Scrap regulation in Mexico

The rules at a glance

VAT: the scrap withholding

The VAT Law requires companies that acquire scrap to use as an industrial input or to trade it to withhold the tax charged to them¹. The Regulations only reduce the withholding for services, commissions, leases and freight; for scrap there is no reduction, so 100% of the VAT charged is withheld⁸.

• The 2026 Miscellaneous Tax Resolution expressly includes in scrap "all materials from the recycling of ferrous and non ferrous metals", however they are described on the CFDI or presented (bales, plates, pieces or ingot)⁹.
• The withholding is made on payment and paid to the tax authority by the 17th of the following month, with no credit or offset against it¹.
• Businesses dedicated exclusively to trading scrap can request an immediate refund of their VAT balance⁹.
• Companies that hire road freight also withhold 4% of the freight value from the carrier⁸.

Individual collectors

There is a facility for individuals who only collect scrap to sell it for the first time, with no fixed premises and prior year income below MXN 2,000,000. The buyer can register them with the tax authority and issue the CFDI on their behalf through a certified provider, withholds 5% of the amount as final income tax and also withholds the VAT. Purchases under this scheme are capped according to the buyer's income⁹.

CFDI 4.0 and tax status certificate

The CFDI must carry the receiver's tax ID (RFC), name or legal name, tax address postal code and CFDI use². That is why we ask for the tax status certificate (constancia de situación fiscal): the law does not require it, but it is where those exact details come from and it prevents rejected invoices.

Carta Porte

Since July 17, 2024 only CFDI 4.0 with the Carta Porte 3.1 supplement is valid³. Who issues it depends on who moves the cargo⁹:

• Hired freight

  The carrier issues an income CFDI with the supplement. Whoever hires it provides the exact goods data and each is liable for what it provides⁹.

• Own vehicle

  The scrap owner issues a zero value transfer CFDI, with its own tax ID as issuer and receiver⁹.

• No federal stretch

  If no federal highway is used, a CFDI without the supplement is enough. This is presumed for vehicles up to a C2 truck and federal stretches of 30 km at most⁹.

The supplement records origin and destination with date and time, distance, total gross weight, the code and weight in kilograms of each item, the SICT permit, vehicle configuration, insurance and the driver's licence³.

Environmental regime

The waste law defines special handling waste as waste generated in production processes that is neither hazardous nor municipal solid waste⁴. Uncontaminated industrial scrap fits there.

• Management plan. Large generators (10 tonnes or more a year) of the waste listed in NOM-161 must have one, registered with the state. The standard includes "ferrous metal containers, packaging and sections"¹⁰⁴.
• State authorisations. Authorising the collection and recycling of special handling waste is a state power⁴.
• When it becomes hazardous. If it shows hazardous characteristics or appears in the NOM-052 listings, such as spent cutting and quenching oils¹¹. Containers that held hazardous materials are considered hazardous, and hazardous waste must not be mixed with other waste⁴.
• Third party hazardous waste. Collecting or transporting it requires a SEMARNAT authorisation⁴. Bluegreen does not accept it.

Scales and weighing

Measuring instruments used in commercial transactions are regulated by the Quality Infrastructure Law, and the owner of a scale must allow anyone affected by a measurement to verify the procedure⁵. Weighing instruments have their own technical standard¹² and are verified periodically.

Weight is the basis of the price, the withholdings and the weight declared in the Carta Porte. That is why every weighing we record carries a ticket with folio and photo.

Road freight

Federal road freight requires a SICT permit, as does private freight, except below 4 tonnes of payload, or 8 if the owner is a company⁶. Vehicles must respect the weights and dimensions in NOM-012¹³.

Foreign trade

Ferrous scrap is tariff heading 7204. Its export is duty free⁷. Since January 1, 2026 imports pay a general tariff of 35%, except stainless steel (7204.21.01), which remains duty free⁷. Preferential rates under trade agreements may differ.

Companies under the IMMEX programme have their own rules for scrap from temporarily imported goods; its destination should be documented before it is sold.

Other rules that touch the operation

• Signing and keeping documents. Electronic contracts and records are kept under NOM-151, with certificates from an accredited certification provider¹⁴.
• Anti money laundering. Buying and selling ferrous scrap is not a vulnerable activity: that law covers precious metals, gemstones, jewellery and watches¹⁵.
• Personal data. Processing contact data is governed by the data protection law published in March 2025¹⁶. See our privacy notice.

How we handle it on every lot

1. 01

   Tax onboarding

   We ask for the tax ID and tax status certificate before the first purchase.

2. 02

   Documented transport

   Every pickup leaves with the carrier's Carta Porte and an outgoing weight.

3. 03

   Payment with withholding

   We settle with a CFDI and apply the VAT withholding the law requires.

4. 04

   Complete file

   CFDI, Carta Porte, tickets, signed records and impact certificate stay in the client portal. See reports.