Mexico USAMarch 5, 2022 2022-03-06 11:31
Hi guys, in the previous video, we talked about freight between the US and Canada. In this video, we’ll talk another route and direction, Mexico to the USA and USA to Mexico respectfully. The border between the United States and Mexico is one of the busiest in the world. Its geopolitical position, the type of transported goods and high level of cross border control makes the transportation of goods for this route a complex process. Consigners prefer to hire freight forwarding experts across the border to make sure that their cargo will successfully be transported across the border without problems.
In general, the process of delivering goods to Mexico from the USA and Canada includes the following main steps. Preparation of cargo and necessary paperwork, preparation of the freight on time and to avoid problems from the place of origin to the US Mexican border, preparation for compulsory inspection of cargo in the border of the United States and Mexico. Now, let’s talk more about border crossing. The most common mode of shipping products between the US and Mexico is using rail, road, sea and air. In the most cases, it’s a hybrid transportation method that features at least two of these modes in a freight [0:01:20 unclear].
When shipping to Mexico from the US, make sure you understand every nuance of this process. Each batch includes several participants and several pieces of equipment, each of which has its own requirements. One of the reasons for this difficulty is that Mexican law restricts American carriers to a 26 kilometers zone inside the border with Mexico. The US governments have similar restrictions from Mexican carriers as well. These restrictions create a three-step process for each cargo crossing the border in any direction.
For example, the US carrier delivers cargo to the border. The carrier at the border delivers across the border, where the Mexican carrier delivers the cargo through its destination in Mexico. Let’s turn your attention to the free and secure trade, Fast program. This is a commercial clearance program for known low risk shippers entering the United States from Canada and Mexico. Fast enrollment is open to truck drivers from the United States, Canada and Mexico. Participation in fast requires that every link in the supply chain from manufacturer to carrier to driver to importer is certified under the Customs Trade Partnership Against Terrorism, (CTPAT) program. Customs Border Protection (CBP) routinely conducts on site visits to domestic and foreign CTPAT member facilities to evaluate and validate the supply chain security measures.
Basic documents for successful border passage, Bill of Lading. If there were only one shipping document you need to know like the back of your palm, the Bill of Lading would be it. The Bill of Lading, also known as BOL is a contract of carriage between the shipping line and the cargo line. It’s a document issued by the carrier to acknowledge the receipt of your cargo for shipment on board their vessels. The importer and the exporter information needs to be clearly listed as the BOL acts as proof of ownership of goods being shipped on the vessel.
Information on the BOL should also correctly reflect the condition of the ICA term under which the transportation is being carried out. Once the cargo arrives at the destination, the BOL needs to be presented for the carrier to release the cargo after which it serves as a shipment receipt. Bol for shipment from the US to Mexico can be submitted in English or Spanish.
Commercial invoice. Any international transaction that involves importing/exporting goods must come with a proof of sale known as a commercial invoice. In large part, it’s similar to standard invoice but unlike a standard invoice, it includes details regarding the freight shipment for customs clearance purposes and is one of the most important documents in ocean freight shipping. Detailed information of all parties involved including the importer, exporter, freight forwarder, banks, shipping lines, the quantity cost report, country of origin, purchase details, the names, the addresses of the buyer and the seller, etc must be properly listed on the commercial invoice. It’s recommended to invoice in Spanish.
Packing list. Just like the bill of lading, the packing list is a mandatory document in shipping merchandise via land or ocean freight. It lists down to the tiniest of details information regarding the cargo. This includes weight, volume and value of not only the overall cargo but also each individual box. The packing list informs your freight forwarder, importer, customs office and carrier of the goods you’re sending without needing to physically verify the contents. In the event customers decide to inspect your shipment, the packing list serves to facilitate the process by helping me identify the box or item, that raises the alarm.
This saves time and reduces the risk of damage to a cargo by avoiding the need to open every single box in your shipment. Import/Export form. The Shipper Export Declaration (SED) in English is required by the United States for any shipment of 2500 or more. It is used by the US Department of Commerce to track international trade statistics. In Mexico, the main Mexican import document is Pedimento de Importación. It is accompanied with a commercial invoice and will be prepared and presented by a Mexican customs broker in Spanish.
The Letter of Credit. The Letter of Credit is a formal binding agreement of payment between buyer and seller. The International purchase process is a long one, given the long delay from the time seller ships his cargo off to the time it reaches the safe hands of the buyer. This makes it hard to determine when payment should be made, especially if the importers are unable to verify the authenticity of the purchase.
DODA is an abbreviation of the Documento de Operacion para el Despacho Aduanero in Spanish, and is new document for customs clearance which entered into the force in April 2018. It replaces the need for other custom documents such as Pedimento and is generated through the MX customs portal or through the customs broker specified web service. It is generated based on information about checkers and paid documents and contains a two-dimensional QR code with response code and electronic signature of the customs agent and a digital print of the tax administration service (SAT).
Companies will ask the customs broker, legal representative to prepare a DODA which will be printed out and handed over to the freight forwarder who will then present it along with goods before checking with the Mexican customs. NAFTA Certificate of Origin. The NAFTA Certificate of Origin, form 434 according to the ICC, the Certificate of Origin, COO is an important international trade document that certifies the goods in a particular export shipment are wholly taped, produced, manufactured or processed in a particular country. They also serve as a declaration by the exporter. In other words, the COO identifies the country where the goods were produced. This document is prepared by the exporter manufacturer and must be certified by the government authority such as the Chamber of Commerce, or consulate to be valid.
This certificate can be in Spanish or English. Additional documents. Material Safety Data Sheets, Letter of Instructions (La Carta de Instrucciones), Inward Cargo Manifest, and Freight Invoice.
Work with Mexican carriers. As mentioned earlier, carriers are allowed to work only within the 26-kilometer border zone. For example, a Mexican carrier may travel through Laredo Texas, pick up the shipment and return it to Mexico. Similarly, a drive from the United States can cross the border, take the cargo and deliver it to Nuevo Laredo and return. This arrangement is limited to this 26-kilometer zone.
During this serious shortage of drivers in the United States, some carriers now choose Mexican drivers to increase capacity using work visa B-1. Visa B-1 allows the driver to stay in the country for 10, 12 days and he can work on a given route. Most bandwidth problems arise on the American side of the border. It’s a little easier to deliver goods from Mexico to US border and then to the US destination, but companies often have difficulty delivering goods across the border. This is particularly acute during the peak retail season, which begins around Labor Day and lasts until the first week of November. Thank you for attention.