Mexico’s New IMMEX Restrictions: What It Means for U.S. Apparel Brands
Mexico’s recent decision to immediately restrict textile imports through its IMMEX duty-deferral program has sent shockwaves through the U.S. apparel industry. The changes, announced via a presidential decree by President Claudia Sheinbaum on Dec. 19, are forcing brands and third-party logistics (3PL) providers to scramble for solutions as they prepare for 2025.
What Is IMMEX, and Why Does It Matter?
The IMMEX program was designed to promote manufacturing in Mexico by allowing goods to be temporarily imported duty-free, provided they were intended for re-export. Many U.S. apparel brands utilized this program to take advantage of Mexico’s low-tax structures and labor costs, often routing goods from China to Mexico before shipping them duty-free to the U.S.
However, the new restrictions ban the import of finished apparel products under IMMEX. This move effectively eliminates a major cost-saving advantage for U.S. brands using 3PL providers with warehouses in Mexico.
How U.S. Brands Are Impacted
Many U.S. e-commerce brands have relied on Mexico-based warehouses to benefit from the Section 321 de minimis provision, which exempts shipments valued at $800 or less from U.S. customs duties. Finished goods would be stored, picked, and packed in Mexican facilities before being shipped to U.S. customers.
But with Mexico now prohibiting finished apparel imports under IMMEX, brands may face unexpected customs duties or logistical bottlenecks. This disruption is already creating chaos for 3PL providers like XB Fulfillment, which has reportedly declared force majeure, freeing it from certain contractual obligations due to these unforeseen circumstances.
The Bigger Picture: IMMEX and U.S. Section 321
While U.S. Section 321 laws remain unchanged for now, Mexico’s restrictions could pressure Congress to revisit de minimis exemptions. Some policymakers have already called for the provision’s reform or elimination, and this disruption adds fuel to the fire.
Flexport and Other 3PLs Step In
Ryan Petersen, CEO of Flexport, highlighted the urgency of the situation, noting that apparel brands served by XB Fulfillment are searching for alternative solutions. Flexport is prioritizing affected customers, offering freight forwarding and customs clearance services.
XB Fulfillment, which operated four fulfillment centers in Mexico as of mid-2023, handled $3 billion worth of shipments last year. Its clients, including prominent brands like True Classic and Cuts Clothing, now face significant operational hurdles.
Mexico’s Protectionist Move
The restrictions appear to be part of a broader effort to protect Mexico’s struggling textile industry, which experienced a 4.8% GDP contraction in 2024. Economy Minister Marcelo Ebrard framed the changes as essential to preserving approximately 400,000 textile jobs.
“These measures protect one of the most important industries for employment in Mexico,” Ebrard said, citing concerns over dumping and unfair pricing from international imports.
What’s Next for U.S. Brands?
Apparel brands may need to explore alternative solutions, such as hosting goods in Canada, to maintain duty-free advantages under de minimis exemptions. However, this will likely increase costs and complexity for brands accustomed to the Mexico-based supply chain model.
Tariffs Add to the Pressure
Adding to the challenge, Mexico has introduced temporary tariff increases on textiles and finished goods. Key changes include:
• Textiles like denim: From 10% to 15%
• Finished products like knitwear and jackets: From 20%-25% to 35%
These tariffs, however, do not apply to goods imported from countries with free trade agreements with Mexico, such as the U.S. and Canada.
A Perfect Storm
This policy change coincides with growing tensions between Mexico and the incoming U.S. administration. President-elect Donald Trump has threatened tariffs of up to 25% on Mexican goods, criticizing Mexico’s handling of immigration and drug trafficking.
For now, U.S. brands relying on Mexico’s IMMEX program are left navigating an increasingly complex landscape, balancing supply chain disruptions, rising costs, and political uncertainty.
As 2025 looms, the race is on to adapt to these sudden changes—or risk falling behind.
Here are some recent news articles discussing the IMMEX program and its implications:
• Mexico Increases Tariffs, Revises Import Program in Blow to U.S. Apparel Import Industry
This article details Mexico’s recent decree that increases import duties on certain textile products and restricts the temporary importation of finished apparel goods under the IMMEX program.
• Mexico’s New Ban on US-Bound Apparel Imports a ‘Nightmare’ for 3PLs
This news piece discusses the challenges faced by third-party logistics providers due to Mexico’s immediate restrictions on textile imports through the IMMEX program, affecting U.S. apparel brands.
• Mexico: Modifications to General Foreign Trade Rules Affecting IMMEX Operations and VAT Certifications
This article from KPMG provides insights into recent changes to Mexico’s foreign trade rules, impacting IMMEX operations and VAT certifications, with a focus on compliance requirements for companies.