Mexico has imposed temporary import restrictions on 68 chemicals and petrochemicals, effective October 24, 2023, to combat widespread fuel smuggling and tax evasion. Overseas chemical suppliers and logistics partners should prepare for tighter compliance checks and potential delays at Mexican ports, as importers must now secure special permits from the Ministry of Energy (SENER) for restricted products.
Decree background and rationale
The Mexican government reported that illegal fuel trade reached 47 million barrels in 2021, causing federal losses of up to 64 billion Mexican pesos from tax evasion. Inspections at key entry points revealed that only 25% of imported gasoline and diesel met regulatory standards, while 75% contained raw material concentrations up to 40 times higher than domestic industrial norms. The decree aims to curb these illegal activities.
Restricted chemicals list
The temporary restrictions cover 68 chemicals and petrochemicals, including benzene, ethylbenzene, toluene, xylene, naphthalene, cresol, butene, diisobutene, hexane, heptane, propylene tetramer, naphtha, butanol, hexanol, ethyl hexanol, MTBE, isopropyl ether, jet fuel, and gasoline with an octane rating below 87. Importers of these products must now apply to SENER for authorization.
Compliance requirements for importers
Parties needing restricted imported products must apply to SENER, demonstrating that the requested quantities and purposes are essential for their production processes and that they comply with all relevant regulations. Those with existing import permits before the decree can continue operations but must notify authorities within 30 working days, showing their activities align with permit terms. SENER will respond within 15 working days.
What buyers should watch
The Mexican government has not yet provided a timeline for lifting these restrictions. Overseas chemical exporters should verify that their Mexican customers have obtained the necessary SENER permits before shipping restricted products. Expect potential delays at customs and increased documentation requirements. The decree signals a broader trend of stricter chemical import controls in Latin America, which may affect supply-chain planning for solvents, aromatics, and fuel additives.
China sourcing context
Chinese exporters of benzene, toluene, xylene, MTBE, and other listed chemicals should monitor this development closely. Mexico is a significant market for Chinese petrochemicals, and these restrictions could disrupt existing trade flows. Exporters are advised to work with Mexican buyers to ensure compliance and explore alternative markets if needed.
Source: Read the original report | Published: November 08, 2023