Chapter 3 Mexico

Question 1

What are two major problems with the border between the US and Mexico?

Answer 1

• the fence does not hold people back from crossing illegally
• human trafficking in containers is a huge problem

Question 2

What is NAFTA?

Answer 2

North American Free Trade Agreement

• get tax benefits for trading
• encourages trade between North American countries
• makes trade more efficient

Question 3

What is the main difference between Canada and Mexico when it comes to the border?

Answer 3

• canada is supportive of security and is cooperative

- mexico is not very supportive

Question 4

Explain the commercial operations at the southern border

Answer 4

• 4Mil trucks cross from MX to US
• Mexicans drop their containers in drop lots, unsecured, for days or longer
• Mexican business man gives permission for the freight to cross…either direction
• land only procedures
• then Mexican exporters pay the Mexican Customs broker to send the goods across the border (trade barrier)

Question 5

What are drayage companies?

Answer 5

-they simply pick up, cross the border, and go back over and over again

Question 6

Mexican Customs Brokers

Answer 6

• a cartel that influences costs, speed, integrity, and security of border
• only mexican citizens born in Mexico can be customs brokers
• only mexican citizens may facilitate cargo crossing by land into MX
• Everything is controlled by these customs officials

Question 7

What are the 4 vulnerabilities of the process?

Answer 7

1. lack of knowledge of container contents, beginning at the origin of the shipment
2. access to cargo waiting at drop lots
3. limited or no knowledge about and control of drayage firms
4. control of exclusive forwarding agents on the US side

Question 8

What is a freight forwarder?

Answer 8

a person holding itself out to the general public to provide transportation of property for compensation and in the ordinary course of its business

Question 9

How does US Regulations cause issues when it comes to knowledge of contents at Mexican origin?

Answer 9

• limited commercial driver daily working limit
• the drop lots make it more efficient, they just pick up loaded trailers
• they have no way of knowing whats actually in the container, only what is “said to contain”

Question 10

What could happen due to insecure drayage lots?

Answer 10

-human trafficking, drugs, weapons

Question 11

How would they secure the lots if they could?

Answer 11

• there is no way the US can secure Mexican lots

- they won’t be willing to change, they think everything is fine

Question 12

What are two problems when dealing with e-Manifests?

Answer 12

1. not connected to FAST which causes delays

2. not all trucks are authorized to report arrival electronically, small carriers may not have access to a computer

Question 13

How do Mexican brokers avoid US federal law?

Answer 13

by defining freight forwarders as “exclusive forwarding agents”, therefore we don’t know much about these companies that are sending things

Question 14

What has CBP done about the issue?

Answer 14

-they are aware of the issue, but haven’t done anything about it

Question 15

What would it take to fix the issue?

Answer 15

• something bad will have to happen before anything is resolved
• explosive in a truck that goes to a major city and goes off

Question 16

Problems with the Mexican drug cartel

Answer 16

• a lot of them are probably customs brokers

- ties with the ME

Question 17

Why haven’t we seen something bad happen yet with the cartel?

Answer 17

-they may not want to get too tied in with them, because if our border does get tighter with security it would cause problems with the ME