Update: U.S. refiner Valero's Mexico fuel import license reinstated
Valero Energy Corp's license to import fuel into Mexico was reinstated following a suspension in early April, Chief Operating Officer Gary Simmons told analysts on the U.S. refiner's first-quarter earnings conference call.
Tax authorities in Mexico, the largest buyer of U.S. motor fuels, suspended Valero's import license earlier this month amid an intensifying crackdown against illegal motor fuel flows to the country.
Valero was informed of the suspension on April 9 as customs in Mexico had some questions for the company resulting from an investigation Valero was not privy to, Simmons said.
Mexican authorities recognized that the company was in full compliance with its import reporting and tax obligations once the company went over its records and data with them, he added.
The suspension created significant supply disruptions for Valero, Simmons said. However, it was part of the government's efforts to limit illegal fuel imports, which will positively impact Valero's business there going forward, he added.
The Mexican government has been ratcheting up its efforts to combat illicit fuel trade, halting gasoline and diesel imports from Texas by road earlier this month to investigate import permits and toughen cargo inspections.
That came after authorities in Mexico seized a vessel and several fuel trucks in recent months for what they said were illegal imports.
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