Nice shoutout for Izzy Rosenzweig and Portless - helping brands save $ and time by enabling a Shein-like delivery model. While the article focuses primarily on duty-savings, Portless changes the game by allowing brands to shift to more of a just-in-time manufacturing model, achieve picking & packing savings, and activate easy international fulfillment.
New 🇲🇽🚢🇺🇸🚚🇨🇦: American companies that manufacture overseas are increasingly dodging import duties by embracing a controversial trade "loophole" that's been key to the rise of Shein and Temu. In order to use the loophole, known as de minimis, companies ship orders out of warehouses located just across the border in Mexico and Canada, allowing them to dodge tariffs as high as 25% on some items. That's fueled a boom in warehouse openings just across the border from companies like A.P. Moller - Maersk, ShipMonk, ShipBob, ShipHero and XB Fulfillment. It's also led to a bizarre process where goods can arrive in US ports, get trucked to Mexico, then immediately get shipped back duty-free. “It lands in the U.S., goes through the U.S., is exported for a day or two, and is kicked back around into the U.S.," said Graham Anderson of Importal. "It's a pretty wild loophole." Companies can also take advantage of de minimis by flying customer orders directly from China. Izzy Rosenzweig of Portless, which focuses on de minimis air frieght, said: "The perception of Chinese brands as the only ones using [de minimis] is absolutely incorrect." De minimis shipments are on track to hit around 1.5 billion this year, or about 4.5 packages for every American. But politicians from both parties have been discussing ways to tighten or close the loophole. Read the full story story with Ann Gehan in The Information: https://lnkd.in/ee_FZ3jr
