Huachicol fiscal

Huachicol fiscal is a term in Mexico for a form of fuel fraud in which gasoline and diesel are imported into the country under incorrect tariff classifications to evade taxes and excise duties. The misclassification is done by declaring the fuel in customs declarations as different products with lower or no tax liability. The scheme benefits from the fact that domestic fuel prices in Mexico, which include tax, are at times higher than international fuel prices, providing smugglers with a financial incentive to import and sell it in the country. This criminal activity gained prominence in 2018 and has been tied to corruption cases in ports and government agencies. The term derives from huachicol, a Mexican Spanish slang word originally referring to an adulterated drink and stolen fuel.

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