Mexico Discouraging de Minimis Fulfillment Operations With Tariff Change
The Mexican government's IMMEX program, which allows duty waivers for temporary importation before export, changed last week to exclude finished clothing and textiles in Harmonized Tariff Schedule chapters 61, 62 and 63; quilts and comforters in 9404.40; and pillows and other bedding under 9404.90.
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Companies that were importing clothes to Mexico and then using a warehouse there as a fulfillment center for de minimis packages to the U.S. will no longer find it advantageous to do so because those clothes will be subject to duties in Mexico. Mexico also increased to 35% tariff rates on 121 apparel items. Law firm Sandler Travis sent out the news in a client alert.