By: Gavin Andersen, Law Clerk, LCB and Adrienne Braumiller, Founding Partner, Braumiller Law Group Last June (2023), in response to a ruling request from Your Special
At the core of the definition, a Parallel import is a non-counterfeit product imported from another country without the permission of the intellectual property owner. They are also goods that are not authorized for importation into the U.S. It’s a global phenomenon, a very grey area, and their presence varies across different parts of the globe.
One of the most important requirements for importing goods into Mexico is to be registered as an importer under the Mexican importer’s registry. There are 2 types of registries for importers, one is for general importers (Padron de Importadores), and the other is for importers of specific industry sectors (Padron the Importadores de Sectores Especificos) which may import goods identified by the MX tariff code (i.e. chemical products, firearms, cigars, footwear, textiles, alcohol, hydrocarbons, steel, automotive, etc.). Generally, these 2 registries are lists with information of individuals and entities authorized to bring goods into Mexico.
Consider this scenario: a client faced the challenge of deferring duty payments while managing a significant volume of imports destined for re-exportation from the U.S. Initially considering duty drawbacks, which proved unsuitable for their specific needs, we turned our attention to bonded warehouses and free trade zones. This scenario is not uncommon in the trade world and highlights a critical decision point for many businesses: choosing between a bonded warehouse and a Foreign Trade Zone (FTZ).
The First Sale Rule applies in circumstances such as the example above. A US company places an order with a middleman in the US. The middleman in turn subcontracts to a foreign supplier. The supplier then ships the product either to the middleman or to the original US company that placed the order, meaning either could be the importer of record. The entered value could be the amount on the original purchase order or the price paid by the middleman to the foreign supplier.
The world of cryptocurrencies on blockchains and the world of traditional assets in markets have often stood in stark contrast to one another since Bitcoin’s creation in 2008. The lack of a reliable bridge between these two worlds has limited the impact of cryptocurrencies on assets in the real-world outside of on-chain speculation and prevented adoption of the benefits that blockchain technologies can bring to real world processes.
President elect Lai Ching-te’s victory in Taipei ignited tensions across the Taiwan strait and now the geopolitical field waits to see if China will kick off World War Three. I’m only slightly joking, but Beijing has exerted diplomatic pressure on nations maintaining close ties with the island in the past and Taiwan’s decision to remain a democracy will no doubt ramp up China’s reunification process in the coming months. But how will that affect trade relations?
In the complex world of international trade compliance, few people possess the expertise, dedication and problem-solving skills that Brad Menard, President of Braumiller Consulting Group, brings to his clients.
In recent years, the global spotlight has illuminated the grave concerns surrounding human rights violations within China’s Xinjiang region, particularly those impacting the Uyghur population. The Uyghur Forced Labor Prevention Act (UFLPA) stands as a pivotal piece of legislation designed to address these concerns and to ensure that products imported into the United States are devoid of forced labor originating from the Xinjiang region.
The implementation of trade policies in what many consider acts of protectionism and manipulation are the norm, and of course China and the U.S. are a prime example. Solutions include nearshoring, reshoring, and protectionism. It’s complicated, so for the purpose of this article, let’s stick with nearshoring.
On March 7, 2025, the White House hosted a Digital Assets Summit to celebrate the creation of a Bitcoin Strategic Reserve and a Digital Assets Stockpile by an Executive Order titled, “Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile“. The Executive Order recognizes that “The Bitcoin protocol permanently caps the total supply of bitcoin (BTC) at 21 million coins, which is critical to its value proposition as a scarce asset.
The various tariffs that President Trump has imposed since retaking office are based on delegated authority found in several existing statutes. But a century ago, tariffs were primarily the purview of Congress. One of the most controversial manifestations of U.S. tariff legislation (and of American legislation in general) was the Smoot–Hawley Tariff Act of 1930, signed into law by President Hoover shortly after the United States—and the world—fell into the black hole of the Great Depression.
Several fundamental conditions are widely presumed necessary for a country to enjoy the benefits of global trade. One condition is that import activity ought not exceed export activity. Put more simply, we must sell more than we buy. On its face this seem reasonable. It seems logical that a trade deficit (that is, selling less than we buy) is a drain on our economy. Indeed, every month the news media feed us the bad news about the negative “balance of trade” data reported by the Commerce Department.
Prior to the origination of the plans for the Panama Canal vessels of trade had few options of getting goods from Europe and Asia to N. America. One was to sail around the southern tip of South America (Cape Horn) adding months to the journey if they were lucky enough to make it through what is known as one of the most hazardous shipping routes in the world, where it’s estimated that over 800 ships have been lost over the last couple of centuries of trade.
On February 10, 2025, President Trump signed proclamations to reinstate the full 25% tariff on steel imports and increase tariffs on aluminum imports to 25%. Section 232 of the Trade Expansion Act of 1962 affords the President with the authority to adjust imports being brought into the U.S. in quantities or under circumstances that threaten to impair national security. The President says the reinvigorated Section 232 tariffs “will support the program’s original objective of revitalizing the domestic steel and aluminum industries and achieving sustainable capacity utilization of at least 80%.”
The United States-Mexico-Canada Agreement (USMCA) joint review process is scheduled to begin on July 1, 2026, but the time to prepare is now. Embedded trade compliance professionals should already be doing scenario analysis—pulling data, calculating the supply chain impacts of potential changes, and helping their companies to strategize accordingly.
In 2024, China’s Belt and Road Initiative (BRI) saw significant financial engagement. Preliminary data indicates that China invested approximately $92.4 billion in various projects across the 149 countries involved in the BRI. China’s Belt and Road Initiative (BRI) encompasses numerous large-scale infrastructure projects across the globe.
As of now, the start of 2025, there are several Chinese industrial parks in Mexico, with notable examples including the Hofusan Industrial Park near Monterrey, which hosts manufacturing plants for ten Chinese companies. When one is considering how to navigate the U.S. import tariffs, for many Chinese manufacturers, pulling the trigger on nearshoring is the right move.
Recent announcements by former U.S. President Donald Trump regarding the potential imposition of import duties on goods from Mexico have created uncertainty for companies operating under the IMMEX program. Many businesses are concerned that the benefits provided by this program may no longer apply.
As one of his first official acts as President, Trump released his memorandum on America First Trade Policy. The policy offers insight into the new administration’s trade priorities and calls for a review of current trade-related policies. President Trump says his goal is to establish “a robust and reinvigorated trade policy that promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.”