However, in spite of the more than 5 regularization decrees in the last 20 years, the problem stays and vehicles keep on arriving illegally into Mexico. My attention is called to the fact that at no time the problem has been fought from its roots, this is, questioning: Why do Mexican citizens prefer to buy used units in the USA and illegally take them into Mexico for a later regularization? The answer is simple; it is cheaper to buy vehicles in the USA than in Mexico. As long as this fact applies, entrance of illegal vehicles will continue.

In 2004, according to parallel Free Trade Agreements with the USA and Canada, entrance and free import of new foreign vehicles into Mexico was allowed. However, this opening proved to be a real failure, because very few units have been legally imported. The reason is that even if it is less expensive to buy a new car in the USA, upon importing it to Mexico, more than 25% over the vehicle´s cost must be added, making the vehicle more expensive than even in the Mexican market. This percentage represents the very high taxes set by Mexican authorities to buy a new unit. Only Value Added Tax is 15% and Tax on New Cars is 10%, these two items account for the 25%, not to mention expenses for license plates, taxes on car use and customs brokers services. Total cost could be increased up to 30% of total vehicle cost. Therefore, free import of new units into Mexico was a total failure in spite of tariffs exemption. I am sure that if taxes were reduced, costs would also be decreased and this would turn into an incentive for consumers.