Kendrick Trade Weekly Highlights – Impact of De Minimis Rule Changes – Week of Sep 16, 2024

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September 16, 2024

 

Impact of De Minimis Rule Changes

 

The Biden administration is proposing significant changes to the de minimis rule, which currently allows goods under $800 to enter the U.S. duty-free. These reforms target goods subject to tariffs, such as those from China, closing a loophole that many foreign e-commerce platforms exploit. As a result, companies may shift manufacturing to Mexico to take advantage of tariff benefits under the USMCA. This could accelerate the trend of nearshoring, with Mexico emerging asa key player in global supply chains.

 

[Read the full post here]

 

For more information, you can read the official announcement here: The White House

 

 

How Could Nearshoring to Mexico Help You Reduce Supply Chain Risks and Costs?

 

With recent changes to U.S. trade policies, including the tightening of de minimis exemptions, many companies are exploring nearshoring options in Mexico to bypass tariffs and reduce their dependence on Chinese imports. Have you considered how moving your production or assembly closer to the U.S. could cut costs and improve supply chain efficiency?

 

KendrickTrade can help you recognize significant savings under USMCA, ensuring your products qualify for tariff reductions and compliance benefits. By leveraging tools like our USMCA qualification platform, you can maximize the advantages of nearshoring while staying competitive in a changing global market.

 

 

Kendrick Trade specializes in USMCA qualifications, helping businesses navigate the complexities of trade compliance under this agreement. By ensuring your operations meet the necessary criteria, Kendrick Trade can help you unlock the full potential of the free trade agreement. Visit Kendrick Trade to learn more about our services and how we can support your business in making the most of USMCA benefits.

 

Feel free to share this newsletter with your fellow trade professionals, and let’s keep the Kendrick Trade community buzzing!

 

Disclaimer: Kendrick Trade does not provide legal advice or opinions on compliance with laws or regulations. Always consult official sources for trade-related decisions.

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