Shein, Temu, and the $50 Rule
If you’ve been living in Mexico for a while, you might already know about the famous “$50 exemption” on imported goods.
For years, individuals could import items worth under $50 USD duty-free through couriers like DHL, FedEx, or UPS.
Guess who exploited that rule?
- Shein, Temu, AliExpress, and dozens of other Chinese e-commerce giants.
Rather than using bulk cargo or paying proper customs, they flooded Mexico with millions of tiny shipments — all individually “under $50.”
The result? Massive growth for ultra-cheap fast fashion… and major headaches for Mexican retailers trying to compete.
Mexico Cracks Down
In April 2025, the Mexican government finally closed the loophole.
Now, any import—even under $50—must pay full customs duties unless specifically exempted by trade treaties like USMCA (T-MEC).
Officials cited three reasons:
- Protect local industries from unfair competition
- Raise revenue lost to duty-free small shipments
- Curb informal imports bypassing safety and consumer rules
Customs fees can now add 20–30% (or more) to the price of low-cost Shein, Temu, or AliExpress items.
🧠 Quick Fact:
Shein alone reportedly moved over 30 million parcels into Mexico in 2024 under the $50 exemption. (Source: El Financiero)
Why Expats Should Care
At first glance, you might think:
“So what? I just wanted cheap clothes or housewares!”
But here’s why it matters:
1. Higher Costs at the Border
Expect higher delivery charges, longer customs clearance times, and possible taxes due at pickup even for small orders.
2. Local Businesses Get Breathing Room
Family-run clothing stores, local boutiques, and independent artisans suffered deeply from Shein/Temu’s price war. This move gives them a fairer chance to survive—and thrive.
3. Economic Impact on Your Community
Small business is the backbone of Mexico’s economy, especially in tourism zones like Baja Sur, Oaxaca, and Quintana Roo. Supporting locals isn’t charity—it’s good economics if you want vibrant communities.
Real-World Examples
| Product | Temu/Shein Price | Local Market Price |
|---|---|---|
| Casual T-Shirt | $70 MXN | $180–$250 MXN |
| Beach Sandals | $100 MXN | $200–$400 MXN |
| Home Decor (Lamp) | $250 MXN | $400–$800 MXN |
What You Can Do
Support Local
Whenever possible, buy from independent Mexican businesses, markets, and artisans.
Be Patient with Imports
Expect delays and extra fees for overseas orders. Plan ahead if you really need something imported.
Respect the New System
Don't encourage "grey market" shipping workarounds. They hurt the local economy long-term.
Great Mexican Brands to Support Instead
Someone Somewhere
Modern clothing made by indigenous artisans across Mexico. Ethical, stylish, and authentic.
Carla Fernández
High-end fashion rooted in traditional Mexican textile techniques. Bold and beautiful designs.
Onora
Luxury home goods handcrafted by Mexican artisans. Perfect for gifts or upgrading your space.
Casa Hoyos
Contemporary Mexican design collective offering sustainable, artisan-made fashion and décor.
Collectiva Concepción
Women's fashion blending ancient embroidery techniques with modern cuts and silhouettes.
The Bigger Picture
This isn’t about “punishing” expats or stopping globalization.
It’s about creating a fairer playing field where:
- Local businesses aren’t crushed by giant overseas warehouses.
- Governments can fund better infrastructure with customs revenue.
- Communities remain strong, diverse, and economically viable.
In the long run, healthy local economies benefit everyone, expats included.
Sources
| [1] Shein Moved 30 Million Parcels Under $50 Rule – El Financiero |
| [2] BCS Noticias – Local Business Surveys (April 2025) |
| [3] Servicio de Administración Tributaria (SAT) – Mexico Customs Agency |
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