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Mexico shipping: to and within

Mexico shipping: to and within

Mexico shipping is different from shipping from state to state, or even to other foreign countries.  Find eight tips for doing it correctly below.

Due to the rise in the cost of shipping from China to North America, and the increasing global preference for Mexico as a low-cost manufacturing venue from which to service North America and its consumer markets, Mexico shipping has become an increasingly popular topic.

Although the process of shipping from China, or, for that matter, anywhere, carries with it it’s own unique complexities, Mexico shipping has some idiosyncrasies of its own that should be considered. The below information is comprised of eight tips that should be taken into account when companies begin to navigate the process of shipping goods to and within Mexico:

  1. Avoid currency confusion – In order to minimize the impact of fluctuations in exchange rates, companies should procure logistics, transportation and other supply chain services in the same national currency as that used to buy their product or products.
  2. Use a number of carriers – As is the case in many endeavors, putting all of one’s transportation and logistics eggs into a single basket can be a proposition that is fraught with risk. Depending on volumes related to customer production, seasonality, or other issues, some carriers involved in Mexico shipping may experience shortages of available equipment to provide a consistent level of service year round. Additionally, a sole carrier may not be in possession of, or have access to, all the types of equipment that are required to get the job done for a particular firm.
  3. Prioritize visibility – Choose a carrier, or carriers, that have the ability to provide good supply chain visibility. Choose a Mexico shipping company that is able to track the movement back and forth across the border, as well as within Mexico, of its commercial conveyances. Many Mexican transportation and logistics service providers are using GPS technology these days to perform this critical function.
  4. Be aware of differences – The rules that govern Mexico shipping are not the same as those that do the same in the United States. Inform yourself and your staff. Ignorance can be costly in terms of both time and money resources.
  5. Make an effort to stick to FTL shipments – LTL service in Mexico can be spotty and it is sometimes more costly than it is in the United States. When such service is available south of the border it is often provided by smaller, regional transportation service providers.
  6. Work with international trade professionals – Although recently reformed Mexican Customs Law no longer requires that companies utilize the services of a licensed Mexican customs broker to shipgoods into the country, it is extremely judicious to make certain to hire a Mexican customs brokerage with a track record of reliability and confidence, or to work through licensed customs brokers employed by Mexican shelter companies. Compliance failures, as they relate to Mexico shipping rules and regulations, can slow or halt the wheels of commerce completely, as well as can result in the levy of costly fines and penalties by Mexican Customs authorities.
  7. Don’t ignore the US – It is not only important to understand the rules and regulations of moving goods into Mexico in accord with that nation’s Customs guidelines. It is also important that companies involved in NAFTA trade activities, and their chosen transportation provider(s), understand how to navigate the complexities of crossing finished product and other items into the United States from the south. For instance, learn about U.S. Customs and Border Protection’s Customs-Trade Partnership Against Terrorism, or C-TPAT, program, and the positive security implications that are inherent to the companies that have earned certification under the it. Also, be aware of any special rules or regulations that may be applicable to the item or items that are shipped northbound.
  8. Protect yourself – As is the case concerning moving goods in any part of the world Mexico shipping can be subject to mishaps. It is recommended that companies insure their shipments through their company’s policy provider. Rates quoted by Mexican carriers often do not include the cost of insuring their customers goods. This is a proverbial “t” that is important to remember to cross.

Photo credit: Overdrive Online

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This quarterly publication will be populated with content that is useful and relevant to readers that are contemplating Mexico investments, have operations already within the Republic, as well as to other individuals that have an interest in Mexico and its manufacturing sector.