How China skirts tariffs into the US


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In Maersk’s press release last week about a new warehousing facility in Tijuana, Mexico, one line stood out. It was sandwiched between a list of value-added services offered and a paragraph about the facility’s sustainable energy practices and certifications. “Alternatively, it could operate [fulfillment or e-fulfillment] operations into the United States, leveraging the Section 321 Shipment Type** for e-commerce shipments.” Under U.S. Customs and Border Protection rules, a Section 321 shipment is an import to the United States that, because it’s valued at less than $800, is exempt from tariffs. This rule has gained attention as a strategy to sidestep...