US imposes sanctions on Mexicans, entities tied to Mexican smuggling network

The U.S. Treasury said on Tuesday it had imposed sanctions on two Mexican nationals and nine entities tied to a cartel-linked smuggling scheme that moves fuel from the United States into Mexico without paying a hefty tax on the imports.



In a statement, the Treasury said the scheme is linked to Mexico's Jalisco New Generation Cartel (CJNG) and part of an illegal enterprise generating hundreds of millions of dollars annually for the cartel. Smuggled fuel and stolen crude oil have become the second-largest revenue source for Mexican cartels after drugs, according to the U.S. government.



"Today's action highlights the extent to which Mexico's cartels are expanding beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to traffic deadly drugs that kill Americans," said Secretary of the Treasury Scott Bessent.



Mexico applies a levy known as IEPS on a wide variety of goods, including imported diesel and gasoline.