Even if this is your first time shipping or you already have experience in importing goods from China to Mexico, sometimes this process can be hard. In this article we come to you with solutions that will help you understand how to save money, time, and avoid trouble in this complex process. To make it easier for the reader, we divided this guide into 3 parts:
Part 1. How to find a reliable freight forwarder?
- Why do you need a freight forwarder, and what can they do for you?
- Should I choose a freight forwarder from China or Mexico?
- How reliable is a freight forwarder?
Part 2. How many modes of transportation are there from China to Mexico?
- Import Rules, Regulations, and Customs in Mexico
- Express delivery from China to Mexico
- Sea shipping from China to Mexico
- Air freight from China to Mexico
Part 3. How to save money?
Part 1. How to find a reliable freight forwarder?
1. Why do you need a freight forwarder, and what can they do for you?
A freight forwarder, forwarding agent or cargo agent is an experienced person from the international trade and transport community that coordinate and ship goods from one place to another via a single or multiple carriers (air, sea, rail or highway).
Finding a reliable partner to do business with, among the thousands of companies available in the market at this moment, can be a hard task, but having a freight forwarder would make a great difference when you don’t have enough time and energy, experience or you just want to avoid all the troubles this process might bring you sometime such as document preparation or cross-see transportation process problems. They will use their industry expertise to reduce costs and help you find solutions to any transportation problems.
If you are an occasional carrier who knows little about international transport, we also recommend you to find a cargo agent who will be able to help you in this complex process. They have years of expertise and experience in this field, and you will be able to save more time and money than if you ship by yourself.
If you want to save time and money while making an international delivery from China to Mexico by air, sea or land, consider using a freight forwarding agent. A freight forwarder will make sure that your cargo will arrive on time and in the right conditions.
2. Should I choose a freight forwarder from China or Mexico?
When importing from China, regardless of the mode of transportation, it is always best to choose a freight forwarder from China. The Chinese freight forwarder is the ideal choice for overseas transporters because it has the advantages of language and geography, and you will also need a warehouse for storage and preparation. An experienced Chinese freight forwarder will have these abilities: fluent in Mandarin and Cantonese, it will have a thorough knowledge of the Chinese business culture, experience in managing Chinese suppliers, category and sourcing process experience, quality control experience, audit experience, and logistics experience. Local forwarders (from Mexico) will often have to contact another agent in China to handle the picking, preparation, storage, and customs clearance.
3. How reliable is a freight forwarder?
Time, money and the success of your shipment from China to Mexico is what matters. In general, freight forwarders are reliable and experienced agents who can help you ship your goods to the final destination without any troubles, but to be sure they provide what you need, you can ask the freight forwarder or yourself to assess whether he is qualified for your transportation or not:
1) Does the freight forwarder have a business license from the Chinese government? – Having a business license makes everything legal and transparent for you.
2) Does the freight forwarder have an official website, and has a good ranking on Google? – On their website, you can find the necessary information about their services and costs. Not to mention that in these modern days, Google reviews are a must-have for any company that respects itself and cares for its customers.
3) Does the company have a good insurance plan? – Having a good insurance plan is very important because it will compensate for your merchandise if any damage occurs in shipment or warehousing.
4) Do they have a complete cargo tracking system to update your cargo progress in real-time? - Finding a cargo shipping partner that offers cargo tracking is crucial because you can see in real-time where your shipping is and how much it takes to arrive at the final destination.
5) You can also ask them to provide the most recent shipment record or bill of lading - A bill of lading contains all relevant details about the type, amount, condition, and destination of the goods.
6) During the consultation, were the responses prompt, with professional advice and explanations? - If you are convinced by their services, but you still have some doubts about the process, is best to try the freight forwarder with a shipment of small goods. This way, if anything goes wrong, you won’t lose a big amount of money.
Part 2. How many modes of transportation are there from China to Mexico?
Before talking about the modes of transportation is good to know what standards and regulations apply in Mexico, and also which are restricted and prohibited goods.
1. Import Rules, Regulations, and Customs in Mexico
- Quality standards and regulations in Mexico.
Customs law in Mexico is very strict regarding proper submission and preparation of customs documentation, and sometimes errors in paperwork can result in fines and even confiscation of merchandise as contraband.When you are shipping goods to Mexico you have to be aware of the following documents: single administrative document (DUA), commercial invoice (three copies, written, in preference in Spanish), a phytosanitary certificate for fruits, vegetables and seeds, a sanitary certificate for meats, form EUR1 to benefit with a preferential rate (applied to European Union exports), certificate of radioactive contamination (especially for dairy products), free trade certificate for cosmetics, issued by the Ministry of Health of Mexico, and documents related to the transportation and packaging lists.
For textile-apparel and footwear imports, you have to be registered in the Padrón for textile-apparel and footwear products.
For importing steel products, notice of importation must be provided to the Mexican Government at least five days before the shipment and have to include: invoice, complete supplier information, and other documents.
- Mexico Restricted and Prohibited Goods.
Goods that would harm the community health, public safety, American workers, children, or domestic plant and animal life are considered restricted and prohibited.
Prohibited means the goods are forbidden by law to enter the U.S. Here are some examples of prohibited goods: dangerous toys, cars that don't protect their occupants in a crash, bush meat, or illegal substances like absinthe and Rohypnol, narcotics and some of the habit-forming drugs, live fish, images representing children in a degrading or ridiculous way, used clothes, firearms and ammunition, explosives, toxic and hazardous products.
Restricted means that special licenses or permits are required from a federal agency before the goods are allowed to enter the U.S. such as certain fruits and vegetables, animal products, animal byproducts, and some animals.
Mexico’s top 10 imported items in 2018 were: electrical machinery and equipment, machinery including computers, mineral fuels including oil, vehicles, plastics and plastic items, medical apparatus, iron and steel, articles of iron or steel, organic chemicals, aluminum.
There are various options for transporting goods in Mexico. The mode of transportation is an important aspect and has to be evaluated when you’re planning the shipment (costs, shipment urgency, the value of the goods, and the size and weight of the package). Each option of transport has advantages and disadvantages.
When you are planning your shipment, you have to prioritize your needs, understand the process, and compare costs. By choosing the right mode of transportation, you can significantly optimize your cargo flow.
After selecting your freight forwarder, the collaboration between the two parts will begin. An experienced China-Mexico freight expert will have excellent communication skills understanding all your requirements, including time, budget, and mode of transportation.
Studies have shown that 95% of product samples and a small amount of high-value goods are sent by courier.
If you have an urgent and quick delivery, express shipping is the best option because express delivery is a relatively easy way to transport goods.
For a shipment to be delivered in Mexico, with FedEx or DHL, it takes from 3 to 6 working days, and the prices and rates are higher than other forms of transportation. Also, the cost of express shipping may increase during the holidays, but it can drop dramatically in the off-season.
Freight forwarders can find an express company that gives you a reasonable price, and he can also get a discount price that you won’t find on their official website.
Sea shipping is suitable in general for loads over 500 kilograms or when the size of the products occupies more than two cubic meters. However, it is also the most complicated mode of transportation, and it takes a long time.
From China to Mexico, sea shipping time is estimated at around 23 to 25 days from port to port.
In China, there are several ports such as Shanghai port, Ningbo port, Shenzhen port, Tianjin port, Qingdao port, Xiamen port, and Hong Kong port, from which your shipping can leave to Mexico.
If your freight forwarder is located in these cities, you will have the advantage that he will be more familiar with the loading and unloading rules of each port, making it easier to handle your goods, saving you time.
The top ports for importing in Mexico are Port of Ensenada, Port of Altamira, Port of Veracruz, Port of Lazaro Cárdenas, Port of Manzanillo (Mexico’s largest port).
Sometimes sea freight shipping is the only option but is the best choice for bulk goods transportation. When importing from China, you can choose Full Container Load (FCL) or Less than Container Load (LCL), if your overall cargo volume doesn’t meet one full container requirement.
When it comes to size, there are three types of containers 20 ft., 40 ft. and a 40 ft. high cube container. The 20 ft. containers are designed to carry more weight such as minerals, metals, machinery, sugar, paper, cement, etc., while the 40 ft. containers are designed to carry voluminous cargo rather than heavy cargo, for example, furniture, steel pipes, paper scrap, cotton, tobacco, etc.
You should use LCL if you don't have enough goods to fill a 20' or a 40' container (FCL). This enables importers to ship smaller amounts of cargo, which doesn’t have the right volume to make Full Container Load a viable option. This means your cargo is combined with other shipping cargos for the same destination. When combining several shipments in one container, your freight forwarder needs to do more work. LCL freight is calculated in cubic meters (CBM) and charged based on the volume.
Full Container Load refers to when the quantity of your goods is large enough that they can be put in at least one container. In this case, the freight is calculated on an FCL basis. FCL shipment will be loaded and sealed at origin by your supplier, then shipped to your final destination.
Although 90% of goods are shipped by sea, when importers and exporters need to move high-value goods to Mexico quickly and reliably such as seasonal goods, clothing, electronics, and/or products that cannot be near water, they use air freight. In a matter of days, air freight can bring your cargo from a factory floor in China, to your destination. Air transport reduces the shipping time between China and Mexico to 2 to 5 days.
The most important airports in Mexico are Benito Juárez International Airport, Mexico City International Airport, Guadalajara International Airport, Monterrey International Airport, Querétaro Intercontinental Airport, and Toluca International Airport.
There are two classes of Airfreight, economy and express or fast air transportation.
1) Economic air freight: This service applies for general cargo (no dangerous goods, oversized or temperature-controlled goods). For this category, the price is relatively low compared with the express air freight. If it is not an urgent shipping, and this service meets your requirements, then it is probably the best choice. Shipping from China to Mexico will be delivered in 5 to 8 days.
2) Fast air transportation: With this service, you can transport cargo of all shapes, sizes, and types, including dangerous and oversized goods in a short time. Compared to economic air freight, this service has the advantage of time. If you have an urgent delivery or you just want to deliver goods that are not suitable for economic air freight, then this is the best option. Shipping from China to Mexico will be delivered in 1 to 3 days for door to door delivery.
Part 3. How to save money?
To save money, you have to understand the terms FOB, EXW, CIF, and DAP because, in the same transport model, transport cost is a crucial factor.
Understanding the Terms: FOB, EXW, CIF, and DAP
Many websites like Alibaba use the quotations FOB, EXW, CIF, and DAP. In general, these quotations include information about where your cargo is being shipped to and from, the transport mode and equipment being used, shipment details such as dimensions, weight and a description of the goods.
FOB means free on board or freight on board and is an international shipping agreement used in the transportation of goods between a buyer and a seller. FOB is the primary mode of Alibaba's quotation, which means that your Chinese supplier will be responsible for the transportation from the Chinese factory to the Chinese loading and unloading port. For example, if you see FOB Ningbo - Ningbo is a city and a port in China, and it means that this is the port that the supplier will ship your order to, which is covered by the FOB price, and from here, you are responsible for the freight. The freight is divided into two aspects - the first one is from China airport/port to the airport/port in Mexico, and the second one is from the airport/port in Mexico to your doorstep.
EXW stands for Ex Works. If you see this quotation on the website you are buying from, it means that the seller is making the goods available at their premises, or another named place. In other words, EXW means that your freight has been increased one step, and you will be responsible for the transportation from the factory in China to the loading port in China. This is an aspect your Chinese freight forwarder will help you manage.
Your shipping costs will divide into three categories - From China factory to China airport/port - from China airport/port to Mexico airport/port - from Mexico airport/port to your doorstep. Over this, other transportation costs will be added such as Chinese export costs and customs clearance costs. Finding a reliable freight forwarder is important because he will let you know where every cost is going, with no hidden expenses.
CIF stands for cost, insurance, and freight, and it means that the supplier is responsible for all transportation costs from the factory in China to the airport/port in Mexico, including insurance.
In other words, CIF is an expense paid by the seller to cover the costs, insurance, and freight if a package or item is lost or damaged while it is in transit to an export port. The seller must cover other expenses such as additional customs, export paperwork, inspections or rerouting, but once the freight is loaded, you (the buyer) become responsible for all other costs, including the expenses from the airport or port in Mexico to your doorstep. With CIF the supplier adds an extra charge to compensate for their efforts, and it becomes more expensive than FOB.
It will save you time and money if you find a freight forwarder, because usually, the suppliers in China will also find a freight forwarder to deal with the whole process, and they cannot professionally update the status of your goods promptly.
The last one is DAP, which stands for delivery at place or destination delivery. If you see this quote on the website you are buying from, it means that the seller will handle all the charges and the delivery to the buyer facilities, but the import taxes will be paid by the buyer at the destination. Once the goods are ready for shipment, the packing is done by the seller at his own cost, then the goods are moved to customs location opted by the seller at exporting country at his expenses under DAP terms. All the necessary legal formalities in the exporting country are completed by the seller at his costs and risks; also the insurance up to the destination (Mexico) is arranged by the seller. If it’s not mentioned in the contract, the unloading cost at the final destination has to be borne by you (the buyer).
In other words, the seller is responsible for all the expenses and risks to deliver the goods up to the destination mentioned in the contract. From the destination mentioned in the contract, it becomes the buyer’s responsibility for the goods to reach his premises at his own expense.
But even if the seller is responsible for all the shipping steps, he can’t do detail work such as warehousing, labels, and goods inspection, so it is best to find a reliable freight forwarder, to help you with the detail work.
Therefore, the best way to save money and time is by choosing FOB or EXW, because your goods will be in professional hands, with the lowest price, and the fastest time to reach your destination.
Import Duties and Taxes in Mexico
Different goods attract different taxes, and you need to understand the duties and taxes that apply to your goods when importing to Mexico.
Products valued up to $50 are free of duties and VAT.
For importing alcoholic beverages, cigarettes, and cigars, a special tax on production and services (IEPS) is assessed (from 25 to 160% depending on the product).
The taxes that you will pay are calculated based on the CIF value of your goods. The complete shipping value will include the costs of imported goods, costs of freight, and cost of insurance plus import duties and taxes.
General import duties in Mexico range from 0% to 35%, with an exception for certain food products, shoes, and textiles.
Become Familiar with Size and Weight Calculation Rules
If you want to transport goods via express delivery and air freight you should take into consideration these rules because the costs can be high - the actual weight is calculated in kilograms (kg), and the volume is calculated in cubic meters (CBM).
A) Calculating the actual weight - If the actual weight of the goods in kilograms is more significant than its dimensional weight, it will be calculated like this:
Actual weight of the package x cost per kilogram (this price varies from company to company).
B) When the volume of the goods is larger than the actual weight is called dimensional weight - this is an estimated weight calculated by multiplying the length of the package with the width and height divided by a dimensional factor, also called a DIM divisor. Dimensional factors are numbers set by the major freight carriers, and represent cubic inches per pound. The dimensional weight is the weight of the package at the minimum density accepted by the carrier.
Dimensional weight = length × width × height/dimensional factor
International transport and logistics companies are based on the maximum value they can charge. For example, freight carriers like USPS, FedEx, or UPS calculate shipping charges based on whichever number is greater (actual weight or dimensional weight). For example, if you have a package that has the actual weight less than 31 kilograms (let’s say 29 kg), the freight carrier will charge for the dimensional weight of 31 kilograms since it is the greater number. For them, whichever number is higher becomes your billable weight.
Therefore, in some cases, to save money it is necessary to compress the package to reduce the measurement volume.
Finding an experienced freight forwarder will give you the most cost-effective solution promptly, and will save you money and time.
Plan Ahead to Avoid the Rush Hour
In international transportation, you always have to plan your shipment in advance because the delivery time of your goods is the crucial factor that decides the mode of transportation. Also knowing the holidays' schedule in China and important shipping deadlines and guidelines will save you time and money because in those peak periods the shipping prices are usually higher and the factories are closed.
Here are some examples of peak seasons in China:
- Chinese New Year - Factories and facilities shut down in this period, and it’s causing price spikes and delays;
- Golden Week - This week-long festival exacerbates holiday season price spikes and delays,
- Dragon Boat Festival – For this holyday businesses typically close for three days,
- Holiday Shopping Season - Prices rise steadily over months as businesses prepare for holiday shopping (October-December for air freight), July-October for sea freight).
If your shipment is not urgent, you will save money and you will also have time to face unplanned delays such as congestion, blockages, supplier issues, and documentation mistakes. You can also ask questions surrounding the company's response to delays, to see if they have procedures for resolving these issues.
Multimodal transportation also known as combined transportation is the transportation of goods with at least two different modes of transport, under a single contract. Legally speaking, the carrier is responsible for the entire transport, and he does not have to possess all the means of transport. He is also known as a multimodal transport operator. This mode of transportation might induce certain costs for transshipments and handling, but it also comes with many advantages such as centralization of responsibility in one transport operator, economies of scale in transport negotiations, use of international experience in transportation, in the field of bureaucracy and commerce, better use of available infrastructure and more efficient means of transport, focused on cost reduction, and reduction of indirect costs (e.g. human resources).
A freight forwarder can offer you the option of multimodal transportation for your delivery if air freight is too expensive, and sea freight cannot be delivered in time.
They can use their contacts to your advantage and find a way to achieve this goal faster and cheaper, which will help you save money and time.
This hybrid solution will deliver the goods in the correct time frame and keep your shipment on budget
This process is always complicated, and it involves many steps such as warehousing, document preparation, customs issues, cargo insurance and so on, regardless of the mode of transportation you choose from China to Mexico (airfreight, sea freight, or multimodal transportation).
With the rapid development of international trade, the international logistics industry has also grown, and choosing an experienced freight forwarder is the key to solve the problem of international transport.
Our company is based on customer gain, placing customers first and offering them the best shipping possible from China to Mexico through our freight forwarders. We have experience, airline relations, customs reputation, competitive prices and timely delivery. Our success is based on integrity and responsibility.
It is our job to find you the best freight forwarder for you. We will help you find a viable solution and see measurable results in little or no time.
If you‘re ready to start your shipping process click here for more information and offers.