Types of Exports

Exports play a key role in a country’s economic growth, and Mexico is no exception. In fact, it ranks among the top nine exporters worldwide.

In this blog, we will explain how exports are classified and what each type entails.

Exports can be classified in two ways: based on their temporality and their shipping method.

By Temporality

Definitive Export

These are exports intended for consumption in the destination market. In other words, they will not return to their country of origin or be resold to another country. Instead, consumers in the importing country will use the product or service.

Temporary Export

Temporary exports are goods sent to another country for a limited time and for a specific purpose. These exports are exempt from foreign trade taxes, but they must still comply with non-tariff regulations and restrictions.

📌 You may also be interested in: What You Need to Know About Temporary Imports

By Shipping Method

Indirect Export

In this type of export, companies rely on local intermediaries—usually established within the domestic market—to handle the export process.

In other words, the company delegates certain decisions to intermediaries and focuses only on adapting its products to meet customer needs.

The biggest advantage of indirect exports is the ease of the process. However, the lack of control over operational strategy can be a disadvantage for many exporters.

Some of the most common intermediaries in indirect exports include:

• Foreign buyers
• Brokers
• Independent agents
• Customs agencies
• Companies specializing in foreign trade

Direct Export

With direct exports, companies handle the entire logistics process themselves, including negotiations with customers.

This is considered an active export approach since the company takes full advantage of foreign trade operations—from finding contacts in foreign markets to setting product prices.

The main advantage of direct exports is greater control over operations and the potential to reduce costs. However, without sufficient experience, companies face higher risks in managing potential challenges.

There are four ways to carry out direct exports:

1. Direct sales through company personnel
2. Online sales
3. Exports via intermediaries
4. Establishing a commercial subsidiary

Coordinated Export

This type of export involves collaboration between the exporter and other companies in the same industry. It is divided into three subcategories:

• Piggyback Export: A company distributes its products using the distribution channels of another company already established in the export market.
• Export Consortium: Local companies and the exporter form a partnership to carry out a joint export operation.
• Commercial Joint Venture: Two or more companies create a new business entity to market a product in a foreign market.

Need Assistance with Your Export Operations?

Our customs agency has over 25 years of experience in the industry. Contact us for expert guidance and seamless international trade operations.

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