Mexico’s recent tariff increases on goods from countries without a free trade agreement have triggered a surge in informal import practices, particularly through the misuse of special border exemptions. The new tariffs, which range from 5% to 50%, took effect on January 1, 2026, and apply to products from nations such as China, India, and South Korea.
To cushion the impact on regional economies, the government maintains decrees that allow businesses in designated northern and southern border zones to import certain goods at reduced or zero tariffs. These exemptions are intended to support local consumption and competitiveness in areas adjacent to international markets. However, the system is being exploited by intermediaries who import goods under the border regime and distribute them illegally throughout the country.
The Secretariat of Economy has acknowledged the problem. In 2025, it revoked 86 permits after customs authorities identified violations involving goods that were meant for exclusive sale within the border zones but were instead resold inland. Legal experts warn that without stricter oversight, such practices will continue to undermine the intent of the policy.
If this is not respected, they risk losing their permits.
“The companies are obligated to consume and sell these goods exclusively in the border region,” said Juan Carlos Machorro, a legal advisor familiar with trade regulations. “If this is not respected, they risk losing their permits.” He emphasized the need for enhanced monitoring to ensure compliance with the geographic restrictions imposed by the decrees.
The exemptions currently apply to over 500 tariff classifications, including electronics, apparel, furniture, and industrial components—categories that are particularly attractive for resale in broader markets. According to business sources, some commercial operators are now actively offering inland businesses access to these goods at lower prices by circumventing tariffs through the border regime.
Authorities have already detected new cases of such offers since the 2026 tariffs came into force. The Secretariat of Economy has reiterated its intention to revoke permits where misuse is found. Meanwhile, discussions are underway about extending the validity of the border decrees beyond their current expiration dates in September and December 2026.
Supporters of the exemptions argue they are essential for maintaining economic stability in border regions, where local businesses face direct competition from neighboring countries. However, critics contend that without tighter enforcement mechanisms, these policies risk becoming conduits for broader tariff evasion.
Some businesses also point to the complexity and cost of complying with the new tariff regime as a factor pushing them toward informal channels. While extending the decrees may help stabilize supply chains in affected regions, it could also prolong regulatory loopholes unless accompanied by more rigorous oversight.
