Trade between North American countries is very common due to their free trade agreement. If you're going to enter this business, it's crucial to know how to export to Mexico from the United States.
The process of bringing merchandise to Mexican soil generates some challenges. It is advisable for exporters to identify and explore business opportunities in order to have a strategy that minimizes risks.
The Agreement between the United States, Mexico and Canada (USMCA) has generated a positive impact. It has improved access for American companies in terms of intellectual property rights, digital commerce, car manufacturing, etc.
Topics of importance when exporting from the United States
However, there are some restrictions on the export of food and beverages, medical samples, and hazardous and non-hazardous chemicals. In 2020, U.S. exports to Mexico reached $212.670 billion.
The Bureau of Industry and Security (BIS) said the US exported $15.700 billion worth of base metal items that same year. This represented 27.2% of total US exports.
The main items sold to Mexico have been medical equipment, electronics, machinery, boilers, nuclear reactors, mineral fuels. As well as oils, distillation products, rail vehicles and plastic.
A large part is covered by raw materials, parts and components. But also small arms such as pistols, rifles and firearms. This raised concerns about the possibility of being diverted to criminals.
The United States has relaxed export controls to this country, making it possible to sell a large number of products without a license . By placing it in the A:6 group of countries, it authorized it to be an eligible destination for the STA (Strategic Trade Authorization) License Exception. This means it exempted it from licensing requirements for most items controlled for national security reasons.
But several are still regulated for export to Mexico, especially those related to military aircraft, controlled materials and software, technology such as polygraphs.
How to export to Mexico from the United States
Most of the time, it is the Mexican buyer or importing company that is responsible for obtaining the permits. Make payments to the Mexican authorities and hire a customs agent. The latter will monitor the entire process.
It is advisable that exporters from the United States verify that all steps have been completed before making shipments . It is important to note that, according to Mexican customs regulations, each incoming shipment must have a registered importer.
If land is chosen (which is the preferred method) a US carrier will take the cargo to the border and deliver it to the carrier contracted by the Mexican consignee. He receives the merchandise, inspects it, verifies the documents and prepares to enter Mexico. He does it on behalf of the Mexican customs agent who handles the shipment, enters the country and takes the cargo to the final recipient.
Export procedures and documentation for Mexico are as stringent as in other countries. According to the International Trade Administration (ITA), Mexico is not subject to special U.S. export control regulations. Furthermore, it has been designated as a Category I country for receiving U.S. high-tech products.
Although they may vary depending on the type of product, among the documents required to export to Mexico from the United States is the bill of lading . This is a contract between the owner of the goods and the carrier that specifies what is being shipped, where it comes from, and where it is going.
A commercial invoice is also required , which details the transaction from start to finish. It identifies the buyer and seller, describes the items, and outlines the terms of sale. Many governments use it to calculate tariffs.
The USMCA Certificate of Origin indicates which products qualify for tariff and quota exemptions when exported to Mexico and Canada. This is all under the agreement that was updated in 2020.
In addition, a packing list must be submitted . This provides the exporter, the international freight forwarder, and the recipient with information about the shipment. It includes packaging details, markings, and numbers on the outside of the boxes. This list is necessary to detail the quantity and type of merchandise contained in each package to be transported.
The sales contract , which expresses the agreement between the buyer and the seller, identifies the parties, the goods or services being sold, the terms and conditions of the sale, and the agreed-upon price.
A proforma invoice, on the other hand, is a type of quote, similar to a commercial invoice, and has an expiration date. Submitting it through AES (Automated Export System) is essential.
Through this instrument, the Census Bureau collects information on US exports. Additionally, US Customs and Border Protection (CBP) uses the data to ensure compliance with export regulations. Generally ordered when merchandise is valued at $2.500 or more.
Customs declarations and insurance policies are other requirements. Look for additional cargo insurance, as Mexican carriers offer little coverage once the cargo is in their country.
Other steps to export to Mexico from the United States
Mexican buyers must be registered in the Official Registry of Importers (Padrón de Importadores). This entity is attached to the Ministry of Finance and Public Credit (SHCP).
It should be noted that export licenses are required for sensitive products and high-end technology. Such permits also cover re-exports or transfers of temporary defense services.
The process for obtaining these licenses can take several months . Some of these are issued by the U.S. Department of State. For military and defense articles and services, it grants licenses under the International Traffic in Arms Regulations (ITAR).
As far as technology, dual-use products and services are concerned, they are administered by the Bureau of Industry and Security (BIS) of the Department of Commerce.
The Department of the Treasury and the Department of Defense also oversee some trade and security requirements.
