How Do Mexico Shelter Services Help with Navigating Customs?10.21.19
Navigating customs is a complex matter and a single misstep could lead to the risk of fines, project delays, or a full program cancellation. The value of working with a Mexico shelter services company is it gives manufacturers a sense of security knowing they’re not navigating the process alone. A shelter is responsible for working with the appropriate government officials to ensure permits are secured and compliance is met. Not only does this reduce the chance for error, it also eliminates wasted time, which in turn, helps to preserve cost.
Through its shelter services, IVEMSA can walk your company through proposed timeframes, remedy bottlenecks within the current process, and alleviate the responsibility of coordinating several areas at once. The first step is to gather detailed information, including descriptions, of all the materials and products being brought into Mexico. If this isn’t readily available, IVEMSA can visit your operational site and oversee the production and finished goods to ensure everything is classified correctly.
Develop a Checklist to Determine Product Origin
The key factor when navigating customs in Mexico is determining the country of origin of the final product. This particularly pertains to U.S. companies that want to relocate their production from China to Mexico and avoid tariffs. There’s a list of information and classifications needed before it can be determined if it’s a Mexican product versus a Chinese item.
Each product goes through the same process, which means if there are hundreds of individual components to label, the time it takes for completion can quickly add up. Creating and maintaining an accurate checklist is a lengthy process, which requires time and knowledge of what’s needed and how to achieve it in an efficient matter.
The checklist for determining origin includes a HTS tariff classification of the final product, which must identify the official and commercial name of the product, the product’s function, how it works, what it does, and how it will be used. Secondly, a bill of materials is needed to determine the origin of the product and requires the following:
- Part number
- Unit and total cost
- Country of origin
- HTS tariff classification
A shelter services company helps to organize all of the product information to ensure it passes through customs without incident. This is where IVEMSA’s advanced knowledge, skills, and experience make a difference in how quickly a manufacturer is able to get up and running.
Extends Decades of Manufacturing Experience and Expertise
For companies that do not take advantage of shelter services Mexico offers, the learning curve and consequences can be steep. U.S. manufacturers are at risk of paying significant taxes and duties, if they choose not to work with a reputable shelter company. The percentage of secondary inspections is also considerably higher than when working with IVEMSA.
Due to IVEMSA’s strong reputation and reliability when working with customs officials, only 8-10% of trucks is held for secondary inspection at customs, the lowest in the industry. For new companies that choose to operate as a standalone entity, more than 80% face a “red light” situation indicating secondary inspection, which results in major delays in production.
Working with an experienced shelter company is advantageous for companies that want to move their facilities from China to Mexico, but also for companies that have yet to expand their operations beyond the U.S. It’s in the beginning when companies need help the most to make sure everything is set up properly, compliance is secured, and they aren’t at risk for legal or tax liability.
The Value of Partnering with a Shelter Services Company
When navigating the intricate world of customs, IVEMSA has an established reputation and experience that matters in order for the compliance process to run smoothly. It’s an advantage to employ the help of a shelter company from the beginning to avoid production delays and unnecessary fines and taxes. As a trusted Mexico shelter services company, IVEMSA guides manufacturers to a place where they feel confident with the process.
After a few years of working together, many “graduate” and are eventually able to navigate comfortably on their own. However, many choose to stay or consult with IVEMSA for the duration due to the reliability and peace of mind of working with a shelter that has the background, resources, and expertise that makes for a strong partnership.