Over the last few years, digital stores like Temu and Shein have gained high recognition in Mexico thanks to their low prices. However, it was only a matter of time before the country’s legal authorities moved in to regulate this market. Thus, The SAT has been launched to avoid possible cases of smuggling and tax fraud.
According to Wired, the Tax Administration Service, better known as SAT, has just modified the General Foreign Trade Rules to prevent some type of crime by Temu and Shein, this after identifying irregular maneuvers in various merchandise. In general, it has been pointed out that these two stores are designed to evade the payment of the general import tax (IGI) and the value added tax (VAT). This is what was said about it:
“Imports of clothing, home decorations, jewelry, kitchen utensils, toys, electronics, among others, increased, in which foreign companies dedicated to online sales, electronic commerce platforms, consignees and courier and parcel companies participate” .
To evade paying taxes, companies like Temu would be carrying out smuggling and tax fraud crimes. In general, it has been pointed out that These companies would be marketing their products at prices below the average, and they have accused them of having a scheme based on the abusive use of de minimis. This is a legal resource present in Mexican laws that refers to a value limit that allows goods valued below $50 dollars to be imported formally, but without paying duties, taxes and other related fees.
In total, there is talk of more than three million packages from Asia that enter Mexico without paying the corresponding taxes, which is a loss to the public treasury of $38 billion pesos. To combat this, The SAT has published the First Modification to Annex 5 of the General Foreign Trade Rules for 2024.
This reform points to the manipulation of orders that are sent on the same day, week or month, and divided into individual packages to reduce their total value, so that each shipment does not exceed $50, as an improper practice. Those who carry out these activities may face financial fines, the confiscation of their merchandise, the suspension or cancellation of the registry of importers or exporters, and criminal proceedings. This applies to any entity, although clearly this modification is focused on companies like Temu and Shein. This is what was said about it:
“The SAT carries out inspection actions to strengthen surveillance and combat these practices. Likewise, it urges companies in the sector to operate within the framework of legality and avoid causing harm to the federal treasury.”
Considering the way Chinese companies have grown in Mexico and Latin America in recent years, something that is expected to grow as time goes on, it will be interesting to see how Temu and Shein will react to these changes, which could result in increasing the price of your products. On related issues, the European Union begins an investigation against Temu. Likewise, they open a physical Temu store.
Author’s Note:
These companies need to be regulated. Not only is the price of their products and the way they offer products questionable, but the quality is something that also has mixed results, and could well lead to an investigation in Mexico, similar to what is happening in the Union. European.
Via: Wired
#SAT #begins #regulate #Temu #Shein #Atomix
