Mexico curtails duty-free fulfillment option for apparel, textile importers

The Mexican government recently ended a program that allowed US apparel and textile importers to avoid duties by using Mexican warehouses as fulfillment hubs for products sourced outside Mexico. Ending this duty-free program forces US e-commerce brands to face a difficult choice: incur higher costs by fulfilling orders within the US or risk shifting fulfillment to Asia, which carries the risk of disruption due to potential changes in US import regulations.

The Mexican government also increased tariffs on certain apparel and textile products to protect domestic industries from competition. These changes significantly impact the e-commerce landscape, affecting both Mexican fulfillment providers and US brands, with an estimated $10 billion in 3PL services potentially shifting back to the US.

To view the full article, visit: https://www.joc.com/article/mexico-curtails-duty-free-fulfillment-option-for-apparel-textile-importers-5911557