Puebla is a major economic centre in Mexico with important connections to Canada. Canadian auto manufacturer, Magna, has a very large presence in this region. Furthermore, many Canadian's visit Puebla during the winter months.
Parcels shipped to Canada from Puebla often contain industrial parts that are needed to support both Canadian and Mexican suppliers. Mexico and Canada continue to benefit from North American free trade (and CPTPP - see below) and having low cost parcel delivery helps develop the economic connection.
In this blog we review important things to know when shipping from Mexico to Canada
Complemento Carta Porte
Shipping Puebla to Laredo and ... then to Canada?
For some Mexican shippers the best route to Canada, the best route to Canada is via Laredo. Contact Jet's team for the best shipping quote from Laredo to Canada. Or, for when a part of shipment must be urgently sent vie economy express, get a quote from Jet's team.
New Duty Free Shipping to Canada from the USA:
As part of the CUSMA/USMCA/T-MEC (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 Puebla Mexico ship to Canada. Read about CUSMA/T-MEC
Jet helps small and medium sized businesses in Canada connect with the Puebla region via low cost economy express package delivery.
Correos de Mexico is the preferred option for individuals shipping personal items from Puebla to Canada.
Shipments sent from Puebla via Correos de Mexico are sent to Canada for clearance and delivery via Canada Post.
FedEx and UPS are North America's largest carriers and have operations in Puebla - largely to serve the auto manufacturers.
FedEx and UPS shipping options from Puebla to Canada include:
For a the best quote provide details including shipping volume, item(s) being shipped, average value and weight of each parcel. The more details the better :).
Duty and taxes in Canada for shipments sent fromMexico
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.
Parcels imported from Mexico to Canada are subject to Canadian duty and taxes. Most parcels valued under $40 CAD can be imported free of duty and taxes. Parcels valued under $3,300 CAD from Mexico can be imported via Canadian customs low value shipment / LVS express clearance processes. Carriers charge a disbursement fee that usually averages around $15 CAD.
Regarding preferential duty free clearance for Mexican origin goods, the importer can choose between either CPTPP or CUSMA T-MEC (see note below).
CUSMA T-MEC Shipping to Canada from Mexico
The key provisions of CUSMA T-MEC (i.e. new NAFTA) include:
Shipping Terms to Consider When Shipping to Canada
The default option for shipping internationally from Canada is delivery duty unpaid. Common carriers use the term EXW which essentially assigns all import related costs (duty, taxes, and other fees) to the receiver/ importer. Shippers from Canada can choose to pay the import fees on behalf of the receiver via a Delivery Duty Paid (DDP) options that many carriers offer. IncoTerms and shipping terms for packages and online orders.
The disadvantage of paying import fees on behalf of the receiver is that the bulk of the import fees are often from federal and provincial sales tax that the importing business may otherwise be able to claim back.
Shipper can request preferential duty free clearance using either CPTPP or CUSMA T-MEC. Many experts have expressed that origin rules are more lenient under CPTPP but this should be studied prior to making a declaration. Only one method of preferential treatment can be chosen at the time of import.
The value for duty amount for all of Canada's free trade agreements (including CPTPP and CUSMA T-MEC) for which the proof of origin / certificate of origin is up to $3,300 CAD.
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.
The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) online portal streamlines the process of importing commercial goods to Canada. Read more about CARM
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:
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 including by the Mexican Tax Authority and subject to change.
Common import fees for consignments shipped via air to Canada can include duty, taxes and carrier import fees.
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