New amendments for import permits of products regulated by Ministry of Energy

On September 18, 2024, Ministry of Energy ("SENER") published a third modification (the "Amendment") of the "Decree that establishes the goods which import, and export is subject to regulation by the Ministry of Energy" (Acuerdo que establece las mercancías cuya importación y exportación está sujeta a regulación por parte de la Secretaría de Energía), originally published on December 26, 2020(the "Decree").

The Amendment started effects on September 19, 2024. The applications and permits already granted will follow the terms of the Decree current at the time of the application or granting. However, all permits shall follow the reporting obligations of the Amendment.

Previous amendment, published on November 6, 2024, increased the number of regulated products. Now, this Amendment intends to add and precise requirements for applications of the permits, and in respect to reporting and other regulatory obligations. The most relevant changes are the following:

• The Amendment intends to reflect the industrial organization of the different products that are imported, marketed, and used in Mexico. The Amendment defines the concepts of producers, manufacturers, users, and high-volume importers, among others.
• On the other hand, the Deputy Ministry of Hydrocarbons will be responsible for analyzing and granting the permits.
• It excludes the references to the Energy Regulatory Commission ("CRE"). However, the authority of the CRE for regulating some of the products in midstream and downstream activities is still intact. In that regard, it is necessary to refer to the current CRE regulation for each product.
• The Amendment contains a catalog of specifications with the composition and the physicochemical properties of the tariff codes, and in some cases, requires a certificate of composition and physicochemical properties for a given lot or a series produced. It is relevant for any importer to confirm if the products to be imported comply with the properties of the catalog.
• It contains an exclusive list of products that can be imported as fuels, diesel, jet fuel, LPG, and other commercial fuels. It also restricts illicit blends of products to produce fuels.
• As from the Amendment, the permits have durations of 60 days, 1 year, 5 years, more than 5 years, and 20 years. The requirements vary upon the duration, and if the volume is lesser or higher of one million units (i.e., liters, etc.) It is relevant to note that variables of durations and volume contain similar but not same requirements, and SENER has stressed that applicants file only applicable information and documents. Therefore, it is important to be precise on the preparation of applications.
• Permits of 20 years are limited to exports and are subject to the approval of the Minister of SENER, and to present evidence of an infrastructure project related thereto.
• Permits can be renewed for duration but no for volume. Permits for 1 year, up to two times, for 5 years one time, for more than 5 years and 20 years only one time for half of the duration.
• Importing products that do not comply with physicochemical characteristics are a cause of revocation of the permit. Also, any violation to the terms of the permits, including if such violation is found during inspections of the competent authorities to permit holder or third parties. In that regard, SENER and other competent authorities may take samples of the products.
• Small volume importers (up to one million units) shall file an annual report of import, and high-volume importers (more than one million units) shall file a quarterly report. This obligation is mandatory for current and new permit holders beginning the date of effects of the Amendment.
• It is allowed to modify the description of the products, country of origin or destination if a permit has not been used. Other information requires a new application.

As a conclusion, it is recommended that companies engaged in the business of import, export, or commercialization of energy products, as well as users of such products analyze the terms of the Amendment to integrate into their business strategy.

Any interested party may consult the Decree at the following link:

Diario Oficial de la Federación (dof.gob.mx)