In 2014, the Mexican Customs and Tax Authority added Annex 24 (Anexo 24) to its Mexican Tax Reform, and in 2018, further provisions were made. The statute required that businesses manufacturing in Mexico employ automatized inventory control systems as a way to track goods that had been temporarily imported duty-free under the IMMEX decree (which were meant to be assembled and then eventually exported).  So, today, if your company wishes [...]

Since the U.S., Mexico, and Canada agreed upon the new USMCA economic treaty in early 2020, NAFTA has been in the news again. USMCA, in effect, replaces the former international trade agreement, which has transformed the economies of the three countries in the past two and a half decades.  While the pros and cons of  USMCA agreement remain to be seen, at the end of the NAFTA era, it is [...]

This content was updated for accuracy and relevancy on March 26, 2021. If you travel regularly, or if you work in e-commerce or an export/import business, you have most likely encountered the phrases “Duty-Free” and “Section 321 De Minimis.” Often the terms are used offhand and interchangeably without having a clear idea of what they mean or why they were first established.  Many people are also unaware of the way [...]

Global e-commerce has drastically increased the number of international shipments sent each day. When consumers and companies buy merchandise online via an e-commerce platform, it may come from anywhere in the world. Entry Type 86, is a new customs entry type intended to help Customs and Border Protection (CBP) manage the flow of goods, creating greater visibility for low-value shipments entering the U.S. while improving border protection, import security, and [...]

In an effort to drive profits, businesses must constantly seek new avenues to improve cost savings and optimize. One of the primary ways that many companies find competitive cost advantages involves nearshoring or offshoring parts of their operation to external professionals with skilled expertise.  Naturally, you may wonder what the difference is in nearshoring vs. offshoring. Below, we’ll discuss some development outsourcing examples and then dive into the offshore outsourcing [...]

Today, in a world where supply chains are complex and span the globe overseas, many of the fine details become muddied or generalized by those unfamiliar with the industry. For example, laymen often confuse outsourcing vs offshoring by using them as interchangeable phrases. The problem with this mindset lies in the fact that both terms are, in fact, distinctly different concepts.    Are you wondering “what is offshoring?” Below, we’ll lay [...]

As a business grows, evolves, and optimizes, it must seek cost-savings and competitive advantages by utilizing both internal and external economies of scale. Eventually, it reaches a point where it becomes efficient to specialize by breaking up certain processes and passing them along to other specialists who can perform them with greater expertise or at a lower cost. Doing so allows a business to increase production, reduce costs, and continue [...]

In recent years, manufacturing within Mexico has been an increasingly more viable and cost-effective alternative to production in Asia. Businesses not only derive benefits from close proximity to the states but can also find a competitive advantage thanks to favorable trade deals and a skilled low-cost workforce.   Below, we’ll dive into the various factors as to why a growing number of US companies are doing business in Mexico. So, keep [...]

This content was updated for accuracy and relevancy on September 2nd, 2020. In the last decade, market forces have altered the global manufacturing landscape, shifting the market share out of China’s grasp as other business havens became viable alternatives. Mexico, for example, has become an increasingly enticing option for American manufacturers seeking cheap but highly skilled labor, reduced supply chains, and clearer visibility over the entire process. As a result, [...]