What Are The Real Challenges Behind The Bill of Lading Supplement?
At Nuvocargo, one of our core values is speed and excellence, which is why we’ve been keeping a close eye on transportation regulation modifications in Mexico. In case you haven’t heard, the Miscellaneous Tax Resolution for 2022 has set forth new requirements for shippers and carriers moving cargo in and out, and within Mexico. The requirement to issue a digital invoice and Bill of Lading Supplement (AKA “Complemento Carta Porte”) came into force on January 1st this year, and any errors or omissions in the documents will lead to fines or penalties starting September 30th, 2022. This adjustment period has been testing companies, including us, in promptness and efficiency as we establish new internal and external procedures and rules around a single shipment. There have been considerable challenges around the organization of information and document exchange, which is why we would like to share what we’ve discovered so far:
1. Processes have gotten slower and a lot more complicated
The completion of the “Complemento Carta Porte” form with detailed information about the merchandise, carrier and shipper companies, transportation equipment, and even the truck driver, has shown us that this can take up to 5 hours in some cases. Reasons behind this can be lack of experience, disorganization in the process of information exchange, and some confusion around what information is meant to be shared. However, we have found that it can be brought down to 1-2 hours when the information is passed on from the shipper to the carrier systematically.
Another thing to keep in mind is that, since this process is new, those involved are not yet scheduling around this period of information exchange. It’s all happening on-the-go from the moment the truck gets to the warehouse to pick up the shipment. People have to abruptly interrupt other things they’re doing and fully dedicate themselves to it. That is why there needs to be further visibility about when loading, document creation and exchange will be taking place, so everyone can be ready.
2. More reservations regarding data privacy
Sharing sensitive information is a primary concern when exchanging details and documents between carriers and shippers. For that reason, it’s important to know which is truly sensitive information and which is vital to the operation. Many shippers claim they can’t share weight, number of units, or “UID” (the code of the commercial invoice) until the truck has been fully loaded. That means carriers are expected to load at the same time commercial documents are printed. To avoid further confusion, here’s the information that is considered confidential on the “Complemento Carta Porte”:
- Cost: unit cost and total cost, subtotal, discount, taxes, retention, total amount, and the written quantity.
- QR Code.
- “UID”, or code of the commercial invoice, which is right next to the QR code, also known as the digital seal of the transmitter and the SAT (the Mexican Federal Tax Authority).
3. No standardized template for the Bill of Lading Supplement
Most carriers are sharing the documents in a PDF or XML format, but the template of the “Complemento Carta Porte” may vary from one company to another, which makes it more challenging to automate and find information quicker unless a standardized format is established.
We’ve also found that while having the documents in digital format is enough at checkpoints, many shippers are insisting that carriers carry a physical copy. This further slows down the process, disrupts the operation and makes it harder to replicate at scale.
4. There’s a lot of push to get the documents before the shipment leaves the origin
Shippers and carriers alike are taking the new regulations in Mexico very seriously. Without all the necessary information and documentation, nobody is moving. On the one hand, carriers refuse to leave the point of origin without all the documents ready, which is great for compliance and setting the standard! Shippers, on the other hand, also want their own copy of the “Complemento Carta Porte” and expect to have it before the carrier leaves with the shipment. In some cases, if the shipper doesn’t receive a copy, they refuse to process invoices. Some are open to receiving this document after the truck has taken off. Either way, shippers are very interested in having their set of copies, even if the law doesn’t require that they have one.
At Nuvo, “Complemento Carta Porte” and compliance is a priority. During this grace period, our teams are working day and night to generate solutions, coordinate with partners, meticulously revise every detail involved in a shipment, and open up pathways to make these implementations not only work– but thrive. Digitalization and moving with a digital partner can help simplify these new processes, support data privacy, and meet needs while complying. If you would like to move with us and join the adventure, be sure to schedule a demo or contact us at firstname.lastname@example.org.