Latest news with #RamBenTzion
Yahoo
07-08-2025
- Business
- Yahoo
Mexico Hikes Duties on Low-Value Goods, Dealing Another Hurdle for Shein, Temu
Mexico has changed its strategy toward low-value shipments. The country has raised its duties for low-value shipments inbound from most countries. The new duty, which sits at 33.5 percent—as compared with the previous rate of 19 percent—applies to shipments valued at $2,500 or less, per Mexico News Now. More from Sourcing Journal EU Delays Duties on US, While India and China Negotiations are Snarled by Russia Conflict Tariff Ticker: The White House Had a 'Very Busy' Wednesday 'Working on Trade Deals' UPS China-to-US Shipments Decline More than Expected in Q2 The increased rate applies to countries which have no standing trade agreement with Mexico, like China; Canada and the U.S., which do have a trade agreement with their neighbor to the South, have a different rule. Items inbound to Mexico from the U.S. will be subject to a 17 percent duty, if the cost of the shipment sits between $50 and $117. Items worth less than $50 will stay duty free and items above $117 will be subject to the 19 percent duty. A reform detailing the change posted to the Mexican government website said the change will take effect August 15. Upping the duty rate on low-value parcels is likely to impact low-cost e-commerce players, like Shein and Temu, both of which have already seen significant changes to their ability to operate without duties in the U.S. market because of the collapse of the de minimis exemption. Ram Ben Tzion, CEO of Ultra Information Solutions, said that as the U.S. and others reevaluate their approaches toward low-value shipments, Shein, Temu and others will need to change their business strategies. Ben Tzion said Temu, in particular, could see some struggles; the company operates as a marketplace, so its sellers could be hit with—or pass on to their consumers—the burden of paying extra to account for duties in different locales. Shein, contrastingly, sells its own fast-fashion products and boasts a marketplace where others can sell their products. 'These two players, as well as others, will need to revisit their value proposition and what their business model is. With Shein, I would expect it to go back to fast fashion. With Temu, I doubt they have a viable business case,' he explained. Mexican consumers may begin to see price hikes on goods from their favorite marketplaces; Ben Tzion said that may drive some people away, pushing them toward brand names with some level of affordability to replace consumers' fast-fashion urges. 'I would expect to see people be more aware, not just of the price, but of the origin of the product. Therefore, more consumption will move from the big e-commerce marketplaces to direct sourcing of e-commerce, or online shopping from the end brand that you're after,' he said. 'Branded goods will now have more value than the non-branded items that Temu and Shein have offered.' Some have suggested that Mexico's work to curtail the flow of low-cost goods from China could be a play to placate the U.S. government, particularly as President Donald Trump continues negotiating on tariffs with several countries, including Mexico. Ben Tzion said in actuality, he believes Mexico's government is actually working to stimulate its own economy. He pointed to the fact that President Claudia Sheinbaum's administration declared a temporary tariff on fashion and apparel items, good through 2026, in an effort to pump life into Mexico's manufacturers as one such example of that strategy and said he believes the increased duty on low-cost goods is the next step forward. 'Over the last several months, the Mexican government and Mexican customs leadership have shown to be very agile in adapting to the new world order of tariffs. While many times, we think of this as a reaction or as a measure to appease the U.S. government to avoid duties, it's actually about preserving Mexican economic interest and value,' Ben Tzion said. Ben Tzion said that if Mexico had not chosen to up the duty, it would have been even more likely to see an influx of low-value goods shipped into the country, then shipped to other destinations—primarily the U.S.—by using advantageous tariff rates, despite the U.S.'s increasingly guarded position on transshipping. By making it less interesting to ship low-cost goods into Mexico, the government is likely lightening the load on customs and ensuring that it keeps transactions in the country. 'It's a way to ensure that they don't become a proxy to bypassing de minimis regulation and that they sustain value in the country,' he said. 'It's important to look at Mexico as Mexico first. We're always seeing how countries react or respond to [Trump's] America First trade policy. They are perhaps a very good example of how a solid strategy and a lot of professional work can adapt quickly and effectively to the new world of global trade.' He expects that, with some work, other countries might adopt a similar approach. Rather than allowing e-commerce players to capitalize on existing trade loopholes and exemptions, global countries may instead choose to tighten up their compliance guardrails. Ben Tzion said Asian markets that have a vested interest in pushing consumers toward goods made in their own countries, rather than seeing them buy from China, may soon change their duties and regulations. He called the European Union, which earlier this year proposed regulations that would see a per-parcel flat tax on such imports because of the economic impact of companies like Shein and Temu, 'in desperate need to take action, but not very quick to adapt.' Nonetheless, he expects to see changes coming from all sides in the coming months and years, particularly as U.S. trade positions continue shifting. 'As a whole, the understanding that e-commerce cannot remain a vacant space where no enforcement, no compliance and no tariffs are applied is going to become a global standard, because e-commerce has become a significant part of every country's trade activities,' Ben Tzion told Sourcing Journal. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hindu
10-07-2025
- Business
- The Hindu
How U.S. buyers of critical minerals bypass China's export ban
Unusually large quantities of antimony— a metal used in batteries, chips and flame retardants— have poured into the United States from Thailand and Mexico since China barred U.S. shipments last year, according to customs and shipping records, which show at least one Chinese-owned company is involved in the trade. China dominates the supply of antimony as well as gallium and germanium, used in telecommunications, semiconductors and military technology. Beijing banned exports of these minerals to the U.S. on December 3 following Washington's crackdown on China's chip sector. The resulting shift in trade flows underscores the scramble for critical minerals and China's struggle to enforce its curbs as it vies with the U.S. for economic, military and technological supremacy. Specifically, trade data illustrate a re-routing of U.S. shipments via third countries— an issue Chinese officials have acknowledged. Three industry experts corroborated that assessment, including two executives at two U.S. companies who told Reuters they had obtained restricted minerals from China in recent months. The U.S. imported 3,834 metric tons of antimony oxides from Thailand and Mexico between December and April, U.S. customs data show. That was more than almost the previous three years combined. Thailand and Mexico, meanwhile, shot into the top three export markets for Chinese antimony this year, according to Chinese customs data through May. Neither made the top 10 in 2023, the last full year before Beijing restricted exports. Thailand and Mexico each have a single antimony smelter, according to consultancy RFC Ambrian, and the latter's only reopened in April. Neither country mines meaningful quantities of the metal. U.S. imports of antimony, gallium and germanium this year are on track to equal or exceed levels before the ban, albeit at higher prices. Ram Ben Tzion, co-founder and CEO of digital shipment-vetting platform Publican, said that while there was clear evidence of transshipment, trade data didn't enable the identification of companies involved. "It's a pattern that we're seeing and that pattern is consistent," he told Reuters. Chinese companies, he added, were "super creative in bypassing regulations." China's Commerce Ministry said in May that unspecified overseas entities had "colluded with domestic lawbreakers" to evade its export restrictions, and that stopping such activity was essential to national security. It didn't respond to Reuters questions about the shift in trade flows since December. The U.S. Commerce Department, Thailand's Commerce Ministry and Mexico's Economy Ministry didn't respond to similar questions. U.S. law doesn't bar American buyers from purchasing Chinese-origin antimony, gallium or germanium. Chinese firms can ship the minerals to countries other than the U.S. if they have a license. Levi Parker, CEO and founder of U.S.-based Gallant Metals, told Reuters how he obtains about 200 kg of gallium a month from China, without identifying the parties involved due to the potential repercussions. First, buying agents in China obtain material from producers. Then, a shipping company routes the packages, re-labelled variously as iron, zinc or art supplies, via another Asian country, he said. The workarounds aren't perfect, nor cheap, Mr. Parker said. He said he would like to import 500 kg regularly but big shipments risked drawing scrutiny, and Chinese logistics firms were "very careful" because of the risks. Brisk trade Thai Unipet Industries, a Thailand-based subsidiary of Chinese antimony producer Youngsun Chemicals, has been doing brisk trade with the U.S. in recent months, previously unreported shipping records reviewed by Reuters show. Unipet shipped at least 3,366 tons of antimony products from Thailand to the U.S. between December and May, according to 36 bills of lading recorded by trade platforms ImportYeti and Export Genius. That was around 27 times the volume Unipet shipped in the same period a year earlier. The records list the cargo, parties involved, and ports of origin and receipt, but not necessarily the origin of the raw material. They don't indicate specific evidence of transshipment. Thai Unipet couldn't be reached for comment. When Reuters called a number listed for the company on one of the shipping records, a person who answered said the number didn't belong to Unipet. Reuters mailed questions to Unipet's registered address but received no response. Unipet's parent, Youngsun Chemicals, didn't respond to questions about the U.S. shipments. The buyer of Unipet's U.S. shipments was Texas-based Youngsun & Essen, which before Beijing's ban imported most of its antimony trioxide from Youngsun Chemicals. Neither Youngsun & Essen nor its president, Jimmy Song, responded to questions about the imports. China launched a campaign in May against the transshipment and smuggling of critical minerals. Offenders can face fines and bans on future exports. Serious cases can also be treated as smuggling, and result in jail terms of more than five years, James Hsiao, a Hong Kong-based partner at law firm White & Case, told Reuters. The laws apply to Chinese firms even where transactions take place abroad, he said. In cases of transshipment, Chinese authorities can prosecute sellers that fail to conduct sufficient due diligence to determine the end user, Mr. Hsiao added. Yet for anyone willing to take the risk, big profits are available overseas, where shortages have sent prices for gallium, germanium and antimony to records. The three minerals were already subject to export licensing controls when China banned exports to the U.S. China's exports of antimony and germanium are still below levels hit before the restrictions, according to Chinese customs data. Beijing now faces a challenge to ensure its export-control regime has teeth, said Ben Tzion. "While having all these policies in place, their enforcement is a completely different scenario," he said.
Time of India
09-07-2025
- Business
- Time of India
Bypassing China's critical minerals export ban: US buyers re-routing shipments via Mexico, Thailand, says report
A sharp rise in US-bound shipments of antimony from Thailand and Mexico has reportedly emerged since China imposed export curbs last year, highlighting how global supply chains are being re-routed to work around geopolitical restrictions. Tired of too many ads? go ad free now According to customs and shipping data reviewed by Reuters, more than 3,800 metric tons of antimony oxides were imported into the United States from the two countries between December 2024 and April 2025 — more than the total volume brought in over the previous three years combined. Antimony, used in batteries, semiconductors and flame retardants, is among the minerals — along with gallium and germanium — that Beijing blocked from reaching the US in December following Washington's crackdown on China's chip industry. The disruption has left the global market scrambling for alternatives, and the data suggests a redirection of Chinese-origin materials through third countries. 'Trade flows are being restructured, but we're still seeing the same underlying sources,' said Ram Ben Tzion, CEO of shipping intelligence firm Publican according to the Reuters report. He noted clear signs of transshipment patterns, though current trade records don't identify the original source material in all cases. The re-routing comes even as Chinese authorities have acknowledged loopholes. In May, the country's commerce ministry said foreign players had 'colluded with domestic lawbreakers' to bypass the restrictions, adding that curbing such activities was vital to national security. It did not respond to further questions about recent trends. Meanwhile, US law does not prohibit imports of Chinese-origin antimony, gallium or germanium, provided they arrive through licensed intermediaries in other countries. Tired of too many ads? go ad free now One US buyer, Gallant Metals CEO Levi Parker quoted in the report, described the workaround process in detail: Chinese producers sell the material to buying agents, who then ship it through another Asian country under false labels such as iron or art supplies. 'I'd prefer to buy 500 kg per month, but large shipments invite attention,' Parker told Reuters, adding that Chinese logistics firms remain cautious due to the risks. Thai and Mexican exports of antimony to the US have soared since the ban. According to Chinese customs data through May, the two countries have vaulted into the top three destinations for Chinese antimony — despite each having just one smelter and no significant domestic mining output. Mexico's only smelter resumed operations as recently as April. Among the top exporters is Thai Unipet Industries, a local subsidiary of Chinese antimony producer Youngsun Chemicals. Data from trade platforms ImportYeti and Export Genius shows Unipet sent at least 3,366 tons of antimony-based products to the US between December and May — nearly 27 times its volume over the same period a year earlier. The shipment documents name Unipet as the exporter and Texas-based Youngsun & Essen — a previous direct buyer from China — as the importer. However, Reuters was unable to confirm the origin of the raw material. Unipet did not respond to calls or emails, and Youngsun Chemicals and Youngsun & Essen also did not reply to requests for comment. China launched a new enforcement drive in May aimed at halting illegal mineral transshipment. Offenders can face heavy penalties, including bans and even jail time for severe violations. Chinese law also extends enforcement beyond its borders — companies failing to verify the end use of restricted exports can be prosecuted, said James Hsiao, partner at law firm White & Case. Despite the clampdown, the lure of high overseas prices is keeping the unofficial flow of materials alive. With demand for gallium, germanium and antimony surging, prices for all three minerals have climbed to record highs. 'Having policies on paper is one thing, but actually enforcing them on the ground is an entirely different matter,' said Ben Tzion, quoted Reuters.
The Sun
09-07-2025
- Business
- The Sun
How US buyers work around China's mineral ban
BEIJING: Unusually large quantities of antimony – a metal used in batteries, chips and flame retardants – have poured into the US from Thailand and Mexico since China barred US shipments last year, according to customs and shipping records, which show at least one Chinese-owned company is involved in the trade. China dominates the supply of antimony as well as gallium and germanium, used in telecommunications, semiconductors and military technology. Beijing banned exports of these minerals to the US on Dec 3 following Washington's crackdown on China's chip sector. The resulting shift in trade flows underscores the scramble for critical minerals and China's struggle to enforce its curbs as it vies with the US for economic, military and technological supremacy. Specifically, trade data illustrate a re-routing of US shipments via third countries – an issue Chinese officials have acknowledged. Three industry experts corroborated that assessment, including two executives at two US companies who told Reuters they had obtained restricted minerals from China in recent months. The US imported 3,834 metric tons of antimony oxides from Thailand and Mexico between December and April, US customs data show. That was more than almost the previous three years combined. Thailand and Mexico, meanwhile, shot into the top three export markets for Chinese antimony this year, according to Chinese customs data through May. Neither made the top 10 in 2023, the last full year before Beijing restricted exports. Thailand and Mexico each have a single antimony smelter, according to consultancy RFC Ambrian, and the latter's only reopened in April. Neither country mines meaningful quantities of the metal. US imports of antimony, gallium and germanium this year are on track to equal or exceed levels before the ban, albeit at higher prices. Ram Ben Tzion, co-founder and CEO of digital shipment-vetting platform Publican, said that while there was clear evidence of transshipment, trade data didn't enable the identification of companies involved. 'It's a pattern that we're seeing and that pattern is consistent,' he told Reuters. Chinese companies, he added, were 'super creative in bypassing regulations.' China's Commerce Ministry said in May that unspecified overseas entities had 'colluded with domestic lawbreakers' to evade its export restrictions, and that stopping such activity was essential to national security. It didn't respond to Reuters questions about the shift in trade flows since December. The US Commerce Department, Thailand's commerce ministry and Mexico's economy ministry didn't respond to similar questions. US law doesn't bar American buyers from purchasing Chinese-origin antimony, gallium or germanium. Chinese firms can ship the minerals to countries other than the US if they have a licence. Levi Parker, CEO and founder of US– based Gallant Metals, told Reuters how he obtains about 200kg of gallium a month from China, without identifying the parties involved due to the potential repercussions. First, buying agents in China obtain material from producers. Then, a shipping company routes the packages, re-labelled variously as iron, zinc or art supplies, via another Asian country, he said. The workarounds aren't perfect, nor cheap, Parker said. He said he would like to import 500kg regularly but big shipments risked drawing scrutiny, and Chinese logistics firms were 'very careful' because of the risks. Thai Unipet Industries, a Thailand-based subsidiary of Chinese antimony producer Youngsun Chemicals, has been doing brisk trade with the US in recent months, previously unreported shipping records reviewed by Reuters show.
Asahi Shimbun
09-07-2025
- Business
- Asahi Shimbun
How U.S. buyers of critical minerals bypass China's export ban
Pipes coming from a rare earth smelting plant spew polluted water into a vast tailings dam near Xinguang Village, located on the outskirts of the city of Baotou in China's Inner Mongolia Autonomous Region in this October 31, 2010, picture. (REUTERS) BEIJING--Unusually large quantities of antimony - a metal used in batteries, chips and flame retardants - have poured into the United States from Thailand and Mexico since China barred U.S. shipments last year, according to customs and shipping records, which show at least one Chinese-owned company is involved in the trade. China dominates the supply of antimony as well as gallium and germanium, used in telecommunications, semiconductors and military technology. Beijing banned exports of these minerals to the U.S. on December 3 following Washington's crackdown on China's chip sector. The resulting shift in trade flows underscores the scramble for critical minerals and China's struggle to enforce its curbs as it vies with the U.S. for economic, military and technological supremacy. Specifically, trade data illustrate a re-routing of U.S. shipments via third countries - an issue Chinese officials have acknowledged. Three industry experts corroborated that assessment, including two executives at two U.S. companies who told Reuters they had obtained restricted minerals from China in recent months. The U.S. imported 3,834 metric tons of antimony oxides from Thailand and Mexico between December and April, U.S. customs data show. That was more than almost the previous three years combined. Thailand and Mexico, meanwhile, shot into the top three export markets for Chinese antimony this year, according to Chinese customs data through May. Neither made the top 10 in 2023, the last full year before Beijing restricted exports. Thailand and Mexico each have a single antimony smelter, according to consultancy RFC Ambrian, and the latter's only reopened in April. Neither country mines meaningful quantities of the metal. U.S. imports of antimony, gallium and germanium this year are on track to equal or exceed levels before the ban, albeit at higher prices. Ram Ben Tzion, co-founder and CEO of digital shipment-vetting platform Publican, said that while there was clear evidence of transshipment, trade data didn't enable the identification of companies involved. 'It's a pattern that we're seeing and that pattern is consistent,' he told Reuters. Chinese companies, he added, were 'super creative in bypassing regulations.' China's Commerce Ministry said in May that unspecified overseas entities had 'colluded with domestic lawbreakers' to evade its export restrictions, and that stopping such activity was essential to national security. It didn't respond to Reuters questions about the shift in trade flows since December. The U.S. Commerce Department, Thailand's commerce ministry and Mexico's economy ministry didn't respond to similar questions. U.S. law doesn't bar American buyers from purchasing Chinese-origin antimony, gallium or germanium. Chinese firms can ship the minerals to countries other than the U.S. if they have a license. Levi Parker, CEO and founder of U.S.-based Gallant Metals, told Reuters how he obtains about 200 kg of gallium a month from China, without identifying the parties involved due to the potential repercussions. First, buying agents in China obtain material from producers. Then, a shipping company routes the packages, re-labelled variously as iron, zinc or art supplies, via another Asian country, he said. The workarounds aren't perfect, nor cheap, Parker said. He said he would like to import 500 kg regularly but big shipments risked drawing scrutiny, and Chinese logistics firms were 'very careful' because of the potential repercussions. BRISK TRADE Thai Unipet Industries, a Thailand-based subsidiary of Chinese antimony producer Youngsun Chemicals, has been doing brisk trade with the U.S. in recent months, previously unreported shipping records reviewed by Reuters show. Unipet shipped at least 3,366 tons of antimony products from Thailand to the U.S. between December and May, according to 36 bills of lading recorded by trade platforms ImportYeti and Export Genius. That was around 27 times the volume Unipet shipped in the same period a year earlier. The records list the cargo, parties involved, and ports of origin and receipt, but not necessarily the origin of the raw material. They don't indicate specific evidence of transshipment. Thai Unipet couldn't be reached for comment. When Reuters called a number listed for the company on one of the shipping records, a person who answered said the number didn't belong to Unipet. Reuters mailed questions to Unipet's registered address but received no response. Unipet's parent, Youngsun Chemicals, didn't respond to questions about the U.S. shipments. The buyer of Unipet's U.S. shipments was Texas-based Youngsun & Essen, which before Beijing's ban imported most of its antimony trioxide from Youngsun Chemicals. Neither Youngsun & Essen nor its president, Jimmy Song, responded to questions about the imports. China launched a campaign in May against the trans-shipment and smuggling of critical minerals. Offenders can face fines and bans on future exports. Serious cases can also be treated as smuggling, and result in jail terms of more than five years, James Hsiao, a Hong Kong-based partner at law firm White & Case, told Reuters. The laws apply to Chinese firms even where transactions take place abroad, he said. In cases of transshipment, Chinese authorities can prosecute sellers that fail to conduct sufficient due diligence to determine the end user, Hsiao added. Yet for anyone willing to take the risk, big profits are available overseas, where shortages have sent prices for gallium, germanium and antimony to records. The three minerals were already subject to export licensing controls when China banned exports to the U.S. China's exports of antimony and germanium are still below levels hit before the restrictions, according to Chinese customs data. Beijing now faces a challenge to ensure its export-control regime has teeth, said Ben Tzion. 'While having all these policies in place, their enforcement is a completely different scenario,' he said.
