All you need to know about exporting from Mexico

Mexico has 117 ports and terminals that connect more than 145 countries. It also owns 65 international airports, 49 major custom offices, a strong network of highways that consists of 393,471 kilometers, and 27,000 kilometers of railway lines. Utility costs, such as electricity and natural gas, are low in Mexico in comparison to other countries: they are 4% lower than China’s utility costs. Overall, Mexico has the proper infrastructure to export, and it has benefits in costs that contrast with other countries. Mexico’s main manufacturing industries are: aerospace, automotive, medical devices, electronics, appliances, and furniture. 

To export it is necessary to follow the following steps, at least:

• Choose the best means of transport for your product. Be careful with the dimensions of the packaging. 
• Choose the places where you would like to export your products. 
• Select the quantity of products you would like to export. 
• Research the regulations and documentation required for each country. 
• Since the process is long and meticulous, consider hiring a logistics operator.

Logistics services in Mexico are more personalized than logistics services in other countries. In addition, the IMMEX program offers important benefits for the temporary importation of goods that will be used in the manufacture of export products. This program is designed to support the operations of foreign manufacturers, so it has competitive advantages. Finally, unlike other countries in the Americas, Mexico is the only American country that is in the top 10 of the Emerging Market Logistics Index.

Exporting can be a simple process if done properly. There is a procedure that you must follow, as well as requirements that your company must meet to avoid common mistakes of exporters.

To export in Mexico, it is mandatory to have different documents.

Requirements to export 

1. Determine the tariff fraction of your product 

When exporting a product, you must know the code with which it is identified based on the Harmonized System.

This code allows you to determine the tariff regulations and non-tariff restrictions to which your product will be seen at some point in the importing market. It also facilitates business transactions by using the same password in any country, regardless of language differences.

2. Identify the documentation required to export 

The basic documentation required in any export process is the following: 

• CFDI (Digital Tax Receipt by Internet, is the electronic invoice that is issued for the sale of the merchandise) 
• Foreign Trade Complement (it is an annex to the CFDI whose information is linked to the operation of the export office) 
• Order conferred (authorization for the customs authority so that the customs agent can carry out the clearance on behalf of the exporter) 
• Letter of instructions to the customs broker (specific and detailed information on the operation and delivered directly to the customs broker) 
• Packing list 
• Certificate of origin
• Transport document 
• Documents that guarantee compliance with non-tariff regulations and restrictions, such as: health certificates, quality certificates and permits. 

It is important to comply with the following considerations:  

1.Obtain the RFC. 

Before anything else, your company needs to be legally incorporated in Mexico. Here, any legal person or natural person with business activity can become an exporter regardless of their size, what matters is their level of competitiveness. 

If you are not yet registered within the Ministry of Finance and Public Credit, you can consult the requirements and procedure here. 

2.Analyze the market to which you want to export.

To know about the international market, it is required, among other things: 

• General information about the country, area and/or specific market to which you want to export.  
• Information necessary to forecast product requirements. Anticipating social, economic, industry and consumer trends in the specific market or country. 
• Data to carry out key decisions on product adaptation, promotion, distribution and price. 
• Pre-selection of countries that offer the best opportunities for your product. 
• Investigate if your product has tariff preferences, within the framework of international trade treaties and agreements that Mexico has signed.
•  Know the demands and requirements of the destination country, as well as its marketing and distribution channels.

Article 40 of the Customs Law establishes the obligation to use a customs agent for import or export operations. The export process does not have defined periods, it depends on factors such as the level of competitiveness of your company and product, as well as the commitment of the company itself. Finally, keep in mind that only a small group of products requires the company to be registered in the  Sectorial Exporters Register: alcoholic beverages, beer, alcohol, denatured alcohol, non-crystallizable honeys and processed tobaccos.

For more information about the IMMEX program visit: https://blog.whlogistics.mx/2021/07/What-is-IMMEX-program-in-Mexico.html 

Sources:   

https://insights.tetakawi.com/top-5-mexican-manufacturing-industries
https://www.co-production.net/mexico-logistics-infrastructure-import-ex
https://www.co-production.net/mexico-logistics-infrastructure-import-eport
https://santandertrade.com/en/portal/international-shipments/mexico/exporting-products
https://www.youtube.com/watch?v=wGdDh_iu2EE
http://t21.com.mx/logistica/2021/03/24/mexico-escala-posicion-indice-logistica-mercados-emergentes