On May 7th, 2018, the outgoing government approved an amendment of the Free Trade Zones (FTZ) Regulation, regarding conditions for logistics services companies.

This reform seeks to facilitate the development of logistic services in the country. The Regulation´s new wording incorporates concepts such as "missing package", "package excess" and "SEL", a specific terminology for the companies that benefit from the FTZ, whose activity consists in the provision of integral logistics services (Servicios de empresas de logística in Spanish).

One of the main changes to the Regulation is the extension of the goods’ permanence period within the FTZ, from one to three years. Other innovations relate to the regulation of procedures for the assignment of rights and the transfer of bills of lading, missing packages and package excess, as well as the tax and customs responsibilities of the SEL companies regarding the goods in their custody: on the one hand, the logistics company is the one who assumes responsibility for the loss of merchandise but on the other the consent of the owner of the goods is presumed in all the statements submitted by the SEL company before Customs authority.

Finally, new guidelines are put in place for the beneficiary companies in terms of the document control and registration of the goods within the Free Trade Zone Regime.

Dentons Muñoz celebrates this news as an opportunity to attract greater dynamism in the logistics operations and improve competitiveness and efficiency in the management of inventories. We wish to consolidate the country as a point of logistic development, thanks to its geographical location, commercial conditions, as well its respect to the Rule of Law.

Dentons Muñoz can advise you on the legal changes in the new Free Trade Zone Regime regulation for logistic companies. Do not hesitate to contact our International Trade Department for more information on the reach and implications of this new opportunity.