Flexible Intermediate Bulk Containers (FIBCs), commonly referred to as bulk bags, are indispensable in industrial packaging. These large, durable containers are used to transport and store dry, flowable products like grains, powders, and chemicals and are capable of holding thousands of pounds of materials securely and safely. FIBCs are essential across agriculture, food processing, manufacturing, and chemical sectors – and their strength, reusability, and handling efficiency make them the go-to solution for businesses needing scalable, dependable packaging.

In recent years, shifting global trade policies have introduced new tariffs that directly affect the cost and availability of FIBC bulk bags. These tariffs threaten to impact manufacturers’ margins, complicating procurement and adding volatility to previously stable supply chains.

In this article, we outline the impact of current FIBC tariffs and how they might affect your operation, plus offer tangible strategies to reduce costs and avoid hiccups in your business.

Understanding Tariffs on FIBCs

A tariff is a tax imposed on imported goods and is often used by governments to protect domestic industry and/or respond to international trade disputes. For companies that rely on FIBCs, these tariffs can become burdensome when they’re applied to bags manufactured and imported from foreign countries — most notably China.

FIBCs are classified under specific Harmonized Tariff Schedule (HTS) codes. But in recent years, they’ve also been subject to additional Section 301 tariffs due to trade tensions between the U.S. & China, which can add up to 25% (or more) to the cost of landed bulk bags. And while the U.S.-Mexico-Canada Agreement (USMCA) provides tariff-free trade within North America, many businesses continue to source bags from Asia – due to pricing, availability, and customs delays – leaving them exposed to changing trade disputes, tax mandates and fees.

How Tariffs Impact FIBC Pricing & Supply Chains

Tariffs on imported FIBCs directly translate to higher costs for the manufacturer. For manufacturers who rely on imported bulk bags, these price hikes can quickly affect procurement budgets and operating margins, which, in turn, means higher prices for customers. 

In some cases, supply chain delays due to customs and trade disputes can cause even further headaches. Foreign suppliers may reduce output or adjust pricing with little notice, too, forcing buyers to scramble for alternatives. In competitive industries like food packaging and agriculture, even small cost increases can erode profits, pricing power, or customer satisfaction.

Strategies to Mitigate Tariff Costs

Although the impact of tariffs on bulk packaging is significant, there are strategies businesses can use to manage costs and reduce exposure. Let’s look at a few: 

Evaluate Alternative Materials

In some cases, switching from one material to another – such as from polypropylene to polyethylene – can help bring down costs quickly. Materials impact both price and tariff classification, and in some instances, alternative materials may fall into HTS codes with lower duty rates.

Diversify Sourcing

Explore suppliers in countries with lower tariffs or free trade agreements (e.g., Central America, Southeast Asia) to reduce costs. Partner with distributors like Southern Packaging that stock FIBCs in domestic warehouses to shorten lead times and buffer against tariff spikes.

Duty Drawback Programs

A duty drawback program allows companies to get a refund-up to 99%-of the duties, taxes, and fees they paid when importing goods into the US, if those goods are later exported or destroyed rather than sold domestically.

Check for Tariff Exemptions

It’s also important to remember: Not all FIBCs are treated equally. Some specialty bags, such as those with specific coatings or construction methods, could qualify for tariff exemptions or refunds under U.S. Customs regulations in the future. However bag manufacturers will have to request these exclusions and this process and little is known at this time. An experienced supplier can help assess whether your bulk bags qualify for any relief due to exemptions in the future.

Use Vendor-Managed Inventory (VMI)

Southern Packaging offers VMI solutions that stabilize supply and price while easing concerns in your product pipeline. With VMI, your inventory is managed on a just-in-time basis, reducing overhead and avoiding last-minute orders that may be subject to higher tariffs or shipping costs. Our inventory management clients find that this service also improves forecasting and pricing consistency.

The Future of FIBCs & Trade Regulations

Tariff policy is always a moving target. As global trade negotiations continue, businesses can expect additional changes in the regulatory landscape. While there are discussions of easing some tariffs, there’s also the potential for expanded duties depending on geopolitical developments and the concerns of the current U.S. leadership.

Simultaneously, environmental regulations are becoming increasingly intertwined with trade policy. These sustainability efforts have played a key role in influencing the classification and cost of certain types of FIBCs, especially those made from recycled materials or designed for reuse.

Navigating these changes requires dependable supply chain partners. Southern Packaging is consistently monitoring regulatory shifts in order to adapt our sourcing strategies to ensure reliability and stable pricing for its customers, so you don’t have to. 

Frequently Asked Questions on FIBC Bag Tariffs

How do tariffs affect the cost of FIBC bulk bags?

Tariffs add a percentage-based fee on imported FIBCs, which increases their total landed cost when they arrive in the United States. Depending on the country of origin and material, these fees can raise prices by 25% or more.

What’s the best way to reduce tariff-related FIBC expenses?

Investigate using more cost effective materials, diversify sourcing, explore duty drawbacks, use vendor-managed inventory programs, and consult with suppliers to determine if your FIBCs qualify for exemptions.

How can I check if my FIBCs are subject to tariffs?

Review the HTS code used to classify your bulk bags and cross-reference with current tariff schedules. Southern Packaging can help with classification, compliance support, or any other questions you may have. 

Need Reliable FIBC Solutions?

Tariffs on FIBC bulk bags are challenging, but they don’t have to disrupt your business. With the right sourcing strategies, inventory management tools, and supplier support, you can minimize the impact and maintain operational stability.

Southern Packaging is here to provide expert product knowledge, assist with inventory management, and offer custom solutions tailored to your business needs. Contact us today to request a quote or speak to a packaging expert.