Mexico’s New Customs Law: Impacts on Trade, Nearshoring & Compliance

Mexico’s recently enacted customs law reform, which took effect at the start of the year, signals a significant shift in how the country manages international trade. Proposed by President Claudia Scheinbaum, the changes aim to curb tax evasion, smuggling, and undervaluation of goods, while simultaneously boosting federal revenue.

A New Paradigm for Mexican Trade

The reform represents a “change of paradigm” according to Ángel Escalante Carpio, a partner at Escalante & Asociados (E&A Legal), moving towards a preventative control model underpinned by digitalization. This approach emphasizes legal responsibility across the trade ecosystem and strengthens institutional oversight to improve traceability, transparency, and integrity within the customs system.

Key changes include mandatory automation of inventory controls and the creation of a single electronic customs file for each foreign trade operation. This file must contain all documentation proving the legality of the transaction, including digital tax receipts, commercial invoices, proof of payment, transport costs, insurance, contracts, and any other supporting documents.

The law also requires the implementation of technological systems for real-time monitoring of goods, with continuous remote access for customs authorities. A central component is the mandatory electronic transmission of key information, notably the Electronic Value Declaration (MVE), which allows authorities to automatically validate data against existing records.

Increased Responsibility and Oversight

Customs brokers now face increased responsibility, being held accountable not only for tax payments but also for the accuracy of the information submitted, including tariff classification and customs value. The reform also extends the validity period of a customs broker’s licence to 20 years, renewable for an equal period subject to continued compliance, and mandates periodic certification every three years.

A new Customs Council has been established, comprising authorities from various departments, with powers over the granting, suspension, and cancellation of licenses and authorizations.

Potential Impacts and Concerns

While the reforms aim to strengthen controls, some experts express concern about potential disruptions. Miguel Angel Martínez, a partner at Vázquez Tercero & Zepeda, believes the changes could lead to overregulation, causing delays in customs processes and impacting logistics operations and nearshoring initiatives.

Increased obligations for control, traceability, and information transmission are expected to translate into higher operational costs and administrative complexity. Some legal experts suggest the reforms could even conflict with the USMCA trade agreement and regulations set by the World Trade Organization, potentially making Mexico less attractive for investment.

The impact on nearshoring is a particular concern, as the relocation of supply chains depends on agile, predictable, and legally certain customs processes. The new requirements for technology and control could create a technological gap, potentially disadvantaging smaller operators.

Increased penalties for non-compliance are also a significant concern, with fines rising by as much as 250% to 300%, and in some cases exceeding one million pesos (approximately USD 57,800).

Navigating the New Landscape

To mitigate risks, companies are advised to proactively prepare for the changes, ensuring compliance with all new regulations and maintaining close communication with their customs brokers. Establishing permanent compliance programs and adopting a preventative approach to documentation and internal controls are also recommended.

Successful implementation will depend on how the reforms are applied by authorities, with a need for legal certainty, proportionality, and consistent criteria. The reforms present an opportunity to modernize Mexico’s trade infrastructure, but a rigid or discretionary application could hinder investment and growth.

Frequently Asked Questions

What is the primary goal of the new customs law reform?

The primary goal is to combat tax evasion, smuggling, and undervaluation of goods, while increasing federal revenue.

What is the Electronic Value Declaration (MVE)?

The MVE is a mandatory electronic transmission of key information that allows authorities to automatically validate data against existing records, shifting the focus from post-clearance to preventative control.

What are the potential drawbacks of the reform?

Potential drawbacks include increased operational costs, administrative complexity, potential conflicts with trade agreements, and the risk of delays in customs processes.

How will these changes affect the competitiveness of Mexican businesses in the long run?