Yes! Some foreign buyers simply find it easier to take possession of the products that they have ordered from a supplier, at a U.S. border town, as well as handle the rest of the export process and final leg of the delivery into Mexico or Canada. Fortunately, EXIM offers coverage for policyholders who are in this situation, as well as other types of policy endorsements to accommodate uncommon needs. Product delivery to foreign buyers in the U.S. is a possibility for EXIM-insured exporters when the buyers are located in Canada or Mexico and the products are intended for ultimate delivery there.
Two critical documents for exporters shipping to the border of Mexico or Canada are the Purchase Order and Bill of Lading, described here. The Purchase Order, issued by the importer or exporter and signed by an authorized principal of the buyer’s company, details what is being ordered. The Bill of Lading, issued by an unaffiliated third party, includes information about the origin and destination of the goods sold, and other details such as the Incoterms and description and quantity of the goods. Together, they comprise two of the three buyer obligation documents.
EXIM’s Multi-Buyer policy language for insured exporters shipping to the border of Mexico or Canada directly pertains to these documents as well:
Purchase Order - If the buyer’s country is either Mexico or Canada, you may ship to a point in the United States from which, to the best of your knowledge, the products are intended for ultimate delivery to Mexico or Canada, respectively, provided that (i) you have written instructions from the buyer directing delivery to the buyer or the designated agent of the buyer at the named point in the United States.
Bill of Lading - If the buyer’s country is either Mexico or Canada, you may ship to a point in the United States from which, to the best of your knowledge, the products are intended for ultimate delivery to Mexico or Canada, respectively, provided that (ii) your shipping document(s) evidence delivery to the point in the United States specified in the written instructions.
For more information about EXIM’s policies and endorsements, click here to schedule a consultation with an EXIM trade finance specialist.
