Southbound Process - Despacho Previo

Overview

Despacho Previo is a process that was developed for clearing southbound rail shipments into Mexico and to reduce congestion and interchange delays at the border. Despacho Previo allows for the interchange of run-through trains rather than individual cars – expediting southbound shipments. The process applies to all car types, with the exception of intermodal equipment. 

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Primary Features and Benefits

  • Broker notification within hours following online billing or receipt from connections.
  • A free time is allowed for clearance of Mexican customs. After the free time has expired, Union Pacific assesses a document delay charge per day. After the 10th chargeable day, document delay charges increase. (For exact free time allowed and document delay charges, please see UP 6004 (PDF File) , Item 8530.)
  • Most Mexico-bound traffic will be held at satellite yards away from the border until cleared by Mexican Customs for movement into Mexico.
  • Once cars are cleared, they are assembled into pre-blocked run-through trains for the Mexican railroads, virtually eliminating further switching at the border.
 Features  Benefits
  • Accelerated advance clearance of Mexican Customs.
  • Seven-days-per-week crossing of cars at the border.
  • International pre-blocked run-through trains for all commodities.
  • Dependable transportation for all commodities.
  • Improved transit time in the U.S. and Mexico.
  • Inventory cost reduction.
  • Consistency of transportation product.
  • Greater customer satisfaction.
  • Consistent service.
  • Just-in-time inventory.
  • Less switching of cars at intermediate yards in the U.S. and Mexico.
  • Less risk of loss and damage.
  • Greater customer satisfaction.
  • Increased capacity of international gateways.
  • More cost-efficient gateways.
  • Ability to grow rail markets.
  • Continued expansion of rail transportation option.

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Waybills

Please ensure that all shipments to Mexico are through billed to the Mexico destination and that the waybill contains both the U.S. freight forwarder and the Mexican customs broker. Changes to the waybill to add or change this information will incur a $95 per car charge per Tariff 6004-series, Item 6050. Additional information on through billing.

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Q&A

Q. Is the document delay charge in addition to the standard demurrage charge?
A. No. The standard demurrage charges no longer apply on traffic exported to Mexico. The document delay charge replaces demurrage charges.
Q. Are Sundays included in the free time?
A. No. Sundays do not count in the computation of free time. However, after the document delay charge has begun, Sundays will be chargeable.
Q. What is the need for the satellite yards? Why not send all of the traffic directly to the border and hold?
A. Most of our gateway yard facilities do not have sufficient capacity to hold/switch all of the traffic moving into Mexico. Once the traffic is cleared however, Union Pacific places it in the appropriate Mexican "block" for direct delivery to the Mexican railroads.
Q. How does the Despacho Previo process help traffic movement coming northbound out of Mexico?
A. By delivering southbound run-through pre-blocked trains, the Mexican carriers are able to better use their border yards for northbound switching and blocking of United States-destined traffic.
Q. How does Despacho Previo affect traffic destined to local industries at U.S. border locations?
A. Since this is not international traffic, this business moves directly to these cities. Any demurrage accrued will be based on current domestic demurrage tariffs.
Q. Does the 72-hour processing time allowance to clear cars apply to cars that originate on other railroads as well as to cars that originate on Union Pacific?
A. Yes, cars that originate on other railroads must be cleared in 72 hours.  The entry of many cars from off-line origins is delayed because they are not cleared to enter Mexico by the time they arrive near the border.  Earlier clearance of cars to Mexico should help reduce or eliminate delays at the border.

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Despacho Previo Process Steps