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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El cargo Impact of 19% Tariff on Imported E-commerce Products apareció primero en T21.

In order to avoid “abusive practices” and close legal loopholes that allowed some companies to evade taxes, as of January 1, Mexicans who make purchases on e-commerce platforms and receive them through a parcel or courier company pay a 19% tax, which, according to specialists, is a necessary measure, however, it affects the consumer, who pays said tax and also represents a blow to logistics companies.

Chinese companies such as Shein and Temu were also affected, as the new tariff applies to products from platforms in countries with which Mexico does not have trade agreements.

Fiscal measures against abusive practices

The  Tax Administration Service (SAT)  published the General Rules of Foreign Trade in the  Official Gazette of the Federation (DOF) , a document in which it detailed, among other points, that it will increase controls at customs to avoid abusive practices. This comes after the Ministry of Economy accused some officials of allowing the entry of merchandise without the proper tax declaration.

According to this regulation, companies that offer transportation, accommodation or leasing services through digital platforms must register in the Federal Registry of Taxpayers (RFC) . In addition, they will pay taxes such as VAT (Value Added Tax) and ISR (Income Tax), and issue invoices at the request of users.

The measure also disrupts platforms such as Amazon and Walmart , although American companies have advantages due to the United States-Mexico-Canada Agreement (T-MEC) .

Under the USMCA, a 17% tariff is allowed for products worth $50 to $117 , while items priced between $117 and $2,500 maintain a 19% tax . Products worth $1 to $50 are exempt from the tariff .

Something that must be considered in this type of transaction is that, if the amount imported is between one thousand and two thousand five hundred dollars , the importer must be registered without the need for a customs agent.

Goods that are difficult to identify , such as those that come in powder, liquid, pharmaceutical presentations, or those that due to their characteristics require a physical or chemical analysis, are not permitted in this packaging scheme.

Also prohibited are those items listed in the General Import and Export Tax Law (LIGIE) , such as vapers, as well as goods from the automotive sector, including spare parts and others.

To address this new measure, the National Customs Agency of Mexico (ANAM) announced the name or reason of the courier and parcel companies that obtained the registration referred to in rule 3.7.3 of the General Rules of Foreign Trade, which are the following:

Aplus Logistics , Carlogic Express, Conejo Corriendo (J&T Express) , Control y Comercio Valem, Foreign Trade Services Coordinator, DHL Express Mexico , Estafeta Mexicana , Federal Express Holdings Mexico and Company , Imile Delivery Services Mexico , Sifra Integrator, Mastiff Group, Mex Buy , Fiscalized Precincts of the Northeast, Redpack, Rapid Delivery, TMM Almacenadora , United Parcel Service of Mexico and Weldex Trading.

The SAT reiterated that products entering Mexico through courier companies from nations without trade agreements , such as the e-commerce platforms Shein and Temu, will be subject to this new tariff.

It should be remembered that last October , the SAT had already announced some modifications to combat abusive practices by foreign online trading platforms operating in Mexico , in order to increase tax collection, reduce tax evasion and avoidance, and combat corruption.

With the new regulations that came into force on January 1 , foreign platforms have great challenges to adapt to these provisions and make their operations transparent and comply with their tax obligations in Mexico.

According to Manuel Díaz, president of SupplyChain de México and Target Consulting , companies specializing in international trade and supply chains, this tax is a “necessary” measure to balance competition between local and foreign importers.

“Although it has a direct impact on the consumer, it is essential to avoid abusive practices and promote more regulated trade. However, the risk of promoting informality and smuggling is latent if customs controls are not reinforced,” Díaz stressed.

He also noted that international platforms must assume the same tax responsibilities as Mexican companies , including registration with the RFC and payment of VAT.

Díaz stressed that the success of this measure will depend largely on the government’s ability to implement effective customs controls and combat informal trade.

Challenges for international platforms

For its part, Shein , one of the most popular Chinese e-commerce platforms in Mexico, stated that they are prepared to adapt to this new regulatory framework.

A company spokesperson said that, in addition to complying with Mexican tax obligations, its business model based on on-demand technology and flexible supply chains will allow it to maintain affordable prices for its customers.

“We are committed to respecting local laws while continuing to offer quality products at competitive prices,” the company spokesperson said.

This new tax also introduces significant logistical challenges . Companies specializing in international trade will have to optimize their processes to comply with regulations while facing possible delays in customs clearance.

Additionally, it has been established that digital platforms must declare and pay the corresponding taxes , as well as guarantee the traceability of the goods.

Among the most affected sectors is the textile sector , where Chinese imports have had a significant impact on the national industry.

This situation has led the government to implement, in addition to the 19% tax, a 35% tariff on textile products until 2026, as part of a strategy to strengthen the local industry.

Although this fiscal policy aims to increase tax revenue and protect the national economy , experts warn that its proper implementation will be key to avoiding adverse effects, such as the growth of informality.

 “While this measure may represent an additional cost for consumers, its proper implementation could translate into a fairer competitive environment and a more robust domestic market,” added Manuel Díaz.

In an environment where e-commerce is consolidating as a key driver of the Mexican economy, the challenge for the government will be to balance fiscal regulation with the promotion of a competitive and efficient market. The decisions taken now will set the course of a sector that will define the present and future of global trade in Mexico.

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