In global commerce, Mexico is one of the largest export markets, known for being a very open economy and limited restrictions to trade. Mexico has access to 50 countries through its mutually Free Trade Agreements.
There are numerous incentives for a business to consider expanding into Mexico and extending its cross-border operations through the country. Mexico stands as the second-largest economy in Latin America. Furthermore, its strategic positioning along the southern border of the United States provides advantageous access to North America, alongside convenient connections to both the Atlantic and Pacific trade routes.
Importing to Mexico. What does your business need?
Although Mexico is very favorable for business, there is a whole set of requirements and operational expertise required if your business is importing to Mexico, including knowledge of the required documentation, the processes at the customs border, and international business registration among others.
Here’s a list of the main documents required by Mexico’s customs:
Bill of Lading
The legal document between the shipper and the carrier states the quantity, type, and destination of the transported goods.
Commercial Invoice
This document outlines the sale terms between the buyer and seller.
USMCA Certificate of Origin
A document that certifies that the goods being imported meet the requirements under the United States-Mexico-Canada Agreement (USMCA), qualifying for special tariffs.
Packing List
This is the document that lists the contents of a shipment in detail.
Sales Contract
The legally binding agreement with all terms and conditions of a sale including price, payment terms, and details of delivery.
Proforma Invoice
A pre-invoice from seller to buyer, outlining all the terms and details of the sale, before the actual sale is made.
AES Filing
Export information is filed electronically and required by the Automated Export System (AES) for shipments valued over $2,500 and for shipments that require export control.
Customs Declaration
Document describing the goods being imported, amount, value, and country of origin, for customs clearance purposes.
Insurance Policy
The contract provides coverage to the goods in transit against damage, theft, and other risks.
Mexican Customs Brokerage
A Mexican Customs broker is an expert individual authorized by the Tax Administration Service (SAT) to act on behalf of importers and exporters during the trade operation. They oversee the process before Mexico’s Customs and all the necessary steps for the clearance of goods.
The main role of the Mexican customs broker is to perform all functions needed to ensure the correct and smooth trade transaction through customs. One of the most important tasks they have is the preparation of the “pedimento” which is the most relevant customs form that businesses use during the import and export of goods.
Additionally, a Mexican customs broker also takes care of tariff classification. This means they are in charge of determining the correct tariff code for imported and exported goods.
One more important function of a customs broker in Mexico is to make sure that the imported or exported goods comply with the rules of the Customs Regimes that the government has in place. The Mexican customs broker also plays a very important role in collecting taxes due to the federal government.
Do I need a broker to ship to Mexico?
Customs brokerage is very complex and essential for global trade. Mexican customs regulations are strict, and non-compliance can result in delays, therefore It is indeed recommended that you do have a Mexican Customs broker as most international trade transactions in the country require the services of a Mexican customs broker.
Also, there are constant changes taking place in foreign trade regimes, for example, the change from NAFTA to USMCA and other announcements from the WTO.
A customs broker will ensure to keep up with all these, international treaty updates, changes in tariffs, classification of goods, and new regulations.
Having a Mexican customs broker gives you the peace of mind that an expert will be overseeing your trade and avoiding mistakes that can result in expensive fines and penalties. Hiring a Mexican customs broker provides several advantages:
- Efficiency, time, and cost savings. Customs brokers can help to expedite the customs clearance process. Also, Customs brokers help manage the costs by looking for the most affordable charges for shipments.
- Improved compliance. Customs brokers have expert knowledge of international trade regulations and requirements, ensuring you comply with all necessary laws.
- Access to expert knowledge. Customs brokers have extensive experience and knowledge of the topic, bringing valuable insight to your trades. In addition, customs brokers keep up to date with the latest changes in regulations and rules.
- Customs Broker Licensure. Customs brokers are licensed through certifications, providing your business with the assurance and seriousness that international trade business needs.
- Joint liability for foreign trade levies. Customs brokers share joint liability for all foreign trades, reducing the risks for your business.
Customs Broker Services in and out of Mexico
At EP Logistics, our Mexican customs broker on staff will ensure your trade is performed smoothly. With over 20 years of experience, you can rest assured we will take care of necessary tax tariffs, declarations, permits, licenses, and documents required in your trade activities.
We also offer customs consultation services that include a risk evaluation to improve your operation.
Feel free to reach out and speak to one of our experts and find out how easily this process can be handled for you with care and professionalism.
