Part 3/7:
To circumvent Mexican import taxes, the scheme relied heavily on falsified labeling. The Houston firm purchased diesel in Canada — a legitimate source — and then falsely labeled the cargo aslubricants when transferring it across borders. This mislabeling was essential in avoiding Mexico’s IEPS (Special Production and Services Tax), which is levied on certain fuel imports. By disguising diesel shipments as lubricants, the perpetrators effectively concealed the true nature of their cargo, facilitating clandestine entry into the Mexican market.