Juan Pablo López y Samantha Ramos
Border delays and paperwork slow down billions in trade between Mexico and the U.S. — but that may be about to change. New technologies like artificial intelligence, blockchain, and RFID (Radio-frequency identification) systems are quietly revolutionizing how customs work at one of the world’s busiest trade corridors. A growing wave of digital transformation is helping authorities reduce clearance times, cut costs, and increase transparency, with major benefits for small and medium-sized businesses. Our research dives into how these tools are being implemented, what’s still holding them back, and why modern customs might be the secret to faster, fairer international trade.
When a truck crosses the border between Mexico and the United States, the journey doesn’t end it pauses. Sometimes for hours. The process of clearing customs, submitting documents, and passing inspections has long been one of the biggest bottlenecks in international trade. But in 2025, this is beginning to change, thanks to the applications of technology.
Our research explores how digital innovations like AI, RFID, and the Internet of Things (IoT) and how they are transforming customs operations along the US–Mexico border. These technologies are doing more than speeding up paperwork — they’re redefining how goods move, how governments collaborate, and how businesses survive in a globalized economy.
Traditional customs systems are often manual, slow, and error-prone. For companies, especially small and medium enterprises (SMEs), this translates to higher costs, unpredictable delays, and lost competitiveness. A single hour lost at the border can mean thousands of dollars lost in missed deliveries or storage fees.
Technologies like artificial intelligence are now being used to analyze large datasets to flag high-risk shipments in real time, reducing the need for physical inspections, also with OCR which helps to scan almost immediately the documents and to find discrepancies if they are not official documents. RFID tags, such as those used in Mexico’s PITA program allow trucks to be tracked with pinpoint accuracy as they pass through checkpoints.
In fact, countries like Korea and Chile have already seen clearance times drop by as much as 50% thanks to digital customs systems. And in China, AI-enhanced inspection tools have slashed delays and improved accuracy.
Our research found that implementing digital customs procedures can reduce trade costs by up to 14%, boost tariff collection by 15%, and increase trade volumes by as much as 30%. These are not just numbers, they represent real opportunities for businesses on both sides of the border. Also we find out that For the USA, 10-minute reduction in wait times at land ports of entry translates to $312 Million USD per year.
For example, a Baja California electronics company exporting to the U.S. might be able to avoid penalties or shipping delays thanks to real-time data and automation. For customs officers, automated systems mean less paperwork and more focus on truly suspicious shipments.
Even with clear benefits, adoption remains uneven. From our survey, the three main obstacles are: Upfront Investment: Procuring the hardware for RFID gates, licensing AI software, or integrating blockchain solutions can cost anywhere from $50,000 to $200,000—prohibitive for many SMEs.
Resistance to Change: One veteran customs officer in Calexico remarked, “We learned on paper; we trust paper. Convincing staff to rely on a computer’s judgment takes time.” Legacy bureaucracies sometimes fear that automation could render certain roles obsolete.
Regulatory Uncertainty: Some stakeholders worry about how the new technologies will affect and what they should be aware of, which new risks are they facing? like data privacy: Who owns the data on the database? What if a software provider holds critical keys? Clear guidelines on cybersecurity and data governance are still being drafted under the USMCA framework.
Beyond these top issues, companies often lack the technical know-how. In a focus group with five local freight firms, all participants agreed they needed more training on how to interpret AI risk scores, or how to troubleshoot an RFID scanner that suddenly goes offline during peak crossing hours.
The United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA, encourages innovation in customs through provisions like electronic documentation, simplified origin certifications, and support for AI-driven processes. But not all businesses are aware of how to benefit from these tools.
The potential is huge but so is the need for education, infrastructure, and policy reform.
As global trade grows and geopolitical tensions rise, having fast, transparent, and secure border operations is no longer optional, it’s essential. The integration of digital technologies at the US–Mexico border could be a model not only for Latin America but for trade hubs around the world.
It won’t happen overnight. But our research shows the path forward is clear: modernize customs, embrace smart technologies, and invest in people as much as platforms.
Because in the world of international trade, time is money, and the clock is ticking.
