How to Import from China to Mexico?

Jun 21, 2024 Chapter 1. Sourcing

When import from China to Mexico, the best thing to do is to do some research first and place a small order to test the market.

In fact, come up with 2 or 3 related ideas and test them with small batches. The best way to learn what works is through trial and error. People may tell you “yeah, yeah, I’d buy that!” about Mexico, but at the end of the day, it’s a different story.



How to Import from China to Mexico?


1. Research and Planning

  • Identify Products: Determine the products you want to import and research their market demand in Mexico.
  • Regulations and Restrictions: Check the Mexican government’s import regulations, including any restrictions or certifications required for specific products.

2. Find a Supplier

  • Supplier Search: Use platforms like Alibaba, Global Sources, or trade shows to find reliable suppliers.
  • Verify Suppliers: Conduct due diligence to verify the credibility of the suppliers. Ask for samples and check reviews or references.

3. Negotiate Terms

  • Price and Payment Terms: Negotiate the price, payment terms, Incoterms (e.g., FOB, CIF), and delivery times.
  • Contracts: Ensure all agreements are documented in a contract, specifying product details, quality standards, and dispute resolution mechanisms.

4. Arrange Shipping

  • Freight Forwarder: Consider hiring a freight forwarder to handle logistics. They can assist with shipping arrangements, documentation, and customs clearance.
  • Shipping Methods: Decide on the shipping method (air freight, sea freight, or express shipping) based on cost, speed, and volume of goods.

5. Customs and Documentation

  • Import License: Ensure you have the necessary import licenses or registrations in Mexico.
  • HS Codes: Determine the Harmonized System (HS) codes for your products, which classify the goods for customs purposes.
  • Documentation: Prepare all necessary documents, such as the commercial invoice, packing list, bill of lading (B/L), certificate of origin, and any required certificates (e.g., phytosanitary certificate for agricultural products).

6. Customs Clearance

  • Customs Broker: Engage a customs broker in Mexico to assist with the clearance process.
  • Duties and Taxes: Be aware of the import duties and taxes applicable to your products. This includes the general import tax (IGI) and value-added tax (IVA).
  • Compliance: Ensure compliance with all regulatory requirements, including product labeling and standards.

7. Delivery and Distribution

  • Warehouse and Distribution: Arrange for the warehousing and distribution of your goods in Mexico.
  • Sales Channels: Plan your sales strategy, whether through retail, wholesale, or online channels.

8. Monitor and Evaluate

  • Performance Evaluation: Monitor the performance of your import operations and address any issues promptly.
  • Supplier Relationship: Maintain a good relationship with your suppliers to ensure future transactions go smoothly.



Import from China to Mexico Key Considerations

  • Cost Management: Factor in all costs, including product cost, shipping, insurance, duties, taxes, and local logistics.
  • Risk Management: Consider insurance for your goods during transit to mitigate risks.
  • Legal Compliance: Stay updated on both Chinese export regulations and Mexican import regulations to avoid legal issues.







Import Duties from China to Mexico

1. Understanding Import Duties and Taxes

General Import Tax (IGI)

  • IGI (Impuesto General de Importación): This is the basic customs duty imposed on imported goods. The rate depends on the product’s classification according to the Harmonized System (HS) codes.

Value Added Tax (IVA)

  • IVA (Impuesto al Valor Agregado): This tax is applied to most goods and services. For imports, the standard rate is 16%, calculated on the CIF (Cost, Insurance, and Freight) value plus the IGI and any other applicable charges.

Special Taxes

  • IEPS (Impuesto Especial sobre Producción y Servicios): Certain products, such as alcohol, tobacco, and some high-sugar beverages, are subject to an additional special tax.

2. Classification of Goods

HS Codes

3. Calculating Import Duties and Taxes

  • Determine the CIF Value:
    • CIF Value = Cost of Goods + Insurance + Freight
    • Example: If the cost of goods is $10,000, insurance is $200, and freight is $800, the CIF value is $11,000.
  • Calculate the IGI:
    • IGI Rate: Let’s assume the IGI rate is 10%.
    • IGI = CIF Value x IGI Rate
    • Example: $11,000 x 10% = $1,100
  • Calculate the IVA:
    • IVA Rate: The standard IVA rate is 16%.
    • IVA = (CIF Value + IGI) x IVA Rate
    • Example: ($11,000 + $1,100) x 16% = $1,936
  • Total Import Duty and Tax:
    • Total Duty and Tax = IGI + IVA
    • Example: $1,100 (IGI) + $1,936 (IVA) = $3,036

4. Steps to Pay Import Duties and Taxes

  • Engage a Customs Broker: A customs broker can help you navigate the complexities of import duties, taxes, and customs clearance.
  • Prepare Necessary Documentation: Ensure all required documents are in order, including the commercial invoice, packing list, bill of lading, certificate of origin, and any product-specific certificates.
  • Customs Declaration: Submit a customs declaration form (Pedimento) through the Mexican customs authority (SAT).
  • Payment: Pay the calculated duties and taxes through the customs broker or directly via the SAT’s online portal.




Work with China Import Agent:

Understanding and accurately calculating import duties and taxes is crucial for the cost-effective importation of goods from China to Mexico. By using the correct HS codes, working with a knowledgeable customs broker, China import agent and preparing all necessary documentation, you can ensure a smooth import process.

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