Importers & Exporters Top 100 2024

Southern Africa due to diversions away from the Suez Canal , some designer fashions produced in Bangladesh , Indonesia and Vietnam are more time-sensitive .

Eyes on Washington

Clothing importers are also watching multiple pieces of federal legislation on Capitol Hill covering de minimis rules — which exempt shipments valued at less than $ 800 from import duties and tariffs — and foreign trade zones ( FTZs ). The US Foreign Trade Zone Parity Act , for example , would extend de minimis rules to cargo destined for FTZs within the US . While e-commerce shipments valued at $ 800 or less are exempt from duties , shipments from US-based FTZs currently do not enjoy the same benefit .

A footwear importer who asked not to be identified said allowing FTZs to take advantage of de minimis rules would improve their business .

“ The [ FTZ ] bill matters to us because we operate FTZs inside the US , but we don ’ t source from China anymore ,” the shipper said . “ If you are manufacturing in other countries ... given the way de minimis works , you ’ re penalized in a way for doing fulfillment in the US versus if you wanted to be just over the border in Canada or Mexico .”

The De Minimis Reciprocity Act , meanwhile , would alter how the US Treasury Department calculates de minimis values based on the trade relationship with a particular country . Some clothing shippers are concerned the bill would result in the elimination of de minimis rules for imports from China .

“ If you are manufacturing in other countries ... you ’ re penalized in a way for doing fulfillment in the US .”

Both pieces of legislation could have a material impact on the economic factors that go into decisions around the sourcing and annual volumes of merchandise imports .

Apparel and footwear shippers sourced 42.1 % of their imports from mainland China last year , down from 47 % in 2018 but still a larger share than the next four largest suppliers — Vietnam ( 19.6 %), Bangladesh ( 5.8 %), Indonesia ( 5.3 %) and Cambodia ( 3.8 %) — combined , according to PIERS .

email : ari . ashe @ spglobal . com

Partner with us to share insights

TPM Inland Distribution Conference

01688 | 0623

Breakbulk & Project Cargo Conference Shipper Roundtables

www . joc . com May 20 , 2024 | Journal of Commerce 45