The 19% tariff on imports of products from other countries, mainly China, which has been applied since January 1 in Mexico and which are offered through e-commerce platforms such as Shein and Temu , could generate problems for some companies that do comply with their tax commitments, so it would be important to identify companies that violate the rules and sanction them, considered Luis Miguel Jiménez , partner at the Von Wobeser y Sierra law firm .
“You have two options: either you take general measures that can affect all companies within the same segment, or you also have the option of identifying who is abusing a certain mechanism and trying to counteract those issues,” he said.
The sustained growth of e-commerce in Mexico, whose market size in 2024 was estimated at 28.95 billion dollars (mdd) and is expected to reach 53.97 billion dollars by 2029, according to the firm Mordor Intelligence , has given rise to companies such as Shein and Temu, among others, having had an exponential increase in the country, by offering very low-cost products.
These and other platforms are part of the evolution in which companies and consumers market, sell and buy goods, since this type of commerce offers broader options when making a transaction, both in terms of payment and delivery.
Furthermore, e-commerce has opened up global economic opportunities for micro, small and medium-sized businesses by making it easier for them to access foreign markets, something that platforms, especially those of Chinese origin, have seen as an opportunity.
However, for Jiménez, the tariff that came into effect on January 1 and that applies to products from countries with which Mexico does not have trade agreements, could also generate some consequences for these e-commerce companies in terms of costs, although it will not be an impediment for them to continue operating.
“For companies that operate through an app, it is clear that they will not be delighted, as their costs will increase,” the specialist said in an interview with T21.
Consumers will also be affected, as they will have to pay the tax. “The problem is that it is already more expensive, and when it is more expensive, the number of potential customers obviously decreases,” he said.
Cross-border e-commerce
According to the Economic Commission for Latin America and the Caribbean (ECLAC) , cross-border e-commerce continues to grow at a faster rate than domestic sales , due to the activity of online services, including software , audio and video playback, video games, betting sites and financial services linked to cryptocurrencies.
In 2022 alone, the average e-commerce spending in Mexico was $580 per person , while in terms of total cross-border traffic in the region, the country topped the list, with a 24.9% share.
In that year, according to ECLAC in the document Cross-border electronic commerce in Latin America and the Caribbean. Analysis based on visits to online platforms for commerce between companies and consumers , Amazon, Mercado Libre and Walmart, the three platforms with websites in Mexico, registered 68.6 , 64.1 and 14.7 million international visits . Meanwhile, the United States represented 33.3% of the cross-border traffic received by Mexico.
Among other data, Bernardo Díaz de Astarloa ‘s analysis indicates that Mexico contributed 93.7% to the proportion of global platforms that made shipments to countries in Latin America and the Caribbean.
These data take on relevance in the context of the possible consequences that could arise from the implementation of the 19% tariff, since, according to Luis Miguel Jiménez, among the effects is that consumers no longer see the use of these platforms as attractive , having to pay more for their products, which would decrease the traffic of visits to their sites and their sales.
According to the report Perspectives and opportunities for the success of the Asia-Pacific and Latin America regional expansion , by the financial services company Nuvei , between 2022 and 2026, e-commerce in Mexico will grow by 32% annually , driven mainly by cross-border e-commerce with Asia.
Regulatory framework for cross-border e-commerce
To prevent some abusive practices and close legal loopholes that allowed some e-commerce companies to evade taxes, the World Customs Organization (WCO) has established a framework of standards to help customs and other authorities develop strategic and operational frameworks for e-commerce.
In this regard, the agency noted that the legal framework must be based on the principles of good governance , impartiality and transparency , and that the legal and regulatory frameworks must address how to improve the facilitation, protection and security, and control of physical goods.
In addition, how to define the legal status and respective missions and responsibilities of economic agents involved in cross-border e-commerce, and how to observe privacy and antitrust laws, as well as protect consumers’ personal information.
Among other factors, he said that customs administrations should work with other authorities to analyse and investigate illegal cross-border e-commerce activities to prevent and detect fraud. He also considered that different revenue collection models should be applied.
In this context, the partner of the Von Wobeser y Sierra firm considered that with the new tariff measure the federal government seeks to avoid abuses , put more order in this type of transactions , have a better collection and avoid the “flooding” in Mexico of products that are very cheap, since the growth of Shein and Temu has been exponential in recent years. “They realize that there is a large shipment of this type of products and there is no type of collection, there is no type of control,” he pointed out.
E-commerce buyer behavior in Mexico
In Mexico there are 101.9 million Internet users , and 65% use the Internet to make online purchases, according to information from the Internet Association MX . According to this association, 37% of users use social networks to purchase an item and 34% do so to look for product recommendations or reviews.
For 21% of the Internet users interviewed, online advertising influences their purchasing decision , while for 18% it influences only in the case of some products or services. The analysis revealed that among the reasons for not buying online is the preference to go to stores ( 66 percent) . 25% of the respondents said that they do not find it safe to make any purchase online.
The main items purchased over the Internet are clothing, footwear and accessories, with 63.1% , as well as household items 50.5 percent . This is followed by electronic items, with 49.1 percent. In turn, the monthly spending on online purchases of 24.3% of those interviewed is between 500 and one thousand pesos , while 19.6% spend from 100 to 500 pesos and 17.8% spend from one thousand to two thousand pesos , revealed the Internet Association MX in the study Habits of Internet users in Mexico .
Response to tariff
The Shein platform, one of the most popular Chinese e-commerce companies in Mexico, stated that they are prepared to adapt to the new regulatory scheme that imposes a 19% tariff on the import of products.
According to a company spokesperson, in addition to complying with Mexican tax obligations, its business model, based on on-demand technology and flexible supply chains, will allow them to maintain affordable prices for their customers .
Meanwhile, according to an analysis note from the financial institution Itaú BBA , e-commerce giants Amazon and Mercado Libre will benefit from the new tariff measure on low-cost imports, compared to platforms such as Shein and Temu.
According to the report, Amazon will be the one that will gain the most from the changes , since approximately 30% of its products sold in Mexico come from the United States, while Mercado Libre brings around 15% from abroad.
“The policy appears to be aimed primarily at Asian companies such as Shein and Temu, which previously benefited from exemptions on imports under $50,” Itaú BBA analysts said.
It should be noted that imports from the United States and Canada, Mexico’s partner countries in the United States-Mexico-Canada Agreement (T-MEC) , are exempt for purchases valued at less than $50. Items between $50 and $117 from those countries will pay a 17% tariff, while items from $117 to $2,500 will be subject to a 19% tariff.
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