Mexico’s recent decision to immediately restrict textile imports through its IMMEX import duty-deferral program could put U.S. apparel brands bringing goods through the country in a major scramble to kick off 2025—and it already appears to have third-party logistics (3PL) providers working overtime.
On Dec. 19, Mexico President Claudia Sheinbaum issued a decree banning finished apparel goods from being imported under the IMMEX program, which allows goods to move temporarily into the country duty-free if they’re intended for re-export to the U.S. That program is designed to enable foreign companies to operate and manufacture in Mexico with low-tax structures and reduced labor costs.
The immediate restrictions under the Manufacturing, Maquiladora and Export Services Industry (IMMEX) program effectively nullify many of the advantages of lower cost importing into the U.S. from a 3PL with Mexican warehouses. Many U.S. e-commerce brands currently take advantage of the Section 321 de minimis provision to avoid customs duties on shipments valued at $800 or less by importing goods from China into Mexico-based warehouses, before shipping them via truck to the U.S.
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While U.S. Section 321 laws have not been immediately impacted, the move could add further pressure on Congress to reform the legislation —especially as calls escalate to scrap de minimis altogether.
XB Fulfillment, an e-commerce 3PL platform that provides U.S.-based e-commerce and omnichannel brands with fulfillment and warehousing services, reportedly notified customers that it will no longer be able to import apparel into Mexico for them, declaring force majeure on their contracts.
“The vast majority of their customers are apparel brands,” said Ryan Petersen, chief executive officer and founder of Flexport, in a post on X. “This has created a nightmare scenario for XB, its competitors, and the many great brands they serve. They’re scrambling to get the government to not destroy their business, and their customers are searching for solutions.”
XB Fulfillment hasn’t confirmed the notice or the force majeure declaration. Force majeure is a clause that removes liability for a party from fulfilling contractual obligations in the event of unforeseen circumstances or an “act of God.”
WWD’s sister publication Sourcing Journal reached out to XB Fulfillment, whose clients include True Classic and Cuts Clothing.
According to Petersen, Flexport is first prioritizing onboarding customers of XB that the digital freight forwarder already works with for international freight forwarding and customs clearances. But he noted that the company will then help solve the issue for any brand affected by this surprise disruption.
As of June 2023, XB Fulfillment operated four fulfillment centers in Mexico, at the time saying it planned to expand its capacity by about 60 percent when it secured $100 million in growth capital. In 2023, the company shipped 116 million total units across 27 million orders, with total value of product shipped totaling $3 billion.
Petersen said many of XB Fulfillment’s imports actually first enter the U.S. via West Coast ports like Los Angeles and Long Beach before being trucked to Mexico under a tax-free, in-transit customs bond. The items are stored, picked and packed at one of the warehouses across the border, before being trucked back into the U.S.
“At least 30 of the top 100 American brands on Shopify now fulfill from just across the Mexican border, mostly in Tijuana, to avoid U.S. customs duties,” Petersen estimated. “From there the goods are handed off to UPS, FedEx, USPS or other last-mile networks for final delivery to American households.”
As of now, importers with goods already en route to Mexico are likely to face unexpected customs duties, leading to potential short-term disruptions. Apparel brands expecting to be impacted by the IMMEX revision that aim to import under the duty-free de minimis exemption can still host goods in Canada.
Under the new decree, certain finished products are excluded from temporary importation under IMMEX. These exclusions include finished clothing and textile articles classified under Harmonized Tariff Schedule Chapters 61, 62 and 63; quilts and comforters classified under HTS subheading 9404.40, and pillows, cushions and other bedding materials classified under HTS subheading 9404.90.
Chapters 61 and 62 cover clothing including coats, suits, jackets, pants, dresses, shirts and sweaters, as well as textile accessories such as gloves, belts and ties.
Textile articles included in Chapter 63 are home goods like bed linens, blankets, pillowcases, curtains and towels, as well as tents, awnings, needlecrafts and rags.
Sheinbaum’s decree was accompanied by a new swell of temporary tariffs on textile imports into Mexico, which will increase from a current 10 percent to 15 percent on textiles like denim and polyester staple fibers. Additionally, duties on finished products such as knitwear, jackets and lingerie will jump from their current range of between 20 percent and 25 percent up to 35 percent.
These tariffs will not apply to countries with which Mexico has free trade agreements, including the U.S. and Canada.
The move from Mexico’s government appears to be a protectionist measure for the country’s textile industry, with the country’s Economy Minister Marcelo Ebrard saying that the new measures aim to protect about 400,000 jobs in the textile industry, which experienced a 4.8 percent GDP contraction in 2024.
“That’s why we are closing the door. These are measures to protect one of the most important industries for employment in Mexico. If we don’t take steps to prevent abuse or the low prices associated with ‘dumping,’ the Mexican textile industry would be at a disadvantage,” Ebrard said in a Dec. 19 press conference. “The goal is to foster the development of the Mexican textile industry, promote employment, and ensure fair market conditions.”
The restrictions also come amid U.S. President-elect Donald Trump’s threats of tariffs of up to 25 percent on Mexican goods ahead of his January inauguration, amid his criticisms of the country’s handling of immigration into the U.S., and the flow of fentanyl over the U.S.-Mexico border.