Cross-Border Shipping

Here are the most common cross-border freight shipping methods:

FTL

Full truckload (FTL) shipping is great for freight shipments that fill an entire truck. FTL is a common choice for transporting goods across international borders.

LTL

Less than truckload (LTL) shipping is used to carry goods in smaller volumes than FTL, and multiple shippers share space in a single truck. FTL cross-border shipping is a great choice for businesses moving smaller quantities of goods or companies with tighter budgets.

Through-trailer

Through-trailer shipping delivers freight to its destination directly in the same trailer or shipping container without transferring loads between different vehicles along the way. This method is suitable for cross-border shipping between the US, Canada, and Mexico and can lead to fewer interruptions during the shipping process. However, even though goods stay in the same trailer for the whole journey, through-trailer shipments are still subject to customs inspections at borders.

Transloading

With transloading shipping, cargo is delivered via more than one mode of transportation. Goods may travel by truck for one leg of the journey, then be loaded onto a plane or ship for the next.

With cross-border freight shipping, transloading is often used to move goods between carriers in neighboring countries.

Trade show shipping

Trade show shipping is popular for businesses looking to transport products or exhibits to events safely. Freight is stored in the truck securely to prevent issues during transit, and it may be shipped directly to a venue or an advance warehouse.

Expedited shipping

Expedited shipping is a fast service for urgent deliveries. Goods may be transported by air for next-day arrival, a straight truck, or a cargo van — whichever is quickest and most appropriate. Expedited shipping is a great option for cross-border shipments that need to get to their destination quickly.

If your business ships freight to and from Mexico, you need to prepare the right documents to ensure a smooth, efficient process. Attempting to cross the border without the necessary documentation could lead to fines and delays that disrupt your operations.

Here are the eight essential documents for Mexico cross-border shipping:

• Mexican import request (Pedimento de Importación): A Mexican import request is necessary for moving goods into and out of Mexico. It usually describes the items transported, their quantity, value, and other key information.
• Commercial invoice: A commercial invoice determines the customs duties for goods crossing the Mexican border. The invoice should contain the products being shipped, their origin, what they’re used for, and other essential details.
• Bill of lading/Complemeto Carta Porte: The Bill of Lading states the conditions under which a shipment is made, with information on the goods, the amount, and the destination. All parties involved in a shipment must agree to the terms of the bill of lading.
• NAFTA Certificate of Origin: A North American Free Trade Agreement (NAFTA) Certificate of Origin certifies that the cargo being transported qualifies for the “preferential tariff treatment accorded by NAFTA.” Any goods that qualify, originating from the US, Mexico, or Canada, will be subject to reduced duty. In some cases, duty may be eliminated.
• Packing list: The packing list covers the contents of packages crossing the border. This includes the packaging type, a description of the contents, and a few other key details.
• Shipper Export Declaration/Electronic Export Information (EEI): A shipper export declaration/EEI is a must for any cross-border shipments valued at $2,500 or more. This document is used to record data on international trade.
• Product safety documentation: All products shipped into Mexico require safety documentation to declare that they comply with the necessary regulations.
• B-1 visa for Mexican drivers: All Mexican truck drivers carrying goods into the US must hold a B-1 visa. This shows that they plan to leave the US once their allocated admission period ends and have a reason to go back to Mexico.

Learn more about the common mistakes businesses make when transporting goods into Mexico.

You need the following documentation for Canadian cross-border shipping to avoid delays and disruptions:

• Customs Coding Form B3-3: The Canada Border Services Agency (CBSA) requires the Customs Coding Form B3-3, which includes the port of unloading, freight description, and country of origin.
• Commercial Invoice: A commercial invoice describes the goods shipped and their value.
• Canada Customs Invoice (CCI): A CCI is required for commercial shipments with a value of $2,500 (CAD) or higher. All cargo shipped must be subject to sales tax and other relevant duties.
• Certificate of Origin: Customs requires buyers and sellers involved in cross-border shipping to hold a NAFTA Certificate of Origin. This applies to shipments worth more than $2,500 (CAD) for imports into the US and $3,000 (CAD) for exports to Canada.
• Bill of Lading: The Bill of Lading is similar to a receipt and carries information about the cargo being shipped.
• SED/EEI: The Shipper’s Export Declaration or Electronic Export Information provides the US Census Bureau with the information it needs to monitor international trade.

The PAPS system was created to help streamline the process of importing freight into the US. It provides shipments with pre-clearance to cross the border, but only if the cargo is considered low-risk. This reduces the time carriers need to wait when crossing the border.

PAPS integrates with the US’s Automated Commercial Environment (ACE): this is the main system that importers use to submit information about commercial shipments en route to the US. However, only carriers approved by Customs and Border Protection (CBP) can use the PAPS system.

Any business that plans to ship into or through Canada can take advantage of the Canadian Pre-Arrival Review System (PARS) for faster cross-border freight shipping.

By submitting crucial details about freight, shippers can reduce the risk of delays caused by the Canada Border Services Agency’s (CBSA) cargo processing. Low-risk goods may be pre-cleared and be allowed to cross the border freely.

The Advanced Commercial Information (ACI) and Advanced Commercial Environment (ACE) manifests are similar, but have different purposes.

The ACI manifest is used when entering Canada with cargo. All shipments and border crossings require an ACE manifest — even empty trucks. The ACE manifest works with Canada’s PARS system and can provide carriers with pre-clearance to cross the border.

The ACE manifest is necessary for commercial cross-border freight shipping into the US, whether a truck is carrying cargo or not.

CBP launched the Customs-Trade Partnership Against Terrorism (C-TPAT) system in November 2001, in the wake of the September 11th terrorist attacks of that same year. It was created to protect supply chains from becoming compromised by terrorist activities and other potentially harmful events.

Companies that import freight into the US may qualify to become C-TPAT members, including air carriers, marine port authorities, customs brokers, and ocean carriers. Becoming a member offers various benefits, like reduced wait times at the border and access to Free and Secure Trade (FAST) lanes for faster crossings.

There are four main differences between Canadian and Mexico cross-border shipping:

• Documentation: Cross-border freight shipping in Canada and Mexico both require a Bill of Lading, but other documentation varies.
• Visas: Canadian truck drivers don’t need a B-1 visa to cross into the US, unlike Mexican drivers. However, they still need special licensing.
• Insurance: Mexican carriers aren’t legally required to have cargo insurance. However, Canadian carriers need some level of cargo insurance and third-party liability.
• Timelines: Crossing the border into Canada is usually much faster than entering Mexico. Canada has more crossing points, more efficient technology, less vehicle congestion, and (generally) no language barrier.