US steel company warns of increased steel imports to Mexico

Friday, 29 November 2024 10:30:14 (GMT+3)   |   San Diego

BMG Latin America Inc., a steel trading and processing company that counts among its clients companies such as Caterpillar, Bombardier, Southern Peru Corporation and TrinityRail, responded to the story published by SteelOrbis about the worsening of the steel imports to Mexico due to the bureaucracy of the Ministry of Economy with the new government of President Claudia Sheinbaum that began on October 1.

“This situation is reaching a point of concern for all steel importers in Mexico. How can Mexico be the option for Nearshoring (or relocation of companies, mainly from Asia to Mexico), if there continue to be inconsistencies in its import processes,” said BMG Latin America in response to a story published by SteelOrbis.

Last week, SteelOrbis published the story: “Steel importers to Mexico warn of increased rejections of government permits” that describes the problems faced by steel importers to Mexico due to new rules established last April. The situation was aggravated by the change of president and all the State Secretaries.

The company said that the authority on international trade, the Ministry of Economy, lacks a clear argument. The rejections of import permits for steel products lack technical support. For example, applications have been rejected alleging the lack of a certificate number, even though this information was correctly provided.

It points out that it is a widespread problem in addition to BMG Latin America, because “we have detected that it affects multiple importers, confirming a common situation among different companies in the sector.”

It said that “significant delays in response times”. Although the stipulated time for the response is three business days, sometimes the responses have taken up to 20 business days, which severely impacts operation times.


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