Mexico provides an immense opportunity for business expansion thanks to their NAFTA membership and flourishing economy. Exporters can gain immediate access to over 40 markets across the world due to the numerous trade agreements Mexico has signed.
Before making a decision to enter the Mexican market, these are the top five questions you should consider:
Is the entity you are shipping to registered with the Mexican Government as an importer?
The Mexico government maintains a National Registry of its authorized importers and exporters. Companies that import or export must be on this registry, otherwise they cannot import into, or export from, the country.
Is your importer in Mexico registered in any of the Mexican Government’s tax programs?
It is vital for importers to understand Mexico’s taxation programs, with two programs being particularly important.
The IMMEX program (also known as the Maquila program) allows companies to temporarily import goods that will be manufactured, transformed or repaired in Mexico and then re-exported to the U.S. without payment of taxes or other specific benefits.
The PROSEC program (also known as the Sectoral Promotional Program) enables the importation of specific goods and the application of preferential general import duty rates if the goods are used only in the manufacturing process,without altering the condition of the good. These goods include raw materials, components, parts, etc.
What will be your final destination in Mexico?
Knowing your final destination in Mexico will make it easier to choose which border crossing point of entry will yield faster transit times.
Does your transportation carrier have permits for the trailer to transit into Mexico?
Having the proper permits for trailers entering Mexico will save time at the border crossing, but it will also help you figure out whether you should obtain carrier permits or opt for a transload onto a Mexican trailer at the border prior to crossing.
What party is responsible for paying the Mexican importation taxes?
Knowing what party is going to pay the Mexican taxes at the time of importation is vital, as legal documents aren’t validated until a payment is made.