Introduction
In recent weeks, mentions of ships have multiplied, with two events drawing significant attention: the exploits of tax-related smuggling ships and the tragedy involving the Mexican Navy’s school ship, Cuauhtémoc, colliding with the Brooklyn Bridge in New York.
Mexico’s Limited Maritime History and Huachicol Fuel Smuggling
Despite having coasts on both the Pacific and Atlantic Oceans, Mexico has not been renowned for its maritime prowess. However, recent events involving ships have sparked amazement, concern, and even embarrassment among Mexicans.
The illicit fuel smuggling, known as “huachicol,” has become a lucrative business for enterprising individuals who exploit tax loopholes and complicity. This activity has drawn the attention of traditional organized crime groups, leading to multi-million dollar operations. In 2018 alone, this illicit trade generated approximately 500 million pesos in sales.
The Complexity of Combating Huachicol Fuel Smuggling
Addressing this issue is challenging and delicate, as it strikes at the heart of Mexican society. The petroleum industry is highly interconnected, with production and commercialization processes tightly linked. The cost of extracting oil from the ground directly impacts the price of gasoline sold at service stations.
For the huachicol business to thrive, it requires complicity at every stage of the supply chain. From those who sell fuel to smugglers, to customs officials and trade secretariat employees who issue and endorse import permits. Ships transporting the fuel must be aware they will need to falsify declarations upon arrival at import ports, avoiding the payment of IEPS (Excise Tax on Producers and Importers of Alcoholic Beverages). During transport, trucks involved must also be complicit, evading road patrols and inspection checkpoints.
Finally, the gas stations where the fuel is ultimately delivered often have owners involved in this illicit circle. The number of individuals and aliases implicated remains unclear, but it’s evident that this operation involves numerous participants.
The Cuauhtémoc Tragedy
The Cuauhtémoc incident is a tragedy on multiple levels. Not only does it mirror Mexico’s current struggles, but it also tarnishes the ship’s 40-year history of impeccable service. Just days before its scheduled departure, members of the Fourth Transition used the Cuauhtémoc for political campaigning for Lenia Batres and other candidates seeking positions within that power structure.
This misuse of a national asset for political gain highlights the need for accountability and professionalism within the Fourth Transition. For SEMAR (Mexican Navy), this incident is a source of embarrassment, underscoring the necessity for improved governance and responsibility.
Key Questions and Answers
- What is huachicol fuel smuggling? Huachicol refers to the illicit trade of fuel, primarily gasoline, which has become a lucrative business in Mexico due to tax loopholes and complicity at various levels of the supply chain.
- Why is combating huachicol difficult? Addressing this issue is complex because it involves deep-rooted societal complicity, including customs officials, trade secretariat employees, and even transportation companies. The interconnected nature of Mexico’s petroleum industry further complicates efforts to curb this illicit trade.
- What is the significance of the Cuauhtémoc tragedy? The collision of the Mexican Navy’s school ship with the Brooklyn Bridge symbolizes Mexico’s current challenges and tarnishes the vessel’s 40-year history of impeccable service. The ship was misused for political campaigning, highlighting the need for accountability and professionalism within the Fourth Transition.
