MANUFACTURING, MAQUILA AND EXPORT SERVICE INDUSTRY
In the face of intense competition in global markets, it’s essential that Mexican businesses have access to equivalent conditions as those offered by their primary competitors. This parity is crucial for them to effectively establish and promote their products and services within the realm of international trade.
The IMMEX program, an acronym for Maquiladora, Manufacturing and Export Services Industry, is a government initiative in Mexico aimed at fostering the country’s export sector. Established by the Secretariat of Economy, the program provides various incentives and benefits to companies engaged in manufacturing and export operations.
Through the IMMEX program, businesses have the opportunity to import raw materials, components, and parts without the burden of tariffs or compensatory quotas, as long as these items are used in the production or servicing of end products. The condition is that these materials must eventually be returned, and proof of tariff payment in the destination country must be verified.
Benefits:
The IMMEX program in Mexico offers a range of potential benefits for participating businesses:
1. Duty and Tax Exemptions: The program allows for temporary importation of raw materials and machinery tax- and duty-free for use in manufacturing or service processes, reducing operational costs.
2. Competitive Advantage: With lowered costs and enhanced operational efficiency, businesses can have a competitive edge in the global market.
3. Stimulated Investment: By creating a business-friendly environment with potential cost savings, the IMMEX program attracts both domestic and foreign investment.
4. Job Creation: The program encourages the growth of the manufacturing and export sectors, leading to increased employment opportunities.
5. Technological Development: The IMMEX program can help participating companies to innovate and upgrade their technology, increasing their productivity and competitiveness.
6. Export Promotion: By streamlining the export process, the IMMEX program helps Mexican businesses to position their products effectively in the international market.
Minimum Requirements for the IMMEX Program
To qualify for the IMMEX program, companies must meet the following minimum requirements:
Companies must be legally established under Mexican law.
They must demonstrate that their operations involve the processing or repair of goods destined for export.
They must provide a detailed description of the production process, including the materials and machinery required.
They must supply a list of the goods to be imported and exported, along with their tariff classifications.
Companies must demonstrate an economic solvency and compliance with tax and customs obligations.
They must provide information on their domestic and foreign markets, including potential customers.
It’s worth noting that the specifics of the requirements may vary over time and according to the specific nature of the business, so it’s always recommended to check the most current rules and regulations.
