Companies searching for cost reductions have moved labor-intensive retail and other packaging operations to Mexico. This can often be accomplished under with zero duty and no change in the origin of the packaged product.
The border’s close proximity allows companies to fulfill and ship orders in the same day they are received. Upon crossing the Mexico-US border, goods can be freight forwarded to their final destinations. By cross-docking packaged goods though TACNA’s US logistics center in San Diego, California clients can assure rapid delivery to their customers with low overhead costs.
When goods are packaged, filled or blistered in Mexico and not transformed or advanced in value, such goods retain their original country of origin marking for US customs purposes. These transactions in most cases are duty free in Mexico and the United States. US manufactured products packaged in Mexico may retain their “Made in USA” marking. This benefits manufacturers sensitive to country of origin markings especially in retail distribution channels.
Companies with US retail channels are increasingly establishing distribution and pick-pack operations with lower warehousing costs near the US-Mexico border. Close proximity to the United States allows companies the ability to warehouse finished products in Mexico for sale US. Pick-pack operations allow clients to use lower cost operations to pick products by store or customer order, label for parcel or LTL shipping, and freight forward directly to the end customer.
