Mexico ends border-skipping loophole e-commerce companies frequently exploit


Source: finance.yahoo.com finance.yahoo.com

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Claudia Sheinbaum Pardo speaks during an event in Mexico City, Mexico. (Octavio Hoyos/Shutterstock) Mexican President Claudia Sheinbaum has issued a decree that effectively ended the popular “border-skipping” strategy many U.S. e-commerce sellers used to avoid tariffs on Chinese goods. This decision, which was announced on Dec. 19 and took effect immediately, primarily targets apparel imports and is set to have far-reaching consequences for the industry. The border-skipping strategy For years, U.S. companies have been importing goods from China to Mexico, shipping them one order at a time to the U.S., effectively avoiding tariffs under the Section 321 provision. This loophole...