Background on the Economic Package and Customs Reform
While taxes on sugary drinks and violent video games dominated social media discussions, experts focused on large fiscal numbers, including the projected 2026 fiscal deficit. However, the most intriguing aspect of the economic package lies in the Customs Law Reform.
Customs plays a crucial role as it generates around 30% of the tax revenue, totaling approximately 1.3 trillion pesos annually with potential for double-digit growth. Beyond its fiscal importance, customs also pertain to national security matters, as it’s where weapons empowering criminal cartels and contraband goods harming domestic industries enter.
The Customs Law Reform: A 460-page Document
The Customs Law Reform, a 460-page document published in the Parliamentary Gazette, indicates significant changes ahead for customs operations and Mexico’s foreign trade. Initial impacts will be felt by customs agents and countries without free-trade agreements.
Mexico Enters the Tariff War
Starting to impose tariffs on goods from numerous countries, including China, South Korea, and Vietnam—all among Mexico’s top 10 suppliers—will increase costs. Some products, like Chinese cars and Korean beauty items, will become pricier due to these tariffs. The reaction from affected countries remains uncertain.
Motivations Behind the Customs Law Reform
The urgency of public finance emergencies and a national security crisis, highlighted by the fiscal fuel-smuggling scandal in Altamira Customs, motivate this reform. Additionally, there’s evidence of large-scale contraband and misuse of the temporary import regime for finished shoes destined for Mexican commercialization.
The Secretariat of Finance aims to substantially boost customs revenue as a means to alleviate public finance pressure. With public spending set to recover in 2026, finding new income sources becomes essential. The potential for customs to increase tax revenues is immense, as evidenced by the first-half 2025 performance.
Impact on Foreign Trade Operations
The proposed changes for customs agents’ roles will bring more obligations and fewer rights to the 804 customs agents (excluding 66 under cancellation). These agents facilitate around 60,000 daily operations—7.5 million annually. The government expects agents to strengthen controls and take responsibility for their clients’ operations.
Further Growth Potential in Customs Tax Revenue
The General Policy Criteria published by the Secretariat of Finance and Public Credit estimates a 40% growth in import taxes by 2026. Although ambitious, this goal is achievable given the current corruption-related issues and outdated customs infrastructure. While we may not know the extent of evasion and inefficiencies, transforming customs technology seems more feasible than combating entrenched corrupt practices.
Key Questions and Answers
- Why is the Customs Reform significant? It’s crucial because customs generate around 30% of tax revenue and are vital for national security, addressing issues like weapon trafficking and contraband goods.
- What changes will the Customs Law Reform bring? The reform introduces tariffs on goods from various countries, impacting customs agents and foreign trade operations. It aims to boost tax revenue and address public finance pressures.
- How will customs agents be affected? Customs agents will face increased obligations and fewer rights, expected to strengthen controls and take responsibility for clients’ operations.
- What growth potential does customs tax revenue hold? The Secretariat of Finance estimates a 40% growth in import taxes by 2026, driven by addressing corruption and modernizing customs infrastructure.
