Tariff-Free Supply Chain Solution

The Challenge

In 2018, a tariff was imposed on goods imported from China. Our customer—whose production relied on components sourced from Asia and assembled in Mexico under NAFTA—needed a fast, compliant, and cost-effective solution to avoid major disruptions in their supply chain.

US Electronics worked with the customer to establish a bonded warehouse in St. Louis, Missouri. This allowed us to import and store their components in bulk, then export shipments weekly to their manufacturing plant in Mexico—without paying the tariff, as long as the parts were exported within five years.

Regulatory Expertise

Leveraged long-standing relationships with U.S. Customs to obtain bonded warehouse approval within just three months.

Logistics Optimization

Implemented a just-in-time delivery schedule to ensure uninterrupted supply to their Mexico facility.

Compliance Assurance

Maintained full traceability and adherence to customs regulations under NAFTA (now USMCA).

The solution allowed our customer to avoid tariff costs, maintain uninterrupted production, and continue supplying thermostats to the U.S. market efficiently. This bonded warehouse model now serves as a blueprint for other manufacturers using North American assembly to stay competitive under changing trade policies.