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Melissa & Dave - Adventures at Sea

Property Rights in Mexico

So we had reported sometime back about the TIP fiasco here in Mexico.  A TIP is a Temporary Import Permit.  Cost us about $50 to get ours.  Its a document that lets you import your boat into Mexico without paying customs duties.  Essentially you promise not to sell your boat here in Mexico - that you are in essence a transient - and you pay a fee for the privilege.  For that the Mexican government gives you a document showing you are allowed to stay a maximum of typically 10 years (though in the past there were also 20 year permits).

For the first time in years, the Mexican government started auditing boats to ensure compliance.  Presumably to ensure that each boat had paid the appropriate fees.  However, in practice this turned into a complete mess.  The auditors sent to look at the boats had no idea where to look for the HIN (Hull Identification Numbers), didn't know that older boats don't actually have an HIN, and were generally clueless in regards to the whole process.  If their three stooges inspection determined there was no valid TIP, the boat was put on "the list" of impounded boats.  In one marina alone it was later determined that of 53 boats put on the impound list, 52 had valid TIPs.  Being on the impound list means you can't check out of the harbor.  You are essentially held hostage till the Mexican government releases your boat.  And despite having proved compliance - its not clear when the release is going to happen.  Estimates range from 338 to 1200 on the number of US boats currently being held hostage.

We don't think we are on the impound list.  We've successfully checked out/in to several ports without problem since the initial audit took place.  However, this is no guarantee because apparently the Mexican government isn't even notifying boat owners of when they are on the impound list and its not clear whether the port captains are respecting the list or not (different government branches).

As a side note here - the whole harbor check in/out process is somewhat strange to us.  Here in Mexico - boats are not allowed to move about freely.  You have to go to the Port Captain and tell him that you are in his port when you arrive.  And then before you leave, you have to check out with him.  When you check out, the Port Captain then gives you a letter saying you are free to go, and you then need that documentation to enter the next harbor.

At this point a media barrage is happening.  The AP is now reporting the situation.  Boaters are being asked to write the Mexican Ambassador, congressmen, and the Mexican officials.  This is like serious tourist suicide for the Mexican government.  The cruisers in Mexico from the USA bring millions of dollars into the coastal regions.  And already people are stopping their trips to Mexico as a result of what's happening.  Sailing regattas that normally cross into Mexican waters are modifying their course.

Dave sent letters to our congresswoman and ambassador.  The US Ambassador's office wrote back that they are aware of the situation and working on it. 

Meanwhile the question remains - will the Mexican government continue their "audits" and put more boats on the seizure list?  We plan to leave the boat for a while and we find ourselves wondering whether we will have a boat when we return.  We did what we could.   We put a copy of our TIP and coast guard documentation in a zip lock bag marked "AGACE" (the Mexican agency doing the auditing) on our life lines.  And we made the Hull Identification Number (HIN) as visible as possible with blue painters tape:

This is but one horrific example of property rights in Mexico not being respected.  One of the places we had planned to visit was a beach called Tenacatita.  However, some years ago, a Mexican developer claimed the beach as belonging to him.  He came with armed guards and bull dozers.  He razed the existing businesses and homes.  He held the beach hostage for years.  Apparently just this past year there was a change and the public is now "allowed" back on the beach but the armed guards are still lurking around.  We elected to avoid the area.

The lack of honoring property rights should rightfully scare people away from buying property here.  Had the TIP fiasco started before we got here, we would have considered whether to skip Mexico and have the boat transported further south skipping this whole mess.  Hopefully the Mexican officials will at some point recognize their mistake and how badly the country will suffer when the cruisers stop coming here.

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