Modification of the guidelines regulating the issuance of import and/or export Permits for hydrocarbons and petroleum products

On September 18th, the "Agreement Amending the One that Establishes the Goods Whose Import and Export are Subject to Regulation by the Ministry of Energy" (the "Agreement") was published in the Official Gazette of the Federation”.¹

Objective

The Agreement is the third amendment to the one published on December 26, 2020, and aims to strengthen the monitoring of import and/or export Permits for hydrocarbons and petroleum products by: i) including a catalogue containing the specifications of composition and physicochemical properties that the goods subject to the Permits must meet; and ii) prohibiting the issuance of Permits when their purpose is to carry out improper or illicit mixtures that modify, alter, or change the essence, organic structure, or chemical composition of gasoline, automotive diesel, jet fuel, industrial diesel, domestic heating oil, fuel oil, aviation fuel, intermediate fuel oils, liquefied petroleum gas or other commercial fuels.

Key points

• Modification to the Requirements for the Issuance of Permits

The essential requirements for the issuance of import and export Permits have been modified, depending on the requested volume and duration.

• New Catalogue of Composition and Physicochemical Properties

With the publication of the Agreement, a catalogue of specifications for composition and physicochemical properties² (appearance, temperature, density, flash point, odour, among others) has been added, which the goods intended for import or export must comply with.

• Implementation of the Certificate of Composition and Physicochemical Properties

Additionally, a new requirement for obtaining import or export Permits is the Certificate of Composition and Physicochemical Properties. This Certificate is a document issued by the manufacturer or producer of the goods to certify their composition and physicochemical properties.

• Prohibition of imports for the purpose of making improper or illicit mixtures

Additionally, a list of tariff lines is added, prohibiting the issuance of import Permits when the purpose is to create improper or illicit mixtures that modify, alter, or change the essence, organic structure, or chemical composition of gasoline, automotive diesel, jet fuel, industrial diesel, domestic fuel oil, intermediate fuel oils, aviation gasoline, liquefied petroleum gas or other commercial fuels.

• Creation of export Permits with a term up to twenty (20) years

The Agreement highlights the addition of a new validity period of up to twenty (20) years for export Permits, in cases where the need for their issuance is justified, in the interest of social and economic benefits to the Mexican State, in accordance with the Mexican National Development Plan and the objectives of the national energy policy.

• Possibility of granting more than one Permit per product

With the publication of the Agreement, the Ministry of Energy is authorised to issue more than one Permit for the same tariff line, as long as the total amount does not exceed one million units of the corresponding measurement according to the Mexican Tariff, within a twelve-month period. It is a requirement to exhaust the volume of the previous Permit before a new one can be authorised.

• Modification of the frequency to file the corresponding reports

Finally, with the publication of the Agreement, the frequency to file the corresponding reports for holders of Permits is modified as follows: i) annually, for import or export Permits with a validity of sixty (60) calendar days or up to one year and up to one million units of the corresponding Mexican Tariff measurement, and ii) quarterly, for import or export Permits for quantities exceeding one million units of measurement, regardless of the Permit's validity.

^{1 Available at: https://www.dof.gob.mx/nota_detalle.php?codigo=5739205&fecha=18/09/2024#gsc.tab=0
2 Available at: https://estadisticashidrocarburos.energia.gob.mx/Doc/Catalogo_SENER.pdf}

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