Logistics and shipping considerations for manufacturing in Mexico

In this episode, David McQueen welcomes Leticia Rodriguez of The ILS Company to discuss the logistics and shipping considerations for manufacturing in Mexico. To begin, Leticia explains what IMMEX is and how it affects shipping in Mexico. The IMMEX certification allows companies to manufacture in Mexico, import raw materials duty free and export their finished product. Companies are left with a tax advantage and the opportunity to take advantage of all the benefits Mexico has to offer. Then, hear how the Mexican trucking industry differs from trucking in the U.S. Leticia recommends you definitely have shipment and cargo insurance, even though it is not required by Mexican law. She is seeing the ports in Mexico become more and more saturated with shipments. Listen as Leticia shares about the best ports for businesses to consider depending on the shipment’s destination. Rail is another very popular mode of transport among industries. After discussing the physical ways to move merchandise around, the conversation shifts to discussing customs and ports of entry. Looking at truck travel, Leticia outlines the best and most popular custom routes. Carrier rates are likely to be lower when passing through high volume ports, but crossing times are likely to be better when going through lower volume ports. So, what are the best practices for marking sure goods clear customs smoothly? Mexico is known for being very bureaucratic when it comes to incoming shipments. So, before shipping to Mexico, it’s important to have all of your goods inspected to make sure you are in the clear with the customs broker. Overall, you would be expected to prepare the same document for both entry and exiting Mexico. However, each port tends to have their own quirks and rules. By knowing the general process and inspection, you should be fine. Before wrapping up, Leticia sheds light on the most common mistakes she sees made when shipping goods into or out of Mexico. The biggest thing is to always let brokers know that their shipment is on its way. Finally, she urges listeners to always consult with someone who is familiar with the current terms of the business before starting to ship into or out of Mexico. This should ensure everything goes smoothly. Thank you for joining us on our Manufacturing in Mexico Podcast!