New Customs Requirements in Mexico’s Complicated Trade Industry

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  • The new petitions come just three months after the same petitioners lost their previous freight railcar coupler antidumping and countervailing duty petition filed against China in September 2021.
  • The proposed ammonia production facility is part of Mitsubishi’s efforts to create a supply chain of ammonia fuel to help Japan and other Asian countries fight climate change, the company’s senior vice president, Hiroki Haba, said at the International Conference on Fuel Ammonia held in Tokyo on Sept. 28.
  • Salomón said the agreement will give SMEs in the state of Puebla access to a logistics infrastructure that can help them reach new markets both in Mexico and around the world.

Weekly updates on changes in the area of trade and cross-border trucking between the United States and Mexico are provided by Borderlands. Last week: The U.S. rail industry accuses China and Mexico of unfair import pricing; the Port of Corpus Christi joins with Mitsubishi for an ammonia facility; and FedEx provides reduced rates to shippers in Mexico. New customs procedures in Mexico complicate the trade industry as reported by Freight Waves.

New customs requirements in Mexico complicate trade industry

It has been more than a year since Mexican authorities announced new customs requirements for domestic and cross-border shipments aimed at increasing tax collection and helping reduce cargo theft in the country.

Josefina Blanco, legal and compliance lead at Nuvocargo, told FreightWaves some of their Mexican carrier partners have struggled with issuing the CCP on time and without errors.

New York-based Nuvocargo is a digital logistics platform for cross-border trade between the U.S. and Mexico.

SAT has extended the deadline for enforcement of the CCP three previous times this year.

“The increase in operating costs is due to the need for more (and specialized) personnel, but also the costs associated with developing or purchasing third party software required to issue CCPs in a timely manner and in compliance with the regulation,” Blanco said.

US rail manufacturers accuse China and Mexico of unfair import pricing

The U.S. Freight Railcar Coupler Coalition has filed petitions with the Department of Commerce and the International Trade Commission asking for an investigation into freight railcar couplers from China and Mexico.

The petitions allege that China and Mexico-based industries are dumping freight railcar couplers in the United States, distorting the U.S. market and resulting in a significant loss of American jobs.

The coalition — consisting of U.S. producer McConway & Torley and the union workers at Amsted Rail Co. — filed antidumping and countervailing duty petitions Sept. 28.

In June 2022, the ITC ruled that the domestic industry was not injured or threatened with injury by imported Chinese freight rail couplers.

The new petitions add Mexico to the complaint.

Freight rail coupler systems and components are metal structures used to connect freight railcars together.

Port of Corpus Christi to partner with Mitsubishi Corp. for ammonia plant

Mitsubishi Corp. recently announced it has signed an agreement with the Port of Corpus Christi in South Texas to collaborate on a large-scale production hub for ammonia, according to Reuters.

Ammonia is seen as a possible future clean energy source since it does not contain carbon.

Neither company returned a request for comment from FreightWaves.

Tokyo-based Mitsubishi Corp. is one of Japan’s largest international conglomerates, operating across 10 business segments ranging from energy, mining and construction to automotive manufacturing.

The Port of Corpus Christi is located on the Gulf of Mexico and is one of the United States’ largest energy export gateways.

FedEx offers discounted rates to shippers in Puebla, Mexico

FedEx Express Mexico announced it has signed an agreement with the Mexican state of Puebla to offer discounted freight rates to small and medium-sized enterprises (SMEs) in the region.

The aim of the preferential rates — up to 40% in discounts — is to improve and strengthen the SMEs operating in the e-commerce market, officials said.

The Mexican state of Puebla is located about two hours south of Mexico City.

The agreement was signed by Olivia Salomón, Puebla’s economy secretary, and Jorge Torres Aguilar, vice president of operations for FedEx Express Mexico.

Torres Aguilar said there are about 9,000 SMEs currently operating in Mexico and that FedEx Mexico has the capacity to process up to 250,000 daily parcel shipments.

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Source: Freight Waves

 

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