RULE 4.3.14: ANNUAL ADJUSTMENT OF AUTO PARTS INVENTORIES

Companies in the auto parts industry must carry out an annual adjustment of the disposals of parts and components made during the immediately preceding fiscal year, at the latest in May of each year, to companies in the automotive terminal or manufacturing of motor vehicles, for which they must:

I. Determine the total quantity of parts and components disposed of in accordance with rule 4.3.11. (RGCE 2020: Regla 4.3.11), to companies of the automotive terminal or manufacturing of motor vehicles in the immediately preceding fiscal year.

II. Determine the total quantity of parts and components covered by the certificates of transfer of merchandise issued by the companies of the automotive terminal or manufacturing of motor vehicles to the company of the auto parts industry in the immediately preceding fiscal year.

III. Consider the final inventory at the close of the immediately preceding fiscal year of the acquiring companies, manifested in the reports provided by said companies, in accordance with rule 4.3.17, last paragraph. (RGCE 2020: Regla 4.3.17)

IV. Add the amount referred to in section II of this rule, with the amount referred to in section III of this rule.

When the amount referred to in section I is greater than that determined in accordance with section IV of this rule, the difference will be considered destined for the national market, so the companies in the auto parts industry must make the regime change of said parts and components, no later than May of the year immediately after the period subject to adjustment.

Law 109 (LA: Art. 109), Regulation 168 (RLA: Art. 168), General Rules of Foreign Trade (Reglas General del Comercio Exterior) 4.3.11. (RGCE 2020: Regla 4.3.11), 4.3.17. (RGCE 2020: Regla 4.3.17)