# Presentation: 940050

## Analysis of Alternative Coordination Methods at Border Ports of Entry between the United States and Mexico

**Analysis of Alternative Coordination Methods at Border Ports of Entry between the United States and Mexico**

***Final Report***

**TOLL ROAD UNIT**

- Ministry of
- Communications
- and Transportation

## Contents

**    ****Introduction**
**1. Analysis of Public Agency Roles**
**2. Analysis of Operational Problems**
**3. Alternatives for Domestic Intersectorial Coordination**
**4. Analysis of Binational Coordination Alternatives**
**5. Results Summary**

**Page**

**i**
**1**
**4**
**10**
**25**
**54**

## Introduction

**Introduction**

## Objectives of the Study

**Analysis of Alternative Coordination Methods at Border **
**Ports of Entry between the United States and Mexico**

- i

- Identification of the agencies involved in operation of transportation of freight in the Northern border of Mexico.
- Description of the main coordination problems between authorities and users that operate in the Northern border zone of Mexico, and proposals for improving inter-agency and binational coordination.
- Analysis of alternatives to improve the coordination between authorities and users with responsibilities at the border.
- Formulation of a mathematical valuation model that will allow the comparison of costs resulting from coordination problems between public agencies and users, and of their improvement measures.
- Cost/benefit analysis of the implementation of improvement measures for the coordination of operating functions of the binational agencies involved in freight transportation at the US-Mexico border.

**Expected Results**

## For the development of the study, a series of activities were conducted, which were integrated to each of  the phases.  

- Identification of Operational Problems at commercial border ports of entry resulting from the lack of coordination between Public Agencies and Agents Involved

- Review Plans, Studies and Relevant Processes for the operation of border ports of entry

- Conceptualization and Quantification of Performance Parameters (Valuation Model)

- Brief Definition of Coordination Deficiencies between Public Agencies in Mexico

- Review in Studies conducted by U.S. Consultants regarding coordination problems at their border with Mexico

- Quantify the Magnitude of Problems with the Mathematical Valuation Model

- Review Public Agency proposals to improve coordination at the border

- Analysis of the Relationship between  Public Agencies and Agents involved in border operations

***First Phase***

***Second Phase***

***For the development of the study, a series of activities were conducted, which were integrated to each of  the phases.  ***

- ii

## Analysis of Public Agency Roles 

**Analysis**** ****of Public Agency Roles**** **

**1.**

## There is an important number of public agencies with foreign trade responsibilities and/or operations at border ports of entry. Duplication of efforts between them has not been identified.

**Federal Public Agencies with Foreign Trade Responsibilities and/or in the Border Ports of Entry located in the Northern part of the Country**

- N°.

- Public Agencies

- Functions

- Avoid Contraband and Collect Revenue

- Traffic Security and Financial Sources for Road and Bridge Conservation

- Legal Stay of Vehicle Operators

- Phytosanitary Inspections of Import Products

- Administration of Facilities and Services at Border Ports of Entry

- Coordination Bi-national Topics

- National Security (Arms and Drugs)

- NAFTA Topics

- 1

- SHCP

- Customs

- 2

- SCT

- Fed Truck Transport

- 3

- Preventive Medicine

- 4

- CAPUFE/UAC

- 5

- SG

- National Immigration Institute

- 6

- SAGARPA

- National Commission for Agricultural Health  CONASAG / OISA (Office of Inspection of Agricultural Health)

- 7

- SECODAM

- CABIN

- 9

- Pcia. Rep.

- Northern Border Commission

- 10

- PROFEPA

- 11

- PFP/PFC

- 12

- SRE

- G.D. North America

- 13

- SECON

- G.D.  Foreign Trade Services

- 8

- Complaints Department

- Claims &  Accusa-tions

- Hazardous Materials & Forestry Products

- 14

- Inspection & Fumigation

- SEMARNAT

***There is an important number of public agencies with foreign trade responsibilities and/or operations at border ports of entry. Duplication of efforts between them has not been identified.***

- 1

## A smaller number of Public Agencies have a permanent physical presence at the border. Nevertheless, other important users of border facilities are included.

***A smaller number of Public Agencies have a permanent physical presence at the border. Nevertheless, other important users of border facilities are included.***

- 2

## Customs represents the agency with the greatest influence at border crossings, considering its responsibility over the country’s international trade. SAGARPA conducts an important activity in the border zone due to the importation of agricultural products. CABIN is the legal administrator of federal assets.

***Customs represents the agency with the greatest influence at border crossings, considering its responsibility over the country’s international trade. SAGARPA conducts an important activity in the border zone due to the importation of agricultural products. CABIN is the legal administrator of federal assets.***

- 3

## Analysis of Operational Problems 

**Analysis of Operational Problems**** **

**2.**

## For the analysis of commercial vehicle operational problems at border crossings, bibliographic information was reviewed and interviews were conducted with regulatory and operational authorities, as well as users of border facilities. 

**Agencies in Mexico, D.F.**

_**Dates: August - October, 2001**_

- Confederation of Customs Agent Associations, AC (CAAAREM)

- Central Administration of Customs Planning. SAT

- Phytosanitary Inspection Field Office, SAGARPA

- National Council of Maquiladora Export Industry, Intermodal Freight Terminal, Querétaro. Interior Customs

- National Institute of Immigration, Interior Ministry

- Federal Truck Transport Field Office, SCT-DGAF

**Border Ports **
**Load Type Characteristics**

-    Tijuana-Mesa of Otay/San Diego
- 	Maquiladora-Regional

- Cd. Juárez / El Paso
- 	Maquiladora-Regional

- Reynosa-Pharr
- 	Containerized Freight - Interior of the Country
- 	Maquiladora - Regional

- Nuevo Laredo-Colombia / Laredo
- 	Containerized-Interior of the Country
- 	Hazardous Materials (Colombia)

_**Dates: September - November, 2001**_

***For the analysis of commercial vehicle operational problems at border crossings, bibliographic information was reviewed and interviews were conducted with regulatory and operational authorities, as well as users of border facilities. ***

- 4

## The visited border stations are the most important customs offices in the country.

- (*) AICM. - Mexico City International Airport
- Source: Customs Service, SHCP

***The visited border stations are the most important customs offices in the country.***

**Pedimentos**

**Operations**

**Collections**
**($ pesos)**

**Border Station**

**POE Visited**

- Nuevo Laredo
- AICM (*)
- Tijuana
- Colombia
- Ciudad Juárez
- Nogales
- Matamoros
- Veracruz
- Toluca
- Manzanillo
- Reynosa

- 3,929,032
- 2,299,433
- 3,504,076
- 1,656,836
- 2,659,474
- 1,482,742
- 951,793
- 492,805
- 382,305
- 302,582
- -

- 1,728,215
- 986,734
- 716,167
- 553,375
- 433,461
- 427,158
- 320,128
- 222,648
- 187,868
- 126,015
- -

- 31,005,358,197
- 17,603,990,897
- 3,460,807,020
- 6,494,807,735
- 2,629,408,548
- 1,115,225,332
- 3,342,255,197
- 11,704,893,433
- 5,403,426,359
- 6,742,152,148
- -

- 5

## Interviews were conducted with staff members from local public agencies that participate in activities that provide services to foreign trade. 

**Border Operations Interviews**

**Economic Entity**

**Tijuana**

***Official Agencies***
- Customs Representatives, SAT, SHCP
- SAGARPA Representatives
- Federal Trucking Representatives, SCT
- National Institute of Immigration, SEGOB
***Other Economic Agents***
- Customs Agents, Individuals, Association
- Carriers, Independent Truckers, Association
- Association of Maquiladora Exporters
- Consignees
- Other  FIDENOR

**Cd. Juárez**

- 

- 

- 

- 

- 

- 

- 

- 

- 

***Interviews were conducted with staff members from local public agencies that participate in activities that provide services to foreign trade. ***

**Nuevo Laredo**

- 

- 

- 

- 

**Colombia**

- 

- 

- 

- 

- 

**Laredo System **

- 

**Reynosa***

- 

- 

- 

- 

- 

- + Interviews in Conjunction with Consultants in Mexico and U.S..

- 6

## Summary of Operational Problems

**Border Station**

- Regional border crossing, mainly for the  Maquiladora industry
- Only one commercial border crossing at this location (Mesa de Otay)
- N° of Trucks/Day: 3,300 (2,000M+1,300X) plus empty vehicles

**Principal Characteristics**

**Principal Operational Problems  **

**Tijuana**

- Congestion at peak times, M and X.
- No nearby alternate for truck crossings
- Share infrastructure for local and border crossing traffic
- Reduced number of inspection slots
- No space for the installation of meat inspection facility

- Regional border crossing; some from Chihuahua, State capital; for the maquiladora  industry
- High traffic capacity at Zaragoza-Ysleta and San Jerónimo-Santa Teresa
- N° of Trucks/Day: 3000 (1,700 M + 1,300X) plus empty vehicles

**Cd. Juárez**

- Congestion at peak times, M and X, at the Córdoba and Zaragoza bridges
- Lack of spaces at Córdova bridge, worsened by the long-term parking of decommissioned vehicles.
- No facilities for the inspection of meat products; there is sufficient space for installation at a future date

- M = Imports; X = Exports

***Along Mexico’s Northeast border regional freight is mainly maquiladora.  The border crossing at Tijuana is characterized by high saturation rates and conflicts with urban traffic. Cd. Juárez has  vehicular congestion during certain hours of the day. Currently, there are no facilities at the border for the inspection of meat products.***

- 7

**Summary of Operational Problems**

## The Northeast has important volumes of freight traffic with origin/destination in the interior of  Mexico. There is sufficient border crossing infrastructure.  However, congestion and long traffic lines exist because of concentrations at peak hours of the day.

**Border Station**

**Main Characteristics**

**Main Operational Problems**

- Border freight crossings to/from interior of the country
- Nuevo Laredo III and Colombia Solidaridad Bridge, only ones with freight operations in the area
- Abundant competition between facilities
- N° of trucks/day. Nuevo Laredo III, 4600 (3000 M+1600X); Colombia, 1500 (800 M + 700X); plus empty vehicles
- High traffic capacity at both crossings
- Colombia has a meat products inspection center and is the only one authorized for hazardous materials.

**Nuevo Laredo**
**Colombia**

- The station at Km 26 in the interior of the country presents physical conditions inconsistent with the aggregate capacity of the border bridges of the area.
- Colombia competes at a disadvantage with Nuevo Laredo III, considering the greater distances and restricted access (in process of improvement)
- Irregular legal situation (rights and privileges) at the  Nuevo Laredo III Bridge, makes growth and expansion difficult

- Mainly freight border crossing to the exterior of the country; some industrial maquiladora freight
- The Reynosa-Pharr bridge has ample capacity for commercial vehicles; Reynosa-Hidalgo is mainly for imported freight
- N° of vehicles/day 3,200 (1,900M +1,300X) plus empty vehicles

**Reynosa**

- Congestion at peak hours in M and X
- The inspection platform for exports has significant design and construction problems, making its operation inefficient
- At Reynosa-Pharr the only southbound commercial vehicles access lane is blocked partially by trans-migrant vehicles

***The Northeast has important volumes of freight traffic with origin/destination in the interior of  Mexico. There is sufficient border crossing infrastructure.  However, congestion and long traffic lines exist because of concentrations at peak hours of the day.***

- M = Importats; X = Exports

- 8

**Principal Characteristics and Problems Identified at Commercial Vehicles Border Crossings (2/2)**

## USA

***Exports from the USA***

***Imports from the USA***

- Schedule Concentration of Crossing (evening schedule)
- Insufficient  number of customs platforms in operation
- Restrictions on physical space (some crossings)

- Insufficient  Number of Customs Platforms in Operation
- Customs Inspection (10% + 10% + R.O)
- Restrictions on Physical Space (some crossings)
- Schedule Concentration of Crossing (evening schedule)
- Customs Agent
- Carrier

***Exports from Mexico***

***Imports from Mexico***

**USA**

**Mexico**

- R.O. = Red Operational

- 9

- (Vehicles Waiting)

- (Vehicles Waiting)

***The relative high time required for commercial freight vehicle to cross the border and the associated cost represents the main problem at the commercial crossing between Mexico and the United States. The problems are identified in the Mexican side of the border fro imports and exports.***

## Slide 17

## Coordination

- Coordination is the harmonious action of activities conducted by various participants for the achievement of desired results.

-     Who are the participants?
-     What are the actions?
-     How are these developed?
-     What are the desired results?

- What is understood from coordination?

- 10

- Listed are the participants of trade and border crossing related activities and the related responsibilities.  The coordination between the key stakeholders presents problems that create obstacles that impede the trans-border traffic of commercial vehicles.

## The efficient operation of trans-border commercial vehicles between Mexico/USA requires coordination of the different authorities and private stakeholders 

**Coordination between Mexican Stakeholders involved in foreign trade at the Northern Border****1**

***The efficient operation of trans-border commercial vehicles between Mexico/USA requires coordination of the different authorities and private stakeholders ***

- Customs
- 1

- Customs Agent       	   2

- SECODAM (Cabin)            3

- SAGARPA
- 4

- SCT- DGAF

- Transfer Carrier 6

- Road Carrier
-  7

- User
- 8

- 1 Only shipping by Truck

- Highly Coordinated Interaction;

- Medium Interaction;

- No Coordinated Relationship

- A

- B

- C

- D

- E

- F

- G

- H

- 11

## Different factors that create obstacles to reduce commercial vehicle crossing time were identified

**Identified Coordination Problems at Commercial Vehicle Ports of Entry (1/2)**

***Different factors that create obstacles to reduce commercial vehicle crossing time were identified***

**Customs Agent-Customs**

**SECODAM - Customs **
**(Cabin)**

**User - Customs**

- Commercial vehicle concentration at reduced number of hours of operation.
- Customs Agents absent when inspection of exported or imported freight is required.
- Incomplete documentation of the operation of the selection station.
- Lack of consensus with the Customs Agent Associations at the location in the design of facilities for the customs operation.

- Operational difficulties because of needed improvements and facility maintenance not attended to in a timely manner
- Lack of coordination in the design and planning of projects

- Facilitate the customs handling of imported freight, authorizing more handling flexibility at interior customs offices.
- Changes in legislation, allowing the maquiladora industry to directly send products to their customers in the interior of the country
***Carrier - Customs***
- Inefficient mechanism of action for the temporary importation of trailers with freight

**(2-A)***

**(3-A)**

**(8-A) **

**(7-A) **

- 12

- * Represents the crossings in the rows and columns of the matrix presented on previous page.

## Identified Coordination Problems at Commercial Vehicle Ports of Entry (2/2)

**Identified Coordination Problems at Commercial Vehicle Ports of Entry (2/2)**

**SAGARPA - Customs Agent**

**Carrier -  SCT (Federal Trucking)**

**User - Customs Agent**

- Limited operation schedules; SAGARPA operates inspection of products until 3:00pm, performing office duties in the afternoon.
- Potential Project to limit the number of meat inspection facilities to provide import certificate.

- Delay in forwarding funds for  payment of import duties.
- Lack of accuracy over procedures related to foreign trade.
- Imposition of contracting “transfer” vehicles for border crossing.

***User - SCT (Federal Trucking)***
*** ***
- The management of permits for the circulation of trans-migratory vehicles blocks the available facilities for trans-border transit.

**(4-B)**

**(6/7-E)**

**(8-B) **

- Authorization of vehicles for trans-border operation and federal freight transportation.
- Issue commercial driver’s licenses

- 13

**(8-E)**

## Customs-Customs (1-A)

**Inefficiencies in the Internal Operation of Customs**

- Delays and lines at the entrance of vehicles importing (southbound) at the selection station, because of the lack of sufficient control personnel.
- More widespread authority to conduct the customs clearance of freight at the destination point.
- Delays during freight “recognition” (inspection), because of lack of documentation by the “modulator”.
- Lack of sufficient attention of inspection personnel to in-transit freight.
- Insufficient freight inspection personnel to meet the vehicle arrival rate at the inspection point.
- Inadequate customs inspection facilities for efficient operation.
- Physical area of the platform makes lift operation difficult.
- Work area has excessive number of columns and makes operation difficult.
- Inspection platform too narrow for effective operation.
- Customs inspection ratios greater than those established as the Mexican Norm (transition period)
- Red operations by type of freight, as per the signature of customs agent.
- Logistics of circulation of vehicles doubles the access to selection system.
- Delays in the removal of confiscated vehicles that occupy space and restrict the already inefficient areas designated for customs operations.
- Interior facilities (station at km 25/30) inconsistent with the volume of border crossings.

***Some improvements in the operation of the Mexican border are identified as being internal to customs, relying on it’s authority to detain the transportation of freight exercising its duties. ***

- 14

**Customs-Customs (1-A)**

## -

**Customs Inspection of Imported Freight**

- 100

- Red
- 10

- Red
- 1

- 9
- Green

- Green
- 90

- Red
- 9

- 81
- Green

- Selection
- First inspection

- Selection
- Second inspection

**No. of Inspections**

- 10/1 (2 times)

- 9

- 19, 1 (2 times)

- 19%

- 2 times 1%

- 1 time 18%

**Probability of Inspection**

- 15

- (station 1)

- (station 2)

## Improvements in Commercial Vehicle Border Crossing Operations

**(Southbound)**

***Customs***
- The automatic selection system substituted the random system to determine the occurrence of customs inspections.  Reducing inspections to the most trusted importers, the rates of inspection increased during the transition.  The rates should be adjusted to those established by the norm.
- Plans that should be considered:
- The need to present invoices and bills in printed form.  This should be accepted only in electronic form.
- Mandatory requirement that the documentation be signed in 25% of the cases.  This should be at the discretion of the agent of international commerce.  In the case the Mexican banking system, this has been overcome.
- Reduction of the inspection level of the freight/customs examinations at the border points of entry.
- An increased rate of customs clearance at the borders. An increased rate of border clearance must be promoted at locations in the interior of the country (internal customs offices.)
- Mexican customs creates obstacles for importing commercial vehicles, creating lines; this could be improved in the following way:
- Increase number of operation booths at stage 1 (presentation of documents and automatic inspection selection)
- Decrease percentage of vehicles to the fiscal inspection.
- Increase inspection capacity (infrastructure and personnel).
- Promote a normal distribution schedule at border crossings, distributing peak hours.
-  Establishing differential quotas at crossing times.
-  Reduce percentage of inspections at slow times.
-  Recognition for customs agents that approve the proposed plan.
- Negotiate with municipalities improvements in infrastructure at entry and exit of fiscal yard and border installations.
- Improvements in the pneumatic system that transfers documents from the operation booth, stage 1, to the inspection station.
- Use of X-rays to expedite the inspection of vehicles.

- 16

## For import trailers that move to the interior of the country, establishing a bond/warranty mechanism, allowing the auto transporters to show authorities its operation in a satisfactory manner.

- Allow the use of customs facilities for simultaneous inspection of driver, vehicle and freight by other public agencies.
***SAGARPA***
- The agricultural inspection is performed for imported freight.  The inspection facilities are located at the border on the USA side.
- Due to recent changes in regulations The inspection of agricultural products,, must be completed (meat industry) at facilities located at the border on the Mexican side.  Currently, there is only one inspection center available at the border (Colombia, Nuevo Leon) this situation congests the operation and movement of this kind of product.  It is necessary to increase the number of inspection centers for this type of product, or to continue operate with inspection centers located at the US side of the border.  It is estimated that an average of 20,000 per month with inspected freight will be inspected at this agency.
- By complying with SAGARPA’s requirement of having verification and inspection at the Mexican side of the border more congestion will be created and hold-up at the border crossing for commercial vehicles.  Handling areas are required for vehicles, and cooling and freezing storage facilities are required among with other facilities (minimum spaces required by the law), a handling yard for forty trucks, 250m3 of cooling storage and 300m3 of freezing storage.

- 17

## Other Public Agencies

- _Federal Trucking_. Participation at the border is minimal at this time, even though they have access to facilities at the border.  The operations are primarily to authorize the passage of vehicles and the issuance of commercial drivers licenses.  The inspections are conducted in areas adjacent to the control booths at the internal stations (Km 25-30), and is limited by the lack of personnel assigned to conduct these tasks.
- A stricter inspection of vehicle conditions and drivers is done at the US side.  This situation somewhat assures satisfactory operational conditions.
- _Immigration._ Activities of INS at the border points are mainly for assistance to tourism.  They do not hold up or limit in any way the transit of commercial vehicles.  It generally operates at the control station at Km 25/30.
- Immigration functions are implemented on an as needed basis in internal routes of the country (control station Km 25), depending on personnel availability of designated.

***Other Actors***
- _Customs Brokers_. The operation plan of the customs brokers, who concentrate on imported freight shipments during the morning hours, represent an element that contributes to the formation of long lines.  Shipment to customs offices should follow a distribution schedule which should be more in balance with customs agency hours of operation.
- _Banks_. Flexible hours of operation, coordinated with the customs schedule.
- _Transfer Vehicles_. Reduce the use of the transfer vehicles, opening the possibility of vehicles crossing to pick up or deliver freight at the border;  a) Mexican Imports Case : Vehicles with or without freight, crossing northbound, deliver freight and return with imported freight; b) Mexican Exports Case (northbound);  cross the vehicle, deliver the freight, and cross back with or without freight.  The use of facilities for the freight forwarding company at the Mexican border (i.e., Colombia), will facilitate the procedure.
- Commercial vehicles crossing without trailer or with an empties should not be encouraged; This could reduce the number of vehicles crossing border ports of entry.  Improve supply/demand balance.
- Higher crossing fee for vehicles empties (if applicable).
- Use of another less attractive border crossing.
- Foreign commercial vehicles authorized to transport imported freight be allowed to operate with return freight to the USA.

- 18

## An increased use of the interior customs for the release of products would result in a reduction of existing levels of commercial vehicle congestion of at border customs facilities. 

- Border Customs
- Ocean Ports Customs
- Interior Customs

**Locations of Customs Offices**

- Source: General Customs Administration, SHCP (information of the SHCP web site)

***An increased use of the interior customs for the release of products would result in a reduction of existing levels of commercial vehicle congestion of at border customs facilities. ***

- 19

## The location of customs agent’s warehouses (forwarding companies) in the US border zone, encourage the use of transfer vehicles, increasing time and costs to the user. 

**Current Transfer Vehicle Typical Operation at the US-Mexico Border**

***The location of customs agent’s warehouses (forwarding companies) in the US border zone, encourage the use of transfer vehicles, increasing time and costs to the user. ***

**Forwarding Company**
**Warehouse and Operation Center**

- Customs Broker Office
- Freight Classification
- Import Permit
- Warehousing
- Management of Inventory
- “Freight Hub” receive/dispatch to the interior

- Long-haul Vehicle

- Long-haul Vehicle

**Transfer **
**Vehicle**

**Long-haul transporting  Company**

**Long-Haul Transporting Company**

**Transportation Company Transfer Vehicle**

- Long-haul vehicle

- Long-haul vehicle

- Transfer Vehicle

-  **Transportation Company Transfer Vehicle**

**Advantage in Favor of the Transfer Vehicle Outline**

- Long crossing and high cost of
-    long-haul vehicle

- Urban Traffic Jam
- Customs dispatch
- Reduced spaces for long-haul tractors
- Drivers not familiar with the urban zone and bridge

**Non convincing elements in most cases**

**USA**

**México**

- 20

## Long-haul vehicles with operations in both countries using a scheme offered at the Colombia Bridge, present opportunities to avoid transfer vehicles in border operations.

**Colombia Bridge Vehicle Transfer Operation Scheme**

***Long-haul vehicles with operations in both countries using a scheme offered at the Colombia Bridge, present opportunities to avoid transfer vehicles in border operations.***

- For freight imports, long-haul vehicles from the US deliver the trailer and freight to the forwarding company or Mexican customs broker warehouse located next to the customs office in the Colombia Bridge Fiscal Yard.  The vehicle will return to the US with or without the trailer, empty or loaded, depending on the balance of cargo that the customs broker can handle.

- The US customs inspection for drugs will significantly reduced with the guarantee that the vehicle did not leave the fiscal yard and that the customs broker is strict in his inspections.

- For exports, the loaded vehicle will pass Mexican customs and arrive at the fiscal yard adjacent to customs, where the loaded trailer is delivered, and return thru Mexican customs and roadways with or without a trailer, loaded or empty.

- Fiscal
- Yard

**USA**

**Mexico**

- Import Customs

- Export Customs

- 21

## Improvements in Commercial Vehicle Border Crossing Operation 

**Improvements in Commercial Vehicle Border Crossing Operation **
**(Northbound)**

- Operations of northbound vehicles (exports from Mexico) have been impeded because the high rate of inspection that the US authorities perform (drugs, immigration, safety, vehicle, health) to the vehicle, freight and driver.  The operation can be improved by:
- Normal schedule distribution of northbound vehicles.
- Increase size of US facilities and personnel assigned to operations.
- more availability of X-ray equipment and operation lines.
- more fiscal area in waiting areas, inside the US border.
- Increased level of trust in the drug traffic operations.
- Confine transit vehicle waiting areas on the Mexican border.
- Use new intelligent transport systems for vehicles and drivers, with dedicated transit lanes.
- Periodic security inspection of transborder commercial vehicles, with an estimated number of inspections per crossing.
- The inspection of vehicles, freight and operators are activities that take place at the US border for traffic coming from Mexico.
- The inspection agencies in the US slow down the flow of northbound commercial vehicles.
- The different US authorities use non-related and non-coordinated databases, duplicating their efforts.

- _US Customs_. Verify the compliance of commercial regulations and drug and smuggling related laws.
- _Immigration and Naturalization Service_. Authority to regulate the admission of vehicle operators to the US.
- _U.S. Department of Agriculture  (USDA)_ Prevent the introduction of in plant and animal plagues.
- _Food and Drug Administration (FDA)_._._ Ensure the health and safety of products.
- _US Department of Transportation, State and Federal_. Safety inspection of commercial vehicles.

**Main Public Agencies with Activities at the Border Crossings**

- 22

## The rate of inspection could be quicker based on the inspectors discretion favoring the balance of freight between competitive crossing points.

- The number of vehicles and a scheduled distribution during the workday can be determined from the demand side, with infrastructure, equipment availability and personnel in the supply-side of the equation.
- A SENTRI (automobiles) system for commercial vehicles, identified by exclusive lanes for companies/vehicles/drivers in both countries with acceptable background data, could help the reduction of travel time at the border crossing.
- The best coordination of border operations, considering authorities from both sides, transport companies and customs agencies could be obtained by the creation of a single authority or administration in both nations protecting the interests of both countries.
- For Mexican exports (northbound), the physical inspection in Mexico of freight should exclude exports that come from companies under the maquila, pitex and non tax regimens, eliminating those types of industry from the automatic sorting system for inspection.

- 23

## High concentration of freight vehicles at the border crossing during reduced peak times represents the key reason for the formation of long lines, therefore increasing crossing time. 

- (Imports/Exports Freight Trucks; August 2001 numbers)

***High concentration of freight vehicles at the border crossing during reduced peak times represents the key reason for the formation of long lines, therefore increasing crossing time. ***

**36**

**94**

**142**

**219**

**235**

**252**

**290**

**330**

**350**

**389**

**446**

**406**

**352**

**329**

**255**

**155**

**8-9**

**9-10**

**10-11**

**11-12**

**12-1**

**1-2**

**2-3**

**3-4**

**4-5**

**5-6**

**6-7**

**7-8**

**8-9**

**9-10**

**10-11**

**11-12**

**A.M.**

**P.M.**

**267 per hour (16 hours)**

- 23 ‘

**372 per hour (7 hours)**

**413 per hour (3 ours)**

## Intelligent Transport Systems (ITS) at Border Crossings

- The implementation of ITS for commercial vehicles should be promoted to reduce border crossing time.  Some examples are:
- Exclusive SENTRI type lanes for commercial vehicles, currently used for passenger vehicles.
- Driver’s route information, or pre-travel information, such as electronic boards with variable signals, indicating waiting time for crossing the border. This will support and facilitate customs agent and driver’s operations decision on which route to follow. For example, crossing at Colombia or New Laredo III bridge.
- Automatic toll collection mechanisms.
- 	Will not modify traffic flow significantly; however, this system would prevent drivers from carrying cash.
- Automatic safety inspection for commercial vehicles, including electronic vehicle identification systems, shared data bases between agencies and the two countries, and weight-in-motion machines.
- Electronic vehicle dispatch, including driver, transport company/vehicle, and freight.
- GPS system to locate and track commercial vehicles.
- Electronic customs dispatch for specific freight types.

- 24

## Slide 34

## The task of identifying and evaluating Binational Coordination improvements in the Operation of Border Ports of Entry were developed working in coordination with the U.S. consulting team.

**Joint Activities USA - Mexico **

**Date**

**Visited Topics**

**Place**

- July  16

- Coordination meeting

- El Paso, Tx

- November 14/16

- Joint Interviews
- Progression of field visits
- Inspection of model Validation

- December 3/4

- Work meeting
- Progression of field visits
- Inspection of model Validation
- Binational topic discussion
- Phoenix CCT presentation preparation

- December 12/13

- Discussion of Binational themes
- Next Steps

- July -December

- Permanent exchange of Information

- February 2002*

- Binational themes Discussion

- March 2002*
- April

- Binational themes Discussion

- September 5, 27

- Concepts of coordination, Advances

- 25

- May 2002*

- Binational themes Discussion
- Binational results Presentation

- Reynosa, Tamps

- Mexico, D.F

- Phoenix, AZ

- Mexico- USA

- Austin, Tx

- Mexico, D.F.

- Mexico, D F

- Mexico, D.F.
- Monterrey, N.L.

- * Future date

## The binational teams initiated work in parallel, however differences in contractual schedules modified site visit programs.  Binational issues were conducted in coordination. 

**Stages and Progress**

***The binational teams initiated work in parallel, however differences in contractual schedules modified site visit programs.  Binational issues were conducted in coordination. ***

**U**
**S**
**A**

**July **

**August**

**Sep.**

**Oct.**

**Nov.**

**Dec.**
**2001**

**Jan**
**2002**

**Feb.**

**Mar.**

**Apr.**

**May.**

**Jun.**
**2002**

**M**
**É**
**X**
**I**
**C**
**O**

**1**_**st**_**     -     2**_**nd**_**     -      3**_**rd**_**       -      4**_**th**_**                           PHASES**_** **_

**1**_**st**_**     -      2**_**nd**_**           PHASES**_** **_

**Final Report**

**New Considerations**

**Pending Analysis**

**Binational themes**

- * September 11

- 26

## General Concepts

- Results
- Definition of Coordination Themes/Set of Problems
- Development of Alternatives
- Proposed Methods of Change

_**Phase I**_
- Identify/Quantify Coordination Problems

_**Phase 2**_
- Development of Coordination Alternatives

_**Phase 3**_
- Preliminary Coordination Alternatives

_**Phase 4**_
- Proposed Actions Implementation Plan

- 27

***Scope of work for US and Mexican consultants was defined in coordination developed by the consultants of the analysis of Mexico and its corresponding analysis in the USA.***

## USA authorities that participate in border crossing

**Main Agencies of the United States Government that Participate in the Border Crossing Process**

***There are 7 principal governmental agencies that participate in border crossing process.***

- 28

- Assures that the freight and services that enter the US comply with the norms and duties
- Regulates the entry of visitors and immigrants into the USA and prevents the irregular entry of persons and jobs into the country
- Inspects animal, agricultural products that enter the US
- Regulates the entry of food and drugs into the US
- Regulates the transportation of hazardous materials into the US
- Operates and is owner of the Ports of Entry
- Protects and regulates the safety of ground transportation in the US

- USCS

- INS

- USDA

- FDA

- EPA

- GSA

- DPS y DOT

**Agency**

**Main Attribute**

**USA authorities that participate in border crossing**

## As in Mexico, there is not a single agency that is in charge of the commercial border crossing process in the U.S. at border crossings, or the development of common objectives between the agencies. 

***As in Mexico, there is not a single agency that is in charge of the commercial border crossing process in the U.S. at border crossings, or the development of common objectives between the agencies. ***

- INS: Prevents immigration/employment of illegals

- EPA: Controls the entry of hazardous materials

- DPS: Security in transportation of freight

- GSA: Design and operation of efficient border crossings

- USDA: Animal and agricultural health

- FDA: Safety of food and drugs

- US Customs: Contraband /Narcotics

- There is no individual authority with a common objective

- 29

## Private sector stakeholders were identified.

**Private Sector Stakeholders (US and Mexico) **

- Represents the Exporter/Importer of freight before the US or Mexico Customs.

- Customs Brokers

- Trans-Border Transportation firms with short trips in the immediate area of the border zone.

-  “Transfer” Carriers
- (Drayage)

- Meets the needs of origin-destination transport with the highest level of efficiency.

- Long Haul Transportation COmpanies

- Efficient and low cost Transportation Services.

- Shipper

- 30

**Entity**

**Objectives**

***Private sector stakeholders were identified.***

- Stores freight, manages inventories and shipments to interested parties as necessary.

- Forwarding Co./others

## Different aspects of binational inter-agency coordination are identified. Coordination issues between the customs agencies of both countries are important. 

***Different aspects of binational inter-agency coordination are identified. Coordination issues between the customs agencies of both countries are important. ***

**Binational Inter-agency Relationship and Main Coordination Problems (2/2)**

**Agencies**

**Mexico**

**US**

- SECODAM

- GSA

- Inadequate facilities at ports of entry, with lack of space for future expansions
- Inefficient distribution of existing facilities

- Mexican Customs

- USCS

- Irregular communication between customs for flexible human resources and materials in a coordinate way and joint extended operation schedules.
- Frequent changes of personnel impede coordination efforts
- The non existence of strategies of both nations to incorporate new techniques and the use of shared information

- Mexican Customs

- User

- Frequent standard changes and lack of communication with the commercial transport community

- Customs Broker

- Customs Broker

- Duplication of efforts from deficiencies in customs requirements and limits on shared information

- SCT

- DOT
- DPS

- Lack of weight and dimension standards, and service schedules.
- Very limited information sharing of drivers and vehicles (transfer and long-haul).

**Problem Identified**

- SAGARPA

- USDA

- Changes in meat inspection procedures will make difficult the possibility of sharing facilities of interest to both nations

- SAGARPA

- FDA

- Changes in meat inspection procedures will make difficult the possibility of sharing facilities of interest to both nations

- SAGARPA

- User

- Changes in meat inspection procedures will make difficult the possibility of sharing facilities of interest to both nations

- 31

## Cross border transport vehicle regulations must be identified to eliminate problems that these agencies generate.

**Binational Inter-agency Relationship and Main Coordination Problems(2/2)**

**Involved Dependencies**

**Mexico**

**US**

- Mexican Transfer Vehicle

- DOT
- DPS

- Complex freight transportation** **binational regulations with acceptance problems.
- Lack of information and knowledge between parties for the opening of a commercial vehicle border crossing (January 2002).

- Mexican Transportation Firms

- DOT
- DPS

- SCT

- US
-  Transportation
- Firms

- Mexican Customs Agent

- User

- Communications problems between users and customs brokers resulting in incomplete documentation.
- Frequent changes in laws and requirements with difficulties in communication with end users.

**Problem Identified**

- Mexican Transfer Vehicle

- INS

- Manual Inspection and transfer of immigration documents; limited use of technology.

- Mexican User

- USCS

- Lack of communication to obtain pre dispatch program certification requirements.
- Slow procedures to certify personnel changes.

- Lack of information and knowledge between parties for the opening of a commercial vehicle border crossing (January 2002).

- Complex freight transportation** **binational regulations with acceptance problems.
- Lack of information and knowledge between parties for the opening of a commercial vehicle border crossing (January 2002).

- Complex freight transportation** **binational regulations with acceptance problems.
- Lack of information and knowledge between parties for the opening of a commercial vehicle border crossing (January 2002).

- Mexican Transfer Vehicle

- USCS

- 32

***Cross border transport vehicle regulations must be identified to eliminate problems that these agencies generate.***

## The binational border crossing process incorporates public and private sector stakeholders in Mexico and the US.  The preliminary and secondary inspections of importing freight to the US by US authorities represent the principal problem for the northbound Trans border crossing.

- (Mexican Export)

- 6.The commercial vehicles presents documentation and legal paperwork for the vehicle, mainly the importation bond, if applicable, for the in-transit trailer.
- 5.The long-haul vehicle arrives at the transportation company’s parking lot, and leaves the trailer and goes back to Mexico without the trailer, loaded or unloaded.  Contact with a customs broker is established.  The trailer is attached to a transfer truck and drives to the border port of entry.
- 4. The loaded transfer vehicle accesses the automatic selection custom’s booth, if applicable, provides documentation and the need for customs inspection is identified. A toll fee for the bridge is paid.
- 3. Immigration, customs, food, hazardous materials, drugs and vehicle’s safety  authorities receive information on the shipment coming from Mexico. Each authority performs inspections if necessary.
- 2. The transfer vehicle drives to the transport or forwarding company facilities.  Leaves the trailer, to a long-haul carrier.
- 1. US entry documents revision for commercial vehicles.

- North

- South

***The binational border crossing process incorporates public and private sector stakeholders in Mexico and the US.  The preliminary and secondary inspections of importing freight to the US by US authorities represent the principal problem for the northbound Trans border crossing.***

- 33

## In the case of imports to Mexico (southbound), the Mexican customs inspection is the agency that slows down the flow of commercial vehicle trans-border transport.

**Southbound Commercial Vehicle Crossing**

**Origin                  in the Country **

- Freight Re exportation
- Forwarding Company

- Long-haul Vehicles

- Transfer Vehicle

- USA Fiscal Review

- Mexican Fiscal Review

- Km 26 Booth

**Final Destination    **
** ****in the country**

- 1. The long-haul vehicle leaves the trailer at the forwarding company facilities and returns to the USA, tractor only or with the trailer loaded or not.
- 2. Customs broker receives, classifies, stores and creates the importation documents, loads the transfer vehicle and sends it to the border crossing.
- 3. The export process is completed.
- 4. Large part of the customs importation processing is developed in Mexico at the automatic selection booth to define the need for customs inspection.
- 5. The transfer vehicle drives the freight to the long-haul transport company yard, for a tractor to take the shipment into Mexico.
- 6. The long-haul vehicle stops at the Km 26 inspection facility gives required import documents, including the guarantee/bond of the vehicle going into the country.

- Transport Company
-  Parking Lot

- Transport Company
- transfer

- Freight Vehicle

***In the case of imports to Mexico (southbound), the Mexican customs inspection is the agency that slows down the flow of commercial vehicle trans-border transport.***

- North

- South

- 34

## Coordination of scheduling, human resources, and infrastructure of customs operations and freight inspection requires attention in both countries.

**Exports**

**Exports**

**Arrival schedule distribution and TDPA**
**Customs service operation schedule**
**No of Customs booths**
**N° of working booths**
**Assigned customs personnel**

**Imports**

**Imports**

**N° of Immigration service booths**
**N° Drug inspection agents**
**N° Commercial vehicle inspection booths**
**Inspection operation schedule**
**Immigration and drugs assigned personnel **
**Commercial vehicles, drug and Immigration percentages**

**N° of available customs service booths**
**N° of booths in operation **
**Schedule distribution**
**Assigned customs personnel (recognition)**
**Customs service schedule**
**Commercial vehicles; empty, loaded**
**Freight fiscal inspection percentage (recognition)**
**Freight fiscal inspection capability**
**Space/Slots**
**Human resources**
**Average required time**
**Exit connection - urban infrastructure **

**Assigned customs personnel (recognition)**
**Vehicle percentage in recognition**
**Commercial vehicles, empty, loaded**
**N° of booths in operation **
**N° of customs service booths**
**arriving distribution schedule and TDPA**
**Weekdays and service schedule of operation**

**USA**

**MEXICO**

**USA**

**MEXICO**

***Coordination of scheduling, human resources, and infrastructure of customs operations and freight inspection requires attention in both countries.***

- 35

## USA

***Exports***

***Imports***

- Drug Inspection (all)
- Immigration Inspection (all)
- Commercial Vehicle Inspection
- Health Inspection  (Agriculture)
- National Security Revision

- Schedule Concentration of Crossing (evening schedule)
- Insufficient number of customs platforms in operation
- Restrictions on physical space (some crossings)

- Insufficient Number of Customs Platforms in Operation
- Customs Inspection (10% + 10% + R.O)
- Restrictions on physical space (some crossings)
- Schedule Concentration of Crossing (evening schedule)
-  Customs Agent
-  Carrier

***Exports***

***Imports***

**USA**

**Mexico**

- R.O = Operative Red

- 36

## Operating schedules, resource assignment and the possibility of sharing facilities and information, that should be homogeneous between agencies, are some of the key binational issues 

**Binational Coordination Issues (1/2)**

**Issue**

**Problems requiring both nation’s attention**

- Flexible operation schedules based on each countries requirements
- Concentration of of cross border traffic
- Exports from Mexico
- Insufficient equipment and inspections personnel in the US border (Customs, Immigration, Vehicle safety, Drugs)
- High inspection levels (vehicle and timing combinations percentages)
- Imports to Mexico
- Insufficient personnel in the selection and recognition booths
- High levels of inspection in customs dispatch.

**Operation schedules and crossing time reduction**

_***Queue Formation***_

- Shared databases (electronic)
- Transfer Vehicles
- Information on companies, commercial vehicles and drivers that operate exclusively in the cross-border transport industry. Provide services to both sides of the border.
- Better activities control, making operation easier
- Long-haul trailers with exchange agreements with companies in the neighboring country.
- Commercial vehicles and driver information.
- Avoid procedures to obtain bonds and import permits at the border.
- Vehicle’s security inspection could be easier by having historic background checks of companies and vehicles.

**Shared Information**

_***Information Management to Speed up the Cross-border Traffic***_

***Operating schedules, resource assignment and the possibility of sharing facilities and information, that should be homogeneous between agencies, are some of the key binational issues ***

- 37

## Binational Coordination Issues (2/2)

**Binational Coordination Issues (2/2)**

**Issue**

**Problems requiring both nation’s attention**

- Standardize the vehicle operation rules on both sides of the border (transfers)
- Binational licenses for drivers that transit on both sides of the border and for drivers who travel inside both countries.
- The effort would have to be made at the State level in the US.

**Standardization of laws and requirements**

_***Transit Requirements***_

- Provide space for facility expansion.
- Build sufficient service slots and capacity to receive the arrival rate of vehicles, avoiding queues and excess operation times.  Combined  inspection booths with different agencies that inspect at the USA border; as well as service booths at Mexican customs inspection.

**Inadequate infrastructure and facility distribution at the ports of entry, causing commercial vehicle delays and congestion.**

_***Facilities Expansion***_

- It will avoid the duplication of facilities and would be used by authorities from both countries, independently of the traffic direction.

_***Binational Inspection Center***_

- Allow easier access to customs installations for commercial vehicles, without interfering with passenger vehicles.
- Flexibility in the distribution of facilities based on hours of operation.

_***Facility Redistribution***_

- Establish long range plans that organize agency activities.
- Institutionalize programs, independent of changes in government officials.

**Long-Term Binational Programs**

_***Institutionalization Program***_

- 38

- Binational coordination by project managers and consideration of other participating agencies.
- Evaluate current operations and technology changes.
- Ensure the efficient commercial vehicle traffic flow coordinating inspections requirements.
- Consider intelligent transport systems (ITS) for traffic distribution.

_***Facility Planning and Design***_

## The “transfer vehicle” should be an alternative option. This would help reduce congestion at the ports of entry.

**Vehicle Types with International Operations**
- (Only International Border Traffic)

**Regular Operations**

**Characteristics**

- Have permission to cross freight from US (southbound) and return to the us empty.

- Older vehicles in good working conditions

- US Company Vehicle with US/Texas plates and US Driver (transfer)

**Type**

- Cross freight from the US (Southbound), pick up freight in Mexico for the US (allowed); not registered with Hacienda (Mexican IRS)

**Current Operations**

- The Company/ Vehicle have permission (cross-border freight ) to cross from Mexico (northbound) and return empty

- Older model vehicles in good working conditions

- Special Project for regularization; US/Texas plate vehicle property of Mexican company with Mexican driver (transfer)

- Takes freight from Mexico (northbound), picks up freight to return in the US for Mexico (allowed)

- The company/ vehicle have permission to travel on all the Mexican roadway network and can be used as a transfer vehicle for international freight at the border

- Recent model vehicles for long haul in Mexico. Few units operate as transfer vehicles

- Mexican Vehicle authorized for the Federal Public Service (Commercial Vehicle)

- Transports freight from Mexico (northbound) to the US. Not allowed to pick up freight in the US to take back to Mexico

- 39

***The “transfer vehicle” should be an alternative option. This would help reduce congestion at the ports of entry.***

## Among the most important issues to reduce the cost and time for freight vehicle’s border crossing, is assigning more resources during peak concentration times at the crossings. . .

**Potential Commercial Vehicle Cross-border Improvement Plan**

**Problem**

**Alternative Improvement Plan **

- Incorporate more personnel at the available booths at Mexican customs (module 1)
- Increase inspection efficiency (reducing overall times) in customs inspection area (first inspection)
- Reduce the percentage rate of “red operatives” (products and customs brokers)

**Traffic congestion at peak hours, creates long lines requiring more time to cross the border**
**Continued. . . **

_***Imports***_

- US authorities should incorporate more service stations (personnel and equipment) for customs inspections, Immigration, vehicle safety, drugs, in primary as well as secondary inspections.

_***Exports***_

***Among the most important issues to reduce the cost and time for freight vehicle’s border crossing, is assigning more resources during peak concentration times at the crossings. . .***

- 40

## . . . Or, more promotion of using interior customs and encourage border crossing at non-peak hours.

**Problem**

**Alternate improvement plan **

- Encourage “interior” customs office (internal customs or fiscal offices): (1) for borders with vehicles destined to the interior of both countries; (2) for borders with high commercial vehicle volume of repetitive shippers.
- 	a) Increase the promotion of pre “dispatch”
- 	b) Increase the user’s personnel certification (shipper and transport company)
- Create binational database of shippers and certified transport companies
- 	c) Provide incentives for program participation
- Different handling, depending on vehicle type: i.e., pre-dispatch of commercial vehicles, loaded vehicles, empty “bob-tails”.
- 	a) Dedicated lanes for different type of traffic
- 	b) Pre establish schedules for different types of traffic
- 	c) Express lanes for different types of traffic
- More coordination and information exchange between shippers and US, Mexican customs authorities for document preparation.
- Stimulate border crossing at non-peak hours.
- Different toll fees
- Less inspection
- Recognition to customs agents
- Expand agency operation schedules on both sides of the border, adjusting to the user’s requirements.
- Increase use of ITS technologies for improved schedule management and entry port selection

**Continued...   **
**Traffic congestion at peak hours, creates long lines requiring more time to cross the border**

_***Bi-national***_

- 41

***. . . Or, more promotion of using interior customs and encourage border crossing at non-peak hours.***

## Manual handling of customs information also inhibits the flow of commercial vehicles at border crossings.

**Problem**

**Alternative improvement plan  **

- Management of a binational bill of laden, reducing shipper cost and delay.
- Electronic management of import and export information and permits (applied at some US entry points).
- Standardize commodity classification systems in both countries to avoid duplication of efforts.
- Toll collections must be expedited: electronic payment and /or pre-paid accounts.
- Driver’s identification requirements could be automatic biometrics systems, reducing process time. The international transport driver operates on both sides of the border and crosses several times a day.  Combination of binational databases.

**Manual document information persists at some border crossings, generating an increased possibility of mistakes and delays**

- 42

***Manual handling of customs information also inhibits the flow of commercial vehicles at border crossings.***

## The “transfer” system used through-out the border, represents additional costs and delays in the cross-border commercial operation.

***The “transfer” system used through-out the border, represents additional costs and delays in the cross-border commercial operation.***

**Theme**

**Alternative improvement plan  **

- Implement the NAFTA agreement to open the borders for commercial vehicles. Support feasibility of using long-haul equipment at border crossing reducing the number of crossings and congestion.
- Promote safety standards and harmonious operation for US/Mexico commercial vehicles.
- Differentiate higher crossing toll fees for empty trailers and “bob-tails”.

**The mandatory use of the transfer vehicle in the commercial border crossing, increases vehicle traffic, costs and produces longer crossing times**

## Integration of Binational infrastructure and commercial vehicle operations will reduce cost and inefficiencies by avoiding duplication of efforts by authorities from both countries.

***Integration of Binational infrastructure and commercial vehicle operations will reduce cost and inefficiencies by avoiding duplication of efforts by authorities from both countries.***

**Theme**

**Alternative improvement plan  **

- Promote binational mid/long term strategies.
- Explore the possibility of operating in binational facilities (Ports of Entry) staffed by US and Mexican agencies.
- Share information generated by different US and Mexican agencies to create a binational database.
- Common use of information technology.

**Binational infrastructure and operation integration**

## Having one facility for binational multidisciplinary use to handle and inspect freight, vehicle, and driver would help the flow of vehicles, avoiding duplication.

**One Binational Inspection**
**Border Authority**

- Binational facilities and personnel with inspections in both directions, employees of only one binational organization.
- Eliminating problems concerning operation schedules and facility duplication.
- Official approval of standards in both countries
- vehicle security
- shared vehicle registration
- customs
- control of entries and departures
- agriculture
- shared inspection facilities for agricultural products
- national security
- identification of possible terrorist attacks and security measures
- tariff payments and previous permits, concerning each case
- 100% of customs inspection (X-rays) and random checks on freight
- Opening of a preferential lane.
- SENTRI type, for commercial vehicles. Reduces rate of inspections.
- Shared information system that includes carrier company, vehicle, and driver
- Handling in-bond shipments (Interior Customs)
- Homogeneous Inspection in both directions
- Indistinct inspection areas in both directions (located at any of them).
- Monitored vehicle lanes, assigning more personnel and inspection units.

***Implications:***

**CUSTOMS//NARCOTICS/TRANSPORTATION**
**AGRICULTURE**

- 45

***Having one facility for binational multidisciplinary use to handle and inspect freight, vehicle, and driver would help the flow of vehicles, avoiding duplication.***

## Assessment of Costs and Benefits of Improvements in Binational Coordination

***O perform an assessment of costs and benefits of identified coordination problems, a preliminary analysis of the specific problems to be assessed is recommended.***

- 46

**Is the Alternative Quantifiable?**

**Yes**

**No**

**Yes**

**No**

**Assessment of Costs and Benefits of Improvements in Binational Coordination**

## Alternate assessment diagrams were identified as well as the tools for possible models

***Alternate assessment diagrams were identified as well as the tools for possible models***

- Mathematical Models
- Simulation
- Benchmarking
- Expert Opinion

- Queuing Models
- Time Management Models

- POE = Port of Entry

- 47

## There are several factors that must be analyzed and different methods are proposed for the assessment of these factors.

**Type of Expected Effects**

- Factors to be analyzed

- Methods of proposed measures

- Travel time
- (delays)

- Agency Labor Costs

- Quantify

- Qualitative Discussion

- 48

## Benefit Assessment for Coordination Schemes

- If the total time elapsed from the moment freight leaves the shipper (exporter) until it is received by the consignee (Importer)  is considered a performance indicator, then the time taken by the commercial vehicle to cross the border including customs inspections should be considered within this period of time. The “handling time”, or waiting time between the buying/selling transaction and the time before crossing the border should also be included. The reduction in any of these periods of time due to improved coordination between the involved agencies/institutions will have an economic benefit to the stakeholders and to the nation.
- The crossing time can be measured in the field or could be estimated through queuing models and each time element (indicated in the diagram) can be associated with an opportunity cost expressed in $/units of time/vehicle.
- Through scheduling factors, the volume of vehicles and persons could be increased to daily or annual volumes to calculate the opportunity cost for assessment effects and subsequent evaluations.
- Also, the opportunity costs can be estimated by associating the “handling time” of freight by remaining in storage before crossing the border.

- 49

## Benefits of a Greater Number of Operators in the Primary Units

- Increasing the staff at inspection booths when demand increases, reduces vehicles queues

**No. of Inspectors**

**Vehicles/hour**

**Base**

**Improvement**

**Demand (Vehicles/hour)**

**Hour**

**Demand**

**Inspectors**

- 50

## Benefits of Increasing the Number of Inspectors (cont.)

- Baseline of 300 vehicles at peak; improvement of 50 vehicles at a high point
- Base cost VOC = 1,084 million pesos; Improved Cost VOC = 200 million pesos; Net Savings in VP@ 12%, 20 years = 884 million pesos (93 Million U$D)

**Benefits of Increasing the Number of Inspectors (cont.)**

- 51

## Complementary Actions 

- However, the congestion problem could be transferred to the customs/tax area when greater number of vehicles are waiting for physical inspection.
- This situation can be minimized with the following points:
- Reduction in the percentage of selected vehicles for physical inspection at the border port.
- Increase customs personnel for this type of work.
- Increase the number of parking inspection bays.
- Reduce the average time required for vehicle inspection.
- Authorize a longer number of vehicles to be inspected in the interior of the country.

**Complementary Actions **

- 52

## Savings from the Reduction of Handling Time (Tg*) and from Eliminating Transfer Vehicles

- There is an estimated reduction of 2 or 3 days in the Tg. (1 day of savings); in both directions. Also, an additional 20% of the border crossing is considered by eliminating transfer vehicles.
- A mixture of commodity types similar to the US/Mexico land trade is considered.
- Savings of 318 million pesos is estimated (VP@ 12%, 20 years)1 . (33.5 Millions U$D)

- 1. Reduction in the opportunity costs of the value of the freight in transit
- 2. Reduction of storage time
- 3. Reduction of transfers

- Type of Benefit

- PV of Benefits
-  (millions of pesos)

- Concept

- Tg

- Tg
- Savings of 20% of Transfers

- total

- $ 97.52

- $85.14
- $136.23

-      $ 318.89
- (33.5 Millions of U$D)

- 1 measure of annual discount in real terms during 20 years.
- * From payment until receipt of the freight

- 53

## Slide 64

##  1.   In Mexico at least 14 federal agencies that operate at the Border Ports of entry were identified, eight operate directly at the border crossings. Several private stakeholders also operate at the POE.

-  1.   In Mexico at least 14 federal agencies that operate at the Border Ports of entry were identified, eight operate directly at the border crossings. Several private stakeholders also operate at the POE.
-  2.  Commercial vehicles traveling in the North and Northeast of the country, move regionally, transporting maquiladora industry freight. Commercial vehicles from the interior of Mexico and the US travel through Northeast POEs.
-  3.  In Tijuana there is only one commercial vehicle POE; and commercial traffic creates congestion in the urban area, especially during peak hours. Cd. Juárez, on the other hand, has alternative commercial vehicle ports of entry. The Cordoba bridge is toll-free has limited space, which is further reduced by confiscated vehicles that have been placed in the border crossing area.
-  4. Nuevo Laredo and Colombia, N.L. have ample space and modern POE facilities, with enough capacity to satisfy current demand. The operation and crossing schedules are extended during certain hours of the day due to the long evening queues. Customs checkpoint, at km 26 in the interior of Mexico, does not have enough capacity to handle current vehicle flow that travel through the Nuevo Laredo and Colombia, N.L bridges.
-  5.  Some border facilities present significant design and construction deficiencies, making difficult to operate, in the logistics of vehicle circulation as well as freight inspection facilities.
-  6.  The automated inspection selection system considers an average of 10% of the vehicles that travel south (imports). On top of this, an additional “rojo operativo” or operative red is added for certain commodities, resulting sometimes in a greater percentage of inspected units. The available facilities and the assigned personnel for physical inspection are not enough to process the total amount of selected vehicles, especially during peak periods.

## 7.      Recent changes in Mexican legislation will increase problems at the border operations, as meat inspection would need to be performed at facilities located in the Mexican side of the border. So far, Mexican meat imports have been inspected in the US side of the border. Colombia N.L. is the only POE with certified facilities in the Mexican border.

- 8.        Long commercial vehicle delays to cross the border, specially during peak hours, could be minimized with a greater number of inspection booths in operation, and/or more personnel at the inspection platform. In general terms, it was noticed that there were some un-staffed facilities that could be used with increased personnel.
-  9.   Other elements that preclude efficient vehicles flow at the border crossing; include the absence of the customs broker representative when a inspection is required; incomplete documentation; inefficient arrangements for trailer temporary importation, and the use of “transfer” vehicles for border crossings.
-  10.    Some the measures that could be implemented to reduce time and cost of commercial vehicle crossings at the border include  the use of customs inspections in the interior of the country, “despacho previo” or pre-approval import permits, reduce freight inspection ratio, discourage customs brokers practice to increase shipments during peak hours, and increase utilization of technological equipment and X-Rays for freight inspection.
-  11.   Customs brokers have modernized its operations with the use of electronic equipment to handle despacho previo, however, physically inspecting almost 100% of the imported commodities represents additional barriers to expedite border crossing, increasing the cost of this operation, claiming that is done to support customs handling process.
-  12.   Inspection of cargo, drivers and vehicles performed by authorities with diverse responsibilities hinder the harmonious flow of freight. The required physical inspection should be performed on one single location where all the authorities could interact to reduce crossing time and costs.
-  13.   Binational issues include the lack of coordination between border authorities in each country, between authorities of both countries, schedule flexibility, human resources and equipment that would match neighboring country’s operations.

##   14. For northbound flow, inspections by different US authorities for customs, narcotics, vehicle condition, driver identification   and guns, obstruct the free flow commercial vehicles.

-   14. For northbound flow, inspections by different US authorities for customs, narcotics, vehicle condition, driver identification   and guns, obstruct the free flow commercial vehicles.
-  15. By not allowing free flow of commercial vehicles between Mexico and the US, the usage “transfer” vehicles affect both countries, producing a higher volume of vehicles crossing the border.
-  16. Northbound commercial vehicle border crossing is higher due to rigorous inspection process by US authorities, export process by Mexican authorities and toll collection in the Mexican side of the border, generates queues and congestion.
-  17. In the southbound direction, the number of customs booths in operation determines border-crossing time, the time of service during the day, the percentage of vehicles sent for inspection and the average inspection time (given by the staffing level and space availability).
-  18. A potential solution for these problems is sharing information amongst binational authorities. Information that could be shared includes transfer vehicles registration, transportation firm data and border crossing drivers’ information, as well as freight information.
-  19. Certification of binational shippers, transportation companies and drivers would help expediting shipments through the border, performing any inspection at origin or destination.
-  20. Promoting the use of off-peak schedules could be stimulated by using differential toll, lower inspection rates at off-peak periods, and by recognizing customs brokers that use off-peak periods, or modifying public agencies operating hours based on negotiations with the private sector.

-  21.   Electronic document handling required by Customs, would help reducing error margins and delays.
- 22.  The use of ITS (Intelligent Transportation Systems) would help schedule management and in POE selection, decisions that are   taken by the customs broker.
-  23. Finally, it is recommended to analyze the possibility of using binational infrastructures, in which agencies from both countries would share facilities, avoiding infrastructure duplication on both sides of the border.
-  24. It is recommended to perform and cost benefit analysis on binational coordination alternative improvements, defining specific problems to be analyzed initially.

## Appendixes 

**Appendixes**** **

## Appendix  1 

**Appendix  1 **

**Relevant Aspects of Border Crossing Operations **

## Appendix 1 presents the relevant information of each of the border ports of entry identified during field visits and in available bibliographical information.

- Mesa de Otay, Tijuana – Otay Mesa
- Cd. Juárez, Chih. - El Paso, Tx.
- Nuevo Laredo, Tamps. - Laredo, Tx.
- Colombia, N.L. - Laredo, Tx.
- Reynosa, Tamps. - Hidalgo, Pharr, Tx.

- A1-1

***Appendix 1 presents the relevant information of each of the border ports of entry identified during field visits and in available bibliographical information.***

## Location of the crossing of Mesa de Otay in Tijuana

**Location of the crossing of Mesa de Otay in Tijuana**

- California, USA

- Baja California, Mexico

- Tijuana,

- Baja California

**Otay Mesa - **

**Otay Mesa**

- Interstate  805

- San Ysidro,

- California

**San Ysidro - **

**Puerta Mexíco**

- Interstate 905

- Otay Mesa Road

- Blvd Gustavo Diaz Ordaz

- Bellas Artes

- Av Baja California

- Benito Juarez

- Interstate 5

- Blvd of the Insurgents

- Export vehicles form long queues that interfere with urban traffic.  Import vehicles can’t circulate when urban traffic is congested.

- A1-2

- Airport Blvd.

- Industrial Zone

***Mesa de Otay is the only border crossing for commercial vehicles in Tijuana***.

## Agencies with Operations at the Border Port of Tijuana 

**Agencies with Operations at the Border Port of Tijuana**** **
- (Border Crossing of Otay Mesa—Mesa de Otay)

**At the US Border, 17 Agencies Operate**

**Inspection SAGARPA* **
**(4 Locations)**

**North of the USA**

**South of Mexico **

**Line**

**Administration Offices **
- Customs, Secretary of State
- OISA, CONASAG. Sagarpa
- Cabin, SECODAM
- SECODAM
- Sectur (Angeles green)
- Unidad of Inspection Fiscal Aduanera [Fiscal Customs Inspection Unit] (UIFA, for its initials in Spanish), SHCP

**Assigned Areas**
- Fiscal Yards, Customs, SHCP
- Federal Truck Transport, Preventive Medicine, SCT
- Fiscal Yards Improvement

**Customs, SHCP**

**Import Area **

**Export Area**

**PGR**

**Bellas Artes Avenue, Urban Infrastructure**

- * Inspection Facilities for Agricultural Products
-   OISA, CONASAG, SAGARPA,
-   There are 4 facilities authorized by SAGARPA
- * To specific area of PFP was not identified. Ocasionally they park in the entrance area of vehicles to Mexico

- At the Customs Yard of the USA the following inspections are performed:
-  Customs		- Agriculture
-  Customs		- Hazardous Materials
-   X-Rays, canine inspection of vehicles (K-7)
-  Security conditions of the vehicle

- A1-3

## Main Areas Identified at Border Port of Mesa de Otay

- S.R. = Trucks without towing gear [For its initials in Spanish]

**USA**
**Otay Mesa**

**Mexico**
**Mesa de Otay**

**Station 1, Customs**

**Previous Zone**

**Fiscal Patio  Import Area**

**2****nd**** Inspection**

**Platform **

**Inspection Platform**

**To**

**B**

**C**

**INM**

**SAGARPA**

**SECTUR**

**SECODAM**

**UIFA**

**Offices Agencies**

**Fiscal Inspection Yard Declaration of Records**

**Autos**

**1**

**2**

**1**

**Empty Trucks and S.R.**

**Lines of automobiles ready to cross**

**Fiscal Patio Area for Exports**

**Inspection Platform **

**Avenida Bellas Artes. Municipal Infrastructure **

- To.- Improved Booth for prior payments
- B.- Improved Booth payments prior to crossing
- C.- SCT Booth
-  Federal Truck Transport
-  Preventive Medicine

- 5 Units
- 1.- Perishable Products and others
- 2.- Perishable Products and others
- 3.- Assembly (Brass)
- 4.- Assembly (Brass)
- 5.- Empty Vehicles

- Only one area exists for first inspection of imports.
- The inspection platform has the capacity to inspect 34 vehicles.
- Empty trucks do not pass the customs system.

**1**

**2**

**3**

**4**

**5**

- Total number of loaded and empty trucks coming from Mexico

- A1-4

## Customs Operation (Imports)

- Customs operation business hours are from 9:00 to 17:00 hrs from Monday through Friday, and from 9:00 to 11:00 hrs on Saturdays (8:00-15:00 hrs in the USA), for imports; this is subject to US customs operation hours.
- Station 1 of the documentation and Random Selection System has 8 booths. Generally only 4 or 5 are operating. This station is located approximately 20 meters from the export booths of US customs.
- In principle, the Random System dispatches 90% of the commercial vehicles without customs inspection, and 10% receiving inspection.
- 	Recent statistics received from customs show the following:
- 	-   10,673 vehicles with imported freight (Monday through Friday); 308 units Saturdays (There is no import operations on Sundays).
- 		(A daily estimate of 1,500 southbound empty trucks).
- 	-   6,626 vehicles with imported freight (Monday through Friday); 548 units on Saturdays and Sundays.
- 		(A daily estimate of 1,000 northbound empty vehicles).
- 	From Monday through Friday, 1,380 inspections were performed with 54 on Saturdays for imports; for exports, 1,623 from Monday through Friday and 74 on Saturdays and Sundays.
- 	An additional estimated daily average of 2,500 empty vehicles cross the border.
- 	The average length of inspection is 3 hours and 26 minutes. The inspection capacity is of 57 imported (containers) and 34 containers for exports.
- When passing to the second random selection station for second inspection, all vehicles cross that were not required to be inspected (90%), as well as those inspected (10%).
- Freight vehicles are directed towards the import fiscal area exit where there are three more booths: the SCT (Federal Truck Transports, Preventive Medicine), and two to take the payment of improvements costs to the fiscal yard (Customs Agents, Carriers, Assemblers, etc.).
- Sagarpa indicated that to comply with the changes in the Law of Animal Sanitation, an area is required for an inspection area within the border port. There is an unoccupied area that could be used by customs.
- The actual operation diagram is adequate since the facilities are of sufficient to complete the necessary inspections. Four facilities located 5 to 20 km from the line in the USA area are used.
- Requiring facilities at Mexican ports of entry, as per interviews, would benefit the employment level in Mexico and will guarantee that the product inspected is the same that enters the country.
- A daily average of 80/100 agricultural freight vehicles cross at the port.

- Vehicles departing from the federal zone face problems when merging with urban traffic.

- A1-5

## Customs Operations (Exports)

- For exports, customs operates during the following hours: from 7:00 to 23:00 hrs.
- The customs station has 5 booths. Mainly industrial assembly freight crosses the border port. There are complaints that not all the booths operate because of lack customs of personnel.
- Occasionally, it was noticed that lines of trucks form, obstructing urban traffic of Tijuana at Bellas Artes Avenue, requiring a waiting period of up to 8 hours to arrive at the random selection booth.
- The entrance to the export fiscal yard requires excessive maneuvering of commercial vehicles. There are slow traffic zones in which drugs can be incorporated into the vehicles, with and without the driver’s knowledge (see annexed sketch). There is no security or crossing restrictions within this zone, enhancing the problem of drugs and undocumented individuals.
- The vehicle requiring inspection, according to the random system, needs to return to the inspection platform. There is only one area for the first inspection of exports.
- When crossing the random selection station and border, the vehicles are submitted to X-rays; sometimes the 3 pieces of available equipment are not enough, forming a bottleneck in vehicle transit, with lines on the Mexican side. Two additional X-ray machines are required.
- Based on inspector judgment, vehicles pass through canine and vehicle inspection over a weighbridge and through a workshop to verify the physical condition of the truck and its operational safety for US traffic.
- The US and Mexico customs infrastructure in in Mesa de Otay has a physical unevenness by the difference in elevations, requiring additional driving of trucks, mainly Northbound. Studies have been done to move customs about 1 km towards Tecate. This crossing will be available in the year 2007.

- A1-6

## Export of Freight Facility Location

**(Mesa de Otay, Tijuana)**

**Return to red Assembly**

**Assembly**

**Perishables**

**Perishables**

- A1-7

## SAGARPA (OISA*)

- There are 4 accredited facilities that are used for the inspection of imported agricultural freight in Mexico. The facilities are located on the north side of the border (USA) about 5/20 km from the border line. Two of these facilities are used for the inspection of meat products, 1 for vegetables and meats and 1 for vegetables only. The facilities are considered of good quality to generate inspection jobs for imported products.
- Good coordination exists among other agencies regarding operations at the border, especially customs.
- The changes in the Law of Animal Sanitation are considered to be beneficial to the operations of the agency in generating employment on the Mexican side of the border (an estimate of 100 new actual positions) and to ensure that the products inspected are those that are actually entering the country, which under the present system of operations is not guaranteed.
- It is estimated that at the Border Port of Mesa de Otay there is enough space to locate the required facilities, near the previous customs area. A private corporation could receive a contract to build and operate the facilities. Presently, no effort has been made to this effect.
- 100% of the freight inspection of agricultural products is performed at the border port. An average of 100 daily inspections of  federal trucking vehicles are operated daily on this type of product, within the business hours from 8 to 16 hrs, Monday through Friday. An estimated 40% of inspections are performed on meat products and 60% on vegetable products.

- A1-8

- * Inspection Office of Agricultural Sanitation

## SCT (Federal Truck Transports and Preventive Medicine)

- Departing the area (south) of the Fiscal Yard for Imports (Customs, SHCP) there is a passage through which all commercial vehicles circulate during their transit towards urban traffic of Tijuana (three lanes of traffic, with a distance of approximately 150 meters).
- ATPF and MP occupy a shared booth, through which by random selection, vehicles are inspected for documentation and physical condition of the vehicle. The inspection is made “pulling the vehicle to one side” of the circulation lane.
- While the vehicle is being inspected, the driver is required to enter the preventive medicine booth to check the driver’s physical condition to properly drive the vehicle.
- There is a technical inability to return a vehicle (rarely) that does not comply with the safety conditions to transit;  in which case only the corresponding infraction is recorded. The Federal Truck Transport Inspection is the last one performed (vehicle, driver, freight) in the transborder operation. There is no weighbridge available for commercial vehicles.
- When the vehicle crosses the SCT booth, it faces (only 15 meters) urban traffic of Tijuana (Av. Bellas Artes) with difficulties to travel west. The traffic can also obstruct the exit of commercial vehicles, generating “lines” at the exit of the fiscal/federal inspection yard.
- Some items that Federal Truck Transport randomly inspects at the border (generally to “transfer” vehicles; highway vehicles require annual physical inspection by ATF).
- 	- Current truck permit
- 	- Insurance policy of the vehicle
- 	- Current driver’s license
- 	- Vehicles with hazardous materials (adequate signs and equipment)
- 	- Vehicle gas emissions
- 	- Vehicle operating conditions (visual inspection)
- The inspection performed by Federal Truck Transport seems to duplicate the inspection performed by the US border authorities, as well as the local transit inspection in Tijuana. This inspection should be shared with the US authorities, when considering the interests of binational operations.

- A1-9

## Other Identified Agencies

- INM; one office is located at the pedestrian entrance for imports; pedestrian traffic operations were not analyzed. It operates on demand.
- SEMARNAT and PROFEPA, have a certain level of responsibility in the lumber import zone. No inspection or lumber fumigation facilities were done.

- A1-10

## Main Project Areas of Interest 

- The automated import freight inspection system includes in the second inspection all vehicles inspected in the first inspection and all those released from station 1. The yard distribution makes it difficult to distinguish vehicles that were released from station 1.
- When considering 57 parking spaces in the import inspection area, with an average of 3 hours of inspection and 9 hours at the customs offices, there is a total capacity to inspect 171 vehicles, which is lower than 10% of the vehicles that transit daily through the imports area, equivalent to 2,153 vehicles. The concept of an interior customs office would reduce traffic congestion at the border.
- At the export freight booths, the random inspection (station 1) is located north of the inspection platform, which requires additional vehicle maneuvers to return, to the inspection platform.
- Reduced customs business hours and limited operation because of the available booths at the customs station. Concentration of operations during evening hours.
- The fiscal inspection yards are exclusively for the use of this agency.

***Customs Inspection ***

- They operate at the border zone. It’s job of inspecting vehicles random, not following any particular vehicle selection system. There is no weighbridge nor space to place one.
- The inspection of commercial vehicles at the US border is very thorough. Vehicles that transit through the border crossing area are the same vehicles (each vehicle an average of 4/5 times a day,).
- Freight vehicle selection includes the preventive medicine area which examines the vehicle driver.

***Federal Truck Transport, SCT***

- Customs operations were not identified border entries and departures PFP, or the fumigation facilities on forest and wood products, to comply with the requirements of the SEMARNAT.

***Other Agencies***

- A1-11

## POE Location at the Ciudad Juárez-El Paso System

**New Mexico, **

**USA**

**Chihuahua,**
**Mexico **

**Chihuahua, Mexico**

**El Paso, Texas**

**Ciudad Juárez, Chihuahua**

**Santa Fe -Juárez **

**Zaragoza - Ysleta**

**Córdova - Puente of las Americas **

**Santa Teresa-**
**San Jerónimo**

**Lerdo - Stanton**

**Texas, USA**

- SH 136

- Av of los Aztecas

- Carretera Federal MX 045

- Loop 375

- SH 20

- Paisano Dr.

- Jilotepec

- Av Zaragoza

- Zaragoza Rd

- Av. M. Clouthier

- Av of la Raza

- Mesa

- Interstate 10

- Av  Tecnológico

- Av  16 of Sept.

- Loop 375

- Av  Reforma

- Federal Highway  MX 002

**Border Distance:**
**San Jerónimo-Juárez = 20 km**
**Cordova-Zaragoza = 16 km**

- SIERRA

- This bridge has no toll.
- The Customs facilities are located at this crossing.
- It does not interfere in any way with urban traffic.

- Connects most industrial parks of Cd. Juárez and El Paso.
- It does not interfere in any way with urban traffic.

- Marginal use of vehicles.
- Located 40 Km down the highway of the central zone of Cd. Juárez.
- A road is under construction that will connect it with the State Capitol.

- To CHIHUAHUA

- To Samalayucan with link to MX 045

***There are three commercial vehicle border crossings at the Ciudad Juárez - El Paso zone.***

- A1-12

## Cd. Juárez-El Paso POE System

**Cd. Juárez-El Paso POE System**

-  Juárez (North crossing)-Santa Fé

-  Lerdo-Stanton (Good Neighbor)

-  Cordova-Bridge of The Americas

-  Zaragoza-Ysleta

-  San Jerónimo-Sta. Teresa

-  Railroad 1

-  Railroad 2

- Located in the central zone, next to the urban zones of El Paso, Texas.

**Pedestrians**

**Autos**

**Truck**

**Rail**

-  N/S

-  N

- S

- S

- Located in the urban zone. It is the oldest bridge.

- Free toll Bridge. Operates 24 hours a day for passengers in the Park zone of Chamizal

-  N/S

- Located in the industrial zone of  Juárez and El Paso, Texas
- Operated by CAPUFE/Contract. (Promofort) There are 2 bridges

-  N/S bridge A

-  N/S bridge A

-  N/S bridge B

- Located at crossing with Nuevo Mexico, USA.
- It’s a direct crossing without a bridge.
- Basically a deserted zone. Incipient industrial Park of Sta. Teresa, NM.

-  N/S

-  N/S

- It crosses the urban zone, dividing the city in two; works better during the evening crossing hours. Frictions exist with the municipal government from its operation

**Traffic Characteristics**

**Other Characteristics**

**Border Crossings**

- N/S: North/South direction
- V: Empty vehicles
- VSR: Trucks without towing gear [For its initials in Spanish]

-  —

-  —

-  —

-  —

-  —

-  —

-  —

- A1-13

## Córdova Bridge Customs Facilities 

- Confiscated automobile zone

- N

**USA**

- Emergency Plant

- u
- n
- i
- t
- 2

- u
- n
- i
- t
- 1

- UNIT 4

- UNIT 3

- UNIT 2

- UNIT 1

-  1st. P L To T F O R M FOR INSPECTION

- iNSPECTORS

- Headquarters

- Booth

- S
- T
- O
- R
- A
- G
- E

- To Warehouse
- 2° INSPECTION

- DICTA-
- MINADOR

- P.F.F.

- EXPORT INSPECTORS

- M
- O
- D.
- 1

- M
- O
- D.
- 2

- CUSTOMS
- OFFICES

- A
- L
- M
- A
- C
- E
- N

- V
- E
- H
- I
- C
- U
- L
- A
- R

- CUSTOMS

**2nd INSPECTION UNIT**

- Headquarters OF  P.F.F.

- FIRST UNIT INSPECTION

- PARKING LOT

**IMPORTS**

- Exports

- SECODAM

- AUTOMOBILE INSPECTION

- SMALL CUSTOMS
-  IMPORTS

- MANEUVER PATIO

- Confiscated Automobiles

- INSPECTION

- Confiscated vehicles obstruct the circulation and inspection of freight trucks, reducing the limited available spaces.
- The transit of automobiles restricts the number or lanes, on the bridge, for trucks.
- The maneuver yard for exports is not in use.

***Limited space for commercial vehicle operation, restricting these even more by areas occupied by confiscated vehicles.***

- A1-14

## Zaragoza-Ysleta Main Facilities

**El Paso, Tx.**

**Cd. Juárez. Chih.**

- Payment booths for automobiles

- Autos

- Customs
- INM
- CABIN
- SAGARPA

- Offices:
- Banks
- Cafeteria
- customs
- handling

- Automobiles

- Offices of Agencies

- 2 C

- 2 C

- Payment booth:
- To = Empty Exp.
- B = Loaded Exp.
- C = Loaded Imp.

- SCT

- Autotransp. Fed.
- Preventive Medicine

- Station 1
- First
- Inspection

- Import customs stations

- Station 2
- Second
- Inspection

- M

- 1st Inspection
- Importation

- 2nd Inspection

- Exportation

- To

- B

- C

- Exit booth fiscal yard
- stamps

- Customs Export Station

- To = Empty
- B, C = Loaded

- Land not used outside of fiscal area

- land without use f.a.f.

- INM:
- X = Exports
- M = Imports
- f.a.f. = out of fiscal area [for its initials in Spanish]; c =lanes

- X

*USA*

*MEXICO*

- Enough space exists for inspection and for loading/unloading maneuvers.
- Construction project initiated by customs agents of an annexed fiscal yard (meat inspection center is included).
- Automobile and freight transportation have no traffic problems.

- A1-15

## Specific Comments of Field Inspectors in Cd. Juárez

- Customs, like at the other border crossings of the country, represents the agency that in complying with its functions, makes the transit of vehicles difficult at border crossings, mainly during the evening peak hours in the customs handling of imports and exports.
- Cd. Juárez does not present any significant traffic problems (this location is mainly comprised of the assembly industry which has seen a reduction in operation in the last months).  Better coordinate between the transportation section and the Customs Agents, could reduce peak hours and evening lines of commercial vehicles. The aforementioned could also be obtained with an increase in personnel at the random selection units.
- The inspection of import freight represents 10% + 10% + Red Operative of the transit of vehicles, more than 10% of the total of vehicles selected by the authorities.
- The “Cordova” crossing, free of freight, is limited in space by the amount of confiscated vehicles (an estimate of 4000 vehicles), of which have been in inventory for over 10 years. A coordination effort with the responsible agency of SAT “destination of assets” is needed to dispose of these vehicles and free space.
- The San Jerónimo crossing, which experiences little traffic, has the capacity to increase its level of customs operations. A greater coordinated effort with customs brokers could transfer traffic to this crossing, i.e, commercial vehicles for imports within the country. This way a more thorough inspection of the freight can be performed (increase the percentage of inspection) subsequently avoiding the border inspection at the booth at km 30.

**Direction**

**Córdoba**

**Zaragoza**

**San Jerónimo**

**Total**

- M

- 695 (63%)

- 935 (54%)

- 5 (7%)

- 1 635 (56%)

- X

- 401 (37%)

- 799 (46%)

- 69 (93%)

- 1 269(44%)

- Total

- 1 096 (100%)

- 1 734 (100%)

- 74 (100%)

- 2 904 (100%)

**Transit between borders of commercial vehicles in Cd. Juárez (daily average)**

- A1-16

## Ports of Entry Nuevo Laredo-Colombia

**Nuevo Laredo-Colombia POE System**

***With the opening of Nuevo Laredo III bridge in April of 2000, the bridges of Nuevo Laredo I and II were closed to the operation of commercial vehicles. Nuevo Laredo III and Solidaridad Bridge in Colombia, Nuevo León, operate exclusively for commercial vehicles whose main origin/destination is towards the interior of the country.***

**Border Crossings**

**Type of crossing**

**Pedestrian**

**Passenger **
**Vehicles**

**Commercial**
** ****Vehicles**

**Railroad**

**Observations**

- Nuevo Laredo I-Laredo, Tx.
- (Convent Street)
- Gateway to the Americas

- Nuevo Laredo II-Laredo, Tx.
- (Juárez-Lincoln)

- Nuevo Laredo III-Laredo, Tx., IV
- (Bridge of World Commerce)

- Colombia N. León-Laredo, Tx III
- (Solidarity)

- FFCC N. Laredo-Laredo

- 14 km Northeast
- of Nuevo Laredo

- 35 km Northeast
- of Nuevo Laredo

- located in the Central zone of the City

- located in the Central zone of the City

**Ports of Entry Nuevo Laredo-Colombia**

- A1-17

## Extensive highway construction underway connects the bridges of Nuevo Laredo III and Colombia with the National Highways of Mexico and I-35  towards San Antonio Tx., diverting freight truck traffic from the urban zone of Nuevo Laredo, Tamps. and Laredo Tx. The use of Nuevo Laredo III and Colombia reduced considerably commercial vehicle traffic congestion in the region.

***Extensive highway construction underway connects the bridges of Nuevo Laredo III and Colombia with the National Highways of Mexico and I-35  towards San Antonio Tx., diverting freight truck traffic from the urban zone of Nuevo Laredo, Tamps. and Laredo Tx. The use of Nuevo Laredo III and Colombia reduced considerably commercial vehicle traffic congestion in the region.***

- NL I:  Bridge Nuevo Laredo I
- NL II: Bridge Nuevo Laredo II
- PCF:  Railroad Bridge
-           Urban zone

- Highway toll towards Colombia:
- Automobiles: 3 Dollars
- Trucks: 16 Dollars

- Colombia Bridge

***USA***

***Mexico***

- Nuevo Laredo III

- PFC

- Boulevard
- Luis D. Colosio

- To  Monterrey

- To  San Antonio
- Km 30,  Check point

- To  Piedras Negras

- Junction

- Towards Colombia (toll)

- Airport of Laredo, Tex.

- Airport of Nuevo Laredo

- NL II

- NL I

- Carretera Nacional

- Libramiento Mex-2

- Km 26 Checkpoint

- 35 km

- I-35

- A1-18

## Relevant Aspects of Nuevo Laredo III Bridge Facilities 

- The new bridge has significantly reduced the levels of congestion of commercial vehicles that use Nuevo Laredo II. An average estimate of 6,000 commercial vehicles cross this bridge. Enough space for the formation of lines is available.
- The facilities (offices) in the transit of imports can house the following agencies: Customs, SAGARPA, Federal Truck Transport and Preventive Medicine. They have not been occupied and are practically abandoned.
- There are 19 units of automated selection for imports and 6 units for exports. The available capacity is considerably exceeded. At peaks up to 6 booths of the station operate. During the evening hours 3 booths operate, forming lines of up to approximately 40 trucks. The station requires 40/50 seconds of attention per vehicle.
- Customs operates from 8 to 24 hrs., with personnel in 2 shifts of 8 hours each. Some problems have been encountered concerning the transfer of personnel to the border bridge.
- The customs inspection area has 110 slots. The average inspection time fluctuates around 1.5 hrs.
- The second inspection has 6 selection units and X inspection slots. Generally a maximum of 3 units are operational.
- Customs concentrates on activities of imports between 17 and 23 hrs; exports are distributed more evenly during the day.
- The border crossing constructed by the municipality of Nuevo Laredo, supported by customs brokers, has not been given to Cabin (agency of the Federal Government) for its management, identifying problems in determining rights and obligations.
- The approval inspection area report has not yet been issued (300 ha) for the construction of adjoining areas of the bridge, which would allow the construction of the infrastructure for the development of border crossings.

**Relevant Aspects of Nuevo Laredo III Bridge Facilities **

- A1-19

## Customs at the Bridge of Nuevo Laredo operates 7 days a week. It operates an average of 300 vehicles per hour From Monday thru Friday during 16 hours of operation, in both directions.

- (Loaded trucks for importation/exportation; statistics from August 2001)

***Customs at the Bridge of Nuevo Laredo operates 7 days a week. It operates an average of 300 vehicles per hour From Monday thru Friday during 16 hours of operation, in both directions.***

**Lu**

**Ma**

**Mi**

**Ju**

**Vi**

**Sa**

**Do**

**3,880**

**4,274**

**4,497**

**4,276**

**4,479**

**1,781**

**234**

**4,281**

**8-24 hrs**

**8-16 hrs**

**Day of the Week**

**36**

**94**

**142**

**219**

**235**

**252**

**290**

**330**

**350**

**389**

**446**

**406**

**352**

**329**

**255**

**155**

**8-9**

**9-10**

**10-11**

**11-12**

**12-1**

**1-2**

**2-3**

**3-4**

**4-5**

**5-6**

**6-7**

**7-8**

**8-9**

**9-10**

**10-11**

**11-12**

**A.M.**

**P.M.**

**Distribution of Average Business Hours (Lu-Vi)**

**321 per hour**

**267 per hour**

- A1-20

## Nuevo Laredo III Bridge operates commercial vehicles exclusively; it has the capacity to manage 16,000 vehicles a day (both directions).

**Mexican Customs Facilities on the Nuevo Laredo III  Bridge**

***Nuevo Laredo III Bridge operates commercial vehicles exclusively; it has the capacity to manage 16,000 vehicles a day (both directions).***

- Inspection 110 Booths

- Station Selección  19

- Banks
- AAA

- Offices

- Parking

**USA**

**Mexico**

- Line overflow area

- Inspection platform

- Selection Units for Exports

- Exportation Area

- Importation Area

- Toll Booth

- 2nd Inspection Units

- 2nd Inspection

- Agencies

- Customs
- Federal Authorities
- Preventive Medicine
- SAGARPA

- A1-21

## Notes of the Colombia Bridge Facilities

- Among its clients are the customs brokers, transport companies and forwarding brokers.
- The International Bridge of Colombia has 8 lanes; it has a capacity for a busy daily traffic of 12,000 commercial vehicles (both directions).
- There is an 8 minute time lapse in the process of a truck entering and exiting the Mexican customs office. The time required at the selection station is 30 seconds/truck.
- The unloaders, at the inspection area, are personnel contracted by FIDENOR.
- The complex includes long term development of housing and health clinics, in an area where close to 300 residents live.
- The first inspection center for meat import products at the Mexico border, among others, is in operation in the fiscal area of the Colombia zone; storage facilities operated by the customs broker agency of Dicex, for the reception and classification of commercial exterior freight in the fiscal area; Metalintra corporation is dedicated towards industrial development in the fiscal area, allowing for the integrated development of the border crossings of the country.
- The authorities of Laredo, TX, have requested that all vehicles that transport hazardous materials use the Colombia Bridge.
- The highway connection between Nuevo Laredo-Piedras Negras to the Colombia Bridge expands to 4 lanes for the transit of commercial vehicles. The highway from Nuevo Laredo III to Colombia is expanding to 4 lanes, which will reduce, the high levels of accidents that are registered on this stretch. The transferring of freight from Nuevo Laredo to the bridge of Nuevo Laredo III, reduces the disadvantage of Colombia because of its proximity.
- Vehicle transfers crossing the border by the Colombia Bridge, adds a tariff of 20 dollars for the transfer of the freight, in addition to the payment for the use of the Nuevo Laredo III Bridge.

**Notes of the Colombia Bridge Facilities**

- A1-22

## The number of freight vehicles that transit on the Colombia Bridge is an average of close to 1,600 units/day. From the total, an average of 10% and 7% of the vehicles for imports and exports respectively, require an inspection from the customs offices.

- (Daily Average (24 days), February 2001)

***The number of freight vehicles that transit on the Colombia Bridge is an average of close to 1,600 units/day. From the total, an average of 10% and 7% of the vehicles for imports and exports respectively, require an inspection from the customs offices.***

**840**

**840**

**1,285**

- 91%
- green

- 91%
- green

- 91%
- green

- 9%

- red

- 9%

- red

- 9%

- red

***Imports***

**743**

**743**

**966**

- 93%
- green

- 93%
- green

- 92%
- green

- 7%

- red

- 7%

- red

- 8%

- red

- Operations

- Petition

- Vehicles

- Operations

- Petition

- Vehicles

***Exports***

**96.50**

**94.52**

**59.20**

- minutes

**68.26**

- minutes

**Exports**

**Imports**

**Exports**

**Imports**

***Inspection Time*/Truck (February)***

***Inspection Time*/Truck (January-September)***

- * Does not include the overnight stay of the vehicles within the customs area

- A1-23

## The Colombia Bridge additionally integrates the facilities for customs operations with a designated fiscal area.

**Mexican Customs Facilities on the Colombia, N. León Bridge**

***The Colombia Bridge additionally integrates the facilities for customs operations with a designated fiscal area.***

**USA**

**Mexico**

- Inspection

- Selection Units

- Toll Booth

- M2

- Station 1

- Offices

- Toll Booth

- Customs Automobiles

- Export Area

- Area for Automobiles

- Empty Vehicles

- Inspection

- Fiscal Area

- Import Area

- A1-24

## Nuevo Laredo-Colombia POE System Characteristics

**Nuevo Laredo-Colombia POE System Characteristics**

**Colombia, Nuevo León**

**Nuevo Laredo III, Tamps.**

-  Type of Transportation

- Freight Trucks
- Automobiles
- (North and South)

- Freight Trucks
- (North and Southbound)

- 12,000 vehicles

- 16,000 vehicles (first phase)

-  Tiempos of trámite

- 8 minutes from reaching the bridge
- 68 minutes Exportation
- 30 seconds/truck
- 90 minutes Importation

- 40/50 seconds/truck
- 90 minutes/vehicle

- Capacity of Truck crossings/day

- Exportation  (Northbound)
- With inspection1
- Importation  (Southbound)
- With inspection

- Fidenor

- Export Vehicles  (loaded)*
- Vehicles in Importation (loaded)*
- Vehicles traveling North (empty)*
- Vehicles traveling South (empty)*

- 700
- 800
- 1,000
- 600

- 3,000
- 1,600
- 300
- -

-  Operation and Management of Border crossing

- Capufe/Cabin

- 450 residents of territorial reserve
- 332 residents Commercial International Center annexed

-  Area

- 1 minute per container; does not include the vehicles that stay overnight.
- * Preliminary Data.

- A1-25

## Other Agencies at the Nuevo Laredo-Colombia Border Crossing

***SAGARPA***
- In October, 2001, the inspection activities for meat products began on the national side of the Colombia Bridge.  It is the first inspection center for imported agricultural products located at the northern border of Mexico.
- The office of SAGARPA in Nuevo Laredo issues a monthly average of 8,000 import certificates, 5,000 of which are related to meat products. The Nuevo Laredo Zone is the main border crossing for the issuance of certificates of importation of agricultural products. Reynosa follows with 4,500, Matamoros with 3,500, Juárez with 2000, Tijuana with 1,500 and others 2,000.
- The inspection of meat products has been performed in the region at eight locations in Laredo, Texas, accredited by the Mexican Government for the inspection of animal products and sub products. Other inspection points for vegetable products are available.
- The port of Laredo III does not have inspection facilities for agricultural products. First of all, a formal agreement must be created to establish a fiscal area to promote investment and of utility services for the cooling of the products.
- The inspection of imported meat products at the Mexican border in an area adjacent to the customs border will require a higher certainty from the importer-supplier of the freight, considering the difficulties of returning the product, which will have no effect if the requirements are not fulfilled in the standard agreement.
- Presently an average of 250 containers/embarkations of imports are handled daily of meat products in the Laredo area in the shift from 8:00 to 16:00hrs. If Laredo/Colombia were the only existing authorized point of inspection of meat products, then an increase in inspectors would be needed.
***Federal Freight Truck Transport***
- The new Bridge III is equipped with offices and inspection areas for personnel from the Federal Truck Transport and Preventive Medicine divisions. They haven’t been occupied by the agencies. There are not enough staff members to perform their duties permanently. There is no weighbridge for vehicles.

- A1-26

## Check Point at Km  26; Last Inspection Point for Commercial Vehicles

- The inspection or customs handling for the importation of freight closes the checkpoint circle at km 26. In the case of Nuevo Laredo/Colombia, the checkpoint is of vital importance considering that the greater part of commercial vehicles that use these border points is related to freight that enters the country.
- The vehicles that transit through the checkpoint come from the border crossings of Nuevo Laredo III and Colombia, forming lines of commercial vehicles mainly for document handling. On occasion, personnel is dedicated to the inspection of freight at this point			.
- The checkpoint is justified by the differences that exist in the fiscal treatment of freight that enter the country versus the freight that stays at the border zone of the country (ex. The IVA [Added Value Tax] and exemption from customs duties are different).
- The facilities and the conditions of operation at this point of inspection are not completely satisfactory.
- The inspection of the safety of the containers (towing gear) of commercial vehicles present problems that obstruct traffic.

- For import vehicles, a large amount of errors are found in the electronic system applied by the transportation sector.
- For exports, the inspection of the safety of the containers is performed, impeding the transit of vehicles and creating lines.

- A1-27

## Customs facilities located at km 26 (interior checkpoint) can not match demand generated at the Nuevo Laredo III and the Colombia bridges, generating commercial vehicle queues waiting for service.

**Facilities of Checkpoint at Km 26**

***Customs facilities located at km 26 (interior checkpoint) can not match demand generated at the Nuevo Laredo III and the Colombia bridges, generating commercial vehicle queues waiting for service.***

- Within the country

- To  Monterrey

**Km 27**

- Random Federal Truck Transport

- From Monterrey

- Departure for Exportation

- Inspection zone for automobiles

- Truck Line

- Automobile Line

- Bank Booth

- Fiscal Stop Light for automobiles

- Customs Registration

- Automobiles

- Commercial Vehicles

- Customs Office

- PGR Facilities

- Only the “safety” of the towing gear from commercial vehicles for exports departing the country

- Km 26
- Highway Nuevo Laredo-Monterrey

- 15-20 mts
- aprox.

- A1-28

## Average Time Used in the Border Crossing of Commercial Vehicles

**(Case of the Nuevo Laredo-Colombia System)**

**USA**

**Importation**

**Exportation**

**Mexico**

**20 km**
**20 minutes**

**20 km**
**20 minutes**

**20 km**
**20 minutes**

**20 km**
**20 minutes**

**USA**

**Exportation**

**Importation**

**Mexico**

**Green ******** 1 min**
**Red ******** 60/90 min**
**Red (2°) ******** 60 min**

**1 min ******** Green**
**15/25 min ******** Red**

**Customs, Drugs, Vehicles, Freight.**
**Automated Selection**

**Yards**
**Carrier Corporation or Forwarding Company engaging/Disengaging**
**of Transfer Vehicles - Highway**

**30/60 minutes**

**30/60 minutes**

**Yards**
**Carrier Corporation or Forwarding Company engaging/Disengaging**
**of Transfer Vehicles - Highway**

**30/60 minutes**

**30/60 minutes**

***Illustrative***

**Check point Km 26**

**15 minutes**

**15 minutes**

**10  minutes**

**60 minutes**

**USA**
**Mexico**

_**Estimated Total Time in  Importation**_** (minutes)**

- Without Inspection 125-185
- With Inspection

- 1 Inspection    185-215
- 2 Inspections  245-275

- A1-29

## Opportunities Around the Colombia Bridge

- The authorization by SHCP to operate a fiscal area next to the Colombia Bridge supports the development of the location of stores for the preparation of freight for import before entering the country.  These are presently located at the border between USA and Mexico. It must compete with Webb County for land prices, availability of credit, required securities and services for operation.
- Fidenor, the license holder for the border crossing, promotes improvements in operational and infrastructure coordination, among the different economic agents that operate at the border, nationally and binationally.
- The crossing of commercial vehicles on Colombia Bridge has functioned as support to vehicle transit between the borders of Nuevo Laredo and Colombia. Higher levels of congestion and crossing time at the Nuevo Laredo III Bridge increases the utilization of the Colombia Bridge. The operational agencies of the US support this strategy, the efficiency of inspections at Colombia bridge.
- The installation of warehouses and small assembly industries in the fiscal area of Colombia will generate freight transit at this border crossing, in addition to hazardous waste operations which are required, and a relocation of transportation corporations at the limits of a new highway near the border crossing.
- The border crossing at Colombia is presently the only inspection center for meat products at the US border; to comply with the standards of operation for this type of product would concentrate this type of freight at the Colombia Bridge, increasing the number of vehicles at this crossing.
- The disadvantages of the Colombia Bridge for larger distances, traffic and transit conditions, compared with Nuevo Laredo III Bridge, is compensated with less traffic times during the passage through the border on both sides of the border, as well as logistics and facilities to attract investors. Fidenor must promote improved binational coordination to achieve these goals.

- A1-30

## The operation of a fiscal area at the limits of the border crossing, in addition to attracting investors and acquiring equipment for the pre-inspection of import would avoid the use of “transfer” vehicles that require additional costs, increased connection/disconnection times for highway trucks. For imports, vehicles that travel towards the interior of Mexico can cross the border traveling North, take the tow at the customs facilities located in the fiscal zone of the border and return to the interior of the country. The certainty of a speedy border crossing when no physical inspection of the freight is required, or minimal inspection time, allows considering the elimination of transfer vehicles at the Colombia bridge.

- 	For exports, coordination between the highway transportation sector and customs brokers is easier, connecting the trailer at the custom’s broker yard, by the long-haul US vehicles, with the additional exportation permits complete. The inspection could also be done at the US border.

- A1-31

## Reynosa, Tamps. POE System

- A1-32

## Commercial Vehicle Operation in the Reynosa Port System

- A1-33

## Entry System Reynosa – Pharr Port

***Freight Importation Area***

- Customs Building

**Entry System Reynosa – Pharr Port**
**(Freight vehicles in both directions)**

***Freight Exportation Area***

- Final Inspection Station
- Exit Final Check

- Green Verifications

- Station 1
- 1,2, Automatic Selection
- 3  Empty Vehicles in Transit

**1**

**2**

**3**

- Autos

- Quota Booths

- Inspection

- 16

***USA***
***Mexico***

- Inspection Area (platform), Exp.

- Limited
- Narrow
- Multiple columns
- Deteriorated Pavement
- Lack of illumination
- Uneven and damaged Platform Floor

- Autos

- 2nd inspection
- Selection Station

- 1st inspection

- 17 Booths

- 7

- Autos

- Trucks

- Area Used by Transmigrants

- Trucks Exp.

- Ag. Customs Agents in waiting

- Area used for Transmigrants

- Offices

- Inspection Autos

- Autos

- Autos and Trucks*
- 1 Lane

- Exit Booths

- Autos

- *The existence of only one lane in the southbound direction for automobiles and trucks requires, on occasion, the crossing over to the opposite lane for imports.  The customs agents demand the expansion of the area to 2-3 lanes in the immediate customs area

- 2 booths CAPURE 4 access lanes (2 (2 operating)

**4C.**

- A1-34

## Reynosa - Hidalgo POE System 

**Reynosa - Hidalgo POE System **
**(Commercial Vehicle Imports)**

- Types of Imports

***USA***

- Trucks with Freight
- Imported Pick-ups
- Autos/tourism

- The inspection area is 80% occupied by confiscated commercial vehicles

- City Traffic

- Exit Station

- 2nd Booth Rec.

- CITAV

- Offices

- City Traffic

- Automobile Inspections

- 1st Areas of Inspection

- Offices 2nd floor

- 2°

- Parking for Automobiles in Temporary Importation

- Confiscated Trucks

- 40 Booths

- 5 Booths

- Parking for Confiscated Cars

- Selection Station (1 booth)

- Trucks/Pick Ups

- Autos

- Autos

- 1 Lane

- Autos only

- Abandoned Booths

- A1-35

## Appendix  2 

**Appendix  2 **

**Commercial Vehicle Border Crossing Process**

**- Northbound**
**- Southbound**

## Appendix  3 

**Appendix  3 **

**N° of Vehicles in Transborder Traffic, CAPUFE**

## Number of Trucks at Border Crossings

**Crossing  **

**1994**

**1995**

**1996**

**1997**

**1998**

**1999**

**Jan-00**

**Feb-00**

**Mar-00**

**Apr-00**

**May-00**

**Jun-00**

- International

- Bridge

- Libre Comercio

- 31,968

- 31,558

- 38,974

- 45,749

- 69,049

- 85,066

- 6,570

- 6,467

- 6,996

- 6,525

- 8,152

- 8,540

- International

- Bridge

- Reynosa - Pharr

- 0

- 31,920

- 107,865

- 210,176

- 239,050

- 282,580

- 25,107

- 26,563

- 31,902

- 25,621

- 27,837

- 27,670

-  International
-  Bridge

- Solidaridad

- en

- Colombia

- 83,582

- 79,041

- 209,321

- 467,583

- 590,184

- 680,444

- 56,214

- 59,474

- 65,343

- 41,835

- 28,713

- 30,949

-  International

- Bridge

- Zaragoza

- -

- Ysleta

- 188,128

- 283,618

- 354,237

- 306,254

- 316,996

- 633,814

- 48,157

- 50,905

- 60,084

- 52,503

- 49,127

- 45,350

- International

- Bridge

- Cd. Acuña

- 39,788

- 44,015

- 45,258

- 50,647

- 54,783

- 61,907

- 5,505

- 5,404

- 5,941

- 5,187

- 5,888

- 5,882

- International

- Bridge

- Camargo

- 65,414

- 13,931

- 17,192

- 20,913

- 20,153

- 22,972

- 1,865

- 2,162

- 2,275

- 2,368

- 1,987

- 1,903

- International

- Bridge

- Juárez Lincoln

- 806,071

- 690,311

- 611,010

- 429,362

- 480,147

- 549,304

- 40,800

- 41,154

- 44,135

- 21,012

- 582

- 689

- International

- Bridge

- Laredo

- 651

- 724

- 1,895

- 2,601

- 1,809

- 2,365

- 289

- 208

- 252

- 213

- 214

- 283

- International

- Bridge

- Las Flores

- 23,956

- 20,928

- 23,850

- 20,411

- 15,948

- 15,338

- 788

- 1,011

- 1,181

- 825

- 882

- 852

- International

- Bridge

- Matamoros

- 147,762

- 143,240

- 128,599

- 108,456

- 100,929

- 33,187

- 168

- 153

- 140

- 168

- 162

- 169

- International

- Bridge

- Miguel Alemán

- 6,060

- 7,135

- 9,368

- 9,966

- 12,353

- 14,889

- 1,057

- 1,065

- 1,285

- 990

- 1,145

- 975

- International

- Bridge

- Ojinaga

- 6,262

- 6,221

- 5,127

- 8,665

- 11,792

- 12,064

- 1,042

- 1,019

- 1,138

- 986

- 1,108

- 867

- International

- Bridge

- Paso del Norte

- 15,807

- 17,365

- 18,242

- 17,905

- 18,592

- 12,453

- 533

- 451

- 1,608

- 1,575

- 1,834

- 1,543

- International

- Bridge

- Piedras Negras

- 67,135

- 63,501

- 69,409

- 87,242

- 101,051

- 81,118

- 227

- 193

- 225

- 204

- 207

- 199

- International

- Bridge

- Reynosa

- 172,495

- 145,070

- 88,687

- 3,846

- 22,012

- 6,821

- 506

- 524

- 402

- 385

- 442

- 1,022

-  International

- Bridge

- Ignacio

- Zaragoza

- Los

- Tomates

- 0

- 0

- 0

- 0

- 0

- 124,162

- 10,314

- 11,050

- 11,798

- 10,135

- 11,419

- 11,135

-  International

- Bridge Piedras

- Negras II

- 0

- 0

- 0

- 0

- 0

- 30,059

- 9,311

- 9,122

- 10,254

- 9,192

- 10,452

- 9,543

-  International

- Bridge

- Laredo III

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 31,512

- 81,427

- 81,036

- 86,369

- 89,974

- 86,927

- 78,487

- 707,138

- 78,701

- 75,217

- 85,964

- 76,066

- A3-1

## Number of Buses at Border Crossings

- Bridge

- Paso del Norte

- 1,063

- 4,367

- 4,499

- 5,515

- 6,180

- 11,824

- 1,440

- 1,535

- 424

- 317

- 353

- 331

- International

- Bridge

- Piedras Negras

- 2,464

- 3,886

- 3,455

- 3,460

- 4,125

- 3,650

- 310

- 236

- 247

- 224

- 243

- 253

- International

- Bridge

- Reynosa

- 5

- 12,982

- 30,249

- 29,710

- 22,916

- 25,212

- 2,101

- 2,072

- 2,229

- 2,255

- 2,333

- 1,677

- International

- Bridge

- Ignacio

- Zaragoza

- Los

- Tomates

- 0

- 0

- 0

- 0

- 0

- 5,994

- 5,754

- 5,601

- 6,502

- 5,774

- 6,527

- 6,416

- International

- Bridge

- Piedras

- Negras

- II

- 0

- 0

- 0

- 0

- 0

- 83

- 29

- 78

- 54

- 34

- 49

- 34

- International

- Bridge

- Laredo III

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 19

- 118

- 221

- 119

- 54

- 2

- 23

- 1,072

- 7

- 4

- 11

- 5

- A3-2

## Number of Automobiles at Border Crossings

- Bridge

- Paso del Norte

- 4,271,418

- 4,559,911

- 4,562,824

- 4,801,905

- 4,688,219

- 5,060,298

- 404,855

- 409,251

- 440,725

- 427,950

- 423,843

- 409,394

- International

- Bridge

- Piedras Negras

- 2,473,790

- 2,326,580

- 2,290,688

- 2,471,722

- 2,477,043

- 2,211,181

- 105,953

- 101,109

- 104,650

- 96,490

- 100,289

- 93,457

- International

- Bridge

- Reynosa

- 5,360,023

- 4,522,721

- 4,677,777

- 4,714,920

- 4,894,689

- 5,764,190

- 471,746

- 451,381

- 488,347

- 495,315

- 500,432

- 462,954

- International

- Bridge

- Ignacio

- Zaragoza

- Los

- Tomates

- 0

- 0

- 0

- 0

- 0

- 1,083,007

- 127,992

- 136,797

- 145,216

- 138,154

- 143,896

- 135,471

- International

- Bridge

- Piedras

- Negras

- II

- 0

- 0

- 0

- 0

- 0

- 528,266

- 159,428

- 152,746

- 171,253

- 173,694

- 171,457

- 154,601

- International

- Bridge

- Laredo III

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 0

- 1,452

- 4,691

- 5,362

- 15,635

- 11,948

- 15,199

- 7,484

- 84,595

- 6,897

- 7,088

- 10,178

- 9,366

- A3-3

## Cost Valuation Model 

**Cost Valuation Model**** **

**Appendix  4**

## Assumptions:

- Transportation in USA

- T1

- Management time/coordination of these participants

- Border crossing time

- Tg

- Tc

- Transportation in Mexico

- Inspection Km 25/30

- Transportation in Mexico

- T2

- Ti

- T3

**Exporter in USA**

**Importer in Mexico**

**Conceptual Evaluation Model (Illustrative)**
**(southbound)**

_**Assumptions:**_
**a) T1, T2, T3: **
**	****are standard times and almost constant**
**b) Tg, Tc, Ti:**
**	****are times that can de reduced or eliminated in some cases **

- Total

_**Opportunity costs linked to time:**_
**Opportunity costs of vehicles (VOC Model of the World Bank) **
**Opportunity cost of freight (Logistical costs) **
**Opportunity costs of freight (Scarcity of freight)  **

- North

- South

- A4-1

## Opportunity Costs Related to Crossing Times

***Crossing Times (Tc)***
- The previous report presented an exercise to estimate the opportunity costs related to crossing times, the quantification of the previously mentioned opportunity costs and its contrast in situations **with** and **without** improvements or reductions (with and without project improvements) allows the establishment of improvement **project benefits** and estimate indexes of effectiveness of the measures in economic terms.
- From the results obtained, the opportunity cost of commercial vehicles crossing with delays at border crossings.
- Results show that crossing time is about three hours/vehicle. The addition of another inspection station at the right time has a noticeable effect, given that the average delay in the system is reduced to less than 1.5 hours.  The annual expected benefit, in terms of present value, is in the order of $270 million pesos.

- A4.2

## Identified Opportunity Costs

**Identified Opportunity Costs**

**Freight opportunity cost (logistical costs) ($/hr)**

**Opportunity Cost of vehicles (VOC Model of the World Bank) ($/hr)**
**Opportunity Cost of freight (Logistical Costs) ($/hr)**
**Scheduling cost of vehicles: VOC($/km).V (km/hr)= c1.V + c2 + c3.Rugosity.V**

**Possible Opportunity Costs linked to Administrative Time: Tg**

**Possible**** opportunity Costs linked to Crossing Time Tc:**

**No. of vehicles**
**Value of freight**
**Value of the vehicle**
**Storage costs **
**Unit cost from scarcity of freight **

**Management Time per vehicle: Tg (hr/vehicle)**

**Crossing Time per vehicle: Tc (hr/vehicle)**

**Total opportunity cost ($)**

- A4-3

## Opportunity Costs Related to Management Time

***Administrative Time (Tg)***
- In the adjoining figure the opportunity costs identified and related to Management Time/Coordination and the cost of freight has been isolated.
*Logistical Costs***:**
*Freight inventories waiting to cross the border*. Given opportunity costs are related to the **value of the freight that must remain a time Tg in a warehouse** (probably of the provider or customs broker) waiting for “managing” of the import/export of the freight to allow the freight through the border.  This cost is applied to the user/country that holds the ownership of the freight.
*Storage costs*. Similarly, because the freight in waiting has entered a transit warehouse or must remain in the warehouse of origin, it will have an additional cost **for the use of storage space during the additional time Tg with respect to the average freight stay **that is for internal commerce of the country of origin and does not require any additional management.  As in the previous case, this cost is applied to the user/country that holds the ownership of the freight.

- A4-4

## Opportunity Costs Related to Management

**Opportunity Cost of freight (Logistical Costs) ($/hr)**
**Opportunity Cost of freight (Scarcity of Freight) ($/scarcity)**

**Possible Opportunity Cost linked to Management: Tg**

**No. of vehicles**
**Value of freight**
**Storage cost**
**Unit cost from Scarcity of Freight**

**Management Time per Vehicle: Tg (hr/vehicle)**

**Opportunity Cost($)**

**Opportunity Costs Related to Management**

- A4-5

## Opportunity Costs Related to Management Time

*Other logistical costs.* This is the case of **additional loading/unloading** that has to be done because of inefficient management for freight imports. The inventory of freight in transit during crossing time forms part of the logistical costs but to a lesser degree (10 times less than the opportunity cost of inventory in warehouses awaiting crossing).
***Scarcity of freight*****.**
- Other costs, more difficult to quantify and probably random in nature correspond to scarcity cost of the freight that if it is not at it’s destination, additional costs are generated because of the lack of presence of the freight or by it’s arrival at odd times (lack of production because of lack of inventory, materials or critical equipment repair parts).
- The quantification of the mentioned opportunity costs and its contrast to situations **without** and **with** improvements (**without** project and **with** project: an improved coordination with the institutions/organisms of the importer/exporter country or within the institutions of the country of origin and destination) of the freight will allow the establishment of **project benefits** of improvements and estimates of schedules of effectiveness of measures in economic terms.

- A4-6

## Estimate of Opportunity Costs Related to Management

- To obtain an estimate of the order of magnitude of the reduction of opportunity costs related to management time and the possible benefits is proposed by the following formulas for benefits (Bop) by reducing Tg days the average administrative time (Tg) and the benefit by a reduction in storage time (Balmac) in the same time frame:

- Where,
- TDPAC:	Annual Daily Average Truck Traffic(trucks/day)
- f: 	Proportion of trucks with freight
- Fj: 	Fraction of trucks with type j freight
- Wj:	Average weight of type j freight per truck (Ton/truck)
- Vj:	Average value of type j freight($/Ton)
- i:	Annual interest rate
-  Tgj:	Expected reduction in Administrative Time (Tg) for type j freight (days)
- Aj: 	Unit storage cost for type j freight ($/ton/day)

- A4-7

## Estimate of Opportunity Costs Related with Management

**Estimate of Opportunity Costs Related with Management**

- TDPAc: Annual Daily Average Truck Traffic
- f: Fraction of full trucks
- Type of freight (4 categories)
- W: Average freight per truck for each type of freight
- V: Average value of freight
- A: Unit cost for storage
- i: Interest rate

- Tg: Actual Average Management by type of freight

- Opportunity costs related with Tg

- Reduction expected (%) in Average Management by type of freight (Tg) with better coordination

- Benefits of improved coordination

- A4-8

## Management Time:

- The time that freight remains in storage waiting that all the processing is performed or concluded to ship to the buyer.
- Storage considered for the estimated time and costs in the model will be developed only outside the border region, defined between km 26 and 30 within Mexico and the USA.
- Storage centers can be considered forwarding companies, or freight expeditors, property of and/or operated by Mexico and US customs brokers or third party transport enterprises, or any other enterprise or entity located in the defined border region.
- ”Management Time" is defined as the time that freight is immobilized within the border zone because of processing problems, management before an economic entity or dependency with related external trans-border commercial shipping activities; not included is the storage time requested by the seller or the buyer of the freight.

- A4-9

## Estimate of Opportunity Costs Related to Transaction Times

- Sensibility exercises have been conducted using a worksheet to determine the average freight value, estimated transaction time, and various reduction percentages classified by freight type, with the purpose of obtaining estimates of the order of magnitude of the potential expected benefits.

- A4-10

## Example of the Present Value (1) of Benefits obtained by Reducing Transaction Times Tt

**Example of the Present Value (1) of Benefits obtained by Reducing Transaction Times Tt**
- Amounts shown are in millions of pesos.

- 1
- 2
- 3

- Reduction of the opportunity cost of the value of the freight waiting cross-over
- Reduction of Storage time
- Reduction of handling (Transfers)
- Sum

**Agricultural**

**Maquila**

**Industrial**

**Others**

**Sum**

**Present Value of Benefits by Load Type**

- (1) Discount rate of 12% in real terms during 20 years

- $9.33
-  $21.29
-  $34.06
-  **$64.67**

- $9.33
-  $21.29
-  $34.06
-  **$64.67 **

- $9.33
-  $21.29
-  $34.06
-  **$64.67**

- $9.33
-  $21.29
-  $34.06
-  **$64.67**

- $37.32
-  $85.14
-  $136.23
-  **$258.69**

**Concept**

- A4-11

## Estimate of Benefits Resulting from a Reduction in Transaction Time

**Estimate of Benefits Resulting from a Reduction in Transaction Time**
- Opportunity cost of the value of freight waiting to cross the border

- A4-12

## Estimate of Benefits Resulting from a Reduction in Transaction Time

**Estimate of Benefits Resulting from a Reduction in Transaction Time**
- Reduction of freight storage time

- A4-13

## Estimate of Benefits Resulting from a Reduction of Transaction Times

- Reduction of freight handling (use of "transfers")

- A4-14

## Parameters, Data:

- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12

- 12%
- 12%
- 2001
- 1722
- 3%
- 0.5
- 60
- 20%
- 20%
- 20%
- 20%

- %/year
- %/year
- TDPA trucks
- %/year
- $/truck

**No.**

**Value **

**Unit**

- Annual interest rate:
- Annual discount rate:
- Initiation Year
- Initial Transit
- Initial growth rate
- Fraction of empty trucks:
- Transfer fee
- Transfer reduction expected
- Agricultural
- Maquila
- Industrial
- Others

**Parameter**

- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%
- 3%

**TMCA**

**Parameters, Data:**

- A4-15

## Participation Percentage, Average Truck Weight

- A4-16

## Commodity Value

- A4-17

## Storage Cost

- A4-18

## Transfer Reduction

- A4-19

## Flowchart of Integral Benchmarking System for POE’s in the future

**Flowchart of Integral Benchmarking System for POE’s in the future**
- (Following steps not actually covered)

- Supported on
- NAFTA initiative:
- Increase the trade
- among countries in NAFTA

- Develop a Creative System of Indicators
- of Competitiveness of POE’s

- Analysis of Indicators
- Selection of Indicators
- Methods manual for development and gathering of Indicators

- Integrating a Bi-national Database (MEX-USA) with
- International reference (USA-CANADA)

- Questionnaire design
- Gathering, coding, input, processing and interpretation of results

- Designing a Benchmark System aimed to the Best Practices
- Regarding POE’s

- Conceptualization
- Establishing Homogeneous groups for comparison
- Logic model for congruency and relationship variables
- Self-diagnosis and reports of results oriented to continuous improvement

- Develop a software for the System and
- making it available on-line

- Design and programming
- Automated reports
- Released on line for access
- Institutional support structure and relationship with other POE entities

- A4-20

## n

**n**

**1**

**3**

**2**

***Conceptual***

- A4-21

## Appendix 5 

**Appendix 5 **

**USA-Canada Commercial Vehicle Border Crossing Aspects**

## Canadian maritime ports have US and Canadian customs inspectors checking containers and placing seals to allow freight to cross into the United States without further revision. Being this a bilateral agreement, there are also Canadian customs officers in the United States following the same procedures.

- In order to perform their duties, Customs agents have full federal government authorization. They place a bond ($) with the government and in the event that the documentation is not accurate, this bond is held and the authorization is revoked.
- Several documents are attached to each shipment, among them, agriculture and food inspection (if required), the Form B13, etc.
- CANPASS – Road Program. This is a program for the transit of persons, available for “low risk” U.S. and Canadian citizens developed within the Canada-U.S. Agreement of a common border. The participants in this program receive, among other items, a vehicle label, allowing them at some crossing points to enter without being checked by customs or immigration agents. A card is recorded with a customs declaration and the duties or taxes are charged directly to the card.  There are dedicated lanes for vehicles in this program. The program was suspended after the events September 11. (Passenger vehicles)
- Trans-border traffic is sped up by automated systems, among them are the following:

**Trade between Canada and United States –Transportation of Border Freight**

- Automatic surveillance system at primary inspection lines. Using license plate readers, along with a data base to detect “high risk” travelers.
- ACROSS (Accelerated Commercial Release Operations Support System). The agents can electronically receive release data for customers.
- PARS (Pre Arrival Review System). Officers can check documentation before the arrival of the shipment to the border,  and unless an inspection is required, can release the freight as soon as it arrives.
- FIRST (Frequent Importer Release System). Used to release low risk freight of major importers. For example, at San Bernard de Lacolle, 52% of released freight uses PARS o FIRST.

- A5-1

## U.S. Customs inspects only 2% of the total freight entering the U.S. every year.

- The Governments of the United States, Michigan and Ontario are conducting a study to assess the existing transportation network and related border crossing activities.  The two-way tunnel connecting downtown Detroit and Windsor is almost at full capacity and the Ambassador bridge, with four lanes, as well as the connecting roads, will reach design capacity by 2010. The study includes the following stages: Planning and Feasibility Analysis (1 year) and Environmental Analysis (3 to 5 years). Permits and construction work.
- An importer can use the services of a forwarding agent to:
- Register the company and opening an import-export account.
- Define documents required to release a freight.
- Payment of government duties and taxes.
- The use of a forwarding agent is not mandatory.
- The fast lane at Canada-U.S. border crossings:
- 	-Border-crossing delays could soon be a thing of the past, thanks to research in automated border clearance systems in Canada and the U.S..
- 	-Working together at some of the busiest border crossings, Canadian and U.S. researchers are developing a "smart" system based on electronic data exchange, vehicle-to-roadside communications, and automatic identification and weighing technologies to fast-track freight across the Canada-U.S. border.
- 	-The ultimate goal? Non-stop crossing for pre-cleared freight and passenger vehicles, customs documentation filed electronically, and no more lines.
- Crossing times of less than 5 minutes are estimated. At peak hours, lines form and the maximum border crossing time for a freight vehicle is 30 minutes going South and less than 15 minutes going North.

## Other Agencies at the Nuevo Laredo-Colombia Border Crossing

***SAGARPA***
- In October, 2001, the inspection activities for meat products began on the national side of the Colombia Bridge.  It is the first inspection center for imported agricultural products located at the northern border of Mexico.
- The office of SAGARPA in Nuevo Laredo issues a monthly average of 8,000 import certificates, 5,000 of which are related to meat products. The Nuevo Laredo Zone is the main border crossing for the issuance of certificates of importation of agricultural products. Reynosa follows with 4,500, Matamoros with 3,500, Juárez with 2000, Tijuana with 1,500 and others 2,000.
- The inspection of meat products has been performed in the region at eight locations in Laredo, Texas, accredited by the Mexican Government for the inspection of animal products and sub products. Other inspection points for vegetable products are available.
- The port of Laredo III does not have inspection facilities for agricultural products. First of all, a formal agreement must be created to establish a fiscal area to promote investment and of utility services for the cooling of the products.
- The inspection of imported meat products at the Mexican border in an area adjacent to the customs border will require a higher certainty from the importer-supplier of the freight, considering the difficulties of returning the product, which will have no effect if the requirements are not fulfilled in the standard agreement.
- Presently an average of 250 containers/embarkations of imports are handled daily of meat products in the Laredo area in the shift from 8:00 to 16:00hrs. If Laredo/Colombia were the only existing authorized point of inspection of meat products, then an increase in inspectors would be needed.
***Federal Freight Truck Transport***
- The new Bridge III is equipped with offices and inspection areas for personnel from the Federal Truck Transport and Preventive Medicine divisions. They haven’t been occupied by the agencies. There are not enough staff members to perform their duties permanently. There is no weighbridge for vehicles.

- A1-26