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Technology, Manufacturing & Transportation| Client Successes

Propex Avoids Export Penalties of $43 Million

Situation

The federal tax authority in Mexico City sought $43 million of import duties, countervailing duties, taxes, penalties and interest from the Mexican affiliate of Chattanooga-based Propex Operating Co. The bill resulted from the tax authority’s audit on product exports by Propex to its subsidiary and other customers in Mexico under preferential tariffs provided by the North American Free Trade Agreement.

Result

Working in conjunction with Propex and local counsel in Mexico, we presented meaningful evidence to the tax authority which led to their decision to cancel the $43 million assessment.

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