What do I need to consider before shipping out from Mexico?

The?#nearshoring?trend of moving manufacturing from?#china?into?#mexico?keeps growing. Many?#us?companies are very used to the way logistics is handled from?#asia?to?#america, so when they start working with?#mexico?many challenges start to appear.

First, is very important to remember that is common for Chinese suppliers to sell under CFR or CIF terms, sometimes DAP or DDP this means that the seller takes care of most of the international logistics, leaving the buyer with only the customs clearance and sometimes the drayage to move the cargo from the port.

Now, to get cargo from?#mexico?it's a very different story; for the new entrants it's becoming common to buy under EXW terms, which means the?#us?company takes care of most of the logistics, including customs to cross the border, and here is where things get messy.

Some things need to be considered to avoid any problems:

• To get a product across the border, export customs formalities must be executed by a Mexican licensed customs broker, and there has to be a Mexican exporter of record, so your seller needs to agree to act as such.
• There is a small export tax and customs processing fee that the customs authorities charge, so it is easier for the Mexican exporter to pay them, but going back to the EXW terms issue, sometimes they don't want to, and it's difficult for a?#us?company to pay for such a small amount from abroad, it's about $40 USD per shipment.

You can rely on companies like?Compass 4PL - TForce Worldwide?to help you out on this kind of situations so your cargo moves with no constraings across the border.

• Last but not least, it's the coordination of all the moving parts you have the Shipper, the Mexican carrier, sometimes the same carrier crosses over others it's a third party, the US and Mexican customs broker. To handle all these parties, it's like juggling crystal balls; if one falls, everything breaks into pieces. So many times, we have seen projects fail because of coordination problems between parts, either due to lack of experience or by choosing the wrong logistics partner.

Compass 4PL - TForce Worldwide?is an expert handling integrated logistics services between the US, Canada, and Mexico, our logistics and customs team handles both?#ftl?and?#ltl?shipments for regular and expedited services. We are always here to support your needs at [email protected]

There is no rocket science in getting your new Mexican export logistics moving forward, but it's very important to understand that?#mexico?is not?#china, and that ocean logistics is very different to?#crossborder?shipments, especially due to the different terms used on Mexican manufacturing contracts.

Compass 4PL - TForce Worldwide?We are a 4PL that helps companies save time & money on their logistics with an out-of-this-world customer experience.