{"id":20114,"date":"2018-07-06T12:00:55","date_gmt":"2018-07-06T16:00:55","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=20114"},"modified":"2020-09-02T09:07:50","modified_gmt":"2020-09-02T13:07:50","slug":"what-is-the-mexico-maquiladora-program","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/what-is-the-mexico-maquiladora-program\/","title":{"rendered":"What is the Mexico Maquiladora Program"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Baja California is a border state in Mexico just below California. The primary transfer points are with San Diego (San Ysidro) and Calexico, CA. Baja is the state where most Maquiladoras are operated. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Americans know the state for its beaches, the wine country in Ensenada that many are saying rivals Napa Valley, and the delicious food. The city of Tijuana, which borders San Diego, has become a major outsourcing and FinTech center for latin America. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the past few decades Baja California has become a haven for American entrepreneurs and all thanks to the IMMEX or Maquiladora program. Thanks to Americans opening their business on the Mexican side of the border, the state of Baja California has an unemployment rate of 0% (more jobs than workers). Let\u2019s begin by explaining what the IMMEX program is. <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Keep in mind that Baja California is in Mexico and San Diego, California is in the United States. This can be confusing to those not from the region. <\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Faced with the competition from global markets, it was essential for Mexican companies to to leverage their proximity and relationship with the United States. This would put them in a \u00a0position to move their goods internationally. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">They did this by allowing American companies to produce goods in Mexico and sell back into the the United States as well as globally\u2026 bringing jobs to Mexico and profit to the United States. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">On November 1, 2006, the Mexican Federal Government published the Decree for the Promotion of the Manufacturing Industry, Maquiladora and Export Services (Decreto IMMEX). This decree integrates the programs for the Promotion and Operation of the Maquiladora Export Industry (Maquila) and the Temporary Import to Produce Export Items (PITEX).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The IMMEX Program is an instrument through which companies are allowed to temporarily import the necessary goods to be used in an industrial process or services destined for elaboration, transformation, or repair of merchandise of foreign origins temporarily imported for export. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is to say, IMMEX allows US companies to temporarily import materials to be used the the production of goods. Those goods must then be exported and may not be sold into Mexico. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The IMMEX Program provides its partners with the possibility of importing merchandise on a temporary basis, deferring the payment of the general import tax, the value-added tax, and other applicable taxes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Provided that they carry out an industrial or commercial process, the transformation and\/or repair of manufactured goods, or are the intermediary between companies who wish to export material goods, companies may receive significant tax and duty benefits. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The goods included in the IMMEX Program are grouped under three categories:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Raw materials, parts and components whose purpose is to integrate export goods, fuels, lubricants and other materials that are going to be consumed during the production process of the export merchandise, packaging and packaging, as well as labels and brochures. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Boxes of trailers and containers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Equipment, tools, instruments, machinery, molds and spare parts, as long as they are destined to be included in the production process, equipment and devices for pollution control, for research or training, telecommunications and computing, industrial safety, laboratory, measurement, product testing and quality control. Likewise, those who intervene in the handling of materials that are directly related to export goods and others linked to the production process, such as the equipment necessary for administrative development.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Benefits when Importing products with the IMMEX program<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Not paying the General Import Tax (IGI-tariff-Advalorem), it is necessary to consider what is established in articles 63-A of the Customs Law and 303 of NAFTA<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Value Added Tax (VAT) is not paid, according to article 9, fraction IX of the VAT law<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Compensatory fees are not paid<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Decrease in the Customs Processing Fee (DTA),<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No VAT payment on national purchases, see Art. 1-A, fraction IV of the VAT Law.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The facility in making virtual transactions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Elaboration of import documents<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Obtaining the VAT refund, when you have balances in favor in your declarations, in a period no longer than 20 business days, according to article 32 of the IMMEX decree.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A Sector Promotion Program (PROSEC) will be authorized simultaneously. For the service modality, you can import everything that is stated in article 4 of the IMMEX decree, subsection III, which is all the machinery, equipment and spare parts.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The registration will be automatically registered in the importers registry, without having to carry out the procedure.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">On the validity of these programs, they are available as long as the license holder complies with the requirements, as well as with the obligations established in the decree. <\/span><\/p>\n<p><strong>I hope you\u2019ve found this article: What is the Mexico Maquiladora Program to be helpful. For more information, or for assistance in investing in Mexico or opening an offshore company, please <a title=\"contact us HERE.\" href=\"https:\/\/www.escapeartist.com\/contact\/\" rel=\"\">contact us HERE.<\/a><\/strong><\/p>\n<p><strong>If you enjoyed this article, here are a few more to read:<\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" title=\"Best Cities in Mexico for Snowbirds\" href=\"https:\/\/www.escapeartist.com\/blog\/best-cities-in-mexico-for-snowbirds\" rel=\"\"> Best Cities in Mexico for Snowbirds <\/a><\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" title=\"How to Open a Maquiladora in Mexico\" href=\"https:\/\/www.escapeartist.com\/blog\/how-to-open-a-maquiladora-in-mexico\/\" rel=\"\"> How to Open a Maquiladora in Mexico <\/a><\/strong><\/p>\n<p><strong><a class=\"post-title post-url\" title=\"San Cristobal de las Casas, a Magic Town in the Heart of Mexico\" href=\"https:\/\/www.escapeartist.com\/blog\/san-cristobal-de-las-casas-a-magic-town-in-the-heart-of-mexico\" rel=\"\"> San Cristobal de las Casas, a Magic Town in the Heart of Mexico <\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Baja California is a border state in Mexico just below California. The primary transfer points are with San Diego (San Ysidro) and Calexico, CA. Baja is the state where most Maquiladoras are operated. Americans know the state for its beaches, the wine country in Ensenada that many are saying rivals Napa Valley, and the delicious [&hellip;]<\/p>\n","protected":false},"author":686,"featured_media":32757,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[3],"tags":[24522,56,71,127,380,451],"yst_prominent_words":[24217,6936,24225,24222,24220,24215,5130,24218,24224,24214,19139,24221,24519,2406,24216,2738,5072,24219,1804,24223],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2018\/07\/unam-2167334_640.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/20114"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/686"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=20114"}],"version-history":[{"count":8,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/20114\/revisions"}],"predecessor-version":[{"id":40497,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/20114\/revisions\/40497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/32757"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=20114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=20114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=20114"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=20114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}