**Tijuana Business Association Urges President Sheinbaum for Used Vehicle Importation Decree**
The Tijuana Chamber of Commerce, Services, and Tourism (Canaco-Servytur) has called on President Claudia Sheinbaum Pardo to issue a federal decree governing the importation of used foreign vehicles, which expired on September 30, 2024. Julián Palombo Saucedo, the president of the association, highlighted that without an extension of this decree, the importation costs will become unsustainable for formal businesses. This, he warns, would drive sellers to operate informally on the streets.
Katia Torres, vehicle import manager at Grupo Logix, noted that the lapsed decree allowed for a mere 1% import tax in Mexico’s northern border region, compared to the standard 50% tax now required. The previous decree permitted importing vehicles that were 5 to 9 years old, and businesses are now stuck with stock they had planned to sell. This situation is particularly dire given that end-of-year sales typically surge by 50%.
Jorge Macías Jiménez, vice president of the used car division at Canaco, explained the discrepancy in costs, where legal vehicle importation previously ranged between $1,200 and $2,500, juxtaposing this against the approximately 2,500 pesos cost for regularizing “chocolate” cars, which are imported illegally. He argued this creates unfair competition and fosters a growing informal sector.
Kurt Honold Morales, State Secretary of Economy and Innovation, revealed ongoing collaboration with the federal government to re-issue the decree, seeking alternative solutions even through agreements like T-MEC. According to him, there is a commitment within the Secretariat of Economy to resolve the issue swiftly.
**Secondary Article: Legislative Responses to Vehicle Importation Crisis**
In response to the challenges faced by formal vehicle importers, Mexican legislators are examining potential policy adjustments that would balance the need for regulated importation without stifling the market. Some senators have proposed new frameworks that would streamline processes, reduce taxes, and potentially increase the allowable age range of vehicles for import. These measures, they argue, would counteract the economic impact on registered businesses while diminishing the allure of the illegal market. Meanwhile, local governments in Baja California are also preparing contingency plans to support affected businesses, which could include provisional tax relief and other business incentives.