With recent changes to Mexico’s shipping and logistics laws reshaping the industry, we’re diving into how these shifts impact brands and exploring how NRI can support those navigating this new landscape. In this Q&A, NRI VP of Business Development, Ryan Dale-Johnson shares what’s changing and what it means for your logistics strategy.

What’s Happening:

What’s changing in Mexico’s laws? 

Mexico has introduced significant changes to its trade and customs policies, specifically targeting goods manufactured in China. Among the most impactful changes is the potential imposition of a 35% tariff on Chinese-made apparel imported into Mexico. This measure is aimed at protecting local manufacturers and enforcing stricter compliance with trade agreements, particularly around rules of origin. 

In addition to these tariffs, businesses importing apparel into Mexico may face: 

• Increased customs inspections to verify compliance with rules of origin and labeling requirements. 
• Stricter documentation demands to prove the country of manufacture, potentially slowing down import and export processes. 
• Rising costs due to tariffs, compliance measures, and delays, which may make Mexico-based operations less viable for some businesses. 
• For brands that have relied on Mexico as a strategic hub for U.S. e-commerce fulfillment under Section 321, these tariffs could significantly impact cost structures and force reevaluation of logistics strategies. 

Why are these changes important?

These changes could lead to higher costs, delays at customs, and disruptions for companies relying on Mexico-based logistics operations for their supply chain. For brands dependent on Mexico to benefit from proximity to the U.S. and Section 321 advantages, these shifts may reduce operational efficiency and profitability. 

Who is most affected by these changes? 

Brands importing Chinese-made apparel and other products into Mexico for further distribution or cross-border e-commerce fulfillment are the most affected. Businesses using 3PLs based in Mexico to leverage Section 321 or streamline U.S. e-commerce shipping are also likely to feel the impact. 

Does This Impact Me? 

Will these changes disrupt my supply chain? 

If your logistics depend on Mexico for importing Chinese goods or if you’ve structured your operations to take advantage of existing rules, you may face challenges. Disruptions could include customs delays, increased costs, or the need to adjust your inventory strategies. 

How do they affect cross-border shipping? 

Cross-border shipping from Mexico to the U.S. may become less seamless due to additional inspections, higher duties, or administrative hurdles. This could impact fulfillment timelines and customer satisfaction. 

If my logistics operations are currently based in Mexico, what challenges should I expect? 

Challenges include: 

• Increased customs scrutiny leading to delays. 

• Potentially higher costs for compliance or duties. 

• The need to re-evaluate your reliance on Mexico-based 3PLs for U.S. e-commerce fulfillment. 

Finding a Solution:

What are the benefits of working with a U.S. or Canadian 3PL? 

Relocating to a U.S. or Canadian 3PL offers: 

• Stable regulatory environments with established trade practices. 

• Seamless alignment with U.S. e-commerce fulfillment needs. 

• The ability to leverage Section 321 benefits from Canada while avoiding Mexico’s new complexities. 

What challenges should I prepare for when relocating logistics? 

Key challenges include: 

• Transitioning inventory from Mexico to a new location. 
• Ensuring continuity in operations during the move. 
• Understanding the nuances of cross-border logistics if relocating to Canada. 

How do I start the process of transitioning to a new 3PL? 

Start by: 

1. Assessing your current supply chain needs. 
2. Identifying 3PLs with expertise in cross-border and e-commerce logistics. 
3. Partnering with a 3PL experienced in handling transitions smoothly. 

How NRI Can Help:

How does NRI support brands impacted by these changes? 

NRI specializes in helping brands adapt to supply chain shifts. Whether it’s transitioning logistics from Mexico or managing cross-border e-commerce fulfillment, we provide consultative support and operational expertise. 

What makes NRI a good fit for businesses moving logistics to the U.S. or Canada? 

Extensive experience: With operations in the U.S. and Canada, NRI has a deep understanding of these markets. 

Consultative approach: We tailor solutions to meet each brand’s unique needs. 

Cross-border expertise: Our teams excel at managing complexities like Section 321 shipments from Canada. 

Does NRI have experience with cross-border logistics? 

Yes, cross-border logistics is a core area of expertise for NRI. We’ve been helping brands manage U.S.-bound e-commerce and wholesale operations from Canada for years. Our proven processes and advanced technology ensure smooth and efficient shipping. 

If your brand is navigating these changes and exploring alternatives to Mexico-based logistics, NRI is here to help. Contact us to learn more about our services and how we can support your transition.