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Canacero Monitoring Unfair Steel Imports into Mexico
Jun. 13, 2012
Mexico's steel and iron ore association, Canacero, has started to monitor steel imports through a new program which aims to detect and fight unfairly undervalued transactions.
Called the Customs Price Alerts System of Fractions Catalogue for Undervaluation Risk Operations (SAORS), the program detected six import transactions with undervaluation practices during its first five days of operation, Canacero said in a statement this week.
The program was launched on June 1 in collaboration with Mexico's Tax Administration Service (SAT).
Both Canacero and the SAT will update the program's catalogue periodically, according to global price fluctuations.
"In case a distortion in the price of imported steel products is determined, the [Mexican] authority will review in detail the trade operation, as well as the taxes that should be generated in terms of real prices, in order to prevent tax evasion," Canacero said.
Canacero warned the measures that could be taken by the country's authorities range from placing a precautionary embargo on cargoes to conducting tax audits for fraud and tax evasion.
Last year, 150,000 tonnes of steel products were imported into Mexico at prices that were even lower than the value of the raw materials needed to produce them, according to an estimate of SAT. The volume made up 10% of all steel imports into the Latin American country in 2011, Canacero added.