Friday, October 7, 2011

Ya Basta - Mexico Asks China To Work Together to Address Duty Evasion Schemes

Duty evasion has recently been the subject of Congressional hearingsreports, and pending legislation in the Senate and House in the United States of America.  Looks like the United States of Mexico is joining the fiesta.

According to a September 28, 2011 press release, Mexico's Secretary of Economy recently sent a letter to China's Ministry of Commerce (MOFCOM) raising concerns that Mexican industries are being harmed by pervasive transshipment, undervaluation, and misclassification. The letter apparently identifies companies that offer services to evade duties and "trick" customs authorities in several countries, including Mexico.  I haven't seen the letter, but I wonder if they are referring to the companies described in Part II of this report.

While efforts north of the Rio Grande have primarily focused on customs enforcement, Mexico is seeking a bilateral working group to enlist China's assistance in combating the problem.  This approach is inline with the Mexican saying, "mas vale un mal arreglo que un buen pleito" (it's better to have a bad deal than a good fight).

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