Canada and Mexico share a growing economic relationship. Canada and Mexico are each other’s third-largest trading partners. Trade between the two countries exceed $30 billion per year. With the new CPTPP, free trade between Mexico and Canada is sure to grow. Canadian companies are seeking low-cost delivery to Mexico.

Canadian companies depend on low-cost parcel delivery to Mexico to help connect with their other North American partners.

E-commerce shipments to Mexico represent a huge opportunity for e-tailors in Canada and the US.  Jet Worldwide helps develop efficient parcel clearance processes to Mexico for Shopify, ebay and other online merchants.

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A few quick points to consider when shipping international from Canada to Mexico:

  1. Canada Post is the preferred option for individuals shipping small parcels and personal items internationally to Mexico.
  2. Market dominant carriers, such as UPS, FedEx have crazy high base pricing  but discounted shipping can be obtained via resellers who provide  "comparison quotes"  but can still be expensive and lack logistics expertise.
  3.   Jet's logistics professionals will personally respond  to your inquiry within 1 business day sharing our expertise and helping you find the right solution (we freely recommend alternative carriers and methods that may better suite your needs).  Ask Jet.

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This post provides a deeper dive and explores of the main elements of international shipping between Canada and Mexico.

  • Carrier options for shipping to Mexico and Shipping Terms
  • See section below regarding information required for a shipping quote
  • Import costs and processes to Mexico
  • CPTPP Free Trade between Mexico and Canada
  • CUSMA T-MEC Free Trade between Canada and Mexico
  • Carrier options for shipping TO Canada from Mexico
  • Common Canadian import fees for consignments imported from Mexico
  • Duty Free Import TO Canada from Mexico for low value shipments
  • Additional resources for shipping from Canada and shipping to Canada

 

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Disclaimer: The information in this blog is for general information only and is not intended to, constitute legal and/or tax advice.  Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.

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Shipping terms to consider when shipping to Mexico

The default option for shipping internationally from Canada is Delivery Duty Unpaid (DDU). Common carriers use the term Ex Works (EXW) which essentially assigns all import-related costs (duty, taxes and other fees) to the receiver/importer. Shippers from Canada can choose to pay the import fees on behalf of the receiver via a Delivery Duty Paid (DDP) options that many carriers offer.

READ-MORE-INCO-TERMS IncoTerms and shipping terms for packages and online orders.

The disadvantage of paying import fees on behalf of the receiver is that the bulk of the import fees are often from a value added tax that the importing business may otherwise be able to claim back.


Carrier Shipping Options to Mexico from Canada

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Delivery to Mexico via Canada Post

Canada Post is the preferred option for individuals shipping small parcels and personal items to Mexico.

Most packages under 2 kg can be sent via Canada-Post "small packet" services. Parcels sent to Mexico via Canada Post are delivered via Mexpost.

Canada Post services to Mexico include:

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Delivery to Mexico via FedEx/UPS Canada

FedEx and UPS are North America's largest parcel carriers and offer - along with DHL- reliable express delivery. These carriers can be expensive, especially for small companies who are unable to benefit from significant discounts.

Fedex and UPS express shipping options to Mexico include


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Delivery to Mexico from Canada via Jet Worldwide

  • Jet Worldwide:  A trusted brand offering international shipping for over 35 years!
  • Jet Worldwide offers options for shipping between Mexico and Canada for parcels, pallets, and online orders
  • Jet Worldwide offers transparency and logistics support.  We are not shy to recommend alternative options that are better suited for your needs.   CONTACT JET.

For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel.  The more details the better :).


Shipping via ground to Mexico

Ground transport provides low-cost shipping and is available via UPS and FedEx trucking subsidiaries. UPS Freight offers quality LTL service, which does not include Mexican customs clearance, between Canada and Mexico.

Canada Post also offers international surface to Mexico and is ideal for individuals who are looking to the lowest-cost option from Canada to Mexico.


Shipping via Purolator Canada

Purolator is a leading carrier across Canada and they offer international shipping to Mexico from Canada. Purolator partners with other carriers for their international deliveries such as UPS.


Import clearance to Mexico shipping from Canada

When shipping to Mexico, it is important to provide paperwork - including an invoice for customs - to ensure an accurate declaration to customs.

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Mexico's Value Added Tax (IVA)

Mexico's IVA rate is 16%. Although the US$50 threshold is well established, Mexican customs has right to assess duty and tax, regardless of the shipment value.

Note: Books imported to Mexico from Canada are not charged IVA.

Items valued under US $1,000 to private individuals can be imported free of duty but will be assessed IVA.


Formal clearance processes for parcel import to Mexico

Items valued over US $1,000 to businesses and US $5,000 to individuals require a formal customs entry.

When a formal entry is required, the importer in Mexico must be registered and provide additional documentation.

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Restricted items to Mexico sent from Canada

Beyond the usual restrictions, additional restrictions to Mexico also include:

  • Bicycles and bicycle parts
  • Used Electrical parts or goods
  • Pharmaceutical and cosmetics must be approved from the National Institute of Public Health
  • Food products are subject to approval from the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food
  • Parcels containing Electronics are subject to approval from the Federal Commission of Telecommunications

Shipping menaje de casa / personal effects from Canada to Mexico

While Jet Worldwide can ship personal effects to Mexico from Canada. However, we are pleased to provide the rules (that are quite strict to qualify for duty free importation):

To benefit from duty-free clearance in Mexico for your shipment, the consignee must provide:

  • FM3 Form
  • A detailed list of incoming items in a letter (stamped by the consulate/embassy)
  • Airline ticket or boarding pass with entrance stamp, immigration stamp or visa (not older than 6 months)

Important note: The following items cannot be imported as personal effects from Canada to Mexico: Food supplements, vitamins, medicines, kitchen instruments and appliances, furniture bedding (quilts, blankets, pillows), ornaments made of wood or bone, paintings, drones.

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Textiles to Mexico

We often get requests to ship used clothes to Mexico. We generally do not accept textile shipments to Mexico as the regulations are restrictive. These restrictions include:

New clothing or textiles: New clothes (which are not personal effects) will pay the proper duties and taxes according to the Harmonized System (HS) Code and origin of the items.

Used clothing: The consignee must provide passport, airline ticket or boarding pass (not older than 3 months), entrust letter, proof of address (only for Mexican residents no longer than 3 months).

Menaje de casa or household materials: the consignee must provide FM3 form as well as a detailed list of the incoming items in a letter (stamped by the consulate/embassy), airline ticket or boarding pass and passport with the entrance stamp in Mexico.

Jet Worldwide does not accept personal effects shipments to Mexico.


Shipping "shipping parts" from Canada to Mexico

Canadian shipyards have secured major international contracts to a a variety of international companies with vessels currently operating in several areas, including the Gulf of Mexico.

Jet Worldwide's express delivery - and special services - can help Canadian maritime firms get critical parts and supplies to their Mexican customers.

SEE BELOW:  INFORMATION REQUIRED FOR A SHIPPING QUOTE

Shipping aircraft parts from Canadian aerospace firms to Mexico

  • Aerospace exports from Canada grew over 50% over the last 5 years
  • 9% of the parts come from international (non US) suppliers

Jet Worldwide helps aerospace companies get parts to their customers and suppliers in Mexico.


Gifts

Mexico customs does not have a special category for gifts. The importer must pay duties and taxes - even thought they did not purchase the item.

Jet Worldwide's Delivery Duty Paid (DDP) option to Mexico enables you to pay customs import charges in Canadian dollars. When using this service, you can be sure that the person receiving your gift is not charged any fees. Jet's DDP service is also useful for companies sending samples or warranty replacement parts to Mexico from Canada.


CUSMA T-MEC and duty-free clearance for Canadian parcels

  • Duty-free and tax-free entry for most Canadian parcels valued under US $50
  • Duty-free entry for most Mexican parcels valued under US $117
  • Simplified "Certification of Origin" for shipments valued under US $1,000

Canada origin goods (that qualify as such under CUSMA T-MEC rules) can be imported duty-free to Mexico. If the goods are valued under US $1,000 a simplified "certification of origin" statement included on the invoice can used to request preferential duty-free status.

USMCA-vector-image Read more about CUSMA/ T-MEC


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CPTPP duty-free clearance of goods shipped to Mexico From Canada

CPTPP and CUSMA/T-Mec offer similar benefits for shipping between Mexico and Canada. Some specific elements, such as country of origin rules can benefit shippers and should be studied prior to shipping. Only one method of preferential duty treatment can be applied (CPTPP vs CUSMA/T-MEC) for a specific shipment.

Goods approved with proper “proof of origin’ supporting paperwork can be exported from Canada for duty free clearance in Mexico. CUSMA T-MEC and CPTPP rules are different.

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Proof of origin

The key part of all trade agreements is ensuring the goods qualify under the rules of origin. Many incorrectly assume that if goods are sent from a qualifying country, they should qualify for duty free status. Country of origin is not determined solely by where the goods are sent from.

The country of origin rules have been simplified under CPTPP but can still get complex. The guidelines for country of origin qualification include:

  • Goods are considered originating if they are wholly obtained, such as goods that are grown, raised, caught, or extracted in Canada or a CPTPP country.

  • Goods are considered originating if they are produced in Canada or a CPTPP country entirely from originating materials.

  • Goods are originating if they are produced in Canada or a CPTPP country from non-originating materials that undergo production in Canada or a CPTPP country, such that the resulting good satisfies the applicable product-specific rule of origin. The value of the non-originating goods that are part of the originating product can be considered dutiable.

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Information needed under CPTPP to Mexico

In order to claim the preferential tariff treatment to Mexico from Canada under CPTPP, a set of data elements referred to as a ‘certification origin’ must be provided by the exporter, producer or importer of the goods by adding the information to any document (e.g., Commercial Invoice) accompanying the shipment or if preferred, by providing it on a separate document. The data elements do not have to follow a prescribed format but must contain the minimum data elements listed below. In addition, the imported goods must originate and be exported from a CPTPP ratified country.

  1. Indicate the certifier (importer, exporter or producer)
  2. Name, address and contact information of the certifier
  3. Name, address and contact information of the exporter (if different from the certifier)
  4. Name, address and contact information of the producer (if different from the certifier, or exporter)
  5. Name, address and contact information of the importer
  6. Description and HS Code for the goods
  7. Origin criterion for the goods
  8. Blanket period
  9. Authorized signature and date

Note: The certification of origin must be signed and dated by the Certifier and accompanied by the following statement:

“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification”

For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.


Information for commercial goods sent to Mexico seeking CPTPP duty-free entry

Canada-origin products valued less than US $1000 that only requires a signed statement completed by the importer, exporter or producer certifying that the goods originated from Canada. This can be included as part of - or in addition to - the commercial invoice. All other supporting document should also be included.

Higher-value shipments require a certification of origin to claim CPTPP preferential tariff treatment.

DUTY FREE ≠ TAX FREE:

It is important to understand that duty-free clearance via free trade agreements apply to duty assessments but not taxes. All goods - even those cleared duty-free - are subject to Mexican taxes (Value Added Tax of 16%).


jet-vector-globe-CanadaShipping to Canada from Mexico

The carrier options to Canada from Mexico include the Mexican Post Correos (preferred method for individuals), FedEx, UPS and DHL.

FedEx and UPS shipping options from Mexico include:

  • Ground shipping to Canada
  • International Express Air priority from Mexico
  • International economy air deferred to Canada

export-customs-graphicImporting Goods to Canada Shipped from Mexico

Goods imported to Canada valued over CA$20 (if shipped via the post) or CA $40 (if shipped courier)  are subject to duty and taxes. Consignments valued under CA$3,300 can be imported via Canada's low value system (LVS).

Mexican origin goods  may qualify for preferential duty free entry under the T-MEC / CUSMA an CPTPP free trade agreements (CETA) regardless of value.

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FREE-TRADE-GRAPHICSimplified origin statement for shipping to Canada from Mexico

The value for duty amount for all of Canada's free trade agreements (including CPTPP and CUSMA T-MEC) for which the proof of origin / certificate of origin is waived was changed to CA $3,300 in July 2020. This change was made to harmonize the regulations with the new NAFTA.

For imports not exceeding $3,300 to Canada, the requirement for proof of origin is waived. The requirement on the importer to maintain records (for example, commercial invoice and B3) applies even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.


jet-logo-vectorGetting a quote for shipping between Mexico and Canada

Jet Worldwide gives access to all companies seeking for spot quotes between Canada and Mexico for parcels, pallets, online orders. 

Information required for a quote includes:

  • Your company name and contact details
  • Ship from Address
  • Ship To Address
  • Weight and dimensions of each piece
  • Item(s) being sent
  • Value

Contact Jet:  For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel.  The more details the better :).

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Reminder: The information in this blog is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.

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Written by Timothy Byrnes