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we're gonna start talking a little bit
about the Mexican cross-border process
so we're going to talk about the easier
of the two sides first and the easier
two sides is the northbound process or
which would be the export from Mexico
and the import into the United States
this process is just a little bit
simpler probably everybody on this call
was a little bit more familiar with that
process and kind of some of the rules
and regulations especially once we get
into the US side but we're gonna kind of
walk you through this process the the
screen you see here if after this if any
of you would like some of these we do
have some of these printed out as well
you can send a note in and we can try to
get some of these sent out to you as
well so obviously in the northbound
process there's a few points to note
before we before we kind of talk about
this one is the fact that it is not
uncommon to have three power units touch
your cargo as it's trying to come
northbound or southbound across the
Mexican border so that's why you see
some of these steps they may not make
total sense but if you keep that in the
back of your mind the entire time it'll
kind of let the rest of this information
you'll see how it fits in that process
power unit 1 let's say from Mexico City
up to Nuevo Laredo power unit 2 moving
the cargo from the level Laredo to the
Laredo side you'll hear them often
called as ad rage company power unit 3
taking your cargo from a yard in Laredo
to final destination somewhere in the
United States so with that on the
northbound side obviously the
documentation process is very much the
same as it is for any other import the
supplier needs to provide commercial
invoice packing list if there's any
PGA's is the item qualified for NAFTA
obviously an F is big in the news right
now we can maybe talk about that a
little bit later so but from a
imitation standpoint really nothing
different right a couple of different
pieces even here though
as that cargo is in route to the Nuevo
Laredo port or it or any Mexican border
town is that Mexico requires an actual
export entry or an export credit meant
oh it's similar for those of you who
export out of the United States to the
AES filing EEI filing something along
those lines but it is actually a customs
entry process which means a Mexican
customs broker is required the amount of
liability is not near as much on the
northbound side for the Mexican broker
but so we'll talk a little bit more
about that when we start talking about
southbound obviously the trucking
information is very it's no different
than if you're moving cargo from Kansas
City to st. Louis here in the US so I
did see a question pop up real quick
someone asks what PGA stood for PGA's of
participating government agencies you
should be called other government
agencies things like FDA USDA you have
ATF Fish and Wildlife things like that
Mexico has similar type items on their
side as well so not only are you dealing
with the US government agencies you're
also dealing with the Mexican ones such
as cigar pot which would be similar to
our USDA so prior to the prior to the
border crossing you will actually get
the scat code of that border crossing
agent will be provided to your US broker
we will do a u.s. customs clearance we
will do on the Mexican side we will also
do the pediment oh and then you have
what's called the cove a transmit the
cove a and simple terms is basically an
electronic copy of the commercial
invoice sent to sent to customs so oh go
ahead samuel yes sorry yeah just to
interleave it just the comments yeah
tronic precision for the commercial
invoice that we provide the information
directly in to the Mexican government
which is a Mexican set correct okay so
once the Dre so once that information is
transmitted we actually have the the
drayage piece or the border cross scene
itself a lot of you maybe don't realize
a lot of your cargo that gets imported
into the United States customs agent
never sees the conveyance they don't see
the cargo coming north or south across
the southern border every truck goes
through a customs agent so every truck
goes through a booth and go through
through that customs agents booth itself
which is something that's a little bit
more unique than let's say a motion
freight or air freight coming into the
u.s. obviously like we said we have
delivery to the US terminal and then the
final delivery out a couple of points to
note on the US side obviously you need
to have a power of attorney in place
with you your u.s. broker on the Mexican
side you need to have your Mexican
customer needs to have a power of
attorney or you know Mexican shipper
needs to have a power of attorney in
place with the Mexican broker so real
quick here's some of that documentation
that's required you have the written
authorization confirming that the broker
can be the Mexican broker in the north
bound the Mexican KOA
this is where it gets a little bit more
intense Mexico's Articles of
Incorporation the company's registration
widths at Mexico sat is very similar to
our IRS it's the same type thing but
there's a lot of information that here
in the US that we don't file but in
Mexico about anything that we do from a
customer's perspective I don't want that
does it bounce through customs a lot of
it goes through the Sat as well tax ID
and then additional information which is
the cut which is the power of attorney
granted to the company's legal
representative and saying things like
that so you will see here there's a lot
more paperwork involved with setting up
a mexican customs broker rather than
setting up a u.s.
broker here in the u.s. we get a power
of attorney we do a couple of steps to
that to make sure that you are who you
say you are and then after that we
accept that and we go ahead and move
forward
Mexico requires a lot more information
and what we can kind of talk about why
that is now there there's a question
that relates to this as well and it's
that in the United States the the onus
the compliance risk falls on the
importer of record in Mexico that is not
the case in Mexico that compliance risk
falls on the broker themselves so that's
something that's very different than
what we get here in the US and that's
why you see a lot more information being
required that's why when we start
talking about southbound you know
there's some common so sometimes my
cargo takes a long time to cross the
border you know why is my cargo get
unloaded from a truck and there's a lot
of that and this is the main reason why
so as we get there we can talk a little
bit more about that and it can add some
information as well from the Mexican
customs perspective and kind of what
that looks like we also have this slide
in Spanish so if there's any questions
or you would like to send this out to
any of your shippers feel free that you
can send this as well I did notice
someone asked a question just a moment
ago about will they get a copy of this
yes you will get a copy of this
presentation so we did a quick talk you
know the u.s. importer what information
needs to be provided to the broker
actually the same stuff as if you have
air freight or ocean freight you know
the same basic information so northbound
is not overly complicated the process
goes pretty quick we don't run into the
inspection process like we do on the
southbound side so cargo moving
northbound across the border shouldn't
feel or seem much different than your
cargo that comes from Asia or Europe or
Canada where cargo moves in the only big
difference on the northbound side that
there is an actual Mexican pedimental
filed from a timing perspective
shouldn't slow
down any unless your your shipper
doesn't is not set up with any specific
broker and we can kind of talk about
that in a minute
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