The process of exporting or importing goods in the United States is not straightforward as others may think. There are regulations set out by the federal government to guide this sector (Christopher, 2010). It is therefore deemed necessary for experts in global logistics to understand the regulations controlling this sector to increase compliance as well as the procedures and tax/programs that may be of benefit to the exporter. The demand for motor vehicle spare parts is high in Mexico. Hence, a group of individuals is willing to start exporting these spare parts from the United States to Mexico (Export.gov, n.d). For that matter, this report focuses on the procedure and considerations to be made in exporting the automobile spare parts to Mexico.
Exporting Automobile Spare Parts to Mexico
The process of exporting goods to another country is not as simple as just shipping the goods to the destination of desire (Bowersox et al., 2012). The government has put in place law and procedure to be followed in exporting or re-exporting goods. In efforts to understand the regulations governing the export process, it is crucial to comprehend the role of the “Export Administration Regulations” (EAR) (Export.gov, n.d). Any violation of EAR attracts criminal as well as civil penalties. The process of export is controlled by the “Bureau of Export Administration” (BEA) (Export.gov, n.d) which operates under the U.S. Department of Commerce (Export.gov, n.d).
Obtaining Export License
The first step in exporting products is obtaining the export license. Export licenses are crucial for national security and foreign policy among others. There are two main types of export licen...
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The antitrust law aims at promoting effective allocation of resources by providing consumers and the general public with high quality, safe, and affordable goods and services (Emerson, 2004). Other countries such as Japan and Germany have these antitrust laws. Hence, before setting out to export the goods, it is important first to look at the country 's export and import antitrust law, however, in this case of Mexico, there are no any antitrust laws (Bowersox et al., 2012).
After considering the requirements described above (licensing, shipment and antiboycott/anti-diversion/antitrust laws) the goods can be shipped to the desired destination without any problem. However, it is important to note that by ‘shipping’ we refer to any means used to get the goods out of the country. It could be through road or rail network, air or water.
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