How to export to Mexico from the United States
Commercial transactions between North American countries are very common due to their free trade agreement. If you are going to enter this business it is key 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, US exports to Mexico reached 212.670 million dollars.
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 for a large number of products to be sold without a license. Putting it in the A:6 country group authorized it to be an eligible destination for the STA (Strategic Trade Authorization) License Exception. That is, it exempted him from licenses for most items controlled by national security.
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 before making shipments, exporters from the United States verify that all the steps are fulfilled. It should be noted that, according to the regulations of the Mexican customs, each shipment that enters must have an importer of record.
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 demanding as in other countries. According to International Trade Administration (ITA) this nation is not subject to special US export control regulations. In addition, it was named as a category I country to receive US high-tech products.
Although they may vary according to 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 establishes what is being shipped, where it is coming from and where it is going.
Also required is the commercial invoice which describes the transaction from start to finish. It indicates who is the buyer and the seller, describes the items and the terms of the sale. Many governments use it to calculate tariffs.
La USMCA Certification of Origin which indicates which products qualify for exemption from tariffs and quotas when exported to Mexico and Canada. All under the agreement that was updated in 2020.
In addition, you must present the packing list. This is intended to give the exporter, the international freight forwarder and the recipient information about the shipment. The packaging data, the marks and the numbers that the boxes have on the outside. It is necessary to detail the quantity and type of merchandise contained in each package to be transported.
El sales contract that expresses the agreement between the buyer and the seller, identifies the parties, the goods and the services that are sold. Apart from the terms and conditions of the sale and the agreed price.
While, the proforma invoice it is a kind of quotation, similar to the commercial invoice and has an expiration date. The AES presentation (Automated Export System) is paramount.
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 declaration and insurance policy are other requirements. Look for additional cargo insurance since Mexican carriers offer few guarantees when cargo is already in your 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 processing of these licenses can take several months.. Some of these are issued by the United States Department of State. For military and defense articles and services, it grants licenses under the rules of the International Traffic in Arms Regulations (ITAR).
With regard to dual-use technology, products and services, they are managed by the Office 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.