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Author: Subject: Import duty
thebajarunner
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[*] posted on 11-30-2019 at 01:12 PM
Import duty


My boy (dual citizen, US resident) and I are starting a home for older boys to get them out of orphanages and transition into a productive life.

We will be starting a very basic trade/training school in Porvenir (Guadalupe) and need to start importing some of the basic tools and equipment we will need.

For starters we will be doing welding training ( I own half interest in a welding products and industrial gas company here in Modesto)

I plan to set up a compact but complete welding training operation, then move on to carpentry, concrete and other trade skills

So, my question
Assuming that I plan to declare at the border, with full documentation (albeit from my company) what are the limits, per trip, and what will be the estimated rates I will pay on various items?

We always pull into the SY office to get our FMM, and note the very efficient way that the officers are working with people out there in the covered parking area, apparently doing the declarations, so familiar with the physical layout.
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Bob and Susan
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[*] posted on 11-30-2019 at 06:26 PM


you need to cross at otay mesa...

16% of appraised value...

you need to pay in pesos so get some in advance

if you exceed 2500usa you need a broker to assist
they are at the crossing

don't cross at tj or they will turn you around and you'll go to otay mesa anyway




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thebajarunner
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[*] posted on 12-1-2019 at 09:24 AM


Thanks....
So, if I bring a thousand dollar welder I pay $160 (US) in pesos.

Guess we bring the accessories in suitcases in another vehicle, declare the welder and it is all good.

We only get about 16% markup on welders, so I guess I break even on that side of it. (If I invoice myself, that is....probably not)

Otay is o.k.
Prefer SY
Why do I see them scurrying around at SY with clip boards and checking inventory coming in? Plus there is a banco right there....

I know, I know.
"It's Mexico!!" Easy answer...
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Bob and Susan
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[*] posted on 12-1-2019 at 09:52 AM


you can do some stuff at SY but not all..
and
you sure hate it if they turn you around...
you have to wait...then thy escort you to the gate,,,
then you have to wait in line to return

then go to otay mesa

go there first and end the pain

if your welder is on a trailer then you can only import the trailer stuff


they do check the internet for the prices
so they will look up the model and type of welder online

it isn't like the "old days"
no bribes and you MUST pay in pesos now




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[*] posted on 12-1-2019 at 10:02 AM


Quote: Originally posted by thebajarunner  
Thanks....
So, if I bring a thousand dollar welder I pay $160 (US) in pesos.

Why do I see them scurrying around at SY with clip boards and checking inventory coming in? Plus there is a banco right there....


They do "simplified" imports at San Ysidro. I import items there every year.

"Silmplified import" means a maximum import value of $1,500 US per person that are traveling in the same vehicle. Two people = $3,000.

Import duty is 16% of the declared (or market) value of the items.

Sometimes, they will deduct a $75 free import allowance/person from the total but do not count on it. I get the free allowance deduction about one out of three times. Who knows why??? And they have never offered a logical explanation???

If you are over the "simplified import" limits, you get turned around and sent to Otay. That has happened twice when I was significantly over the $3,000 limit for two people. Other times, we were probably a little over the limit based on the true market value of the items and they just settled on the $3,000 figure.

The Bancomer bank is inside of the building with Customs and Immigration. Fees must be paid in pesos but there is a BanComer ATM right at the bank window.

As a side note - this ATM is a good place to get pesos for your trip. You are walking right past it on your way to immigration to get your FMM.

And there is shaded parking and very clean bathrooms. The new SY building is truly "one stop shopping"
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[*] posted on 12-1-2019 at 01:39 PM


Quote: Originally posted by RnR  
As a side note - this ATM is a good place to get pesos for your trip. You are walking right past it on your way to immigration to get your FMM.


I disagree with this...atm's are unreliable
I would get pesos BEFORE you cross...map attached
why ruin your vacation because you cant get pesos

went you get back exchange pesos for dollars BEFORE you get into the usa


pesosins.jpg - 192kB




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[*] posted on 12-1-2019 at 02:15 PM


I just realized that you said that your son has dual citizenship.

He qualifies for the "Paisano Program" of Mexico. In effect, Mexico welcomes Mexican citizens from abroad back to Mexico.

The main benefit for you is that the duty free import allowance is increased to $500 US for everybody in the vehicle. This is a temporary increase for a period of time around the Christmas/New Years holiday.

You need to check the "Paisano Program" website for the details but this will get you started - Summary of Paisano Program Benefits

Navigate back to the website home page to see details of the whole program.

[Edited on 12-1-2019 by RnR]
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[*] posted on 12-1-2019 at 03:00 PM


Are there going to be items that you will need once you have established your school? I will be down sizing next year and own a lot of tools, I could always bring a few down at a time, or meet you with stuff, I'm not that far from Oakdale. Good luck and keep us posted.
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thebajarunner
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[*] posted on 12-1-2019 at 03:19 PM
Great offer!!


Quote: Originally posted by advrider  
Are there going to be items that you will need once you have established your school? I will be down sizing next year and own a lot of tools, I could always bring a few down at a time, or meet you with stuff, I'm not that far from Oakdale. Good luck and keep us posted.


We are probably a year away from really getting going
I am going down later this month to try and get some property tied up- been promised, but need to get it official.
There is already a drug/alcohol rehab facility on site- trying to make sure that we don't mix rehab guys with teen agers trying to get a new life.
I will contact you privately for more strategy
And thanks.....
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[*] posted on 12-2-2019 at 08:26 AM


One other thing to think about is taking down used welders and related equipment. The value of used stuff is usually quite a bit below actual value and will save you a lot on import duties. As I remember my welding shop experiences you could buy the new welder now or in the near future and use it at your shop to make sure it is in good working order and then when it looks good and used take it across the border.



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thebajarunner
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[*] posted on 12-2-2019 at 03:43 PM


Quote: Originally posted by larryC  
One other thing to think about is taking down used welders and related equipment. The value of used stuff is usually quite a bit below actual value and will save you a lot on import duties. As I remember my welding shop experiences you could buy the new welder now or in the near future and use it at your shop to make sure it is in good working order and then when it looks good and used take it across the border.


We really want to "Do it right"
So, new equipment sends a message
and when you are half owner of the store it is not such a big sacrifice (still costs us, but hey, this is for the kids....)

I would rather pay a few more bucks of duty and really take the high road on this project.

I am thinking that maybe when ready that we take our new planned unit and put it in the back shop for a month or two
We don't do custom work but we do demos, and fix stuff for friends and family so it could get a little use, and make sure it is grimy and not too clean.

But, still want to make this a first class deal, not a "tipico" operation.
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[*] posted on 12-3-2019 at 07:54 AM


"I am thinking that maybe when ready that we take our new planned unit and put it in the back shop for a month or two
We don't do custom work but we do demos, and fix stuff for friends and family so it could get a little use, and make sure it is grimy and not too clean".
Good for you, and I think the quote above is exactly what I suggested. I wish you were setting up a little closer to BoLA 'cause I would love to get some welding lessons to improve my hobby skills, with my mig welder especially.




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[*] posted on 12-3-2019 at 08:59 PM


Have you priced what the same equipment would cost if purchased in Mexico? If you're buying used, it makes sense to look in the U.S. where used things tend to be cheaper and I realize you might be able to get things at cost as a supply house but you would have to factor in the cost of transportation and importation as well. I would try reaching out to some of the suppliers you have to see who distributes their products where you're looking to establish this. The other advantage of doing so would be that there's local parts and service support for your equipment if something breaks down.
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