Mexico

Compliance/Financial Considerations

If you intend to do any of the following in Mexico, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2.

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Mexico, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The tax implications for operating in Mexico may be found at the Internal Revenue Service’s United States-Mexico Income Tax Convention. For further clarification, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122. Transparency International’s 2018 survey of perceived public sector corruption rated Mexico at 28 out of 100 (138th out of 180 countries reviewed, i.e. corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations.

Articles

The US State Department's page on MEXICO may be found HERE. 

Personal Safety

MEXICO'S LAND BORDER WITH THE US WILL REMAIN CLOSED TO ALL NONESSENTIAL TRAVEL THROUGH AT LEAST DECEMBER 21, AS A PART OF THE ONGOING EFFORTS TO LIMIT THE SPREAD OF CORONAVIRUS DISEASE (COVID-19). OFFICIALS IN MEXICO CONTINUE TO ADVISE RESIDENTS TO AVOID ALL INTERNATIONAL TRAVEL. RESIDENTS MUST WEAR PROTECTIVE FACE COVERINGS WHENEVER IN PUBLIC. AUTHORITIES COULD REIMPOSE, EXTEND, FURTHER EASE, OR OTHERWISE AMEND ANY RESTRICTIONS WITH LITTLE TO NO NOTICE DEPENDING ON DISEASE ACTIVITY OVER THE COMING WEEKS.

NOTE: THE U.S. STATE DEPARTMENT ISSUED A TRAVEL WARNING FOR MEXICO EFFECTIVE AUGUST 22, 2017. ALL TRAVELERS TO MEXICO SHOULD READ THE ENTIRE TRAVEL WARNING BEFORE DEPARTURE AND TAKE APPROPRIATE STEPS TO ASSURE THEIR PERSONAL SAFETY.

If you are traveling to Mexico on University-related business, please sign up for the University’s travel insurance program by going here. For more information on the travel insurance program, please go here.

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic.

The quality of medical care in Mexico varies by location. In rural areas, medical care is generally poor. In cities, it is generally adequate. In Mexico City, it is generally good. In resort areas, the quality is uneven and may be expensive. In a health emergency, dial 066 for the police or 065 for an ambulance. Public ambulances may be poorly equipped and under-staffed. If a private ambulance is not available, your best option may be personal transportation.

Food and water quality is poor in many areas. Mexican surface waters and aquifers are heavily contaminated, and many farms use waste products as fertilizer, so diarrheal diseases are a major risk for travelers. Avoid buffets. Do not eat raw seafood or ceviche. Sauces (including tabasco) are also frequently contaminated. When possible, drink water bottled outside of Mexico.

Air pollution is a serious concern in Mexicali, Tecate, Monterrey, Juarez, Tijuana, Salamanca, Leon, Silao, Celaya, Irapuato, and Guadalajara. If you have a chronic respiratory condition such as asthma, please consult a medical professional prior to your trip and carry appropriate medications.

Malaria is a risk in Chihuahua, Chiapas, Durango, Nayarit, Oaxaca, and Sinaloa. It is less prevalent in Jalisco, Quintana Roo, Sonora, and Tabasco. Malaria is very rare along the US-Mexico border.

Criminal organizations operate throughout Mexico and are particularly active in the northeastern, north-central, and southwestern parts of the country. Although they rarely target outsiders, they have been known to rob, carjack, and kidnap foreigners, especially in rural areas and remote stretches of roadway where security services are weak or non-existent.

Local police can be unreliable, even corrupt; in some instances, Mexico’s federal police have had to take over security in local jurisdictions.

There is a high risk of physical harm due to criminal activity in Baja California, Sinaloa, Coahuila de Zaragoza, Tamaulipas, Guerrero, and Morelos. There is an elevated risk of physical harm due to criminal activity in Sonora, Chihuahua, Durango, and Michoacan. If you are concerned about safety in a specific part of Mexico, please contact Risk Services at least one week before your planned departure.

Earthquakes are common in Mexico. On September 19, 2017, a 7.1 quake struck central Mexico, causing at least 60 deaths. To optimize your preparation for an earthquake, review this guidance from the State of California(link is external).

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned. Individuals establishing a business or practicing a profession that requires additional permits or licensing should seek information from the competent local authorities prior to practicing or operating a business. Furthermore, some laws are also prosecutable in the United States, regardless of local law. 

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy or nearest consulate immediately. The Mexican government is required by international law to contact the U.S. Embassy or consulate promptly when a U.S. citizen is arrested, if the arrestee so requests. This requirement does not apply to dual nationals. 

Firearms and Other Weapons: Weapons laws in Mexico vary by state, but it is generally illegal for travelers to carry weapons of any kind including firearms, knives, daggers, brass knuckles, as well as ammunition (even used shells). Illegal firearms trafficking from the United States to Mexico is a major concern, and the Department of State warns all U.S. citizens against taking any firearm or ammunition into Mexico. If you are caught entering Mexico with firearms or ammunitions, you will likely face severe penalties, including prison time. Visit the Department’s Traveling Abroad with Firearms webpage, the Mexican Secretary of Defense page (Spanish only), and the Mexican Customs page (Spanish only) for further information. For additional information about importing hunting weapons or ammunition into Mexico, contact ANGADI (Asociación Nacional de Ganaderos Diversificados Criadores de Fauna, Spanish only) at info@angadi.org.mx. For more information on firearms and ammunition issues in English, contact the Embassy of Mexico in Washington, D.C.

Vessels entering Mexican waters with firearms or ammunition on board must have a permit previously issued by a Mexican embassy or consulate.

LGBTI Travelers: There are no legal restrictions on same-sex sexual relations or on the organization of Lesbian, Gay, Bisexual, Transgender, or Intersex (LGBTI) events in Mexico. However, due to sporadic reports of violence targeting LGBTI individuals, U.S. citizens should exercise discretion in identifying themselves publicly as LGBTI.