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Top 5 Reasons Your Product Will Get Stuck at the Mexico Border

By on Feb 13, 2015 in News |

Anyone who has had to deal with Mexican authorities, either on a personal or business basis, will have had experience of how concerned they are with having paperwork in order. Hispanic countries seem to take documentation to whole new level, and Mexico is no different. Each i must be dotted, and each t crossed. When you are about to export goods to Mexico, you should prepare for an administrative and logistics minefield. You will need to present comprehensive documentation to support the import of your goods, and the distribution within Mexico’s borders. Any discrepancies or deficiencies in the paperwork and your goods will be seized and held until the problem areas are resolved to the satisfaction of the Mexican Importation Laws, which are administered by the General Customs Administration. Before your product crosses into Mexico, imported goods need to stop and be unloaded at a receiving warehouse on the US side. What I mean is, that your truck can not drive right across the border, deliver the product and drive back over the border. But it’s before even loading your goods onto the truck, or into the hold of a ship or plane, that the problems with importation could begin. The top five reasons your goods might get stuck at the Mexican border range from the temporary to the almost indefinite. 1) Your goods are miss-classified All of your goods will need to be classified for import duty payments. The documentation must conform to the Harmonized Tariff Schedule (HTS), and this includes identifying them as NAFTA or non NAFTA imports. Underneath this classification comes a sub-classification by industry. The goods to be imported must be annotated as to the industry for which they are being imported, as this, too, will have an impact on duties payable. Once at customs for clearing, the professional customs expert cannot change the classification details. It is up to the exporter/ importer to ensure the classification paperwork is in order, and though this can often be done online, it is a lengthy process. You will need to provide proof of the payment of any import duties and taxes payable. These might include IVA (VAT), customs processing fees, warehouse fees, and special taxes on production...

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3 Things You Absolutely need to do before start selling in Mexico.

By on Feb 13, 2015 in News |

There are any number of great reasons to sell your products to Mexico. Mexico has a robust and growing economy and a thriving middle class. And, the median age in Mexico is 27 years old – an open-minded target marketready to adapt to new brands, new experiences and new products. They have a lifetime of consumption ahead of them with anticipated larger disposable incomes – a perfect market to introduce YOUR products to NOW. Consider that Mexico is one of the most ‘open to trade’ countries in the world and has an economy larger than Canada, Korea or Spain. Combine that with an economy that’s booming and a sophisticated import infrastructure designed to support businesses that export to Mexico. Take a close look at the potential and you’ll quickly see the advantage to your bottom line. Mexico represents market share you can’t afford to ignore. You can get the new business, or your competitors can. With so much new business to be had, exploring the idea of doing business in Mexico is a no-brainer. Of course, crossing the border means dealing with government regulations – ours and theirs. It’s not complicated, but you must be compliant. Not just because it’s the law – though that obviously matters – but because it can cost you time and money and you can’t afford to waste either. Here are three things you absolutely need to do before you start selling to Mexico. 1. You Must Register Your Trademark in Mexico Registering, and protecting your trademark in Mexico is a must when doing business in Mexico. Having your trademark registered in the U.S. or Canada DOES NOT means you have legal rights to that trademark in Mexico. If you don’t register your trademark, you’re not prohibited from using it, but you could very easily lose it to someone else who decides to register it – they can do so legally if you have not. Avoid costly litigation and potential headaches by registering your trademark BEFORE you export your goods to Mexico. It can be a long and costly process to defend your trademark, so it’s better to be prepared in advance. It’s like that old adage about closing the barn door after the...

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The Advantages of Using a Bonded Warehouse in Mexico

By on Feb 13, 2015 in News |

If you’re an exporter of goods to Mexico, you’ll understand the costs of doing so. One of the major costs, of course, is the transportation of your product, whether it is cigarettes or wine, cheese or spare parts for heavy industrial machinery. To make your export product as competitive as possible, it’s obviously shipping as much of it as possible, bringing the cost per item down. If you are the importer of goods to Mexico, and the product you are importing pays a huge tax or duty, such as cigarettes, wine or energy shots, you will want to hear how a bonded warehouse works to save hundreds of thousands of dollars in cash flow. You might have a customer who wants to take your product, but only a limited amount at a time: cash flow is king, especially in times of economic difficulty. You know the customer will come through with his orders, but in the meantime to keep the cost to him down – and keep him coming back for more – you need to find a way to ship in quantity. You could find a storage facility in Mexico to ‘drip feed’ the customer as he requests more stock, but that means you’ll need to pay the upfront costs of importation duties and taxes, as well as the costs of storage, possibly even the insurance of your stock in a foreign country. It might seem that you’re stuck between a rock and a hard place. You either have to eat the costs of exporting smaller amounts of your product to Mexico or suffer the negative cash flow of having to pay import duties and taxes as well as the costs of storage to keep your logistical transportation costs down. Either way, your margins are going to be hit. Or you lose the customer to a competitor. That’s where bonded warehousing comes in. What is a bonded warehouse? Bonded warehousing allows you to move your goods to Mexico, without officially importing them. You keep title to the goods and they are there in the country, ready to be distributed or sold quickly to your Mexican customers. It’s a little like having an extension of your own storage facility...

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Canadian cops accused of aiding U.S. cheese smugglers

By on Feb 13, 2015 in News |

        Canadian authorities say two police constables helped smuggle more than $200,000 worth of cheaper U.S. cheeses and other foods across the border from Buffalo to sell to pizzerias and restaurants. The Niagara Regional Police Service announced today that the pair, one of whom has been fired, were arrested and charged, along with a third man. Charges against the three, all from Fort Erie, Ontario, include smuggling and other customs violations. Constables Scott Heron, 39, and Casey Langelaan, 48, were suspended in June amid the investigation. Langelaan was subsequently fired. The “large-scale” cheese-smuggling operation emerged from the April arrest of another NRPS constable in Buffalo on charges of trying to smuggle more than $1 million in anabolic steroids and other drugs into Canada, the CBC reported earlier this week. The police service says “the network” bought cases of cheese and foods on the U.S. side of the border, then drove them into Canada without declaring the goods or paying duty. The products were then sold at discounts to pizza parlors and other restaurants in southern Ontario, netting the smugglers a profit of about $165,000. Dairy regulations and import controls on U.S. products can mean Canadian cheese costs up to three times more than across the Niagara River. A Canadian border agency spokeswoman told the BBC that only $20 worth or 44 pounds of dairy products can be brought into Canada duty free. Source:...

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Companies in Mexico Find Healthier Packaged Foods a Tough Sell

By on Feb 13, 2015 in News |

Government Cracking Down on Junk Food Through Taxes and Advertising Restrictions MEXICO CITY—Companies trying to launch healthier snack options in Mexico, where the government has been cracking down on junk food through taxes and advertising restrictions, find that the products are often a tough sell.Carmela Rivero, vice president of product research and development at PepsiCo Inc.PEP +2.34% ‘s Mexican operation recounted tales of several recent misfires at an industry conference this week. One product was a baked snack called Nutritas that involved more than $30 million of technology to cook fresh vegetables. That didn’t take off.Nutritas was one of 42 products the company designed with school children in mind. Practically all of the products in the school line were returned unsold to the company, she said. “The bar for acceptance by the consumer is very high,” said Ms. Rivero. But a Quaker cookie line packed with oatmeal and fiber that began rolling out in 2009 has been such a hit in Mexico, that PepsiCo exported it to several countries in Asia and South America.Mexico is the world’s ninth biggest market for packaged food. But, seven out of 10 adults in the country and a third of children are overweight. Facing daunting public health bills, the Mexican government has undertaken a series of measures this year, ranging from taxes on food it deems unhealthy to restrictions on junk food advertising aimed at young children. Mexico slapped a tax on full-calorie sodas, teas and juices in an effort to trim waistlines and prevent Type 2 diabetes. Products like PepsiCo’s Sabritas potato chips were also hit with an 8% levy on calorie-dense packaged foods, with the aim of discouraging consumption.PepsiCo is determined to create healthy alternatives. “We want to be part of the solution,” said Ms. Rivero. In Mexico, the company’s third-biggest market by revenue, U.S.-based PepsiCo said in January it would invest $5 billion over five years, including in a baked goods development center in Monterrey. Companies such as Danone SA BN.FR -1.57% also say they are working to reformulate products to offer Mexicans less calories, salt and sugar in their snacks.However, light products are generally shunned in Mexico, said José Daniel Pérez, an account director at consumer research firm Kantar...

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