What American Businesses Should Consider When Selling Goods in Mexico

Expanding into Mexico. It’s a smart move for many American businesses. Mexico has a large market. There, cross-border trade is well established. For many industries, demand is continuing to grow and develop. 

At the same time, selling in another country means dealing with a different set of rules. If these rules are overlooked – and that is a risk – then issues could arise. Whether that is delays, unexpected costs, or compliance issues, the consequences are extensive.

It is worth ensuring you’ve covered a few key areas before making this move. Fortunately, the three outlined below are a wise place to begin.

Secure a Valid Mexican Tax ID

One of the first things your business needs is a Mexican tax identification number. This is typically called an RFC (Registro Federal de Contribuyentes). Your ID number will be used for tax reporting. It is required for many commercial activities in Mexico.

You might be registered directly. You might need to work through a local representative. This depends on how your business is set up as well as how you plan to sell your products. Either way, it’s best to sort this early. Try to fix registration before you begin selling. Waiting until afterwards could create unnecessary headaches.

Comply with Official Mexican Standards

Not every product can be shipped into Mexico without meeting local requirements. Your goods might need to comply with Official Mexican Standards – or NOM standards. This will depend on what you sell.

Such rules are designed to ensure products meet all requirements – labeling, quality, and safety – before reaching customers. Some items will require testing. Others will need certification. These are necessary before they are imported. In some cases, your products just need labels that meet local regulations.

Check requirements before your products leave the US. This is the easiest option, of course. Far easier than dealing with problems once the items reach customs.

Prepare for Evolving Cross-Border E-Commerce Tax Withholdings

Cross-border e-commerce rules change. Tax requirements change with them. If your business sells online into Mexico, keep an eye on these three factors:

• Withholding obligations,

• Marketplace rules,

• And any updates affecting imported goods.

Review your supply chain, too, and work with experienced logistics providers if you can. They will do a lot for your business, such as simplify storage, order fulfillment, and cross-border shipping – all before products enter the Mexican market.

Look for a provider that has good access to Mexico. WSI warehouses based in Texas, for example, have the knowledge and geographical positioning to import goods across the border. There are even four locations in Texas available for business lease from this provider, if that’s your preference.

Just remember, having the right partner in place will make it far easier to adapt if – when – regulations change.

To conclude, you want success when selling in Mexico. This depends on more than just having a good product, though, as explained in this post. Only by following this advice will ensure your expansion runs smoothly.