Should Tier 2 companies open legal operations in Mexico?

For Tier 2 companies, in order to export to Mexico, they must open a facility to have their inventory close to Tier 1 companies.

In addition, they need specialized personnel who know how logistics in Mexico works: From logistics routes to safety on the road.

In conclusion, you have to meet so many requirements, do so many procedures and know the region so well, that for a company that does not handle large inventories, it can represent a huge waste of time, as well as a waste of financial and human resources.

As we have mentioned in previous articles, there is a way to avoid the headaches that the process of having to settle in Mexico could entail: Through hiring a bonded warehouse.

A bonded warehouse in Mexico benefits from a program of the Ministry of Economy called IMMEX, which allows foreign companies whose inventory does not justify opening a facility, to bring products to our country without paying taxes.

The services of a bonded warehouse can have advantages such as being exempt of having to pay import taxes and duties, reducing lead times considerably, monitoring inventory in real time, VAT not applied to your sales, merchandise close to your Tier 1 clients, among others.

The only costs you might need to cover can be generated from rack positions, floor space, light manufacturing, and quality inspections required by your company.

We can affirm, without a doubt, that for a Tier 2 company it is much more convenient to outsource a company specialized in 3PL Logistics and bonded warehousing in Mexico (IMMEX) and VMI.