Avoid Pitfalls When Shipping to Mexico: Hear What Seasoned Exporters Have to Say

Through much experience, many exporters have come to learn the logistical ins and outs of exporting to Mexico. When it comes to Mexican customs regulations and the clearing of goods, this experience can prove monumentally beneficial.

Many admit that even simple mistakes in documentation, for example, can result in an expensive shipment sitting idle for days at the Mexican border, or Mexican Customs even seizing merchandise for lengthy periods of time. The remedy for these problems can require a great deal of time and money.

Many helpful tips have been offered by Daniel Grimes of Emery Worldwide based in Mexico City, Jack Villari of Servicestar Corp., a retail chain with 4,400 stores globally, and other experts, who in many cases have learned lessons the hard way. In order to avoid common -- and sometimes not so common -- border delays and customs problems, you may wish to adopt their following suggestions.

1. Visit the Mexican broker who will be handling your shipments. Establish a relationship and learn as much as possible about the Mexican import process. As goods begin to flow southward and snags invariably occur, your greater understanding of the process can allow for speedier resolutions.
2. In order to claim NAFTA status and take advantage of duty eliminations under the North American Free Trade Agreement, NAFTA Certificates of Origin are required. In many cases, however, a U.S. company will import products from Asia and divert a portion of the cargo to Mexico. In this case, each product will require a non-NAFTA Certificate of Origin. Obtaining these certificates from several foreign suppliers at a later date can be a time consuming task. Thus, if you're considering diverting a portion of imported merchandise to Mexico, request the certificates when making the purchase.
3. Send copies of completed documentation well in advance of the shipment to your freight forwarder, the Mexican broker, and your customer to allow for any corrections.
4. Mexican tariffs are still applied to the value of the goods, plus the cost of insurance and freight. As a result, an itemization of all values and costs is important to avoid insurance and freight costs from being added twice to the bottom line by Mexican Customs.
5. It's important to provide the fullest product description possible. Provide catalogs or complete descriptions of the product to the Mexican broker to assist the customs appraiser in determining or confirming the accurate tariff product classification.
6. Ensure that all Mexican labeling requirements are satisfied and in Spanish.
7. Mexican Customs officials place a great deal of emphasis on the accuracy and completeness of the documents. Consistency is essential. Discrepancies can result in allegations of contraband, followed by stiff penalties.
8. Properly package the merchandise to allow for easy and secure loading and unloading to avoid product damage.
9. Contact your freight forwarder or broker to determine if any export or import restrictions, permits, special documentation requirements, or extra fees apply. Regulations have been known to become effective with minimal notice.
10. Never ship products to your freight forwarder or Mexican customs broker without prior notice.

About The Author John Manzella [Full Bio]

John Manzella, founder of the Manzella Report, is a world-recognized speaker, author of several books, and an international columnist on global business, trade policy, labor, and the latest economic trends. His valuable insight, analysis and strategic direction have been vital to many of the world's largest corporations, associations and universities preparing for the business, economic and political challenges ahead.




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