Freight Shipping between UK and Mexico | Rates – Transit times – Duties and Taxes

How to calculate duties & taxes when importing from UK to Mexico?

As an integral part of the importing process from the UK to Mexico, anticipating your duties and taxes can ultimately save you from unexpected expenses and delays. Reckoning these costs revolves around several key determinants, namely the country of origin, the Harmonized System (HS) Code, the customs value, the applicable tariff rate, and any additional taxes or charges. To begin the estimation process, your first port of call should be determining the country where your goods were derived or manufactured, as this is the foundation upon which the rest of your calculations will be built.

Step 1 - Identify the Country of Origin

Determining the exact Country of Origin sets the basis for accurate import duties and taxes. First, it helps avoid miscalculations. Imagine overpaying due to a simple oversight! Second, you can't overlook trade agreements. The UK and Mexico have a trade continuity agreement preserving tariff-free trade after Brexit. So, you could benefit from reduced or eliminated duties.

Third, it offers a clear path to abide by import restrictions. Each country imposes unique rules on goods entering the country. For Mexico, there are stringent regulations regarding agriculture and dairy imports from the UK.

Knowing your Country of Origin also allows you to accurately classify goods according to the Harmonized System (HS). Your HS code determines what rate of duty applies to your goods - got it wrong, and you might be hit with fines! Lastly, it gives peace of mind. Completing this step ensures full compliance with customs laws, saving you from sleepless nights over potential audits.

So, don't skimp on this step, ensure you have your Country of Origin down pat. Once that's set, procuring your HS code should be a breeze. Remember, a thorough approach leads to smooth sailing (or shipping!).

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is a globally standardized coding system that classifies products for international trade. It assists in defining each product and determining international trade duties.

You might be wondering how to pinpoint the HS code for your specific product. A straightforward approach is to reach out to your supplier. They're often well-versed with the products they're importing and the corresponding regulations, including the HS code.

However, if reaching out to your supplier isn't an option, don't worry, we have you covered. An easy step-by-step process to find your product's HS code using the Harmonized Tariff Schedule consists of:

1. Visit the Harmonized Tariff Schedule 
2. Type your product's name into the search bar
3. Check the Heading/Subheading column where you'll find the HS code

Please bear in mind the HS code's accuracy is crucial. An incorrect code can result in potential delays and additional fines. Therefore, utmost care is necessary while identifying your product's HS code.

Here's an infographic showing you how to read an HS code.

Step 3 - Calculate the Customs Value

Finding your way around customs value can be daunting. Think of it as the real fiscal value of your shipment, differing slightly from the mere product worth. It's not just your goods, but also the cost of bringing them all the way to Mexico from UK included. This is your CIF Value- the cost of the goods, international shipping charge, and the insurance expense, all totaled up. Suppose you're shipping designer shoes valued at $200. Now, tack on $50 for shipping and garnish it with a $10 insurance cost – your customs value will be a rounded $260. This acts as the groundwork for any further duty calculations, a pivotal figure in your shipping costs booking sheet. It's understandable, then, your concern to get this correct from the get-go. It might just save you some unsuspected stern glances from the customs officer.

Step 4 - Figure out the applicable Import Tariff

An import tariff is essentially a tax imposed by a country's government on goods imported from other countries. For your goods shipped from the UK to Mexico, the tariff used is most likely the Most Favored Nation (MFN) rate.

To determine the applicable tariff, follow these steps:
Visit the UK Trade Tariff: look up commodity codes, duty and VAT rates page on the UK government's site. There, enter your previously identified Harmonized System (HS) code, and your product's country of origin.

If, for instance, you're importing ceramic mugs (HS code 691110) from the UK, the tool might show an average MFN tariff rate of 15% for these goods entering Mexico.

Let's say the total Cost, Insurance, and Freight (CIF) value of your mugs is $1000. To find out your import duties, you'd multiply the CIF value by the tariff rate. Your calculation would look like this: $1000 (CIF) x 15% (tariff rate) = $150. So, your import duties would be $150.

Remember, understanding your import tariffs ahead of time helps avoid unexpected costs and ensures a smooth customs clearance process.

Step 5 - Consider other Import Duties and Taxes

In importing goods to Mexico from the UK, aside from the standard tariff rate, some additional taxes may apply based on the goods type and origin. For instance, there might be an Excise Duty for specific items such as alcohol and tobacco. Similarly, products deemed as 'dumped' - i.e., exported at a price lower than its original value - might attract Anti-Dumping Taxes to protect national industries from unfair competition.

But the significant duty you should always consider is the Value Added Tax (VAT), which is a tax on the consumption of goods and services. In Mexico, the standard VAT rate is 16%. If, for example, your goods are worth $10,000 USD, the VAT amount would be $1,600 USD ($10,000 x 16%).

It's crucial to budget for these potential additional costs when importing goods. This is just a sample calculation and actual rates may vary depending on several factors including the nature and classification of the goods. Therefore, always consult with a logistics expert or customs broker to get accurate and precise information for your situation.

Step 6 - Calculate the Customs Duties

In calculating customs duties for goods exported from the UK to Mexico, several components are taken into account: the customs value of goods, VAT, anti-dumping taxes, and excise duty when relevant. Let's use three examples to elucidate this.

1. Suppose you have a consignment valued at $10,000 and the duty rate in Mexico is 20%, your customs duty would be $10,00020%=$2,000.

2. Let's take the same consignment value but add 16% VAT, the standard rate in Mexico. So, $2,000 (customs duty) + 16% of $10,000 (VAT) = $2,000 + $1,600 = $3,600.

3. For some goods, anti-dumping taxes or excise duties may apply. If a 5% anti-dumping tax and a $50 excise duty are applicable on this consignment, you would end up with $2,000 (customs duty) + $1,600 (VAT) + $500 ($10,0005% anti-dumping tax) + $50 (excise duty) = $4,150.

Customs calculation isn't exactly a walk in the park, isn't it? With DocShipper, all the complexities of customs clearance become our responsibility. Our team ensures you're not overcharged and guarantees an accurate assessment each time. Reach out today and get a free quote within 24 hours!

Bill of Lading

Navigating UK to Mexico shipping? The Bill of Lading, your most crucial passport for your goods, marks the transition of ownership from you to your buyer. Commonly abbreviated as B/L, it's as important as a boarding pass to a passenger. Today, a digital revolution is underway in the form of 'telex' release, allowing you to speed up the process by bypassing paper B/L. Instead, your goods, be it artisanal teapots or automotive parts, can be released upon their arrival in Mexico, and that's a real game-changer. For air cargo, don't forget your Air Waybill (AWB). Much like the B/L, it's your ticket to a smooth, streamlined process. Plus, it's just as digital-friendly. So, keep these documents ace-high, and you'll find the shipping process slick, smooth, and hassle-free.

Packing List

Imagine you're shipping artisanal cheese from the UK to Mexico. Your Packing List is not just an itinerary; it's an essential cross-check for freight forwarders, importers, and customs officials. As a shipper, your Packing List must precisely detail your shipment's content, quantity, value, and weight. Say you're shipping 20 wheels of cheese, each weighing 2 kilos. If your list states 40 kilos total weight, but it crosses the scales at 50 kilos due to packing materials, customs might delay, enforce fines, or even seize your cheese; whether by sea or air, your cheese could go off during delays. So, think of your Packing List as the key to smooth sailing (or flying) through customs from the UK to Mexico. Get it right and your cheese will be melting on Mexican tacos in no time.

Commercial Invoice

Drafting a Commercial Invoice for UK-Mexico shipments can feel tricky, but a few key points can streamline the process. Complete all sections of the document meticulously. This invoice is the customs officer's roadmap to your shipment, detailing essential information like product descriptions, seller and buyer details, and total value of goods. Always ensure consistency between the Commercial Invoice and other shipping documents. Remember, an accurate Commercial Invoice is crucial for smooth customs clearance. Misaligned information can result in delays or even fines. Here's an insider's tip: natural Timber products require a specific declaration in the invoice. So, if you're in the furniture business, bear this in mind. With careful attention to these details, you'll avoid common pitfalls and ensure a seamless freight experience between the UK and Mexico.

Certificate of Origin

Navigating the customs landscape between the UK and Mexico can appear daunting. Here comes the hero – the Certificate of Origin. It illustrates the provenance of your goods, essentially where they were produced. This invaluable document might earn your shipment preferential customs duty rates, making your venture more profitable. Think of it like this: You're shipping artisanal chocolates from a quaint town in Northern England. By stating this location on your Certificate of Origin, your delightful treats would benefit from the trade agreements in place between the two countries. So don't breeze past the 'country of manufacture' section. Being precise here could save you considerable expenditure while easing your journey through the legalese maze that is international shipping.

Certificate of Conformity (CE standard)

Shipping goods between the UK and Mexico? You'll need a Certificate of Conformity. This critical document proves your product meets applicable regulatory standards – like the CE marking often used in Europe. However, it's important to know, in the post-Brexit era, the UK introduced its own marking, the UKCA. Unlike quality assurance, which largely focuses on process consistency, these standards focus on the safety and compliance of your product. Say, for instance, you're shipping electronics. You'd need to prove they're safe, won't interfere with other devices, and don't emit harmful radiation. Concerned about US standards? Think of the CE or UKCA mark as the European or UK equivalent to the FCC declaration in the States. And remember, this certificate isn't optional – it's a must-have for a smooth customs clearance.