Over the last 21 years, the North American Free Trade Agreement (NAFTA) has created abundant trans-national trade opportunities for American, Canadian and Mexican businesses. With a population of over 122.3 million people and a GDP of approximately $1.261 trillion, the Mexican market is becoming increasingly more attractive to companies across the world. So how can U.S. businesses prepare for international trade success?
Proper export documentation is imperative to the success of an export program. Shipping documents provide customs officers with the necessary information to proceed with customs clearance at destination. On the contrary, the lack or inaccuracy of required documentation can lead to cargo delays and unexpected expenses.
Duty drawback is the refund, reduction or waiver of customs duties assessed or collected upon importation of an article or materials which are subsequently exported or destroyed. Duty drawback is an opportunity for companies to recover expenses from taxes and other fees collected during the import process. Drawback allows companies to recover up to 99% of duties paid on qualifying U.S. imports. These duties include normal customs duty, internal revenue taxes and marking duties. So how do you know if your product qualifies for duty drawback?
Less-Than-Container-Load (LCL) shipping is a great solution for importers and exporters who buy or sell small quantities of product. LCL shipping enables shippers to combine their small quantity of freight with other shippers to reduce transportation costs. Additionally, LCL shipping can be used within Just-In-Time (JIT) supply chains to increase efficiency and decrease inventory waste. Electing to move cargo via LCL options can result in cost savings due to the fact that shippers only pay for the space they need. Furthermore, shippers who do not have enough product ready to fill a full container, can ship via LCL to meet a customer arrival deadline.