Customs reform against corruption outlined

The Ministry of Finance and Public Credit (SHCP) and customs officials are outlining a reform to Mexico's Customs Law in a context of profound changes in global foreign trade and the constant need to combat corruption in a highly transactional sector.

To this end, customs agents drafted a proposal to reform the Customs Law, which they submitted to the SHCP's Tax Legislation Unit on July 1.

One of the significant changes being promoted by the Confederation of Associations of Customs Agents of the Mexican Republic (CAAAREM) is to fully operationalize the customs agency, which is enshrined in the Customs Law but does not exist in practice.

Unlike a customs broker (individual), a customs agency (legal entity) is a permanent corporate structure. Both entities are authorized to promote customs clearance of goods on behalf of others under the various customs regimes provided for by law.

Currently, if a customs broker dies, his or her license is void. As a result, business comes to a standstill. All operations linked to that license are affected. This impacts customers, employees, and business partners.

For its part, the federal government is seeking to shift the shared responsibility of customs agents in validating commercial transactions to direct responsibility.

Rafael Marín Mollinedo, head of Mexico's National Customs Agency (ANAM), said that the role of customs agents, as the first filter in the chain of operations, is essential to prevent malpractice such as undervaluation and smuggling.

There are 804 customs brokers operating in Mexico, while another 66 are in the process of being cancelled, following legal proceedings. Recently, President Claudia Sheinbaum announced that her administration had suspended the licenses of 47 customs brokers due to errors or alleged illegal practices.

In July 2024, André Foullon, then head of ANAM, told CAAAREM that the federal government was "closely monitoring" the progress of a reform initiative to Mexico's Customs Law that proposes restoring customs agents' right to designate their replacement candidate. But the initiative ultimately failed.

The substitute customs agent position was eliminated as part of changes to the Customs Law in 2013, to prevent customs agents from inheriting their patents.

"A country cannot aspire to be an export power with porous borders and weak institutions, which is why we are very optimistic that this new reform is being discussed within a customs and customs framework," said Alejandro Malagón, president of the Confederation of Industrial Chambers (Concamin), at the National Congress of Customs Agents, organized this Thursday by CAAAREM.

The customs agent is not a public official, but rather a member of the private sector who assists ANAM in controlling the entry and exit of goods, as well as in the correct payment of taxes and compensatory fees.

"May this congress be a meeting point, a place of reflection, and a source of inspiration; and may we emerge from here with the renewed conviction that efficient and cooperative customs agents are a key element in the economic development, legal security, and well-being of our society," said CAAAREM President Miguel Cos Nesbitt at the outset.