Volume 5, Number 14, Page 1

Report on Mexican Customs Law & Practice

The following is an excerpt from an interview with Dr. Máximo Carvajal during his recent visit to the Center. Dr. Carvajal is a Mexican customs law expert and dean of the Universidad Nacional Autónoma de México (UNAM) law college in Mexico City.

Q: Have there been any recent significant changes in Mexican customs law and practice?

A: Over the past ten years, the Mexican customs system has undergone a greater and much more significant transformation than any it had experienced in the past one hundred years. As a result of this transformation, border crossing procedures that previously took 28 different bureaucratic steps can now be completed in three. The same goods that previously took two or three days to clear customs can now cross the border in two or three hours. Apart from facilitating the cross border movement of goods, this transformation has led to a decrease in the corrupt practices that formerly existed in the Mexican customs system.

I believe that there are two main factors that make it more likely for corrupt practices to occur. First, when goods are delayed in clearing customs there is more opportunity for corruption. Second, the more human contact that takes place along the chain of events, the greater the possibility of bribes changing hands. Now that the customs clearing process has been expedited and electronic systems are being used, the incidence of corruption has been reduced.

The typical import or export process involves the following three steps, which require contact with private individuals or entities:

1) A customs broker (a private individual) fills out the requisite documentation, usually a pedimento;

2) Payment is effected through a bank, which is usually another private entity; and

3) The documents prepared by the customs broker are delivered to a place with an electronic system.

The first contact with the customs authorities occurs at step three. At this point, a determination is made by the customs authority to either permit the merchandise to continue on its way without an inspection, or to inspect the goods.

In some customs facilities there are only two steps, because payment is made electronically through an electronic order of payment drawn against the checking account of the customs broker and payable to the Department of the Treasury.

Q: Is this process coordinated with U.S. customs?

A: No. This is a process being done only by Mexico and one which is more advanced than that which is in place in the United States.

Q: Does this process benefit carriers?

A: The benefit to the carrier is that it eliminates delays. Under this procedure, carriers do not have to wait in long lines to enter or leave the country. In addition, automation in customs procedures is starting to develop common forms.

In the context of NAFTA, we have a problem where the U.S. made a unilateral decision not to allow Mexican carriers to enter the U.S. Following the golden rule of reciprocity in international trade, Mexico has applied the same rule to U.S. carriers.

Q: Given the new procedures, what is the cause of continuing frequent delays at crossing points such as Laredo?

A: The customs clearing process is slow in Laredo because of various factors. The problem is essentially two-fold. One is the improper manner in which documentation is handled, because it is allowed to pile up on Thursdays and Fridays. Those are the busiest days of the week, when all the paperwork completed in the previous three days accumulates. That problem is part of the hold-up. The other problem is volume. There are 2,000 tractor trailers going southward every day and 1,500 coming up from Mexico. These trucks get stuck trying to cross on only two bridges that cannot handle that volume of traffic. These 3,500 trucks are 20-ton trailers. I am not even counting the smaller trucks that cross over every day.

Q: The U.S. has cited safety concerns in prohibiting Mexican carriers from entering the United States. What is your opinion about why the U.S. took this measure?

A: My opinion is not objective, since I am Mexican. I think that, in applying such a measure, the U.S. has violated the terms of the NAFTA. The U.S. has not only cited safety issues. It also makes an argument that I think is not correct. One of the reasons put forth by the U.S. to justify its failure to comply with the NAFTA is that our [Mexican] truck drivers should speak English. Not even a lawyer with a doctorate degree like myself speaks perfect English, just imagine our drivers!

Dr. Carvajal is an expert in customs law and has written extensively on customs issues. Dr. Carvajal is dean of the UNAM College of Law.