NAVDEEP DHALIWAL
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Except Mexico imports more that half its intermediate goods from the US not China.
So your brilliant theory isn’t as brilliant as you think it is.Also relabeling Chinese goods as Made in Mexico isn’t going to make it exempt from import duties.
Since relabeling isn’t considered ‘Substantial transformation’ the country of origin will remain China although the item was exported to the US from Mexico.
Abraham Lincoln “Better to remain silent and be thought a fool than to speak and to remove all doubt“
How to qualify for tariff-free Imports under the USMCA
To be eligible for the USMCA and enjoy tariff-free or reduced tariffs, some criteria must be met. Businesses are required to seek clearance from the U.S. Customs and Border Protection (CBP) and provide documentation of the commodity, including the Certification of Origin.
The Certification of Origin can be in any format and may be completed by either the importer, exporter, or producer. This will consist of details of the importer, exporter, producer(s), Harmonized System (HS) classification of the goods as well as the origin criteria.
As I said if Mexico is pulling it off I'm happy with it.
And the rules u quoted let's just say it's nothing new and can be easily bypassed.
Has been bypassed since ages all over the world.
Prime example is banning of Russian oil, now just imagine who is buying Russian oil ?
I think ur not a trader, my friends are into trading and bypassing these regulations is not a big deal.
But you're in Mexico, and if you have your self seen doubling or an increase of factories near you. I 100% believe you.
I have nothing to gain by arguing. I just wanted to share something that is very common in international trade.
Good day.