In my previous blog post, Reasons to apply the CFDI Foreign Trade Complement, I mentioned this new legal requirement that all exporters must meet. I also mentioned the most important changes that have been applied regarding electronic invoicing. In this blog post, I will talk about its implementation at Casa Sauza and about the benefits that have taken place thanks this new process.
It has been a real challenge for all exporting companies to incorporate this legal requirement known as CFDI Foreign Trade Complement (Digital Tax Receipt for Internet) which was published on 2016 by the Mexican Tax Administration (SAT) of the Mexican Secretariat of Economy. It was a bigger challenge for those companies who didn't even have anything of the such by then.
Casa Sauza is known for the proper fulfillment of this kind of requirements and had already worked on the CDFI, which is why, it only had to work on the structure of the newest specifications regarding this complement. This was possible thanks to the participation of all the areas involved and to the detailed monitoring of the Action Plan, which was designed so it was all fully implemented by the first date required by the Mexican authority.
One of the first and main actions that were carried out at Casa Sauza was to investigate the most significant changes and their purpose directly at the Mexican Tax Administration. We also held meetings with them and with the agencies involved, such as the Regulatory Council of Tequila, and carried out some benchmarking with other industries of the sector.
We afterwards contacted our Authorized Certification Provider (PAC), who is in charge of validating the information contained in the CFDI (or electronic invoice, as it is also called) and of sending it to the SAT.
We did all this and mapped the fields that we had already implemented in our system, as well as those that we had yet to incorporate. In order to carry this process out, we held some meetings with our Information Technology (IT) department to determine the work plan.
Once all the information was gathered, the Action Plan was prepared. It included the following activities:
- Analysis and design
- Tests and corrections
- Guarantee (Supervision period)
The main participating areas were:
- Supply Chain
Challenges That the Company Faced
The most significant challenges that we faced were:
- The parameterization of the new fields to be incorporated
- To gather the information of our clients, such as their tax identification register (RFC in Mexico). This RFC is one of the most important elements, especially for the validation of information from foreign customs, such as the US Customer Border Protection (CBP) and the Canada Border Services Agency (CBSA), although the complement was implemented for all countries.
Benefits That the Implementation Brought
- The elimination of the Electronic Value Voucher (Comprobante de Valor Electrónico- COVE) for those who implemented the Foreign Trade Complement Version 1.0 or 1.1 as of March 1st, 2017. This helps to achieve one of the objectives which is the simplification in the documentation, as well as saving in the costs related to it.
- It has been much easier for the Customs Agents to know where exactly the information that anyone must declare is. This contributes to a better administration of authority (SAT).
We are proud to count with an excellent work team at Casa Sauza. Everyone makes their best effort to comply with the requirements of the authority in a timely manner. This is how we manage to continue exporting our Tequila, the purest tequila you will find, to more than 80 countries around the world.
If you would like to know more about Sauza and our tequila production processes and administration, you are more than welcome to come and visit. We offer several guided tours so you can choose the one that suits you best. Come to Tequila, come to Casa Sauza!