Venture Capital Mx reposted this
🛑 Did Mexico just ban apparel import companies using it as a bridge to avoid paying taxes in the US ? Cause American brands are freaking out 🫠 It's kinda true but not quite. Mexico imposed 35% tariffs on finished apparel manufactured goods and 15% tariffs on textile goods needed for transformation processes. But only when they come from countries with whom we have no Free Trade Agreements (China, Vietnam, etc). What Mexico did do, is banning companies misusing the IMMEX program, intended to allow Mexican manufacturers to temporarily import goods necessary for production processes aimed at export, but was wrongly being used to import finished goods that flooded the local market and illegally entered the US. 🇲🇽 🇺🇸 Which means that US brands can still choose to manufacture in Mexico or any of its trading partners, benefit from lowers costs of warehousing in Mexico's Northern Border and keep the benefits of Section 3 2 1 (de minimis), which allows shipments worth less than 800usd to be imported into the US without any tariffs. Mexico's decision comes after a series of trade policies from China (Made in China 2025) that have driven Mexico's local industry to the brink of bankruptcy. Subsidies to raw materials, energy costs, logistics and tax breaks for textile manufacturers, allowing them to sell under their cost of production and almost killing an industry that feeds over 700,000 Mexican families. For all the Brands being affected by the policies (Ryan Petersen from Flexport states that at least 30 of the Top 100 American brands on Shopify fulfill from the Mexican border), we at Yumari will be more than happy to help you through the transition into regional manufacturing, building more efficient and responsible supply chains for your company while contributing to a stronger North America. Secretariat of Economy U.S. Department of Commerce Marcelo Ebrard Casaubon US-Mexico Foundation U.S.-Mexico Economic Council (USMXECO) Pedro Casas Alatriste L Manola Zabalza Aldama Esau Garza de Vega Kurt Honold Ulises Fernandez Cristina Villaseñor Luis Ernesto Rojas Ávila Cindy Blanco Ochoa Emmanuel Loo Víctor Gabriel Chedraui Marco A. Del Prete Ermilo Barrera Novelo CANAINTEX