Mexico Halts “Autos Chocolate” Regularization, Tightens Customs

Mexico’s federal government has formally closed the door on the extraordinary regularization of illegally imported vehicles known as autos chocolate, while warning that fraudulent schemes, false intermediaries and stepped-up customs enforcement are now exposing thousands of vehicle owners to fines, seizure and the total loss of their units.

A presidential decree published on Dec. 31, 2025, eliminated the legal framework that since 2022 had allowed the regularization of nearly 3 million vehicles illegally imported into Mexico. Despite the program’s expiration, industry representatives and federal authorities say civil associations and intermediaries continue to offer legalization services in border states, even as customs officials have begun seizing vehicles allegedly regularized through irregular or unlawful mechanisms.

In an official statement issued Jan. 18, 2026, the Ministry of Security and Citizen Protection (SSPC) said that “as of Jan. 1, 2026, there is no valid provision authorizing the regularization of used vehicles of foreign origin under that scheme,” and warned citizens and authorities at all levels to refrain from participating in or promoting any such procedures.

The now-expired agreement was in force from January 2022 through December 2025. During that period, 2.9 million were regularized, according to data from Mexico’s Public Vehicle Registry (REPUVE). The program applied to vehicles circulating illegally in Baja California, Baja California Sur, Chihuahua, Coahuila, Durango, Jalisco, Michoacan, Nayarit, Nuevo Leon, Sinaloa, Sonora, Tamaulipas, and Zacatecas.

The SSPC stressed that the decree concluded “without any extension or pending processes,” adding that claims of unfinished procedures, extensions or ongoing regularization derived from the program have no legal or administrative validity. “Any action to the contrary lacks legal basis,” the ministry said.

Despite the formal closure, associations commonly identified as PAFA groups have resumed or continued offering legalization services in border regions such as Sonora and Baja California. Among them are organizations operating under names such as ONAPPAFA and AMLOPAFA, according to industry sources.

“The agreement ended without prior notice, so many people continued submitting paperwork to regularize their cars and were left in a kind of limbo. I urge people not to be deceived, because there are still individuals on social media claiming they can complete the process and resolve everything,” said Daniel Cereceres, President,  Independent Union of Used Car Sellers in Chihuahua.

Cereceres said that even in cases where paperwork appears complete, owners face obstacles when attempting to obtain license plates. “When they go to get plates, they are asked for a document known as the informational notice and proof of registration in the Public Vehicle Registry,” he said.

He estimated that in Ciudad Juarez alone, between 3,000 and 5,000 vehicles remain pending regularization following the program’s termination.

According to Cereceres, structural incentives continue to fuel illegal vehicle imports. Under current rules for legal importation in the border zone, vehicles from model years 2017 to 2021 are subject to a 1% tariff. Older vehicles, from model year 2016 and earlier, face a 50% tariff plus value-added tax, resulting in an effective cost increase of about 66% over the invoice value.

“Legal importation costs between 30,000 and 35,000 pesos for an older model. So if the car costs someone US$1,000 or US$2,000, it does not make sense to import it legally, and they hire someone with US documents to cross the vehicle or they cross it illegally,” he said.

Guillermo Rosales, president, Mexican Association of Automotive Distributors (AMDA), said eliminating autos chocolate requires consistent enforcement and clear messaging from all authorities involved.

“To put an end to this problem, it is essential that authorities stop giving false expectations that the agreement might be updated or reopened,” Rosales said.

While warnings continue, customs authorities in Baja California have entered an active enforcement phase. According to a report by El Sol de Tijuana, customs offices began seizing vehicles in January that had been previously regularized using questionable legal mechanisms, particularly court injunctions (amparos) and falsified entry dates.

The report states that as of Jan. 17, 2026, federal customs systems are cross-referencing vehicle data with international databases such as Carfax. This allows officials to instantly verify when a vehicle entered Mexico and whether it met the eligibility requirements under the former decree.

Customs officials in Tijuana and Mexicali have warned drivers that Mexican license plates no longer guarantee protection. One warning circulating among border users was blunt: “If you cross, they will take it.”

At inspection points, officers scan vehicle chips or plates. If inconsistencies are detected, particularly regarding the date of entry into Mexico, authorities initiate an Administrative Procedure in Customs Matters. Once seized on contraband grounds, recovery typically requires legal proceedings that exceed the commercial value of the vehicle, according to the report.

The investigation estimates that a significant portion of the 495,706 vehicles regularized in Baja California relied on legal injunctions that are now being invalidated by federal authorities.

“Although it was said the decree aimed to improve security, the reality is that 90% of crimes in the state continue to be committed without these vehicles contributing to the detention of those responsible,” said Paul Martínez, Representative, Confederation of Customs Agents.

State-level data also show limited fiscal compliance. According to Baja California’s Finance Ministry, only 34% of owners of regularized vehicles paid their circulation card renewal in 2025. Meanwhile, used car dealers reported sales declines of up to 90%, arguing that the program rewarded small-scale smuggling over legal importation.

The SSPC reiterated that any individual or organization requesting payments or documentation for regularization under the expired decree is committing fraud. “Because there is no valid legal provision, anyone who solicits money or documents under this premise is engaging in deception,” the ministry said.

For those seeking to import used vehicles legally, the SSPC said the only available path is through the current legal framework governing the definitive importation of used vehicles. That framework is established under a decree published Nov. 4, 2024, and renewed Nov. 5, 2025, which requires compliance with physical, mechanical and environmental standards, as well as payment of applicable tariffs.