In 2024, over 1.36 billion shipments arriving in the US benefitted from the de minimis provision – a duty exemption for goods valued at $800 or less.1 However, on 1 February 2025, this exemption was terminated for goods originating in China, causing widespread concern in the e-commerce industry. Fashion brands will need to deal with its impacts in the coming years.
Read on to learn how a fashion logistics partner can help your brand navigate the changes while prioritising customer experience, operational efficiency and cost-effectiveness.
Helping your brand thrive in the new regulatory landscape
With higher import duties and increased scrutiny of inbound shipments, the new regulations add significant logistical complexity for brands importing to the US. To help overcome the operational obstacles created by the regulatory changes, a third-party logistics (3PL) provider can offer brands access to a wealth of resources, specialist capabilities and professional networks. Here are some of the ways a specialist fashion 3PL can support your coping strategy.
#1: Simplify customs compliance
Navigating a rapidly changing regulatory landscape can be challenging. However, an experienced fashion logistics partner can provide brands with the expertise needed to stay compliant and keep the overall impact to operational costs as low as possible. Logistics partners can help ensure that shipments meet all requirements – ,such as the ‘enhanced entry process’ introduced as part of new US Customs and Border Protection (CBP)’s import regulations for shipments from China.2
How can a 3PL provider support my brand?
From automated duty management to streamlined cross-border returns, there are many ways in which a fashion logistics partner can support your brand’s overall compliance. This is essential to reduce the risk of costly service disruptions while maintaining an exceptional customer experience. The right 3PL provider has the capabilities to support your brand, both in terms of technical know-how and operational resources.
Of course, the implementation of the ‘Entry of Low-Value Shipments’ (ELVS) rules is far from the first regulatory challenge fashion brands have faced in recent years. The UK’s departure from the EU, for example, has added many layers of cost and bureaucracy to cross-border fulfilment. 3PL providers with experience in successfully adapting to such situations can provide valuable insights to ensure that all relevant compliance requirements are met, customers satisfaction rating stays unchanged and operational execution continues to support your brands growth and success.
Read more about how a 3PL provider can help brands adapt to evolving regulations.
#2: Optimize transportation solutions
As tariffs drive up the cost of sourcing, many brands are looking for other ways to economize. Your transportation can be a lever to help balance cost-effectiveness with customer experience. The key to this is optionality. Brands that manage their own transportation tend to be more restricted in terms of the providers they can work with, Although a 3PL partner can give your brand access to an extensive transportation network.
This means that your fashion logistics partner can leverage its existing partnerships to help optimize your cross-border fulfilment. For example, many brands are looking to move to bulk shipping rather than relying on direct-to-consumer (D2C) fulfilment from China. A 3PL can help you secure more favorable shipping rates through for example freight consolidation, whereby multiple smaller shipments are combined to reduce the overall cost of transportation.
In addition, your 3PL can work with you to reduce transportation costs by adapting transportation methods to the trends, changes and issues you are confronted with. This will largely depend on the nature of the product, their origin and destination and of course the time to market needed. For example, a seasonal collection may need to be shipped by air to ensure it reaches stores in time. However, less time-sensitive products may be shipped by ocean freight or the right mix of transport modalities to reduce costs. As always, it’s important to be transparent with customers about any changes to delivery times, costs and process steps.
#3: Prioritize local warehousing and distribution
Alongside optimizing your transportation networks, a fashion logistics partner can help you get set up in a local US warehouse. This will allow brands to move away from D2C single-order fulfilment to mitigate the impact of the de minimis exemption removal. In addition, smart inventory management often proves to be critical to successfully managing your cost-efficiency. For example, a 3PL can help you improve your supply chain visibility and your demand forecasting and minimizing waste.
By using advanced analytics to better predict inventory needs, you’re less likely to pay duties on products that don’t end up being sold in country – making your operations more efficient in the long run. And there are other ways in which taking a broader view of your logistics operations can deliver efficiency benefits. Circular solutions such as returned garment refresh, repair and resale services can help to further minimize waste and guarantee a maximum in revenue retention.
Read more about how circular solutions can help brands drive sustainability and profitability.
Helping your brand adapt to regulatory challenges
As US trade regulations continue to evolve, fashion brands operating in the US must remain agile and proactive to effectively navigate the continuously changing landscape. Partnering with a specialist fashion logistics provider can help you mitigate rising costs by optimizing transportation, prioritizing local warehousing and streamlining customs compliance, so you can maintain a seamless customer experience for all of your brand’s US customers.
With uncertainty being the only constant when it comes to future customs regulations, now is the time to evaluate your supply chain strategy to ensure your business is prepared and agile. You can continue to deliver exceptional service without compromising efficiency or profitability, by leveraging the infrastructure and know-how of an expert apparel 3PL. Indeed, with the right partnerships, you can turn regulatory challenges into loyalty-building opportunities.
Want more insights on the impacts of the latest US customs regulations? Read more here or get in contact for a free consultation with a Bleckmann expert.
