By
Copy URL to Clipboard
Recent announcements from Mexican President Claudia Sheinbaum and the National Customs Agency of Mexico (ANAM) are set to impact the textile and apparel import industry. U.S. importers who have relied on IMMEX benefits to avoid incoming tariffs on these products will soon have new challenges to face.
Key Takeaways:
Learn how changes to Mexican tariff laws on these and other products can impact U.S. businesses involved in cross-border activities.
Table of Contents
Before you start panicking, no, Mexico is not banning the import of textiles or apparel. However, there are new tariffs going into effect that significantly increase the cost to import these products.
These changes are set to impact U.S. importers as well, particularly those benefiting from the maquiladora industry for warehousing.
On the 19th of December 2024, President Sheinbaum signed a decree that went into effect immediately, even affecting goods currently in transit. The most notable changes include:
To clarify, Annex I of IMMEX (Promotion of the Manufacturing, Maquiladora, and Export Services Industry) lists the goods that are denied temporary duty-free entry so long as they are re-exported out to another country.
Rate increases are specific to products under HS chapters 61, 62, 63, and 94 of Mexico’s General Import and Export Tax Law (TIGIE).
The tariffs and other new regulations targeting popular ecommerce products have become part of a push for further regulation that fights against tax evasion and negative impacts to Mexico’s domestic textile industries.
Primarily, imports from Asian nations, especially China, are likely to be affected. The tariffs will not apply to imports from countries that Mexico has a free trade agreement with, including the United States.
At the moment, these measures are temporary and will only remain in effect until April 23, 2026.
Decrees over textile products come on the heels of Mexico’s push to better regulate low-value shipments popular among ecommerce platforms.
First put forth in October 2024, these increased regulations were set by ANAM and the Tax Administration Service (SAT). However, enforcement of these new regulations has been a tedious process, mostly because most ecommerce import platforms don’t have the means in place to gather and submit newly required information.
Another push at enforcement is taking place, with a new announcement that is giving businesses until January 2025 to get everything in order.
Among the requirements that may be enforced are:
These are actions that will affect Mexican-based ecommerce companies. However, U.S. importers who bring items into Mexico for re-export can also see themselves impacted.
Let’s go back to the tariffs specifically implemented by President Sheinbaum’s decree. These, more so than the ecommerce regulations, will directly impact U.S. importers who may nearshore warehouse operations.
Between the provisions of the U.S.-Mexico-Canada Agreement (USMCA) and the IMMEX program, nearshoring fulfillment warehousing has become standard practice for many ecommerce businesses.
U.S. importers save money on tariffs by importing items directly to Mexico that are eligible for temporary duty-free entry. As long as the products are later exported back to the United States, those duties remain uncollected.
Textiles and apparel are one of the top imports in that category. President Sheinbaum’s decree means that U.S. businesses importing into Mexico will now need to pay between 15% to 35% in tariffs even if they later export the products.
While many of these shipments fall into the low-cost import category (what would be referred to as a Section 321 entry in the U.S.), that’s still millions of dollars based on the high incoming volume of such items.
Businesses that are either operating their own warehouses, or most likely using established maquiladoras, will find their current system much less profitable without major changes to their suppliers.
The practice of importing goods into Mexico for later export to the U.S. has been referred to as border skipping. Importers avoided paying tariffs in either Mexico or the U.S. by doing the following:
It’s a practice that both Mexico and the U.S. seem to want to put a stop to, specifically for the shipments under Section 321. The addition of textile and apparel items to Annex I of IMMEX effectively does this on the Mexican side of the border.
U.S. businesses can still operate fulfillment warehouses, but are being encouraged to do so with products sourced directly from Mexican markets, their FTA allies, or even domestic manufacturers in the states.
Related: The Ins and Outs of Shipping Textiles to Mexico
Outside the USMCA, it’s Mexico’s IMMEX decree that has allowed the expansion of manufacturing and cross-border trade with the U.S. to flourish.
Collectively, the maquiladoras involved in this program represent about 85% of Mexico’s manufactured exports, many of which receive raw goods imported by U.S. companies.
The changes made to IMMEX in regard to apparel and textiles still leave hundreds of products available for import for further manufacturing. It also opens the door for U.S. investment into Mexico’s domestic textile industry (which seems to be the larger goal of the President’s decree).
At the same time, those in the U.S. who have been trying to curtail the influx of unregulated Section 321 imports, especially those originating in China, also benefit.
Ecommerce businesses may not be too happy at the moment. In the long run, however, friendly and mutually beneficial trade relations between the U.S. and Mexico are likely to be to everyone’s benefit.
Related: Benefits of Manufacturing in Mexico
If you’re doing business with maquiladoras impacted by the President’s decree on textile and apparel, you have some major decisions to make. Do you move out of Mexico? Should you start searching for Mexican suppliers? How can you be sure that your imports are even included in the decree?
That’s where we come in. Mexico Cross Border Freight specialized in shipping cargo in and out of the country for all types of businesses, including ecommerce. Our team also consists of fully bilingual experts who are familiar with U.S. and Mexican trade law.
We offer consultations on freight shipping and can help connect you with trustworthy Mexican customs brokers who can answer specific tariff related questions.
Call us today at (866) 335-0495 or get a direct freight quote online.
Copy URL to Clipboard
