Mexico raids stores selling counterfeit or contraband Asian goods, pledges a nationwide crackdown

MEXICO CITY (AP) — Mexican authorities raided a massive complex of stores selling counterfeit Chinese and other Asian goods in downtown Mexico City, and vowed Friday to take the crackdown nationwide.

Over 200 police, marines and inspectors raided a building known as “Mexico Mart” in the city’s colonial center Thursday and seized around 90,000 counterfeit products that masqueraded as name-brand goods. They seized a total of over 262,000 products that had no receipts, import documents or, in some cases, even labels.

It is not clear if the counterfeits — which included imitations of Marvel, Sanrío, Disney and Nintendo products — were part of the 262,000 product count, or were counted separately. Officials said it took seven hours to seize all the merchandise.

The entire facade of the building is labelled in Chinese characters, as are most of the stores inside. Authorities said the goods were from China, Malaysia, Indonesia, Bangladesh and Vietnam.

The timing of the raid was noteworthy, given that U.S. President-elect Donald Trump has threatened to impose 25% import duties on Mexican products, and some U.S. politicians have worried that Mexico was serving as a conduit for Chinese goods to flood the American market.

There was no evidence that any of the goods were intended for re-export to the United States; they appeared destined for Mexican street vendors who flood the downtown area around Christmas.

But it was also clear that authorities had known for a long time what went on in the complex, which resembles a shopping center for wholesalers or bulk buyers. Economy Secretary Marcelo Ebrard said three raids had been carried out previously at the same address.

“They didn't have any labels,” Ebrard said of the products. “They were in violation of all the norms,” he said, adding that the haul included “a whole mountain of Disney products, all pirated.”

Mexican officials have said they will try to substitute Chinese imports, by encouraging companies to manufacture locally.

Ebrard said prosecutors would seize the building from its owners and destroy the contraband goods. He also said that, if import documents are found, the shipping and customs agents who signed off on them would also be investigated.

“We are going to be working throughout the country ... in the seaports and airports,” Ebrard said. “This has to be a permanent operation.”

Chinese products, often ordered over retail websites, have flooded Mexico in recent years, particularly toys, houseware and inexpensive electric bicycles and scooters.

____

Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america