Strengthened customs control, increased tax revenue: Highlights of Mexico's substantial customs reformation in recent years
Mexico is set to undergo a significant transformation in its customs systems, with the aim of facilitating smoother trade flows and combating crime. The proposed reform, submitted by President Claudia Sheinbaum, seeks to modernize the customs infrastructure, harmonize responsibilities, and leverage technology to prevent tax evasion and other illegal activities.
The modernization plan includes the implementation of tools such as artificial intelligence, biometric devices, non-intrusive inspection technology, risk management systems, real-time video surveillance systems, and tracking systems. These technologies are expected to enhance the efficiency of customs operations and reduce waiting times for goods and people.
The reform proposal also aims to digitalize customs operations and allow technological collaboration agreements between the federal tax agency SAT, ANAM, and the federal government's Digital Transformation and Telecommunications Agency. This collaboration is intended to streamline processes and improve efficiency.
The Mexican government's proposed 2026 budget includes a plan to increase tax collection through the modernization of customs systems. The additional revenue projected to be collected due to these upgrades exceeds the proposed budget of the National Customs Agency of Mexico (ANAM).
The 2025 Customs Law reform, presented as part of the 2026 Economic Package, is widely viewed as the most significant customs update in Mexico since 1995. However, Alejo Campos, regional director for Latin America for the organization Crime Stoppers, cautions that investment in technology alone is not enough to stop the entry of contraband to Mexico and the evasion of customs duties. He emphasizes the importance of addressing the human factor, as collusion or threats can potentially prevent action, even with advanced technology in place.
In May 2022, authorities announced the arrest of 14 people in connection with the seizure of a petroleum tanker at the port of Tampico, Tamaulipas. Among those detained were customs employees, businessmen, and six members of the military, including a vice admiral. Despite military control of customs and ports, large quantities of contraband have continued to enter the country.
In 2020, former president Andrés Manuel López Obrador gave the military administrative control of customs and ports as part of efforts to eliminate corruption at ports of entry. However, the issue of contraband and tax evasion remains a challenge.
El Salvador is an example of how to reduce illegal trade to almost zero, but this is achieved when criminal structures within customs are broken up and a system that tolerates corruption doesn't exist. The new technology could help customs in the fight against the avoidance of paying the IEPS excise tax on imports of fuel, known as "fiscal fuel theft" or "tax-robbed fuel."
The reform proposal also seeks to allow the imposition of more severe sanctions on customs agents, brokers, and other individuals who are found to have committed customs violations. This expansion of penalties is intended to deter illegal activities and promote compliance with customs regulations.
With the passage of the Customs Law reform through Congress virtually assured due to the dominance of the ruling Morena party and its allies in both the upper and lower houses, Mexico is poised to take a significant step forward in its fight against corruption and illegal activities at its borders. The modernization of customs systems is part of a broader effort to ensure a more secure future for the country.
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