New tariffs and import rules are creating challenges for e-commerce businesses by closing a significant trade loophole. Find out how these changes affect companies and how Clearit USA can help you adapt.
Recent Mexican customs rule changes are putting a burden on US importers using Mexico as a transfer point for shipments from Chinese manufacturers. On December 19, 2024, Claudia Sheinbaum raised tariffs on Chinese apparel imports to 35%. Under the IMMEX program, certain goods meant for re-export can now be imported duty-free into Mexico.
The new rules are part of a more considerable realignment in US-Mexico-China trade dynamics. Importers in the United States and China have been using Mexico as a waystation for goods in recent years. A US-China trade war made importers look for options besides China in an attempt to cut costs and dodge high tariffs on Chinese merchandise. From 2023, Mexican imports grew from 13% to 15%, as Chinese imports dropped from 22% to 14%. Trade-wise, Mexico now holds the spot of the biggest trading partner for the United States.
Mexico has been levying duties on uncountable Chinese goods since 2023, despite increasing trade relations with China.
However, recent tariff increases and changes to IMMEX could disrupt these trade relations. The price of e-commerce goods has risen significantly, especially for textiles and clothes. A number of the companies that had set up distribution centres in Mexico to benefit afterwards from the duty-free shipments under the de minimis exemption will have to reconsider their options.
What is Section 321?
Several U.S. customs rules allow low-cost shipments to arrive in the country without being taxed. Section 321 is one such rule. This principle is mainly applied to digital commerce vendors to minimize customs fees on goods they have purchased from overseas. Implementing Section 321 helps importers bypass the need for high tariffs, decrease the cost of the process, and simplify customs clearance.
For several businesses, particularly those shipping supplies from China through Mexico, Section 321 has been the basis of their efficiency in duty savings and the quick delivery of orders in the U.S. The de minimis rule under Section 321 is also advantageous for products being directed through Mexico, as it allows them to be imported into the U.S. tariff-free only if they reach the value limit.
New Mexican customs rules, which raise tariffs and alter the IMMEX program rules, have posed challenges for enterprises using this strategy. These new policies will highlight the fact that the majority of e-commerce companies will be dealing with increased expenses and logistical barriers, especially when it comes to low-value shipments. For the same reason, businesses must adjust their supply chains to comply with changing trade dynamics and be profitable.
Benefits of Section 321
In the U.S. customs tariffs of $800 and less merchandise are not collected duty-free, giving an overall reduction in costs besides the removal of customs duties.
By speeding up the customs process, companies can deliver their goods to their American customers instantly. Such tax-free provisions result in significant savings. For many small and medium businesses these savings are the things that make a critical difference for them not to go broke and be able to compete.
Another important aspect is the reduced paperwork. As Section 321 deliveries do not go through the customs procedures that require shipment and the attachment of invoices, the companies can avoid the time-consuming and demanding tedious process of documentation. This is especially important for companies that send directly to the US from Mexican warehouses.
What’s Changing?
Mexico has revised its IMMEX program, which previously allowed certain imports destined for the U.S. to bypass duties. With these changes, importers may face higher costs and more complex processes. These updates add pressure on businesses that depend on duty-free exemptions and low-value shipments to maintain profitability. Adjusting to these shifts will require flexibility and careful planning in supply chains.
These alterations accentuate the necessity to achieve greater supply chain flexibility in 2025. Importers must be informed about regulatory updates to adapt quickly and have operations flow smoothly. It will be vital for businesses in this intricate field to be able to manage the problematic trend of cost-effective and compliant global trade by finding appropriate and reliable solutions.
What Does This Mean for E-commerce Brands and Low-Value Shipments?
For the textile and apparel e-commerce brands, especially those in Mexican regulation, the recent situation has become quite difficult. The higher tariffs and adjustments to the IMMEX program are leading to increased costs of products transported through Mexico. The companies that used to rely on the duty-free exemptions in Section 321 are now the ones that may see decreased profit margins and the ones which may be the first ones to face supply chain disruptions.
Lastly, small-value shipments were a favoured route to fulfil U.S. orders. It wasn’t as easy a runners-up as you can imagine. This means businesses must consider other methods, change pricing, and find new distribution or transporting models to stay competitive. For the sake of avoiding delays and unnecessary costs, these adjustments emphasize the necessity for adaptability and a deeper understanding of the regulations.
Stay Prepared with Clearit USA
A proactive approach is necessary to adapt to and comply with the new regulations, and that’s where Clearit USA comes in. With our customs brokerage and compliance expertise, we offer tailored solutions to help our customers meet the challenges posed by these changes.
Clearit USA ensures seamless customs clearance and efficient supply chain management by handling all necessary documentation and compliance with the latest regulations. Our streamlined online platform simplifies the entire process, allowing you to focus on growing your business while we manage the complexities of cross-border shipping.
