Increased customs enforcement leading to heightened import tax revenues: Highlighting the objectives of Mexico's most significant customs overhaul in decades

Mexico is embarking on a significant transformation of its customs authorities, aiming to curb crime, particularly tax evasion, at points of entry and boost revenue. The proposed reform to the Customs Law, submitted by President Claudia Sheinbaum, seeks to harmonize the responsibilities of the federal tax agency SAT and the National Customs Agency of Mexico (ANAM), digitalize operations, and allow technological collaboration agreements between ANAM and the federal government's Digital Transformation and Telecommunications Agency.

Earlier this month, authorities announced the arrest of 14 individuals in connection with illegal trade activities. The suspects include customs employees, businessmen, and six members of the military, including a vice admiral. This move underscores the need for reform, as El Salvador is cited as an example of how to reduce illegal trade almost to zero. However, this achievement is not solely due to investment in technology but rather breaking up criminal structures within customs and eliminating a system that tolerates corruption.

To prevent tax evasion, corruption, and other forms of criminal activity, customs will employ various tools. These include 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. The upgrade of customs systems is expected to facilitate smoother trade flows, reducing waiting times and optimizing clearance processes.

The Mexican government's proposed 2026 budget includes a plan to increase tax collection through the modernization of customs systems. 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. The projected additional revenue from the modernization of customs systems exceeds the proposed 2026 budget of ANAM.

However, Alejo Campos, regional director for Latin America for the organisation Crime Stoppers, emphasises the human factor's continued importance, even when an investment is made in artificial intelligence, scanners, and real-time alert systems. The modernization of customs systems also aims to allow the imposition of more severe sanctions on people who commit customs violations.

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 Finance Ministry projects that the government will receive 5.83 trillion pesos (US $317.4 billion) from tax collection in 2026, with around 30% of Mexico's tax revenue coming from import and export duties and other payments collected by customs.

Yet, a current case involving the seizure of a petroleum tanker at the port of Tampico, Tamaulipas, in May indicates that large quantities of contraband have continued to enter the country despite military control. This underscores the ongoing challenge in the fight against illegal trade and the need for continuous vigilance and improvement in customs operations.

The last time the government received additional revenue due to the modernization of customs systems was in 2007. The reform proposal also seeks to digitalize operations in customs and allow technological collaboration agreements between ANAM and the federal government's Digital Transformation and Telecommunications Agency. Digital collaboration between these institutions is promoted through integrated IT systems, electronic data interchange platforms, and coordinated digital workflows to streamline customs processes and enhance information sharing.

In the first half of 2025, Mexico's customs offices collected almost 712 billion pesos (US $38.8 billion). The modernization of customs systems is part of a proposed reform that is considered the most significant customs update since 1995, according to White & Case. The reform proposal seeks to harmonize the responsibilities of the 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. The success of this reform will be crucial in Mexico's ongoing efforts to combat illegal trade and boost its tax revenue.

Increased customs enforcement leading to heightened import tax revenues: Highlighting the objectives of Mexico's most significant customs overhaul in decades