# Scrap regulation in Mexico Markdown version of https://bluegreenmaterials.com/en/regulation. Updated on 2026-11-08. Selling steel scrap in Mexico has its own rules: the buyer withholds the full VAT, transport carries a Carta Porte and the waste has an environmental regime. This guide summarises each rule with the law and article it comes from. > This page is general information, current as of its update date. It does not replace advice from your accountant or lawyer for a specific case. Laws are cited by their Spanish names. ## The rules at a glance | Topic | Rule | Who it applies to | | --- | --- | --- | | VAT | A company that buys scrap withholds 100% of the VAT charged to it[^liva] | Buyer | | Invoice | CFDI 4.0 with the receiver's exact tax details[^cff] | Seller | | Transport | Carta Porte 3.1 supplement when travelling on federal highways[^sat-cp] | Carrier or cargo owner | | Environmental | Industrial scrap is special handling waste; large generators need a management plan[^lgpgir] | Generator and collector | | Weighing | Scales used in commercial transactions are subject to verification[^lical] | Whoever weighs | | Freight | Federal permit and weight and dimension limits[^lcpaf] | Carrier | | Foreign trade | Exports duty free; imports pay a general 35% tariff from 2026, except stainless[^ligie] | Importer or exporter | ## 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 them[^liva]. 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 withheld[^rliva]. - 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)[^rmf-2026]. - 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 it[^liva]. - Businesses dedicated exclusively to trading scrap can request an immediate refund of their VAT balance[^rmf-2026]. - Companies that hire road freight also withhold 4% of the freight value from the carrier[^rliva]. ## 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 income[^rmf-2026]. ## 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 use[^cff]. 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 valid[^sat-cp]. Who issues it depends on who moves the cargo[^rmf-2026]: - **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 provides[^rmf-2026]. - **Own vehicle**: The scrap owner issues a zero value transfer CFDI, with its own tax ID as issuer and receiver[^rmf-2026]. - **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 most[^rmf-2026]. 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 licence[^sat-cp]. > **What happens without it** Failing to issue the CFDI is fined MXN 22,300 to 127,530, and issuing it without the required supplement MXN 450 to 670 per invoice. Moving goods without a CFDI with Carta Porte leads to a presumption of smuggling[^cff]. ## Environmental regime The waste law defines special handling waste as waste generated in production processes that is neither hazardous nor municipal solid waste[^lgpgir]. 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"[^nom-161][^lgpgir]. - **State authorisations.** Authorising the collection and recycling of special handling waste is a state power[^lgpgir]. - **When it becomes hazardous.** If it shows hazardous characteristics or appears in the NOM-052 listings, such as spent cutting and quenching oils[^nom-052]. Containers that held hazardous materials are considered hazardous, and hazardous waste must not be mixed with other waste[^lgpgir]. - **Third party hazardous waste.** Collecting or transporting it requires a SEMARNAT authorisation[^lgpgir]. 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 procedure[^lical]. Weighing instruments have their own technical standard[^nom-010] 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 company[^lcpaf]. Vehicles must respect the weights and dimensions in NOM-012[^nom-012]. ## Foreign trade Ferrous scrap is tariff heading 7204. Its export is duty free[^ligie]. Since January 1, 2026 imports pay a general tariff of 35%, except stainless steel (7204.21.01), which remains duty free[^ligie]. 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 provider[^nom-151]. - **Anti money laundering.** Buying and selling ferrous scrap is not a vulnerable activity: that law covers precious metals, gemstones, jewellery and watches[^lfpiorpi]. - **Personal data.** Processing contact data is governed by the data protection law published in March 2025[^lfpdppp]. See our [privacy notice](https://bluegreenmaterials.com/en/legal/privacy). ## How we handle it on every lot 1. **Tax onboarding**: We ask for the tax ID and tax status certificate before the first purchase. 2. **Documented transport**: Every pickup leaves with the carrier's Carta Porte and an outgoing weight. 3. **Payment with withholding**: We settle with a CFDI and apply the VAT withholding the law requires. 4. **Complete file**: CFDI, Carta Porte, tickets, signed records and impact certificate stay in the client portal. See [reports](https://bluegreenmaterials.com/en/reports). ## Frequently asked questions ### Who withholds VAT on a scrap sale? The company buying the scrap withholds 100% of the VAT charged to it[^liva][^rliva]. ### Do I need a Carta Porte to move scrap? Yes, if you travel on federal highways. If a carrier moves it, the carrier issues the CFDI with the supplement; if you use your own vehicles, you issue a transfer CFDI[^rmf-2026]. ### Is scrap hazardous waste? Clean scrap is not. It becomes hazardous if contaminated with substances such as spent oils or if it held hazardous materials[^nom-052][^lgpgir]. ### Can steel scrap be exported? Exports under heading 7204 are duty free[^ligie]. Check the current requirements for your operation with your customs broker. ## Sources [^liva]: Cámara de Diputados, leyes federales vigentes, «Ley del Impuesto al Valor Agregado, art. 1o.-A» (vigente). https://www.diputados.gob.mx/LeyesBiblio/pdf/LIVA.pdf [^cff]: Cámara de Diputados, leyes federales vigentes, «Código Fiscal de la Federación, arts. 29-A, 84 y 103» (vigente). https://www.diputados.gob.mx/LeyesBiblio/pdf/CFF.pdf [^sat-cp]: Servicio de Administración Tributaria (SAT), «Complemento Carta Porte» (2026). https://wwwmat.sat.gob.mx/consultas/68823/complemento-carta-porte- [^lgpgir]: Cámara de Diputados, leyes federales vigentes, «Ley General para la Prevención y Gestión Integral de los Residuos» (vigente). https://www.diputados.gob.mx/LeyesBiblio/pdf/LGPGIR.pdf [^lical]: Cámara de Diputados, leyes federales vigentes, «Ley de Infraestructura de la Calidad, arts. 119 a 123» (2020). https://www.diputados.gob.mx/LeyesBiblio/pdf/LICal_010720.pdf [^lcpaf]: Cámara de Diputados, leyes federales vigentes, «Ley de Caminos, Puentes y Autotransporte Federal, arts. 8, 39 y 40» (vigente). https://www.diputados.gob.mx/LeyesBiblio/pdf/LCPAF.pdf [^ligie]: Cámara de Diputados, leyes federales vigentes, «Ley de los Impuestos Generales de Importación y de Exportación, partida 7204» (2025). https://www.diputados.gob.mx/LeyesBiblio/pdf/LIGIE_2022.pdf [^rliva]: Cámara de Diputados, leyes federales vigentes, «Reglamento de la Ley del IVA, art. 3» (vigente). https://www.diputados.gob.mx/LeyesBiblio/regley/Reg_LIVA_250914.pdf [^rmf-2026]: Diario Oficial de la Federación, «Resolución Miscelánea Fiscal para 2026 (reglas 2.7.3.5, 2.7.7.1.1 a 2.7.7.2.8, 4.1.1 y 4.1.2)» (2025). https://dof.gob.mx/2025/SHCP/SHCP_281225_01.pdf [^nom-161]: Diario Oficial de la Federación, «NOM-161-SEMARNAT-2011, residuos de manejo especial sujetos a plan de manejo» (2013). https://dof.gob.mx/nota_detalle.php?codigo=5286505&fecha=01/02/2013 [^nom-052]: Diario Oficial de la Federación, «NOM-052-SEMARNAT-2005, características y listados de residuos peligrosos» (2006). https://dof.gob.mx/nota_detalle.php?codigo=4912592&fecha=23/06/2006 [^nom-010]: Diario Oficial de la Federación, «NOM-010-SCFI-1994, instrumentos de medición para pesar de funcionamiento no automático» (1994). https://www.gob.mx/cms/uploads/attachment/file/387049/NOM-010-SCFI-1994_31_de_agosto_de_2018.pdf [^nom-012]: Diario Oficial de la Federación, «NOM-012-SCT-2-2017, peso y dimensiones máximas de vehículos» (2017). https://dof.gob.mx/nota_detalle_popup.php?codigo=5508944 [^nom-151]: Diario Oficial de la Federación, «NOM-151-SCFI-2016, conservación de mensajes de datos y digitalización de documentos» (2017). https://dof.gob.mx/nota_detalle.php?codigo=5478024&fecha=30/03/2017 [^lfpiorpi]: Cámara de Diputados, leyes federales vigentes, «Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita, art. 17» (vigente). https://www.diputados.gob.mx/LeyesBiblio/pdf/LFPIORPI.pdf [^lfpdppp]: Cámara de Diputados, leyes federales vigentes, «Ley Federal de Protección de Datos Personales en Posesión de los Particulares (DOF 20 de marzo de 2025)» (2025). https://www.diputados.gob.mx/LeyesBiblio/pdf/LFPDPPP.pdf