STEP 1ARRIVAL OF MERCHANDISE AND DOCUMENTATION

STEP 1ARRIVAL OF MERCHANDISE AND DOCUMENTATION

The merchandise arrives at the The merchandise arrives at the broker's terminal on the U.S. broker's terminal on the U.S. side of the border.side of the border.

The commercial invoice and other The commercial invoice and other documents arrive at the Broker's documents arrive at the Broker's office, either with the merchandise office, either with the merchandise or separately.  or separately. 

Some of this documentation is supplied by the Exporter.  Some of this documentation is supplied by the Exporter.  Other paperwork is supplied by the Importer.Other paperwork is supplied by the Importer.

STEP 2VERIFICATIONSTEP 2VERIFICATION

The Broker verifies that the Importer The Broker verifies that the Importer stated on the commercial invoice(s) is stated on the commercial invoice(s) is listed in the database of importers  and listed in the database of importers  and sectors authorized to import through sectors authorized to import through Laredo.Laredo.

The Broker verifies the physical The Broker verifies the physical merchandise against the merchandise against the documentation.  This includes documentation.  This includes verifying pallet, box, and piece counts, verifying pallet, box, and piece counts, as well as labeling, country of origin as well as labeling, country of origin markings, and serial numbers.markings, and serial numbers.

STEP 2VERIFICATIONSTEP 2VERIFICATION

HOW LONG DOES IT TAKE?HOW LONG DOES IT TAKE?

The time to complete the Verification stage The time to complete the Verification stage depends, among other things, on how depends, among other things, on how quickly the Importer supplies all of the quickly the Importer supplies all of the required sworn declarations and how required sworn declarations and how quickly the Importer can become quickly the Importer can become registered as an importer, if not one registered as an importer, if not one already, and in the appropriate sector already, and in the appropriate sector database, if any.database, if any.

Verification time also depends on the Verification time also depends on the complexity of the invoice(s), the amount of complexity of the invoice(s), the amount of work required to physically verify the work required to physically verify the merchandise itself, and whether or not it is merchandise itself, and whether or not it is a first-time shipment. a first-time shipment. 

STEP 3CLASSIFICATION & COST ESTIMATION

STEP 3CLASSIFICATION & COST ESTIMATION

The broker determines the HS tariff The broker determines the HS tariff schedule number to be applied to each schedule number to be applied to each different type of item.different type of item.With this number the broker determines the duty With this number the broker determines the duty and fee rates applicable and ensures that all and fee rates applicable and ensures that all restrictions, regulations, permits, and restrictions, regulations, permits, and certifications required will be complied with  certifications required will be complied with  prior to entry presentation. prior to entry presentation. 

With this information, the broker estimates all the With this information, the broker estimates all the costs (duties, brokerage charges, handling costs (duties, brokerage charges, handling charges, etc.), and requests an advance from the charges, etc.), and requests an advance from the client to proceed with the importation.client to proceed with the importation.

NOTE: NOTE: This frequently involves getting additional This frequently involves getting additional documentation from the exporter or importer.  Many documentation from the exporter or importer.  Many times the importer and/or exporter must obtain this times the importer and/or exporter must obtain this documentation from labs or government agencies documentation from labs or government agencies and this can result in substantial and costly delays.and this can result in substantial and costly delays.

STEP 3CLASSIFICATION & COST ESTIMATION

STEP 3CLASSIFICATION & COST ESTIMATION

HOW LONG DOES IT TAKE?HOW LONG DOES IT TAKE?As with Verification, the time required to As with Verification, the time required to classify goods and determine the classify goods and determine the applicable costs depends on the applicable costs depends on the complexity of the shipment. complexity of the shipment.

How quickly the client advances the How quickly the client advances the required funds is also a factor at this required funds is also a factor at this stage of the process.stage of the process.

STEP 4PREPARATION OF SHIPMENTSTEP 4PREPARATION OF SHIPMENT

The merchandise is not already loaded The merchandise is not already loaded on a trailer or truck for inland Mexico on a trailer or truck for inland Mexico transport and/or crossing, the Broker transport and/or crossing, the Broker makes the necessary arrangements makes the necessary arrangements with the Mexican trucking firm selected with the Mexican trucking firm selected by the client to spot a trailer or truck at by the client to spot a trailer or truck at the Broker's U.S. warehouse...the Broker's U.S. warehouse...

...and then loads the merchandise. ...and then loads the merchandise. 

The truck or trailer is then sealed with The truck or trailer is then sealed with Customs security seals.Customs security seals.

STEP 4PREPARATION OF SHIPMENTSTEP 4PREPARATION OF SHIPMENT

The time required depends primarily on how The time required depends primarily on how long it takes the Mexican carrier to spot the long it takes the Mexican carrier to spot the required equipment on which to load the required equipment on which to load the merchandise.  merchandise. 

HOW LONG DOES IT TAKE?HOW LONG DOES IT TAKE?

Because of this, clients sometimes suggest Because of this, clients sometimes suggest that equipment be ordered in advance of the that equipment be ordered in advance of the shipment’s arrival at the border. shipment’s arrival at the border.

This can be risky and costly however, because This can be risky and costly however, because the transportation companies assess the transportation companies assess detention and demurrage charges for keeping detention and demurrage charges for keeping their equipment idle.their equipment idle.

STEP 5PREPARATION OF ENTRYSTEP 5PREPARATION OF ENTRY

The Broker prepares the Pedimento (entry), The Broker prepares the Pedimento (entry), transmits it electronically to the Mexican transmits it electronically to the Mexican customhouse and awaits electronic customhouse and awaits electronic confirmation from the customhouse. Customs confirmation from the customhouse. Customs runs several validation tests on the electronic runs several validation tests on the electronic pedimento to make sure that it has been pedimento to make sure that it has been prepared correctly.prepared correctly.

Upon receiving the electronic confirmation, Upon receiving the electronic confirmation, the broker prints the pedimento (8 copies), the broker prints the pedimento (8 copies), attaches invoices, certificates, and other attaches invoices, certificates, and other required documents and either takes it to an required documents and either takes it to an authorized bank for the payment of duties, authorized bank for the payment of duties, or makes an electronic payment . This or makes an electronic payment . This packet of documents is called the "entry packet of documents is called the "entry packet" or, simply, the "entry."packet" or, simply, the "entry."

STEP 5PREPARATION OF ENTRYSTEP 5PREPARATION OF ENTRY

If needed, the Broker prepares a If needed, the Broker prepares a Shipper's Export Declaration (SED) Shipper's Export Declaration (SED) through the Automated Export System through the Automated Export System (AES). The AES provides a shipment (AES). The AES provides a shipment number for the goods for presentation number for the goods for presentation by the driver at U.S. Customs.by the driver at U.S. Customs.

If the merchandise is traveling If the merchandise is traveling in-bond through the U.S.A., the U.S. in-bond through the U.S.A., the U.S. Broker will need to present a Broker will need to present a processed copy of the pedimento to processed copy of the pedimento to U.S. Customs at a later date to cancel U.S. Customs at a later date to cancel the In-Bond.the In-Bond.

STEP 6PRESENTATION OF ENTRYSTEP 6PRESENTATION OF ENTRY

If electronic payment has not been made, If electronic payment has not been made, the broker presents the entry packet at a the broker presents the entry packet at a customs-approved bank for payment of customs-approved bank for payment of duties and fees.  The bank verifies the duties and fees.  The bank verifies the entry against the electronic record at entry against the electronic record at Mexican customs, accepts payment for the Mexican customs, accepts payment for the duties and fees and prints a receipt on the duties and fees and prints a receipt on the upper right hand corner of the pedimento. upper right hand corner of the pedimento.

The broker prepares a manifest and The broker prepares a manifest and attaches it to the remaining copies of attaches it to the remaining copies of the entry.  This is the packet that the the entry.  This is the packet that the driver and dispatcher will present at driver and dispatcher will present at the Mexican customs window during the Mexican customs window during the border-crossing ceremony.the border-crossing ceremony.

STEP 7 BORDER CROSSINGSTEP 7 BORDER CROSSING

The Broker then coordinates the border-The Broker then coordinates the border-crossing activities with the Driver and the crossing activities with the Driver and the Dispatchers, which must occur within 72 Dispatchers, which must occur within 72 hours from the time the duties are paid at hours from the time the duties are paid at the bank. the bank.

After clearing U.S. Customs, the truck After clearing U.S. Customs, the truck proceeds across one of the international proceeds across one of the international bridges to one of the entrance booths of bridges to one of the entrance booths of the Mexican Customs import lot.  The the Mexican Customs import lot.  The Broker's dispatcher retrieves the Driver's Broker's dispatcher retrieves the Driver's entry and manifest and presents it to the entry and manifest and presents it to the Mexican official at the booth.Mexican official at the booth.

Upon arrival at the U.S. Customs export lot, the U.S. Upon arrival at the U.S. Customs export lot, the U.S. Customs inspector in charge may require proof of Customs inspector in charge may require proof of the AES filing. The shipment is also subject to the AES filing. The shipment is also subject to unloading for inspection by the U.S. officials.unloading for inspection by the U.S. officials.

STEP 7 BORDER CROSSINGSTEP 7 BORDER CROSSING

One of the copies of the pedimento includes One of the copies of the pedimento includes a bar-code that is scanned by the Customs a bar-code that is scanned by the Customs Inspector into a computer. The computer Inspector into a computer. The computer then prints on the pedimento whether the then prints on the pedimento whether the shipment must be inspected ("red light"), or shipment must be inspected ("red light"), or can proceed to destination ("green light").can proceed to destination ("green light").

If the shipment is selected for inspection, the If the shipment is selected for inspection, the truck is sent to the import lot's inspection truck is sent to the import lot's inspection dock. Here the documentation is checked to dock. Here the documentation is checked to make sure it is accurate, correct, and make sure it is accurate, correct, and complete complete (i.e. not missing any documents or permits) (i.e. not missing any documents or permits) and is verified against the merchandise. and is verified against the merchandise. 

NOTE: NOTE: Physical verification frequently requires that Physical verification frequently requires that the merchandise be unloaded from the truck or the merchandise be unloaded from the truck or trailer. trailer. 

STEP 7 BORDER CROSSINGSTEP 7 BORDER CROSSING

Once the shipment clears the inspection Once the shipment clears the inspection stage it is subjected to a second random stage it is subjected to a second random check, where the process is repeated by a check, where the process is repeated by a second team of contract inspectors. These second team of contract inspectors. These second stage inspectors are under contract second stage inspectors are under contract to the Mexican government but do not report to the Mexican government but do not report directly to the Customs Service.directly to the Customs Service.

After the shipment is released, Mexican After the shipment is released, Mexican Customs keeps two copies of the entry, Customs keeps two copies of the entry, returning to the dispatcher one copy for the returning to the dispatcher one copy for the carrier, one for the broker, one for the carrier, one for the broker, one for the importer, and a couple of spares.importer, and a couple of spares.

NOTE:NOTE: Discrepancies and errors result in Discrepancies and errors result in severe fines and penalties!  severe fines and penalties! 

STEP 8 SHIPMENT RELEASESTEP 8 SHIPMENT RELEASE

The truck then travels to the yard The truck then travels to the yard of the Mexican carrier that will of the Mexican carrier that will provide the inland freight service provide the inland freight service to the ultimate destination.to the ultimate destination.

The Broker delivers one copy of the The Broker delivers one copy of the pedimento to the Mexican carrier (the pedimento to the Mexican carrier (the copy with the bar-code), which serves copy with the bar-code), which serves as a release document, and a BOL as a release document, and a BOL instructing the carrier of the destination instructing the carrier of the destination and other details of the shipment.and other details of the shipment.

STEPS 5, 6, 7 & 8 ENTRY PREPARATION, PRESENTATION, BORDER CROSSING & RELEASE

STEPS 5, 6, 7 & 8 ENTRY PREPARATION, PRESENTATION, BORDER CROSSING & RELEASE

Collectively, entry preparation, presentation, Collectively, entry preparation, presentation, border crossing and release takes about three border crossing and release takes about three working days.  While this time can be working days.  While this time can be shortened for repetitive and urgent shipments, shortened for repetitive and urgent shipments, it is unwise to plan on anything less than three it is unwise to plan on anything less than three working days for these four steps.working days for these four steps.

HOW LONG DOES IT TAKE?HOW LONG DOES IT TAKE?

The delivery time after release depends on the The delivery time after release depends on the destination and the carrier selected by the destination and the carrier selected by the client. Carriers may assign different priorities client. Carriers may assign different priorities to different shipments. Depending on final to different shipments. Depending on final destination, delivery to the consignee in destination, delivery to the consignee in Mexico should range from 1 to 4 days. Mexico should range from 1 to 4 days.