Southbound Crossborder Shipping
U.S. to Mexico - Despacho Previo

A process called despacho previo simplifies Mexico-bound shipments prior to car arrival at the border. KCSR/KCSM offers customers 72 hours of free time after notification has been made.  KCSR's and KCSM's Customer Service Centers also proactively monitor the cars being held for clearance into Mexico and will also provide interface between the shipper and forwarder when required, to ensure minimal paperwork problems, saving the customer time.  Although KCSR/KCSM's despacho previo process makes southbound shipping easier, it only has value if customers understand what makes it work.

From a transportation standpoint, despacho previo has one main function. Notification to the broker that a car is billed for movement to Mexico, regardless of origin carrier.  When KCSR/KCSM receives the waybill transmission, an email notification or "despacho previo notice" is automatically generated to the broker (freight forwarder). This notification begins a flow of paperwork, which when done properly, helps ensure that the car will move transborder without delay.

The following steps occur when pre-clearing a railroad car moving from the U.S. into Mexico:

1. The origin shipper documents the car with the origin railroad carrier and provides the information to the U.S. freight forwarder.
2. The U.S. railroad at the border issues a despacho previo notice within hours following on-line billing or receipt of a waybill from connecting rail carriers.
3. The U.S. freight forwarder furnishes the necessary documentation for an export movement into Mexico (including copies of the waybill) to the Mexican Customs broker.
4. The customer establishes how export duties or other dues will be paid with the U.S. freight forwarder. The Mexican Customs broker pays the import duties.
5. The Mexican Customs broker pre-documents the shipment with Mexican Customs.
6. The Mexican Customs broker pre-documents the shipment with KCSM.
7. The Mexican Customs broker delivers the pre-filed documentation to the U.S. freight forwarder.
8. The U.S. freight forwarder delivers copies of all documents to the U.S. connecting railroad at the border, and pays any document delay or demurrage/per diem, if applicable.
9. Finally, the U.S. railroad pre-notifies the car to cross into Mexico.

With despacho previo, cars cross into Mexico for final delivery without being detained at the border.  The exception to this process is when Mexican authorities (Hacienda = Treasury) randomly check cars at Nuevo Laredo. Once the car is cleared for Mexico and KCSR/KCSM receives the necessary information from the forwarder, a release is entered into their computer system, which automatically updates the KCSR/KCSM system and allows operating personnel to move the car to Mexico.

While the steps for clearing a car into Mexico are clearly defined, the process can be delayed when documents and payments are not received in a timely manner. For assistance with despacho previo, contact Steve Milligan, general director, international marketing at 713-924-6370.