Overview and Background
On Tuesday, the Chamber of Deputies in Mexico approved in general terms the reform to the Customs Law proposed by Claudia Sheinbaum, the President of Mexico City. This reform aims to strengthen controls and penalties against customs agents, making them responsible for all foreign trade operations they participate in.
Voting Details
The vote saw 338 in favor of the Morena, Partido del Trabajo (PT), and Partido Verde’s draft, while 129 voted against from PAN, PRI, and Movimiento Ciudadano (MC). Following the approval, legislators began discussing the particulars of the 71 reserved articles.
Dictamen Fundamentation
Carol Antonio Altamirano, the President of the Chamber’s Hacienda Commission and a Morena member, explained during the dictamen fundamentation that this reform updates an outdated customs law to better combat corruption.
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Criticism of the Reform
Patricia Flores, a diputada from Movimiento Ciudadano (MC), stated that her party could not support the dictamen as it “does not address the core issue, nor does it correct corruption within the government.”
Jericó Abramo Masso, a PRI diputado, criticized the lack of professionalization for customs officers and the excessive responsibility placed on customs agents. He argued, “The government is shirking its responsibilities and leaving all the burden to private entities.”
Federico Döring, a PAN diputado, dismissed claims that the reform would combat tax evasion and boost tax collection in Mexico’s 50 customs offices. He pointed out that the government failed to provide an estimate of additional tax revenue from this reform.
Key Provisions of the Customs Law Reform
The proposed customs law reform includes significant changes to key aspects of Mexico’s customs operations, such as holding customs agents fully and solidarily responsible for foreign trade operations they engage in.
The reform eliminates the exonerations of customs agents’ liability from the existing Customs Law, which previously absolved agents from responsibility if discrepancies in taxes or regulatory compliance issues resulted from false or misleading information provided by importers or exporters. These agents could not detect such issues as the information was not visible.
Now, under the new law, customs agents are jointly and severally liable alongside importers and exporters. Consequently, agents must verify that the information provided about a commodity is accurate and matches its intended import or export.
This change aims to counter daily practices in customs aimed at evading tax payments, such as smuggling or undervaluing goods. Additionally, the reform extends patent and authorization validity for customs agents and agencies to 20 years, with the possibility of extending it further. It mandates annual certification for agents, establishes a Customs Council to grant, renew, suspend, or revoke patents and authorizations, among other things.
Key Questions and Answers
- What is the main objective of the customs law reform? The primary goal is to update an outdated customs law and strengthen controls against corruption and tax evasion in Mexico’s customs operations.
- Who proposed the reform, and why is Claudia Sheinbaum relevant? The reform was proposed by Claudia Sheinbaum, the President of Mexico City. Her involvement highlights the importance of addressing corruption and tax evasion in customs operations at a national level.
- What changes does the reform introduce to customs agents’ responsibilities? The reform makes customs agents fully and solidarily responsible for foreign trade operations they participate in, eliminating previous exonerations that absolved agents from liability due to false or misleading information provided by importers or exporters.
- What are the criticisms against the reform? Critics argue that the reform does not address corruption’s root causes, lacks professionalization for customs officers, and unfairly burdens private entities with excessive responsibility.
- What additional provisions does the reform include? The reform extends patent and authorization validity for customs agents and agencies to 20 years, mandates annual certification for agents, and establishes a Customs Council to oversee patents and authorizations.
