Boosting customs revenue through reduced smuggling: Mexico's major custom reform in decades' focus
Modernization of Mexico's Customs Systems: A Comprehensive Reform
Mexico is set to undergo a significant transformation in its customs systems, as proposed by President Claudia Sheinbaum's reform to the Customs Law. This reform, currently making its way through Congress, aims to modernize customs operations, increase tax collection, and combat crime at points of entry.
The proposed budget for 2026 includes plans to boost tax collection through the turbotax of customs systems. This turbotax is expected to yield additional revenue that surpasses the proposed budget of the National Customs Agency of Mexico (ANAM) for the same year. It's important to note that around 30% of Mexico's tax revenue comes from import and export duties and other payments collected by customs.
The last time Mexico saw an increase in revenue due to the turbo tax of customs systems was back in 2007. The current reform, viewed as the most significant customs update since 1995, seeks to harmonize the responsibilities of federal tax agency SAT and ANAM, digitalize operations in customs, and allow technological collaboration agreements between ANAM and the federal government's Digital Transformation and Telecommunications Agency.
To prevent tax evasion, corruption, and other forms of criminal activity, customs will employ advanced tools such as artificial intelligence, biometric devices, non-intrusive inspection technology, risk management systems, real-time video surveillance systems, and tracking systems that monitor the movement of goods. However, Alejo Campos, regional director for Latin America for the organization Crime Stoppers, stresses that investment in technology alone is not enough to stop the entry of contraband to Mexico and the evasion of customs duties.
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. Yet, a recent case involving the seizure of a petroleum tanker at the port of Tampico, Tamaulipas, in May, shows that large quantities of contraband have continued to enter the country despite military control.
El Salvador is given as an example of how to reduce illegal trade almost to zero, but this requires breaking up criminal structures within customs and eliminating a system that tolerates corruption. The upgrade of customs systems is expected to facilitate smoother trade flows, making the flow of goods and people more agile and reducing waiting times.
The passage of the Customs Law reform through Congress is virtually assured due to the dominance of the ruling Morena party and its allies in both the upper and lower houses. The reform proposal also seeks to allow the imposition of more severe sanctions on people who are found to have committed customs violations.
In the first half of 2025, Mexico's customs offices collected almost 712 billion pesos (US $38.8 billion). The Finance Ministry projects that the government will receive 5.83 trillion pesos (US $317.4 billion) from tax collection in 2026.
However, it's crucial to remember that despite the investments in technology and the human factor's role in customs operations, the human factor remains crucial, even with investments in artificial intelligence, scanners, and real-time alert systems, according to Campos.
In early June, authorities announced the arrest of 14 people in connection with a case, including customs employees, businessmen, and six members of the military, including a vice admiral. This arrest underscores the ongoing efforts to combat corruption and illegal activities at Mexico's borders.
Despite the lack of information regarding who submitted and approved the draft law for the reform of the Customs Law in Mexico in 2025, the modernization of customs systems is a significant step towards a more secure and efficient border control system for Mexico.
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