Mexico is a country rich in culture and history, with people known for their hard work and craftsmanship. If you’re looking for high-quality merchandise at a fraction of the cost, then consider outsourcing your next production batch to Mexico.
Why Import Merchandise from Mexico
Mexico has many factors on its side when it comes to choosing a manufacturer:
- Large selection of potential suppliers – Mexico has a large and diversified economy, which means that there are plenty of options when it comes to finding suppliers.
- Low price per unit – Prices for merchandise in Mexico are often much lower than in the United States. This means a higher margin on each unit produced.
- Free trade Agreement – Under the USMCA trade agreement between North America and Mexico, many products from Mexico are in fact duty-free.
How To Import Merchandise From Mexico
So if you’re thinking of importing merchandise from Mexico, there are a few factors that you need to keep in mind.
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Familiarize With The Laws And Regulations.
Familiarize yourself with the required documentation and regulations before you start.
Most of the time, when buying from a pre-existing factory, you don’t require a specific license to import from Mexico into the United States. However, these regulations can vary depending on the type of merchandise you’re importing, so it’s important to check with the Mexican authorities before you start the import process. It sounds like an obvious point to make, but depending on what you’re producing, some raw ingredients that are legal in Mexico may not be legal in the States, or require special permission.
Other than this, importing from Mexico is mostly tax-free due to programs like IMMEX, where raw materials can be imported temporarily into Mexico for manufacturing.
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Select The Right Suppliers From Mexico
There are many suppliers in Mexico that can provide good quality merchandise at competitive prices. But the selection of a reputable and reliable vendor is not always as straightforward as you might think.
To select a supplier, on top of the product price, there are also other factors to consider:
- Minimum order quantity – this refers to the minimum order the manufacturer is willing to accept. Make sure that you’re comfortable with the quoted minimum, or you could end up wasting time.
- Turnaround times – This refers to the time required to manufacture your order. It goes without saying, but shorter times are usually more convenient for you as a buyer. These can vary wildly, so it’s worth paying attention to.
- Product experience – There may be many different suppliers, but make sure to find one who has relevant experience in manufacturing the type of product you’d need. This is especially important for something specialized, like medical equipment. The last thing you want is to be delivered substandard or defective products by a factory that over-promised.
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Choose A Reputable Import Company
Finally, you need to have a good shipping and logistics plan in place. This is especially important if you’re importing large quantities of merchandise.
The IMMEX program allows companies to benefit from tax-free raw material imports and exports. However, there are qualifying hurdles to jump through if your company aims to do the manufacturing yourselves. A way around this is partnering with an already established Mexican factory, or ‘shelter company’, that already has the required licenses.
Many shelter companies can also take care of other legal and administrative matters of the operation such as payroll and employee benefits. Using this route you can get your business up and running in the shortest time possible.
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Select Your Shipping Method
How the products will physically arrive at your doorstep is a very important decision that needs a lot of thought. Having a reliable shipping partner will allow you to avoid potential issues before they develop.
Depending on your timeline and the nature of the products, some shipping methods may be more suitable than others.
Here are some of the most common shipping methods that you can choose from:
- By sea – this is the cheapest and most common way to import your products from Mexico, especially if the items themselves are large and bulky.
- By truck – one of the benefits of importing from Mexico to the States is the fact that the countries share a land border. This means that trucking becomes feasible, particularly for deliveries to the southern half of the country.
- By Rail – Rail offers a relatively fast turnaround time and can be more cost-effective than truck transport over long distances.
- By Air – Air offers the fastest means to get your products over. However, it’s also the most expensive. This option is generally only a consideration if delivery time is a pivotal factor.
Importing Merchandise from Mexico Successfully
Importing merchandise from Mexico can be a great way to get high-quality products at competitive prices. Just make sure you do your research and plan ahead before you start the process.
Meeting the requirements for the IMMEX program is not easy. By partnering with a reputable shelter company in Mexico, your company can avoid the red tape.
Here at Zipfox, we provide access to a large database of hand-vetted Mexican factories. Click below to get started.
