Mexico's tax agency warned cross-border e-commerce companies not to try to evade tariffs

Automotive Author: EqualOcean News Editor: Leci Zhang Jun 07, 2024 05:21 PM (GMT+8)

Mexico's tax administration has accused certain e-commerce platforms and logistics companies of tax evasion, specifically targeting Chinese cross-border e-commerce platforms.


EqualOcean has learned that the Mexican Tax Administration Service (Servicio de Administración Tributaria, SAT) recently issued a statement accusing certain e-commerce platforms and logistics companies of evading taxes during the process of importing goods. Such illicit activities may subject these enterprises to charges of smuggling or tax evasion. The tax authority asserts that they have observed a significant increase in import trade conducted through e-commerce platforms and cross-border logistics. Some sellers, e-commerce platforms, and logistics companies involved in cross-border e-commerce trade are suspected of evading tariff constraints and failing to comply with tax regulations, raising suspicions of smuggling and tax evasion.

The tax authority explained that some enterprises exploit loopholes in tariff regulations to evade paying general import taxes and value-added taxes. For instance, if customers bring goods worth more than $50 from China into Mexico, they face additional tariffs and value-added taxes. However, if they order from e-commerce platforms, they are exempt from paying these taxes because sellers divide the goods into multiple packages, ensuring that the value of each package falls within the tax-free limit. Additionally, the tax authority pointed out that while logistics companies merely transport goods to online buyers, they also bear responsibility for tax evasion in cross-border trade.

While the tax department did not explicitly identify the companies suspected of tax evasion, Mexican media widely believe that the statement is primarily aimed at Chinese cross-border e-commerce platforms such as Shien and Temu. It is well known that with platforms like Amazon, Shien, Temu, and Mercado Libre, an increasing number of Mexicans purchase clothing, home decorations, electronics, kitchenware, toys, and jewelry from China, greatly boosting China's exports to Mexico but also causing dissatisfaction among Mexican domestic enterprises.

As early as March of this year, associations representing Mexico's textile, apparel, and footwear industries jointly launched a boycott against Chinese e-commerce platforms, urging government departments to strengthen supervision of such cross-border trading platforms. Subsequently, tariff policies targeting a large number of Chinese goods were introduced in late April.

Rafael Zaga Saba, Chairman of the National Chamber of the Textile Industry of Mexico, expressed strong resentment towards Chinese cross-border e-commerce, believing that the millions of overseas packages received annually severely squeeze the survival space of local enterprises. Moreover, the significant amount of tax revenue evaded further damages Mexico's fiscal income, necessitating urgent action from government departments.