Mexican Customs to Inspect Packages Valued Under 2500 Pesos

Automotive Author: EqualOcean News Editor: Leci Zhang Jun 13, 2024 04:56 PM (GMT+8)

The Mexican Ministry of Economy will mandate the inspection of packages valued under 2500 pesos to ensure they meet commercial standards, sparking protests from the parcel industry, which argues this will increase import costs and hinder e-commerce growth. The tax authority accuses e-commerce platforms and logistics companies of tax evasion and supports this measure to prevent smuggling and tax fraud.

Mexico

EqualOcean reports that the Mexican Ministry of Economy (SE) is preparing an agreement to mandate customs inspections of packages valued under 2500 pesos to verify their compliance with Mexican official commercial information standards. Until now, these packages have been exempt from such verification.

This initiative has immediately sparked protests from the parcel industry, which warns that the increased import costs could render these transactions economically unfeasible. The Latin American Internet Association (ALAI), which includes companies like Amazon and Mercado Libre, stated that this measure would ultimately hinder the growth of e-commerce in Mexico. Additionally, it would increase costs and reduce product variety for consumers due to the import barriers.

The Ministry of Economy did not provide a regulatory impact analysis, stating that the measure is necessary due to a significant increase in imports through courier and parcel deliveries. The Confederation of Industrial Chambers and the National Chamber of the Textile Industry also support this measure.

In fact, the Mexican Tax Administration Service (SAT) previously announced its intention to revise foreign trade rules to classify the under-invoicing of imported goods such as clothing, electronics, and toys via e-commerce platforms and courier companies as smuggling and tax fraud. Since 2023, the Mexican retail and apparel industries have been condemning e-commerce platforms and courier companies for abusing the "small-item import duty exemption rules" to evade taxes. According to the National Chamber of the Apparel Industry, such policy abuses result in e-commerce platforms underpaying 38 billion pesos in value-added tax and tariffs annually.

Last week, the SAT released a statement accusing certain e-commerce platforms and logistics companies of tax evasion during the import process, suggesting that these companies could be guilty of smuggling or tax evasion. The tax authority noted a significant increase in import trade via e-commerce platforms and cross-border logistics, with some sellers, e-commerce platforms, and logistics companies involved in cross-border e-commerce trade evading tax obligations and violating tax regulations, raising concerns of smuggling and tax evasion.