The Monopoly Of The Customs Broker In Customs Clearance In Mexico

Abstract

The current reform to Mexico's customs legislation focused on three main pillars: combating corruption, tax evasion, and smuggling, seeking to raise revenue and focusing on modernizing customs operations. However, its central thesis justifying this reform is to scapegoat customs brokers as the main perpetrators of the three major ills mentioned above. This thesis may be weakly supported due to the existence of legal barriers in the process of obtaining a Customs Broker license in Mexico. In this sense, those seeking to perform customs clearance of goods in Mexico (Clearance) face a low level of competitive opportunity within the customs and foreign trade sectors, due to its highly secretive nature and its direct ties to the State. This paper analyzes the role of the Customs Broker's patent in the context of a Customs Clearance monopoly, distinguishing the powers of the entities authorized to carry out such duties and highlighting the requirements that must be met to have such authority. The result is a proposal to create an alternative entity to the Customs Broker with the authority to carry out customs clearance of goods, by making modifications to the procedure and requirements necessary to obtain a customs patent. The alternative entities currently stipulated in Article 40 of the Customs Law are not homologous, as each one has different rights, obligations, and requirements to operate, thus creating unfair competition in this sector.