Mexico's Crackdown on Low-Cost Shipments: What Investors Need to Know

Mexico's new measures to regulate low-cost shipments are set to shake up the e-commerce landscape, and investors should take note. The Mexican Revenue Agency (SAT) has introduced new customs rules that could significantly impact the cost of doing business for international companies shipping to Mexico. Here's what you need to know about these changes and how they might affect your investments.



1. Abolition of the De Minimis value threshold of USD 50.00: This means that shipments from countries other than Canada and the United States (under the USMCA agreement) will no longer be duty-free, regardless of their value. This could lead to increased costs for e-commerce businesses that rely on low-cost shipments to Mexico. Investors should monitor the financial performance of companies heavily reliant on Mexican e-commerce operations, as these changes may impact their bottom lines.
2. Establishment of a global tax rate of 19% for all shipments valued up to USD 2,500: This flat tax rate covers duty, GST, and processing fees in one. While this simplifies taxation, it also means that shipments that previously might have had lower duties—or none at all—are now automatically taxed at 19%. This could result in higher costs for e-commerce businesses and potentially impact their profit margins. Investors should keep an eye on the stock prices of companies affected by these changes, as they may experience volatility in the short term.
3. New importer/consignee Customs registration requirement for shipments valued over USD 1,000: This requirement could cause unexpected delays or even prevent deliveries from clearing customs if the consignee in Mexico is not registered with Mexican Customs under the Padrón de Importadores. E-commerce businesses may need to ensure their customers or partners in Mexico are aware of and comply with this requirement to avoid disruptions in their supply chain. Investors should consider the potential impact on logistics and supply chain management costs for companies operating in Mexico.
4. Elimination of the simplified procedure for formal entry shipments valued at USD 2,500 up to USD 5,000: This change means that shipments within this value range must now go through full customs entry procedures, which could result in more paperwork, longer processing times, and stricter compliance requirements. This could add significant delays to e-commerce businesses' supply chains, particularly those that frequently ship high-value goods to Mexico. Investors should assess the potential impact on operational efficiency and supply chain management costs for companies affected by these changes.

Investors should stay informed about these regulatory changes and their potential impact on the companies they invest in. By understanding the challenges and opportunities presented by these new rules, investors can make more informed decisions and better navigate the dynamic Mexican e-commerce landscape. Keep an eye on the financial performance of companies affected by these changes, and consider diversifying your portfolio to include companies that can adapt and thrive in this new environment.