can be entered into to the customs regime affected associated with Section 1 of this annex, as well as those tariff fractions declared in the customs declarations (pedimentos) with payment method 21 and 22, established in Appendix 13 (RGCE 2020: Apendice 13), of Annex 22, which were consumed at the customs destination to be discharged. In those cases where the document code does not allow identification of the fixed asset, it can be identified by separately indicating the tariff fractions assigned at the time of importation.

(e) Commercial value: Sum of the commercial value that is discharged by tariff fraction associated with the import customs declarations (pedimentos) for operations carried out within the period that is discharged.

3.4. The foregoing shall not apply to operations whose expiration of the return term is within the period that is discharged.

3.5. Taxpayers operating under the Guarantee Scheme may transmit the discharge reports within biweekly periods. Said discharge reports must have a "Valid" status in order for the information to be updated according to the mechanics of charges and discharges in this annex. The process of applying revolutions to that balances that will be applied biweekly according to the mechanics mentioned above.

3.6. The taxpayer must submit corrections to the original discharge reports when there have been corrections associated with the returns, regime changes, virtual transfers, extractions, regularizations, proof of transfer of merchandise, tax receipts referred to in rule 7.3.1., section V (RGCE 2020: Regla 7.3.1), notices of destruction or donation and are within the corresponding return period, in accordance with the fields indicated in this annex.

3.7. Additionally, corrections derived from errors in filling out the discharge reports may be submitted.

3.8. In both types of correction, the discharge reports submitted by the taxpayer will completely replace the previously submitted report.

3.9. Companies that choose to guarantee the tax interest in accordance with rule 7.4.1. (RGCE 2020: Regla 7.4.1), must transmit only the discharge reports related to the charges associated with the guaranteed amounts.

4. The discharge reports associated with the regularization customs declarations (pedimentos) and / or regime changes of merchandise that would have entered the national territory by any of the customs regimes affected must be submitted.

4.1. Taxpayers who have made regularization customs declarations (pedimentos) and / regime changes of merchandise that had entered national territory under a different customs regimes to which they are subject, must transmit the discharge report associated with said customs declarations (pedimentos) in accordance with the provisions of the discharges report indicated in numerals 3.1. and 3.3 of this annex.

5. The mechanics of charges and discharges of the Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías).

5.1. The authority will perform the mechanics of charges and discharges within the Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) under the following terms:

a) The charges associated with the tax credits and guaranteed amounts will be incorporated into the Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) automatically. Regarding the discharge reports, they will be applied in the Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) biweekly.

b) The Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) determines the return terms presumptively but not indicatively, so taxpayers must compute the terms in accordance with current legal provisions.

(c) The discharges will be applied considering the tariff fractions reported in charge accounts, using the First Entries First Exits (Primeras Entradas Primeras Salidas) inventory control method in accordance with the legal provisions in force.

d) The Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) will determine the balance of the global credit or the total guaranteed amount biweekly, in accordance with the provisions of the preceding points.

The balances reflected within the Credit and Guarantee Account Control System (Sistema de Control de Cuentas de Créditos y Garantías) do not imply a definitive resolution, remaining safe of the faculties of verification of the authority.

In the case of taxpayers who introduce goods to the fiscal deposit to undergo the process of assembly and manufacture of vehicles, they may operate with the guidelines issued by the Service Tax Administration (Servicio de Administración Tributaria) for such purposes.

It should be as indicated by the "Operation Manual for the transmission of initial inventory and discharges reports of the Credit and Guarantee Account Control System" and in the "Technical Manual for the integration of files "txt" of Initial Inventory and Discharge Reports for the Credit and Guarantee Account Control System," which are published on the Service Tax Administration (Servicio de Administración Tributaria) Portal.