Equipment appraisals in Mexico, for US-side decisions.
Lukes & Lukes appraises machinery, equipment and fleets located in Mexico for US lenders, buyers, parent companies, insurers, courts and arbitral tribunals. The report is prepared under USPAP. The plant visit, the interviews and the documents are handled in Spanish by the appraiser who signs it: Jared Lukes, CMEA, who grew up in Tlaxiaco, Oaxaca, and Huetamo, Michoacán, and runs the firm from Minnesota.
At a glance
- What it is
- A USPAP appraisal of machinery, equipment or vehicles located in Mexico, written for intended users in the United States or for international parties.
- Who orders it
- US banks and asset-based lenders, equipment lessors, acquirers and their advisors, US parent companies, insurers, and counsel in litigation and arbitration.
- Values reported
- OLV and FLV for collateral. FMV for acquisitions, disputes and financial reporting. RCN for insurance.
- Language
- Site visit, interviews and source documents in Spanish. Report in English, Spanish or both.
- Documents read
- Fixed-asset registers, CFDI invoices, pedimentos and IMMEX records, and RUG pledge filings.
- What it is not
- A Mexican tax (SAT), CNBV bank or court-appointed avalúo. Those are signed by valuers registered in Mexico.
Typical assignments
When does a US party need equipment in Mexico appraised?
When a decision made in the United States rests on assets that sit south of the border. A US lender takes a maquiladora's machinery as collateral. A buyer acquires a company with a plant in Monterrey or Querétaro and has to allocate the purchase price. A parent company insures a plant in the Bajío. A dispute between a Mexican and an American company turns on what a production line was worth.
- Asset-based and equipment lending: OLV and FLV on maquila, nearshoring and fleet collateral
- Acquisitions: FMV and purchase price allocation for a Mexican subsidiary
- Insurance: replacement cost new for a plant insured from the United States
- Disputes and arbitration: plant and equipment value, condition and rebuttal (litigation support)
- Cross-border fleets: tractors and trailers split between US and Mexican entities (Texas border)
The paperwork
What records decide the value of equipment in Mexico?
Ownership comes first. Under the IMMEX program, machinery in a maquiladora is often imported temporarily and owned by the foreign parent rather than the Mexican operating company, so the pedimento (the customs import declaration) can decide whose collateral a machine is. A pledge without transfer of possession (prenda sin transmisión de posesión) is registered in the RUG, Mexico's movable-collateral registry, and an earlier filing there generally takes priority.
Identity and cost come from the fixed-asset register and the CFDI electronic invoices. Condition comes from the plant: hours, rebuilds, tooling, what was moved from the US plant and when. The appraiser reads all of it in the original Spanish and walks the floor with maintenance.
Which report you need
Who signs an equipment appraisal for each purpose in Mexico?
The intended use decides who may sign. Regulated Mexican purposes are reserved for valuers registered in Mexico. US and international purposes follow the reader's own standard.
| Purpose | Who signs | Lukes & Lukes |
|---|---|---|
| US lender or lessor taking Mexican equipment as collateral | An appraiser the lender's policy accepts, usually under USPAP | Yes |
| Acquisition, purchase price allocation, US GAAP or IFRS reporting | A qualified appraiser the parties and the auditor accept | Yes |
| Insurance placed from the United States | A qualified appraiser the insurer accepts | Yes |
| International arbitration or US litigation | A party-appointed or court-qualified expert | Yes |
| Mexican tax avalúo (SAT) | INDAABIN, a credit institution, a corredor público or a registered Mexican valuer | No |
| Mexican bank avalúo under CNBV rules | The bank's own valuation unit and its panel | No |
| Court-appointed perito in a Mexican court | A perito registered with that court | No |
The standard
Is a USPAP appraisal accepted for equipment outside the United States?
USPAP governs the appraiser, not the location of the asset. A US lender, a US court, a US insurer or a US auditor reads a USPAP report the same way whether the press brake is in Ohio or in Saltillo. A report can state its consistency with the International Valuation Standards (IVS) when an international reader asks for it.
What you get
What does a cross-border appraisal report include?
- Scope, intended use, intended users and the premise of value, in writing
- The ownership and lien facts found in the pedimentos and the RUG, where the assignment calls for them
- An itemized appendix valuing each asset, with photographs from the inspection
- Values in US dollars, with the exchange rate and its date stated where pesos are involved
- Senior review before delivery, and a report in English, Spanish or both
Common questions
Answers, up front.
Can a US appraiser value equipment located in Mexico?
Yes, for US and international intended users: a US lender or lessor, a buyer, a parent company, an insurer, a US court or an arbitral tribunal. A Mexican tax avalúo for the SAT, a bank avalúo under CNBV rules and a court-appointed perito's report are signed by valuers registered in Mexico.
How do you appraise maquiladora equipment for a US lender?
We inspect the plant, match each machine to the fixed-asset register and the pedimentos, confirm who owns it and whether a pledge is already registered in the RUG, and value it at orderly and forced liquidation value in the condition and location found. The interviews and documents are handled in Spanish.
Do you inspect plants in Monterrey, Saltillo, Querétaro and the Bajío?
Yes. We inspect plants, maquiladoras and fleets across Mexico: the industrial north, the Bajío, central Mexico and the southeast. The site visit, the maintenance interviews and the review of pedimentos and records are handled in Spanish.
What currency is an equipment appraisal in Mexico reported in?
In the currency the intended user needs, usually US dollars. Where comparable sales or costs are in pesos, the report states the exchange rate used and its date.
Ready when you are