Exporting goods to another country is sometimes expensive. If you export to Mexico, you can cut costs by storing the goods in a bonded warehouse. What is a bonded warehouse? It’s a warehouse that allows you to import goods into Mexico without officially importing them. You don’t have to pay import duty until you move the goods out of the bonded warehouse. Mexican law allows businesses to store goods in a bonded warehouse for up to two years. Continue reading to learn about the top benefits of the bonded warehouse regime in Mexico.
5 Benefits of the Bonded Warehouse Regime in Mexico
1. The Import Duty Rate Stays the Same
One of the first questions that people have about bonded warehouse procedures relates to changing import duty rates. The import duty rate you pay when taking goods out of the warehouse stays constant. It’s based on the import duty rate when they were originally moved into the building. This is convenient for financial estimates. You’ll know exactly how much you’ll pay in import duty if all the goods are used.
2. Exporters Maintain Ownership of the Goods Until They’re Withdrawn
Another primary concern people have about bonded warehouses is who has ownership of the goods. Fortunately, the exporter maintains ownership of the goods until the importer takes them out of storage. You can also bring the goods back to your country if needed without paying import duty.
3. Bonded Warehouses Insure Goods
Bonded warehouses in Mexico insure your goods against theft, natural disasters, and fires. Insurance of goods is one of the many bonded warehouse requirements outlined in Mexican law. Thus, you don’t have to worry about a bonded warehouse cheating you out of the insurance.
4. You Can Satisfy Customer Demand Quickly
It doesn’t take long to transfer goods in and out of the bonded warehouse. More importantly, you can move a large supply of goods into Mexico and let it sit in storage. As you need more goods to satisfy customer demand, you have them readily available from the bonded warehouse. You don’t have to wait on shipping them from your country into Mexico. Importers in Mexico don’t have to wait on import licenses either, speeding up the process of fulfilling consumer demand.
5. Straightforward Costs
The costs of using a bonded warehouse are straightforward. Both the exporter and importer know exactly what they must pay. Costs are charged in Mexico’s currency as well, which eliminates the problem of currency loss. How much each party must pay is not only known in advanced but it’s fixed too. You’re less likely to encounter financial problems exporting and importing when the costs are straightforward.
The five reasons listed above are the top advantages of using a bonded warehouse in Mexico. Exporters and importers save money and time when they use a bonded warehouse regime in Mexico. Costs are known in advance as well as fixed. Import duty fees are only paid once the client withdraws goods from the warehouse. By using what they need, importers don’t risk buying too many goods. And exporters can bring the goods back to their country if needed without fees.