Maersk’s New Mexican Warehouse Utilizes Section 321 Tariff-Free Imports for US E-commerce Shipments

Maersk recently announced the opening of a new warehousing facility in Tijuana, Mexico, with a standout line in their press release indicating the potential for fulfillment or e-fulfillment operations into the United States using the Section 321 Shipment Type exemption. This rule, which allows imports valued under $800 to enter the U.S. duty-free, has become a popular strategy to avoid tariffs. The facility, strategically located near the Otay and San Ysidro Commercial Ports, aims to leverage this exemption for cost-effective cross-border movement of goods. Mexico’s surge in imports from China has also contributed to the attractiveness of the country for warehousing and fulfillment purposes, supported by the IMMEX program which facilitates tax and duty exemptions for manufacturing and export activities. This trend of Chinese exports to Mexico, particularly for goods destined for the U.S., has seen significant growth in recent years. With a focus on leveraging Mexico’s logistics infrastructure and trade agreements, Chinese businesses are using strategies like warehousing in Mexico and adhering to the Section 321 rule to expedite customs processing and minimize costs associated with tariffs. Despite the trade war between the U.S. and China, the trend of Chinese entities utilizing Mexico as a gateway for their goods holds potential benefits for both countries in terms of economic transformation and regional stability. This shift towards strengthening Mexico’s economy could lead to a more resilient North American supply chain and a reliable source of goods for the U.S. from a neighboring country.