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 News from Around Banderas Bay | January 2006 
Car Legalization Woes Have Some Expats Seeing Red
 David Agren & Sean Godfrey - Guadalajara Reporter
The Mexican government began allowing certain imported vehicles to be registered in early November, but some citizens and expatriates have expressed dissatisfaction with the process, which they say is complicated, expensive and at times capricious.
The scheme permits vehicles manufactured between ten and 15 year old in Canada, the United States or Mexico to be made legal. It was introduced as a sort of amnesty, which acknowledged that an estimated 500,000 imported vehicles of this vintage had been driven south into Mexico. The program is slated to run through February 23, 2006. After December 31, vehicles must be 1991-1996 models to be eligible for legalization.
Several REPORTER readers have fruitlessly tried to register their imported vehicles, which would allow them to obtain Jalisco license plates and eventually, sell their cars in Mexico. One was successful.
Guadalajara resident Robert Shepard attempted to register his 1995 Ford Escort, which was brought into Mexico in 1996. After filling out the required paperwork, Grupo Aduanal Galvan, a customs broker at the Guadalajara airport, rejected their application, saying it lacked the name of a Mexican national.
A second broker at Megatrans in Colonia Atlas concurred. (Only accredited customs brokers may process car legalization requests.) Additionally, the costs were extremely high. According to Shepard, he would have had to pay Megatrans a fee worth 40 percent of his vehicle's value, which was assessed by the customs broker, using a guide issued by the federal economy secretariat.
Megatrans spokeswoman Monica Medina figured legalization costs would be about 20 percent of the vehicle's value on average.
A government website addressing the legalization noted that costs included 183 pesos for Aduana services plus and importation fee of 10 percent of the value of the vehicle (calculated by Aduana) and a 15 percent value added tax (IVA) applied on 30 percent of the cost of the vehicle.
To see the information in Spanish, click HERE.
Medina said it was possible for foreigners to legalize their vehicles so long as they present their immigration documents, and that the name of a Mexican national on the application is not obligatory. Other required documents include a temporary import license (something obtained at the border), proof of having an address in Mexico and a vehicle registration certificate.
A Canadian expatriate living in Lakeside also reported problems. When he went to a customs broker Guadalajara airport, he presented his original bill of sale for his Canadian plated car. It was rejected. The customs broker said that because the receipt read, 'Purchase agreement' (which is the standard in Canada) and not, 'Bill of sale,' the brokerage firm could not accept it as proof of ownership.
On a more positive note, Lakesiders Bonnie and Bob Kleffel had a smooth ride with the legalization of their 1993 Ford Explorer. Bonnie Kleffel said that they originally spoke to Megatrans, but decided to go with Losen, another broker at the airport. She said that it was an incredibly positive experience.
At first Aduana rejected their paperwork because they thought the Kleffels had only FM-3 status. They had supplied a copy of their FM-2 visa. After about a week Losen cleared up that glitch - according to Kleffel they were told that only foreigners with FM-2 no-imigrado status could legalize their vehicles - and then the paperwork took one week to finish. Losen charged 1,800 pesos as a fee against a the Mexican Customs blue book value on the vehicle of 2,187 dollars. The total cost including aduana fees and taxes was 6,339 pesos.
They then drove their vehicle to Chapala and got a ecological verification sticker (now necessary before plates can be issued) from Multiservicio Automotriz Escalera in Riberas de Pilar the same day. The same afternoon they stopped at the Transito office in Riberas to pick up their plates (cost: about 700 pesos) and were in and out in 20 minutes according to Kleffel.
She was also surprised that the cost of insurance was not as high as she expected, although they had to shop around to get comprehensive coverage, as some insurers only offer liability, she said. Kleffel noted that the blue book value the insurance company used was $3,300 dollars, 50-percent more than the Aduana estimate.
Kleffel is more relaxed driving now that she finally has Mexican plates on her car. 'I've been pulled over various times' for infractions that she hadn't committed, she thinks because of the US plates. Now she noted, 'I'm going to save some mordida.'
When the legalization law was first announced in August, Mexican automotive dealers objected strenuously, saying the amnesty would turn the country into a 'junk yard.' Some dealers have already reported slumping used-car sales. One dealer told Milenio, a Mexico City newspaper, that many consumers believe now that auto prices should be less expensive with the sudden availability of imported cars. |
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