If you’re thinking about expanding your supply chain into Mexico, you’re not alone. Business between the US and Mexico is booming. Mexico is the US’s third largest trading partner, after China and Canada, and the US is Mexico’s largest trading partner. Since NAFTA implementation in 1994, US exports to Mexico have risen 223% and Mexican exports to the US have grown a huge 396%!
Perhaps you are looking to export your finished goods into Mexico for sale or consumption – this is called “definite” importation. Alternatively, maybe you’d like to temporarily ship raw goods into Mexico to be assembled into a final product which will be imported back into the US – this is called “IMMEX” importation, and it allows you to avoid being taxed on the imported goods, since they are not staying in Mexico permanently. On the other hand, perhaps you’re importing materials from Mexico in order to manufacture your products here in the US. No matter the situation, compared to shipping domestically, there are a lot more factors you’ll need to consider when arranging the transportation of your goods.
When you ship a truckload of freight within the United States, it’s a pretty simple process (although it may not feel like it sometimes!) In general, your freight is only loaded and unloaded once; the same truck driver and trailer brings your goods from door to door; and you don’t need to involve any third parties, besides the carrier or freight broker. When you’re shipping to and from Mexico, it’s a little different.
In its journey from country to country, a completely different carrier will be delivering your freight than the carrier who picked it up. Depending on whether you select “door-to-door” or “door-to-border” service, your freight may be loaded and unloaded multiple times onto different trailers. The services of a customs broker and freight forwarder will be required to assist with customs clearance. If you elect to use a 3PL for the arrangement of your shipments, many of these details can be taken care of for you, although you can choose to elect a customs broker or freight forwarder of your choosing, if you prefer (and the freight is being delivered to you). Who is responsible for making these third-party arrangements depends on which direction you are shipping.
To break it down a little more simply, here’s a run-down of the process when you’re shipping to Mexico (exporting):
And, because it’s a little different going the other direction, here’s how it goes down when you’re shipping from Mexico to the US (importing):
There’s one other important thing to note: insurance liability for freight moving into Mexico is very different from liability in the US. All US carriers offering door-to-door service have limited or no liability coverage for shipments once they cross the border into Mexico. It’s important to arrange additional cargo insurance for the Mexican portion of the journey, which you can usually arrange either through your logistics service provider, or through the customs broker.
If you’ve never shipped to or from Mexico before, learning about the process can certainly be a little confusing or overwhelming at times. With offices in border cities, fluent Spanish-speaking team members, and years of experience in this area of the industry, Trinity Logistics is the ideal partner to help you learn more about the process and assist you with your Mexico shipping endeavors.
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