What impact do the two customs and import/export tax proposals in Mexico have on you?

This week, Mexican President Shinbaum submitted two key reform proposals to the House of Representatives, aimed at comprehensively upgrading the country's trade and customs management system.These two proposals are respectively aimed at the Customs Law and the Import and Export Tariff Law, with a dual core objective: to protect local industries by adjusting tariffs externally; Internally, we will strengthen customs management to combat smuggling and tax evasion.This indicates that Mexico's trade environment will undergo a major adjustment.

The proposal for the Import and Export Tariff Act aims to provide protection for Mexico's strategic industries through the imposition of tariffs,This includes automobiles, textiles, clothing, plastics, steel, household appliances, aluminum products, toys, furniture, shoes, leather goods, paper products, motorcycles, trailers, and glass.The government hopes to utilize the advantages of the domestic market to achieve localized production, while creating employment and improving the well-being of the entire population through balancing foreign trade revenue and expenditure.

The proposal emphasizes that, given the current global trade policy environment, Mexico must take concrete measures to ensure balanced market development and prevent economic distortions from hindering the restructuring of national strategic industries and the introduction of high value-added industries.

The specific revision content includes:

·The import tax on personal care products such as skin lotion, hair styling agent and toothpaste is proposed to be increased to 35%.

·The tax rate for lip makeup preparations is planned to be raised to 50%.

·The tax rates for yarn, machinery, and industrial textiles will be set between 20% and 35%.

·The tariffs on bathroom products such as plastic pipes, bathtubs, shower equipment, and sinks will also be adjusted accordingly.

Another equally important reform is the revision of the Customs Law, aimed at improving the Mexican customs legal system and effectively curbing illegal activities such as tax evasion, low-priced customs declaration, and smuggling.The current tax loss poses a severe challenge to the national finance, and it is urgent to pass legislation to ensure tax fairness and management efficiency.

To this end, the government has proposed two core measures:

·Establish a Customs Committee:The proposal proposes to establish a new review body specifically responsible for handling matters such as the issuance, qualification extension, and revocation of customs declaration agency licenses.This committee will be led by the Ministry of Finance and the Ministry of Public Credit, with members including the Tax Administration, the National Customs Administration, and anti-corruption officials, aiming to rebuild public trust by enhancing institutional transparency and procedural fairness.

·Mandatory implementation of 'intelligent monitoring':The new regulations require private enterprises to equip intelligent systems that integrate electronic inventory monitoring, video security, goods traceability, and real-time tracking.These systems must be interconnected with the electronic platform of customs for remote supervision, in order to curb violations from the source and improve management efficiency.

According to the National Institute of Geography and Statistics (INEGI) of Mexico, the total import and export trade of Mexico in 2024 accounted for 67% of its gross domestic product (GDP), which further highlights the importance of building an efficient and compliant legal framework.

These two proposals represent the clear direction of the Mexican government's economic policy: to protect and adjust the domestic industrial structure through tariffs as an external tool, while strengthening regulation and increasing fiscal revenue through customs reform as an internal means. This is a comprehensive strategy aimed at addressing global trade challenges, solving domestic fiscal problems, and providing institutional guarantees for future economic growth.