The Canadian - Mexican e-commerce landscape is bringing opportunity for Mexican suppliers to ship orders direct to Canada.
Jet Worldwide provides cross border e-commerce shipping between Canada and Mexico
Local stores: The new storefront for Mexican e-commerce.
Mexican suppliers can offer the convenience of online stores for shipping to customers direct in Canada. Mexican suppliers are moving from providing wholesale to developing their own e-commerce offer. Services are being developed to allow suppliers to serve customers direct in Canada.
The bridge between Mexico and Canada
To access Canada's consumers, e-commerce platforms, such as Shopify, offer digital payments and online platforms to enable selling to Canada. Canadian suppliers can more easily sell to the Mexican market and Mexican suppliers can sell to direct to Canada.
Expand your cross border transportation and logistics options. Grow your understanding of cross border shipping from a company providing logistics solutions for over 40 years! Strengthening your transportation team - even if you are a team of one! Gain from a discussion with our seasoned professionals. Contact our team for an initial consultation.
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only
CUSMA/ T-MEC: Shipping Mexico to Canada duty free under $150 CAD
As part of the USMCA (the "new NAFTA), Canada has raised their low value duty threshold ( de minimis threshold) to $150 CAD (around $110 USD). Local sales taxes will still apply (but often times, businesses can claim this charge back). This higher duty free threshold helps businesses and e-commerce merchants in Mexico ship to Canadian customers.
. READ MORE ABOUT USMCA/ CUSMA/T-MEC
The Most Favoured Nation (MFN) tariff rates of Canada are generally applicable for imports from Mexico to Canada valued over CA$150. Goods that meet CUSMA rules of origin can qualify for preferential duty free import to Canada. The MFN tariff rates of Canada apply to goods imported to Canada that do not meet the rules of origin (non-originating goods) under the CUSMA.
Simplified Origin Statement for Shipping Canada from Mexico
The value for duty amount for all of Canada's free trade agreements (including CPTPP and T-MEC CUSMA) for which the proof of origin / certificate of origin is waived was changed to $3,300 CAD in July 2020. This change was made to harmonize the regulations of NAFTA/ CUSMA with Canada's other free trade agreements.
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.
T-MEC CUSMA for direct order parcel shipments
While the North American Free Trade Agreement is primarily written to accommodate major commodity trading - such as auto parts, energy, and agriculture - it now benefits for smaller direct online orders.
At Jet Worldwide, we encourage our customers to consider taking advantage of the preferential duty free treatment when goods qualify as Mexican origin.
Good shipped to Canada that the qualify of Mexican origin that are valued under CA $3,300 can be cleared duty free with a simpler certification statement.
Here is a sample statement that can be included on the commercial invoice requesting preferential tariff duty free treatment:
"I hereby certify that the good covered by this shipment qualifies as an originating good for purposes of preferential tariff treatment under the CUSMA/T-MEC."
Although the rules of origin can be complex, parcels shipped from Mexico often contain orders for goods that easily qualify as being Mexican origin. We advise Canadian companies to work with Canada customs CBSA to get a definitive determination prior to shipping as information presented in the blog is for general information only.
CUSMA OR CPTPP From Mexico
Canada and Mexico actually share two free trade agreements: CUSMA and CPTPP. For preferential duty free import for Mexican origin goods, some experts prefer CPTPP. Either free trade agreement can be claimed on the certification of origin. Importers must choose which one they wish to claim at time of import.
Common Canadian Import Fees for Shipments from Mexico
Common import fees for consignments shipped via air to Canada can include duty, taxes and import fees.
The Canadian Customs online portal which is designed to streamline processes and a useful too for Canadian importers. Read more about CBSA Assessment and Revenu Management (CARM)
Complemento Carta Porte: Additional Requirements for Mexico shipments
The Mexican Tax Authority (SAT), in an effort to increase compliance and cargo security, requires any entities sending goods through Mexico to modify their electronic invoices — known as CFDI in Spanish — with the Carta Porte supplement. All freight of any size traveling by road, rail, air or sea through Mexico and all types of commodities will be required to have the supplement.
Information required by Complemento Carta Porte can include:
- Goods that will be moved throughout the Mexico
- Shipper/receiver information.
- Specific information about the shipper and receiver locations.
- Information about the means of transportation.
- Information about the driver (in case of road transportation)
Regulated parties affected by the Carta Porte supplement includes the owner of the goods being transferred, intermediaries and agents of transport, and hauling companies. The suppliers of transportation services should issue a CFDI of Revenues with the Carta Porte supplement. Note that this information is based on public information and all parties should confirm compliance with Mexican Authorities prior to shipping.
Getting quote for shipping between Mexico and Canada.
Jet Worldwide gives access to all companies seeking shipping quotes between Mexico and Canada for parcels pallets, and online orders.
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 :).
E-commerce Opportunity: Mexico
Mexico's businesses are embracing online purchasing and often refer to online merchants in the USA, Canada, Europe and Asia. Jet Worldwide helps e-tailers access the growing opportunity south of the border in Mexico and across South America.
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