DDP Exports to Mexico

Welcome to our website Shipping to Mexico.com a portal developed by Grupo Aduanal LOPEZADRI, a Mexico Customs Brokers and International Logistics company, leader in the industry and specialized in Exporting and Shipping into Mexico. On this article we’ll offer to our visitors information, procedures and orientation on how to handle a shipment with a Delivery Duty Paid INCOTERM (DDP) when exporting and shipping to our country;

INCOTERMS

The Incoterms or International Commercial Terms are international rules, legally recognized and used worldwide on business agreements in between Seller and Buyer in terms of obligations and responsibilities on a international transactions.

DDP INCOTERM

DDP means Delivery Duty Paid, under this Incoterm, the seller or exporter agrees that is responsible for arranging the door to door logistics for delivering the goods at named place, clear from customs and from all import applicable tax, duty or expense;

According to Incotermsexplained.com «This rule places the maximum obligation on the seller, and is the only rule that requires the seller to take responsibility for import clearance and payment of taxes and/or import duty.» and concludes «can be highly problematical for the seller»

DDP EXPORTS TO MEXICO

Exporting under DDP incoterm to a certain country may be practical only if such country would allow Exporters to obtain an Importer of Record License to comply with the customs clearance and dispatch, however every country manage their own customs regulations and some of them, just as MEXICO, would not allow to foreign companies to obtain an Import License or act as the Importer of record, creating a serious problems to the Exporters;

Our first recommendation for those DDP exporters is to find out if your buyer is enrolled at the Mexico Importer Census, must known as «Padron de Importadores» as an active Importer of Record to comply with the customs regulations.

Is important for exporters to understand that Importers of Record in Mexico have to follow certain procedures to setup their Importer company with a Customs Broker Agency to process their importation, for the other hand, for fiscal issues Importer must have under their name a pedimento (official customs entry) for every purchase they made overseas.

Saying this, if your buyer is an active Importer of Record we’ll recommend to contact their own Customs Broker Agency and export through them in the understand that exporter will pay for those services, customs taxes and all expenses to comply with the DDP Incoterm; Please note that trying to use a different Customs Broker may cause delays and inconvenience for the buyer since would need to be involved on customs procedures to setup their company with a different broker;

Be aware that if Exporters uses a different broker along with Third Party Importer company, it may comply with all Customs regulation but may create future Tax and Fiscal issues to buyer in Mexico unless you take care about it and follow our next recommendation;

DDP Export to Mexico using a Third Party Importer of Record

If the buyer is not an active Importer, the only option exporters have to comply on a DDP Incoterm is to contract a Third Party Import «Trading» Company, which are known on the business as «Comercializadoras». If you’re in this scenario we would be glad in assisting your export project with our Import Trading Company, Lopezadri Distribucion S de RL, we have the expertise for more than 15 years supporting DDP export shipments to clear customs and deliver to final customer; email us for more details (rlopez@lopezadri.com)

For Customs purposes the paperwork would need to show the Trading company as the Importer party and for fiscal purposes the payment of the materials and services must come from the buyer through the Importer of Record and finally to the exporter; if this last part is not completed buyer may have issues on their internal tax booking; however the cargo would arrive without a problem;

This is the most recommendable procedure to complete a DDP Export to a non-importer customer in Mexico, Third party importer company plays an important role as your business partner on this process and will be the key to complete the international transaction.

Feel free to contact us for any additional information you may need.

Email: rlopez@lopezadri.com

Toll Free: 1-866-828-4011

Our websites:

www.lopezadri.com

www.shippingtomexico.com

www.padrondeimportadores.org