RULE 2.2.5: ALLOCATION AND DONATION OF FOREIGN TRADE MERCHANDISE, NOT TRANSFERABLE TO THE INSTITUTE TO RETURN TO THE PEOPLE THE STOLEN (INDEP)

For the purposes of articles 145, fourth paragraph (LA: Art. 145) of the Law and 209, section II (RLA: Art. 209) of its Regulations, foreign trade merchandise that become the property of the federal tax authorities and which may be legally disposed of as they are considered non-transferable to the Institute to Return to the People the Stolen (Instituto para Devolver al Pueblo lo Robado), in accordance with the provisions of the Federal Law for the Administration and Disposal of Public Sector Assets (Ley Federal para la Administración y Enajenación de Bienes del Sector Público) and that have the dictum issued by the competent authority, by which it is determined that said merchandise are suitable for human or animal use or consumption, medicinal, surgical, agricultural or livestock use, they will be offered in assignment or donation by customs, the corresponding Deconcentrated Administration of Foreign Trade Audit (Administración Desconcentrada de Auditoría de Comercio Exterior) or the Central Administration of Special Foreign Trade Operations, through the "System for the allocation and donation of foreign trade goods" in accordance with the following:

A. Assignment or donation:

I. It will be offered in the first place to the agencies and entities of the Federal Public Administration, productive companies of the State, its subsidiaries and affiliates, states, municipalities and territorial demarcations of Mexico City, as well as to the federal Legislative and Judicial powers, informing about the availability of the merchandise by official letter, which may be sent through institutional mail, so that within a period of no more than 5 days from the day on which the referred shipment is made, they manifest by the same via its acceptance, in order to initiate the process through the "System of assignment and donation of foreign trade goods".

In the event that the customs, the corresponding Deconcentrated Administration of Foreign Trade Audit (Administración Desconcentrada de Auditoría de Comercio Exterior) or the Central Administration of Special Foreign Trade Operations, as the case may be, does not receive a response with the acceptance or rejection of the merchandise on assignment within the term referred to in the preceding paragraph, it will be offered as an assignment or donation through the System mentioned in said paragraph.

II. In the case of emergent situations caused by natural or weather phenomena or that due to their nature it is necessary to deliver the merchandise urgently and in a timely manner, in accordance with the provisions published in the Official Journal of the Federation (Diario Oficial de la Federación) or in any local official media or written request, the merchandise referred to in this rule will be assigned or donated directly and primarily to the Office for Domestic Affairs (Secretaría de Gobernación), Secretary of National Defense (Secretaría de la Defensa Nacional), the Secretary of Social Welfare (Secretaría de Bienestar Social), the Mexican Red Cross, Institute of Public Administration (Instituto de Administración Pública) or, where appropriate, to the agency or entity that is designated to support in the attention of the mentioned emergent situations, formalizing the delivery of the merchandise through the respective administrative delivery-reception act.

III. Subjects interested in receiving the merchandise in assignment or donation, must comply with the provisions of procedure files 42 / LA and 43 / LA (Customs Law) of Annex 1-A (RGCE 2020: Anexo 1A), as appropriate.

The subjects referred to in the preceding paragraph may withdraw from receiving the requested merchandise up to 48 hours before the date and time established for their delivery and, if they request the merchandise again, they may only withdraw once more on the same merchandise.

In the event that the merchandise is not withdrawn within the deadlines established for such purposes or there is withdrawal, they will be offered again by customs or the Deconcentrated Administration of Foreign Trade Audit (Administración Desconcentrada de Auditoría de Comercio Exterior) or the Central Administration of Special Foreign Trade Operations, as appropriate, through the "System of assignment and donation of foreign trade goods".

In all cases, the customs authority will verify that the merchandise continues in the conditions of use and consumption throughout the process, otherwise the process will be concluded and the goods will be removed from the "System of assignment and donation of foreign trade goods", giving notice to the applicant or applicants.

B. The beneficiaries of the merchandise will be as follows:

I. Once the allocation or donation has been obtained, the interested party must submit a report on the use and distribution of the merchandise through the "System of assignment and donation of foreign trade goods", within a period of one month from the date of subscription of the respective administrative delivery-reception act, and they will have the obligation to present it even when there is a sanction in accordance with the applicable provisions. In the event that the beneficiary considers that due to volumetry or logistics, may not be able to carry out the distribution within a period of one month, said situation will be recorded in the respective administrative delivery-reception act and in this case the beneficiary will have a period of up to 3 months, having to submit a preliminary report within the first month.

II. The merchandise assigned or donated in accordance with this rule may not be commercialized, in the event that the authority is aware that the assignee or donee commercialized them, customs, the Deconcentrated Administration of Foreign Trade Audit (Administración Desconcentrada de Auditoría de Comercio Exterior) or the Central Administration of Special Trade Operations Exterior, as appropriate, will inform of said situation, granting a period of 6 days from the date the notification takes effect, so that it can offer the evidence and make the arguments that in its right suits.

III. The authority will issue the corresponding resolution and notify it to the assignee or donee within a period of no more than fifteen days, counted from the conclusion of the period indicated in the previous section, based on the information and documentation available in the proceedings.

In case the commercialization is not distorted, the assignee or donee of the merchandise may not request or receive a new assignment or donation until after 2 years, counted from the date in which the resolution referred to in the previous paragraph is notified, regardless of the other corresponding sanctions and leaving the exercise of the faculties of verification of customs and tax authorities safe.

IV. The beneficiary may not request or receive a new assignment or donation until after one year when:

a) It is not possible to prove that all the merchandise was destined for the exclusive fulfillment of its functions in the case of assignments or grounds of its corporate purpose in terms of donations. In this case, the year to which this section refers will be counted from the signing of the respective administrative delivery-reception act.

b) It is omitted to remove the merchandise within the periods established in the provision. In this case, the year to which this section refers will be counted from the date on which they should have been withdrawn.

c) They do not present the report on the use and distribution of the merchandise within the established period. In this case, the year to which this section refers will be counted from the end of the term in which the report must be presented.

d) It is omitted to inform the withdrawal. In this case, the term referred to in this section will be counted from the date of the breach in the removal of the merchandise.

V. The Service Tax Administration (Servicio de Administración Tributaria), is released from any liability or criminal action that may be generated after the delivery date receipt of the merchandise.

C. The foreign trade merchandise for which this rule can be applied are, among others, the following:

I. Perishable for human consumption in its natural state, frozen and / or dry, packed or in bulk, semi-processed and processed.

II. Food and medicine.

III. Flowers, plants and soil in their natural state, certified seeds, herbicides, fungicides, insecticides, pesticides, compost and fertilizers.

IV. Allopathic and homeopathic medicine, serums, solutions, ointments, vitamins, drops, preservatives, various medical tests, reagents, or substances that are used in the laboratory, healing materials, contraceptives, contact lenses and artificial transplant organs for humans.

V. Other perishables, such as cosmetics and beauty supplies, cleaning and personal hygiene items, paint, in any presentation, sealants and waterproofing agents.

The importer, owner, holder, or consignee from whom the merchandise susceptible of allocation or donation has been derived, may not adhere to the provisions of this rule.

Law 1 (LA: Art. 1), 145 (LA: Art. 145), Regulation 209-II (RLA: Art. 209), Federal Fiscal Code (CFF) 134 (CFF: Art. 134), General Rules of Foreign Trade (RGCE) 1.2.2. (RGCE 2020: Regla 1.2.2), Annex 1-A (RGCE 2020: Anexo 1A)