Risks of an incorrect MVE: fines and PAMA

The MVE is not a minor formality

Many importers see the MVE as just another bureaucratic requirement. This misperception can be extremely costly. The MVE is the legal basis for determining customs value, and all import taxes depend on that value: import duty, customs processing fee, VAT, countervailing duties.

Fines for incorrect MVE

Art. 185 section VII of the Customs Law establishes fines for filing the MVE with incorrect data. Fines range from $4,000 to $7,000 MXN per document, but can accumulate across multiple errors or repeated operations.

PAMA: when the authority seizes your goods

The Administrative Procedure in Customs Matters is the authority's most severe tool. When it detects that the MVE declared value does not correspond to real value, it can initiate a PAMA resulting in precautionary seizure. Recovering seized goods can take months and hundreds of thousands of pesos in legal fees.

Criminal liability: technical smuggling

In serious cases of intentional undervaluation, the authority may consider technical smuggling under Art. 151 section VII of the Customs Law. This can result in criminal prosecution with prison sentences of 3 to 9 years depending on severity.

How SAT detects MVE errors

• Banking information cross-references: SAT detects undeclared foreign payments
• Price databases: SAT compares declared values with reference prices
• Related-party operations: transfer prices are a review focus
• Competitor complaints: undervaluation affects competitors paying correct taxes
• Risk algorithms: customs has models detecting undervaluation patterns

How to protect yourself

The best protection is declaring the correct value from the start. Identify all additions, document every figure with contracts and invoices, and maintain a complete electronic file as required by Art. 59 section V LA. Camtom helps you do all this automatically.