How Much Does It Cost to Import to Mexico?

How much does it cost to import to Mexico in 2023? How much will you need to pay for your foreign trade operation? Are you looking to import for the first time and don’t know how much you’ll have to pay?

Finding a cheap product abroad is very common, but you should know that if you want to import it, you won’t just have to pay its commercial value. You’ll also need to consider other factors such as logistics, non-tariff regulations you’ll need to comply with, contributions you need to pay, among many others.

In this article, we will explain each of these extra factors you’ll need to pay. This way, you’ll get an idea of how much the price of the product you found abroad as a “bargain” will really go up.

By the end of this article, you’ll be able to make an estimated calculation of what you’ll need to pay to import your product to Mexico in 2024. This way, you can determine whether it’s a profitable project for you or not.

The Elements that Make Up the Cost of Importing to Mexico

Next, we’ll discuss the elements that constitute the cost of importing to Mexico; we’ll explain why it’s complex to come up with an exact value when starting an importation process, and we’ll guide you to help you achieve it.

At Aduaeasy, after 13 years of experience, we’ve concluded from our historical operations that an import from China to Mexico typically increases by 40% to 50% over the value of the goods.

The five elements that make up the cost of an imported product to Mexico are: logistics, contributions, services in the country of origin, services in Mexico, and non-tariff regulations (NRR). But what exactly do each of these mean? What are the main variables for each one?

Do You Already Know Your Product?

Before we explain these five factors, it’s important that you have complete knowledge of your product. You need to know the cost or commercial value your supplier offered, identify the volume, dimensions, and weight of your product, as these will impact the logistics services.

But you also need to know the characteristics of your product, such as its use, function, and the materials it’s made of. This information will determine the contributions you need to pay and the non-tariff regulations you must comply with. That’s why we recommend you request a technical sheet for your product from your supplier.

International Logistics

This term might seem confusing at first. For the case of an import, we’ll consider what it means to move the goods from the point of origin to the final destination point. In the context of international trade logistics, there are two very important factors: INCOTERMS and international transportation.

INCOTERMS

INCOTERMS are international negotiation terms that establish the obligations, risks, and costs that the seller and the buyer must assume during import and export operations. They answer three key questions: Who does what between the buyer and the seller? Where and when does the seller deliver the goods and transfer the risk to the buyer? And who is responsible for what costs?

You will get this term from the negotiation with your supplier and the type of transportation you’ll use to move your goods, as there are INCOTERMS specific to certain transportation methods.

International Transportation

You’ll need to choose international transportation based on the type of product you want to import, how urgently you need it, and the volume and weight of your goods.

There are three main types of international transportation: maritime, land, air, or a combination of these.

Maritime transportation has both advantages and disadvantages. Among its advantages, it’s one of the most economical methods and can carry almost any type of goods with high volume and weight. However, it also has its downsides, such as the time it takes to transit, which can range from 20 to 30 days depending on the route.

Air transportation is the fastest but also the most expensive, and it can’t carry as much cargo, making it unfeasible for large shipments. If you’re looking to send a small amount of goods and need them to arrive as quickly as possible, air transportation is the way to go.

Land transportation offers more access, more accurate timelines, and better security for the goods, but it is somewhat limited in terms of routes.

Payment of Contributions

At this point, you need to consider several contributions in foreign trade that must be paid in each of your operations. Here are the contributions you’ll need to know:

Value-Added Tax (IVA)

This tax is applied to individuals and legal entities that import or sell goods or services in Mexico. How to calculate IVA.

General Import Tax (IGI)

The General Import Tax is a percentage applied to the customs value of the goods, compensating for national economic activity. How to calculate IGI.

Customs Processing Fee (DTA)

The Customs Processing Fee is a contribution that must be paid for the use of the Mexican customs facilities where your goods will arrive. How to calculate DTA.

Special Tax on Production and Services (IEPS)

The Special Tax on Production and Services is applied to individuals, autonomous entities, and legal entities that produce, sell, or import special goods such as alcohol, cigarettes, diesel, etc. How to calculate IEPS.

Compensatory Quota

This is an extra amount applied to products from abroad imposed by the Ministry of Economy when there are unfair practices in their importation.

Prevalidation

This isn’t a contribution per se but it will appear on the customs declarations of all your operations. It is a service provided by an authorized third party by the SAT, responsible for verifying that all the information declared in the customs declaration is correct. This has a fixed cost in 2023 of 290 pesos, plus VAT of 46 pesos.

Services in the Country of Origin

Based on the INCOTERM negotiation you made with your supplier, there may be different services you’ll need to hire in the country of origin.

For example, if you negotiated an EXW (Ex Works) INCOTERM, you’ll need to hire a land freight service to take the goods from your supplier’s factory to the corresponding shipping port.

Depending on the type of transportation you use, we recommend negotiating FOB, CIF, CPT prices, etc., in which the supplier must handle the shipment of the goods to the origin port or at least the shipment to the departure port and export management at the origin.

Another service you may need to arrange is pre-clearance in the country of origin. This service can actually benefit your operations, especially since in 2024 Mexico’s main ports are congested. Pre-clearance can save you costs like storage and delays.

Services in Mexico

Once the goods arrive at the relevant customs in Mexico, customs procedures will take place to allow the goods into the country.

Revalidation

The first service you’ll pay for is revalidation. This refers to the transfer of rights for the goods being imported between the shipping company or transporter and the customs broker of the importer. This must be done once the goods have arrived in the destination country. The process depends on the transportation method, but it’s generally similar in some cases.

Customs Clearance

This service can only be carried out by a customs broker authorized by the SAT. The type of product (industrial, chemical, textile, general use items, etc.) and the value of the goods determine the cost of their services, as a product with higher risks or value will increase the cost of this service.

There are movements that must take place at customs when the goods arrive and depart, such as: cargo inspection maneuvers, unloading, deconsolidation, labeling, and emptying maneuvers. These must be calculated based on specific requirements and often increase the operation cost significantly.

Non-Tariff Regulations and Restrictions (NRR)

To regulate the products that enter and leave the country, the General Import and Export Tax Law (TIGIE) establishes certain rules or certifications to guarantee the quality and safety of the products for the consumer. These are known as Non-Tariff Regulations and Restrictions (NRR), and they include the following:

• Labeling standards
  
• Packaging and packaging standards
  
• Country of origin marking
• Safety standards
  
• Quality standards
  
• Automatic notices
  
• Certificates from agencies like SENASICA, COFEPRIS, PROFEPA, etc.
• Prior permits
• Quotas
  
• Compensatory Quota (CC)
  

Complying with these regulations could incur costs; for example, hiring a laboratory to fulfill a specific certification or labeling products at the port.

That’s why it’s essential to conduct a pre-importation analysis with an expert in the field. If any of these regulations aren’t met, the goods can’t be imported into Mexico, and this could result in fines or legal consequences.

How to Get the Cost of Importing to Mexico

Now that you know all the elements and their main variables, you’ll need to research each one so you can quote each part with the corresponding provider and sum it all up to get a budget with minimal variations.

At Aduaeasy, we’re here to help. If you need a quote, don’t hesitate to contact one of our commercial agents. They can provide an estimate of all the services and taxes you’ll pay for your foreign trade operations.

Why is it Not Possible to Get an Exact Cost?

There are two main reasons why we’ve seen this with all the clients we’ve worked with over the past 13 years.

First, the lack of awareness of the variables we’ve presented here. As a result, the information about these elements is often unknown.

Second, there are few suppliers that can integrate all the services needed for a door-to-door importation into their quote.

Contact us now and discover how to calculate VAT with our practical example.

We recommend that during this search for the figure and before making a purchase abroad, you work with an expert in imports to determine each specific service for your importation. This will ensure that you comply with all regulations and avoid having your goods held or facing fines.

At Aduaeasy, we help people import to Mexico. Our goal is to be your guide, creating successful import experiences together. If you need help, our commercial advisors are available to answer all your questions.