Importing & Exporting from Mexico: Common Mistakes to Avoid
Importing and exporting are two of the most essential processes in international trade. However, these processes can be extremely complex and involve frequent changes to regulations. Even one small mistake in any step of the process can prove costly, both financially and from a time perspective.
For those unfamiliar with import or export operations in Mexico, this can be especially difficult. In theory the process in Mexico is similar to that of the United States, but there are some differences to be aware of. If you have operations into or out of Mexico, it is beneficial to work directly with a Licensed Customs Broker who knows the finer points of Mexican Customs.
Our team has identified some of the most common mistakes made by importers and exporters when it comes to dealing with Mexico.
Common Mistakes Made While Importing into Mexico (Southbound)
- Incomplete or Incorrect Documentation
Errors in key documents, such as commercial invoices, packing lists, or customs declarations can cause delays at customs and legal complications.
- Incorrect Tariff Classification
Misclassifying products may result in higher duties or penalties. Customs brokers are experts when it comes to HS Classifications, reducing the risk of misclassification. Together with Altana, Scarbrough also offers AI-assisted classifications to further reduce this risk and save countless hours.
- Improper Valuation
Undervaluing or overvaluing products can lead to tax disputes and customs issues. These issues can lead to delays that impact your supply chain and cost you money.
- Quality or Compliance Issues
Failing to meet the importing country’s quality or safety standards may result in product returns, confiscations, or destruction. With regulations varying from country to country, it pays to have a Mexican Customs Broker who is familiar with the country’s standards.
- Improper Packaging and Labeling
Products must be packaged and labeled according to local regulations to ensure their marketability. In Mexico, it is the responsibility of the customs broker to manually check the products to ensure compliance with the regulations.
- Failure to Comply with Customs Regulations
Not adhering to the importing country’s customs and trade rules can result in fines, delays, or seizures.
Common Mistakes Made While Exporting from Mexico (Northbound)
- Choosing the Wrong Markets
Exporting to markets with low demand can lead to poor sales and financial losses.
- Logistical Issues
Delays, lost shipments, or damaged goods can hurt both reputation and operational costs.
- Overlooking Trade Barriers
Neglecting to account for tariffs, quotas, or certification requirements can increase expenses.
- Cultural Misunderstandings
Not understanding the cultural and business practices of the destination country can hinder business relationships.
- Non-Compliance with Export Regulations
Failing to meet export requirements or shipping controlled goods can have serious legal consequences.
- Market Condition Changes
Ignoring factors like exchange rate fluctuations can negatively affect profit margins.
- Payment Issues
Not securing reliable payment methods or guarantees may result in financial losses. Working with someone who has years of institutional knowledge will help you be more confident in your decisions when it comes to payments.
Please reach out to your Scarbrough representative directly if you have questions or would like more information about import or export operations in Mexico.
