COVID-19 Response

Enhanced Trade System Expedites Mexico Manufacturing Supply Chain

cross border trade

The overwhelming benefits of cross border manufacturing in Mexico are becoming increasingly clear to U.S. companies. The proximity of Mexico, its educated labor force and its adjacent free trade zone are all important contributors to these benefits. In addition, the introduction of the Ventanilla Unica de Comercio Exterior Mexicana (VUCEM) on June 1st, 2012 will further increase the advantages enjoyed by companies engaged in cross border trade.

VUCEM (Ventanilla Unica de Comercio Exterior Mexicana)

In an effort to increase its global competitiveness and increase foreign investment in their country, the Mexican government has implemented a highly efficient, electronic means of complying with its various regulatory and governmental agencies. This system benefits both Mexico and its trading partners for a variety of reasons. All cross border transactions can now be handled electronically which provides the following benefits:

  • Elimination of all actual paper forms except for a short bill of lading
  • A single point of contact for all agencies via electronic documentation
  • 24/7 availability of all documentation with an Internet connection
  • Significant reduction in the time necessary to fulfill customs procedures
  • Border delays that are all but eliminated
  • Enhanced transparency of foreign trade transactions
  • Improved legal compliance
  • Increased overall security for all cargoes

The deadline imposed by the Mexican government to use the VUCEM electronic portal has just passed and all companies wishing to conduct international trade with Mexico must now comply with VUCEM.

Improved Logistics

The VUCEM process reduces costs by alleviating many of the logistical headaches involved in cross border trade. In particular, loading and unloading are facilitated because all documentation is readily available at any time. Similarly, truck and train transport costs are lowered as the vehicles are process more expeditiously and never unnecessarily delayed while paperwork is procured and examined. Lastly, deliveries can be more exactly scheduled allowing for less “in transit” inventory thus reducing carrying costs.

All of these factors lead to a more efficient and less costly manufacturing process that produce savings that can be passed on to the end consumer or the bottom line. In either event, every company can benefits from this process.