STEP 1 ARRIVAL OF MERCHANDISE AND DOCUMENTATION

2. STEP 1ARRIVAL OF MERCHANDISE AND DOCUMENTATION The merchandise arrives at the broker's terminal on the U.S. side of the border. The commercial invoice and other documents arrive at the Broker's office, either with the merchandise or separately.  Some of this documentation is supplied by the Exporter.  Other paperwork is supplied by the Importer.

3. STEP 2VERIFICATION The Broker verifies that the Importer stated on the commercial invoice(s) is listed in the database of importers  and sectors authorized to import through Laredo. The Broker verifies the physical merchandise against the documentation.  This includes verifying pallet, box, and piece counts, as well as labeling, country of origin markings, and serial numbers.

4. STEP 2VERIFICATION HOW LONG DOES IT TAKE? The time to complete the Verification stage depends, among other things, on how quickly the Importer supplies all of the required sworn declarations and how quickly the Importer can become registered as an importer, if not one already, and in the appropriate sector database, if any. Verification time also depends on the complexity of the invoice(s), the amount of work required to physically verify the merchandise itself, and whether or not it is a first-time shipment. 

5. STEP 3CLASSIFICATION & COST ESTIMATION The broker determines the HS tariff schedule number to be applied to each different type of item. With this number the broker determines the duty and fee rates applicable and ensures that all restrictions, regulations, permits, and certifications required will be complied with  prior to entry presentation.  NOTE: This frequently involves getting additional documentation from the exporter or importer.  Many times the importer and/or exporter must obtain this documentation from labs or government agencies and this can result in substantial and costly delays. With this information, the broker estimates all the costs (duties, brokerage charges, handling charges, etc.), and requests an advance from the client to proceed with the importation.

6. STEP 3CLASSIFICATION & COST ESTIMATION HOW LONG DOES IT TAKE? As with Verification, the time required to classify goods and determine the applicable costs depends on the complexity of the shipment. How quickly the client advances the required funds is also a factor at this stage of the process.

7. STEP 4PREPARATION OF SHIPMENT The merchandise is not already loaded on a trailer or truck for inland Mexico transport and/or crossing, the Broker makes the necessary arrangements with the Mexican trucking firm selected by the client to spot a trailer or truck at the Broker's U.S. warehouse... ...and then loads the merchandise.  The truck or trailer is then sealed with Customs security seals.

8. STEP 4PREPARATION OF SHIPMENT HOW LONG DOES IT TAKE? The time required depends primarily on how long it takes the Mexican carrier to spot the required equipment on which to load the merchandise.  Because of this, clients sometimes suggest that equipment be ordered in advance of the shipment’s arrival at the border. This can be risky and costly however, because the transportation companies assess detention and demurrage charges for keeping their equipment idle.

9. STEP 5PREPARATION OF ENTRY The Broker prepares the Pedimento (entry), transmits it electronically to the Mexican customhouse and awaits electronic confirmation from the customhouse. Customs runs several validation tests on the electronic pedimento to make sure that it has been prepared correctly. Upon receiving the electronic confirmation, the broker prints the pedimento (8 copies), attaches invoices, certificates, and other required documents and either takes it to an authorized bank for the payment of duties, or makes an electronic payment . This packet of documents is called the "entry packet" or, simply, the "entry."

10. STEP 5PREPARATION OF ENTRY If needed, the Broker prepares a Shipper's Export Declaration (SED) through the Automated Export System (AES). The AES provides a shipment number for the goods for presentation by the driver at U.S. Customs. If the merchandise is traveling in-bond through the U.S.A., the U.S. Broker will need to present a processed copy of the pedimento to U.S. Customs at a later date to cancel the In-Bond.

11. STEP 6PRESENTATION OF ENTRY If electronic payment has not been made, the broker presents the entry packet at a customs-approved bank for payment of duties and fees.  The bank verifies the entry against the electronic record at Mexican customs, accepts payment for the duties and fees and prints a receipt on the upper right hand corner of the pedimento. The broker prepares a manifest and attaches it to the remaining copies of the entry.  This is the packet that the driver and dispatcher will present at the Mexican customs window during the border-crossing ceremony.

12. STEP 7 BORDER CROSSING The Broker then coordinates the border-crossing activities with the Driver and the Dispatchers, which must occur within 72 hours from the time the duties are paid at the bank. Upon arrival at the U.S. Customs export lot, the U.S. Customs inspector in charge may require proof of the AES filing. The shipment is also subject to unloading for inspection by the U.S. officials. After clearing U.S. Customs, the truck proceeds across one of the international bridges to one of the entrance booths of the Mexican Customs import lot.  The Broker's dispatcher retrieves the Driver's entry and manifest and presents it to the Mexican official at the booth.

13. STEP 7 BORDER CROSSING One of the copies of the pedimento includes a bar-code that is scanned by the Customs Inspector into a computer. The computer then prints on the pedimento whether the shipment must be inspected ("red light"), or can proceed to destination ("green light"). If the shipment is selected for inspection, the truck is sent to the import lot's inspection dock. Here the documentation is checked to make sure it is accurate, correct, and complete (i.e. not missing any documents or permits) and is verified against the merchandise.  NOTE: Physical verification frequently requires that the merchandise be unloaded from the truck or trailer. 

14. STEP 7 BORDER CROSSING Once the shipment clears the inspection stage it is subjected to a second random check, where the process is repeated by a second team of contract inspectors. These second stage inspectors are under contract to the Mexican government but do not report directly to the Customs Service. NOTE: Discrepancies and errors result in severe fines and penalties!  After the shipment is released, Mexican Customs keeps two copies of the entry, returning to the dispatcher one copy for the carrier, one for the broker, one for the importer, and a couple of spares.

15. STEP 8 SHIPMENT RELEASE The truck then travels to the yard of the Mexican carrier that will provide the inland freight service to the ultimate destination. The Broker delivers one copy of the pedimento to the Mexican carrier (the copy with the bar-code), which serves as a release document, and a BOL instructing the carrier of the destination and other details of the shipment.

16. STEPS 5, 6, 7 & 8 ENTRY PREPARATION, PRESENTATION, BORDER CROSSING & RELEASE HOW LONG DOES IT TAKE? Collectively, entry preparation, presentation, border crossing and release takes about three working days.  While this time can be shortened for repetitive and urgent shipments, it is unwise to plan on anything less than three working days for these four steps. The delivery time after release depends on the destination and the carrier selected by the client. Carriers may assign different priorities to different shipments. Depending on final destination, delivery to the consignee in Mexico should range from 1 to 4 days.