FedEx has expanded its FedEx Transborder Distribution service for cross-border trade between Mexicoand the USA, offering smoother deliveries to and from production facilities in northern Mexico.
The company said it has recently opened two border facilities – one in Ciudad Juárez, Mexico,the other in El Paso, Texas – to help facilitate the flow of goods.
This expanded solution will also help FedEx work hand-in-hand with maquilas (Mexicanproduction and assembly locations for export goods) and companies utilizing maquilas (or otherduty-deferral programs) as part of their supply chain, so they can benefit from a simplifiedshipping and customs clearance process managed entirely by FedEx.
“With this expanded cross-border solution, FedEx looks to simplify the supply chain processby managing the transportation, brokerage and distribution of shipments that cross the Mexico-U.S.border on a regular basis,” said Ed Clark, chief executive officer and president of FedEx TradeNetworks. “The vision is to create a single point of contact to facilitate the efficiency of theentire process.”
The FedEx companies have significant expertise with maquila operations and the procedures toremain in compliance with Customs regulations in the U.S. and Mexico. The expanded solutionincludes the following benefits for customers:
* FedEx can move cargo directly from point of origin to maquilas in Mexico, and from themaquilas to distribution centers or end users in the U.S. based on a company’s factory productionneeds – managing the entire process, including the required Mexican export documentation.
* FedEx tools and automation support to provide online shipment visibility so customers canefficiently manage their supply chain operations.
* Consolidated invoicing or split billing options.
* Comprehensive brokerage solutions.
In addition, FedEx can facilitate cargo movement from Asia or Europe into the U.S., acrossthe border into Mexico to the maquila, and back to the U.S. for final distribution. With FedExTransborder Distribution and its expanded services, a cargo shipment from a maquila or otherduty-deferral programs in Mexico can arrive in the U.S. in as little as one to five days, dependingon the origin and final destination.
“We want to make trade easier for our customers in Mexico and the U.S. so that both countriescan capitalize on the benefits of the North American Free Trade Agreement (NAFTA),” said Juan N.Cento, president for FedEx Express, Latin America and Caribbean Division.
“Thanks to NAFTA, direct foreign investment to Mexican maquila exporters totaled nearly $25billion between 1994 and 2005,” Cento said. “This is equivalent to 13.3% of the total directforeign investment and contributes significantly to diversifying and integrating Mexico’sproduction industries. We are confident that the expansion of this service will contribute to evenmore growth and allow us to act as the leading provider of cross-border solutions and overallstrategic support to the area.”
