Borderlands Mexico: Desteia using AI to ease looming customs compliance crunch 

“We built the tool literally last fall,” Francois Lavertu, co-founder of Desteia, told FreightWaves during an interview. “The companies started telling us, ‘You’re already pulling the same documents we need for compliance. Why don’t you apply your technology to that flow?’”

Desteia, founded in 2023, is a New York-based startup with operations in the U.S. and Mexico. The company was founded by former Tesla executive Lavertu, along with Stanford engineers and entrepreneurs Diego Solorzano and Austin Poor. Desteia aims to simplify logistics operations by using AI to extract and organize information from unstructured data sources such as emails, messages and logistics document

Importers scramble for compliance solutions

Lavertu said many importers remain unprepared despite Mexico delaying MVE enforcement multiple times.

“They’re not ready,” Lavertu said. “A lot of customers first tried to handle it in-house or push the work to customs brokers. But the brokers couldn’t legally take on the responsibility because the liability sits with the importer.”

Under the MVE rules, importers must upload and validate multiple trade documents, including invoices, bills of lading, certificates of origin, insurance records and Carta Porte documentation. A discrepancy between documents can trigger penalties or shipment holds.

Desteia estimates that 37% of MVE declarations currently contain errors.

“The problem is not the submission itself,” Lavertu said. “The problem is automatically extracting, grouping and comparing all the documents before they’re ready for submission.”

Lavertu said concern across the market has intensified in recent weeks as companies realize the scale of the operational burden ahead of the June 1 enforcement date.

Desteia recently opened registration for an AI-focused webinar on MVE compliance scheduled for May 27 and received nearly 600 signups within days, according to Lavertu.

“Everybody is really anxious about what this means for their operation, for their teams and for the risk,” Lavertu said.

AI tool designed around cross-border operations

Lavertu, who previously worked at companies including Tesla, Walmart, L’Oréal and LVMH, said Desteia originally focused on helping companies manage unstructured logistics data tied to cross-border operations in Mexico.

The platform scans trade team inboxes, identifies relevant shipping documents and groups them into digital “pedimento bundles” tied to customs entries.

According to Lavertu, Auto-MVE also converts documents into the file formats required by Mexico’s customs systems, automatically checks for inconsistencies between documents and retains filing information if Mexico’s customs portal goes offline during submission.

“We don’t require anybody to change how they work,” Lavertu said. “Everything’s automated and pulled from the systems they already use.”

Desteia said the platform can reduce MVE preparation time from more than an hour to under five minutes per declaration. One customer handling more than 5,000 annual import operations reportedly saved more than 50 hours of manual work during its first week using the software.

Automotive, retail and manufacturing sectors face pressure

Lavertu said the platform was designed primarily for large multinational importers operating in sectors such as automotive, retail, consumer packaged goods and manufacturing.

The automotive industry faces particular challenges because every auto part imported into Mexico now requires its own MVE filing.

For manufacturers operating just-in-time supply chains, filing mistakes could create broader production disruptions.

“This has opened a Pandora’s box into checking that things are right in trade,” Lavertu said. “Companies are realizing suppliers may have been putting incorrect pricing into invoices or other documents.”

Lavertu said the broader trend reflects Mexico’s ongoing push to digitize customs enforcement and improve oversight of cross-border trade.

“The MVE is not an anomaly,” Lavertu said in Desteia’s launch announcement. “It is part of a deliberate effort by the Mexican government to modernize customs controls, reduce undervaluation and generate revenue through trade enforcement.”

Desteia, which has raised approximately $11.5 million in seed funding, said it plans to continue expanding its AI-powered automation tools for import compliance and logistics operations in Mexico.

Grocery chain plans $700M supply chain expansion in South Texas 

H-E-B plans to invest $700 million to expand its supply chain operations on San Antonio’s Eastside, a project expected to create more than 1,000 jobs over the next decade, according to MySA.com.

The San Antonio-based grocery chain said the expansion could add 720 jobs by 2028 and potentially grow to more than 1,200 full-time positions in the coming years. 

Preliminary plans include construction of a new bakery, refrigerated warehouse, transportation building and additional facilities tied to H-E-B’s growing manufacturing and logistics operations.

Construction could begin later this year, with some facilities becoming operational as early as 2028, according to the report.

CPKC, CSX upgrade Southeast Mexico Express for faster transit times

CPKC and CSX have upgraded their Southeast Mexico Express (SMX) rail service with faster transit times and expanded routing options aimed at shippers moving freight between the southeastern U.S., Texas and Mexico, according to a news release.

The enhanced SMX service launched May 4 and includes a dedicated train offering truck-competitive transit times between markets such as Atlanta, Charlotte and central Florida and destinations including Dallas and Monterrey, Mexico. 

Transit improvements include approximately one-day-faster service between Atlanta and Dallas and up to 2.5 days faster service between Atlanta and central Mexico.

The upgraded service now provides two-day rail service between Atlanta and Dallas, three-day service from Monterrey and four-day service from central Mexico to Atlanta. New origin and destination points include Charlotte, Jacksonville and central Florida.

CSX (NASDAQ: CSX) and CPKC (NYSE: CP)  launched the Southeast Mexico Express in December 2024 following the railroads’ acquisitions of portions of the former Meridian & Bigbee Railroad, creating a direct interchange near Myrtlewood, Alabama.