CATEGORY ARCHIVES: Export to Mexico
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Export to Mexico with seamless logistical services from your location in the U.S. to the doors of your customers in Mexico.
Mexico’s auto industry has grown steadily since the enactment of NAFTA over 20 years ago; today, the country accounts for about 18% of North American auto production, and is on track to overtake Japan and Canada as the United States’ no. 1 source of imported cars by the end of 2015. Big-name car manufacturers are taking notice of the rising auto industry: In February Honda opened its second plant in Mexico, and Mazda’s Salamanca, Mexico, plant began production in March. Additionally, exports from American giant General Motors, which pledged last year to invest almost $700 million in their Mexico facilities, more than doubled in May, according to Bloomberg.
Mexico’s position as a rising power in the auto industry presents several benefits for American manufacturers and dealers. Mexico’s manufacturing wages are significantly lower than other leading manufacturing companies such as China, while workmanship and productivity remains high. Additionally, the country’s strategic location means that manufacturers are able to ship parts to production facilities more quickly. However, manufactures still face challenges posed by cross-border shipping. Estafeta USA provides comprehensive logistics services tailored to the auto industry to expedite this process.
Comprehensive Inbound Logistics
Estafeta USA understands that sourcing parts from across the border can result in added complications. Estafeta provides end-to-end, comprehensive supply chain solutions aimed to ensure that your inventory remains stocked and your costs remain low.
Estafeta USA is your singular point of contact for comprehensive inbound logistics. Our cross-border logistics consultants work with you to determine a customized solution to meet your needs. Several of our inbound logistics services include:
Critical Parts Services
Estafeta USA knows that one of the most significant factors when it comes to staying competitive in the auto industry is the ability to get the right part to the right place at the right time. Our critical parts services ensure that this is possible by expediting the inbound transportation of mission critical parts from your suppliers to your production facilities with same-day deliveries and distribution anywhere in Mexico. Additionally, our strategically-located cross-border warehouse ensures that we can transport and retain assembly parts on a regular basis and in critical moments.
Estafeta USA can help manage your inventory and add transparency to your supply chain. Our warehousing and distribution services ensure that your parts are delivered to clients and manufacturers on-time and efficiently. Some of our aftermarket services for the auto industry include:
- Inventory Management
- Outbound Administration
- Pick and Pack
Estafeta USA: Comprehensive Logistics Solutions for Exporting to Mexico
The rising auto industry in Mexico presents a number of opportunities for U.S. manufacturers. The country’s strategic location, affordable manufacturing fees and free trade agreements makes it an ideal location. However, shipping cross-border presents obstacles for U.S. manufacturers, particularly regarding the delivery of critical spare or replacement parts. Estafeta USA offers several logistics solutions tailored to the auto industry which aims to add visibility to and increase the efficiency of the supply chain process. Contact a cross-border logistics consultant today to learn more about how Estafeta USA can tailor their logistics services to meet your manufacturing needs.
For more news on the economic opportunities in Mexico, subscribe to our daily newsletter The Mexico Business & Logistics Source.
The signing of NAFTA has created a booming consumer economy throughout Mexico.
Mexico is open for business. There is no better time for American retailers to export their products to the Mexican consumer market and grow internationally. A large number of factors, such as size, diversity, large market and convenient location all make doing business in Mexico a wise decision.
Location is one of the main reasons why exporting to Mexico is ideal for American retailers. The close proximity keeps freight cost very low. Also, dock-to-door deliveries often take less than a week, whereas shipping to countries, such as China, can take up to 6 weeks. Order fulfillment is far more efficient and the time it takes to get products to customer is greatly reduced.
Expanding Middle Class
Mexico is a manufacturing powerhouse and that means jobs that provide a growing middle class with more disposable income to purchase American consumer products. The per capita income is more than twice that of China, and four times India. This is good news for U.S. retailers whose products are actually preferred over locally produced items due to the higher quality. Also, buying American serves as a status symbol in Mexican society.
Competition is Low
Although there is a rising level of desire for “made in the U.S.A.” products in Mexico, the number of U.S. retailers who export to the country remains low. Little competition and high demand means that you would be better positioned to carve out a niche in the largely untapped market.
Foreign Investment is Growing
Mexico’s growing economy makes it an attractive place for Foreign Direct Investment (FDI), which is simply a direct investment into production or a business by a company in another country. Mexico is ranked at the 8th most attractive FDI country in the world. Particularly, it has seen huge annual growth in its vehicle and aerospace manufacturing sectors. In fact, Mexico is responsible for more than 60% of Latin America’s manufacturing exports.
NAFTA is Mexico’s largest trade agreement. Since NAFTA’s signing in 1994, Mexico has grown to become the United State’s 3rd largest trading partner. The agreement lifted all tariffs on all exports to Mexico, which has made a large impact on the Mexican economy.
Mexico also has the most trade agreements all around the world. The country has 12 free trade agreements with 40 countries. Over 90% of Mexico’s foreign trade is under some sort of free trade agreements.
Currently, Mexico and South Korea are negotiating a free trade agreement between the two nations. There are already approximately 1,500 South Korean companies investing in Mexico, among them, big names such as the like of Samsung, LG, Hyundai, Posco and many others.
Mexico is also considering joining the Trans Pacific Partnership. However, as in the U.S., it is not a slam dunk deal.
Export to Mexico with Estafeta U.S.A.
Mexico has been in the news a lot recently, with outlets highlighting the country’s landmark passage of the energy legislation which ended PEMEX’s seven decade monopoly on oil production and set up opportunities for energy companies and drilling firms to expand into the otherwise untapped region.
However, energy reforms aren’t the only thing that has the world buzzing when it comes to Mexico. Mexico’s economy continues to show solid growth expectations, with President Enrique Peña Nieto announcing a series of measures to accelerate growth in late May, and the country reporting its third trade surplus in a row in April.
The message Mexico is sending to the rest of the world is clear: We’re open for business. Although big-name companies like Chevron and Exxon may be flocking to the country due to the oil legislation, Mexico also offers lesser-known reasons for U.S. small businesses to export.
The Economy is Growing
Mexico’s economy has shown continuous improvement in the last few years. The unemployment rate in April 2014 was 4.84%, down from 5.3% in 2012. Additionally, Mexico’s GDP continues to grow; the country saw 4% growth in 2011 and 3.6% growth in 2012. Growth in 2014 is projected between 2.77% and 3%.
The Middle Class is Expanding
In addition to a rapidly growing economy, Mexico’s middle class has seen expansion in recent years; a report released by The International Labor Organization found that Latin America’s middle class is one of the fastest growing in all developing countries. Additionally, most families are expected to see a growth in income in the coming decades; this developing middle class and increasing disposable income attributes greatly to a rising level of consumption.
Competition is Low
Although there is a rising level of desire for “made in the USA” products in Mexico, the number of U.S. retailers who export to the country remains low. Little competition and high demand means that smaller businesses are able to carve out a niche in the largely untapped market.
NAFTA Makes Trade Easier
The signing of the North American Trade Agreement (NAFTA) largely reduced the regulations imposed on trade, and greatly increased the efficiency at which the US and Mexico can conduct trade business with each other. Mexico’s strategic location and minimal trade tariffs make it one of the easiest countries for US retailers to export to.
Estafeta USA: Your Partner in Exporting to Mexico
Exporting to Mexico is one of the easiest ways that small businesses based in the United States can expand. Mexico offers a wealth of largely untapped opportunities: the growing economy, expanding middle class, strategic location, minimal trade barriers and low competition make it the perfect country for businesses looking to grow. However, expanding cross-border can be difficult; research has found that many small businesses struggle to get the process of exporting started, especially when it means shipping internationally. Estafeta USA offers a number of third party logistics services designed to make the exporting process easy for US-based businesses. Services include transportation to and distribution in Mexico, as well as warehousing in Mexico and customs help. Contact a Cross-Border Logistics Consultant today to learn how Estafeta USA can help your small business expand in to the Mexican market.
For more news on the economic opportunities in Mexico, subscribe to our daily newsletter The Mexico Business & Logistics Source.
With a new year upon us, now is a good time to brush up on the basics of shipping products across the U.S. border to Mexico. Here are some simple guidelines for shipping items in and out of Mexico.
Make sure that your shipment is addressed correctly. This may seem like a bit of a no-brainer, but using a complete and correct address on shipments is the best way to ensure that your parcel arrives on time with a minimum amount of hassle. Avoid holdups and return shipments by formatting shipping addresses in the following manner:
Street name + House/Building number
Postal Code + Locality Name, Province Abbreviation
Alonso Reyes Diáz (Recipient Name)
ABB Sistemas, S.A. de C.V. (Company Name)
Via Gustavo Baz No. 166 (Street Name & Building Number)
Col. San Jerónimo Tepetlacalco (Neighborhood/Quarter)
06600 México, D.F. (Postal Code, City Name [MEXICO, D.F.” represents “Mexico, Districto Federal”; compare to “Washington, D.C.])
MEXICO (Country Name)
Provide your carrier with an accurate manifest.
The smallest measurement could change everything. Make sure to provide your carrier with the exact shipping commodity, pallet count, piece count, weight, and any special handling requirements. For example, your shipment may need to be protected from extreme temperatures during the summer. Providing more details usually results in faster, more efficient shipments. It’s better to have too much information than not enough.
Make sure your shipment has the
Purchase freight insurance.
Freight is not insured once it reaches the Mexico side of the border, therefore it is advisable to purchase insurance to guard against loss or damage. You may wish to purchase full coverage for the full declared value of your shipment. This is especially true if your shipment contains high-value or one-of-a-kind items.
Exporting and Doing Business in Mexico?
Estafeta USA offers fully integrated logistical solutions tailored to fit the needs of companies wishing to do business in Mexico.
Our services and solutions include LTL freight, pick-up at your dock, warehousing and fulfillment in Laredo TX, and cross border delivery directly to the doors of your customers in Mexico.
For logistical support to grow your business in Mexico, please call one of our Mexico Logistics Specialists at 1-866-518-6600 or send us an email.
There are several key documents required when shipping to Mexico.
Since the North American Trade Agreement (NAFTA) was put in to effect in January of 1994, Mexico has become one of the United States’ foremost import/export partners. NAFTA, which effectively created the world’s largest free trade area between the U.S., Mexico and Canada, essentially eliminated tariffs on imports and exports between the three countries, and reduced highly restrictive trade barriers in Mexico. Since NAFTA was enacted, the trade partnership between the United States and Mexico has grown immensely. Mexico is currently the 3rd largest goods trading partner with the U.S.; as of 2011, the latest data available, the total goods and services trade between the United States and Mexico totaled $500 billion, with exports totaling $224 billion.
Although the impact of NAFTA on US-Mexico trade has been overwhelmingly positive and the agreement has largely reduced the difficulties trading across the border, exporting goods and services to Mexico can still be confusing for those unfamiliar with the process. Becoming familiar with several parts of NAFTA, as well as the different documents needed when exporting to Mexico, can expedite the process.
NAFTA FACTS Document 8401
NAFTA FACTS document 8401 provides information regarding the basic documentation needed to ship goods to Mexico. There are a number of documents needed to successfully ship goods across the border. These documents include:
- Bill of Lading: The bill of lading, often abbreviated BOL or B/L, which is issued by the shipper to the consignee, includes a comprehensive description of the goods being shipped. The B/L should also include the telephone numbers and addresses of the shipper and the consignee.
- Commercial Invoice: The commercial invoice should include a complete description of the goods being shipped, as well as the declared value of said goods.
- NAFTA Certificate of Origin
- Customs Declaration: A customs declaration, which includes information regarding the goods, their value, their final destination and the consignee, should also be included.
NAFTA Certificate of Origin
The NAFTA Certificate of Origin is an optional document, and is not required for goods valued at less than $1,000 USD. However, the certificate identifies which products being shipped quality for preferential tariff treatment under NAFTA, and can made the shipment eligible for reduced duties. The NAFTA Certificate of origin should be completed by the exporter and should be sent to the importer. Additionally, products that qualify for preferential duties must include a statement stating so, which is attached to the commercial invoice.
NAFTA FACTS Document 1602
Labeling your package correctly is vital to successfully shipping your goods to Mexico. NAFTA FACTS document 1602 contains all of Mexico’s label requirements.
Some products may be subject to NOM, an official Mexican standard. It’s important to determine whether your goods are subject to these standards, because products which are subject to NOM must first be certified as being in compliance with said standards before they can be exported in to Mexico. Once your product is certified as being in compliance with NOM standards, customs can recognize that it is not a safety or health issue. Several products which are subject to NOM include electrical equipment and products, paints, varnishes, and textiles, among others.
Companies which export to Mexico can help ensure that you have accurately filled out the required documents for successful shipment, expediting the transportation process and getting your goods to your customers.
U.S.-Mexico Trade Facts
The North American Free Trade Agreement
NAFTA Certificate of Origin: Frequently Asked Questions