In the mid-sixties, after the end of the bracero program, the maquiladora industry develops in Mexico.
In 1965 the Promotion Policy of the Maquiladora Export Industry came into force. With this, the Federal Government supported industrialization on Mexico’s northern border, as it led to a increase in foreign direct investment, primarily of the manufacturing industry.
In 2006 the Decree for the Promotion of the Manufacturing, Maquiladora and Export Services Industry (IMMEX) became effective. It can be thought of as an update of the promotion policy.
What is the IMMEX Program ?
Immex stands for the Maquiladora, Manufacturing and Export Services Industry. The IMMEX authorization is an instrument which allows the temporary import of goods that are used in an industrial process or service , to produce, transform or repair foreign goods imported temporarily for subsequent export, without paying VAT and countervailing duties, and deferring or not paying General Import Tax.
The goods are classified as the following:
Objective of the IMMEX Program
The IMMEX program in Mexico was created to achieve the following goals in addition to enabling foreign businesses to export their goods to the nation and supporting its manufacturing sector:
- Strenghten national exports
- Give business operations consistency, transparency, and assurance.
- Offer new international operating models that lower logistical and administrative expenses.
- Modernize, simplify, and cut back on processes to increase inspection capacity in an atmosphere that promotes attracting and keeping investments in Mexico.
According to data from the Ministry of Economy, currently there up to February 2023, there were over 6,130 IMMEX companies in Mexico, located in the following regions:
The number of IMMEX programs has increased year by year due to an increase on foreign direct investment (FDI) of manufacturing and service companies in Mexico, and to the different benefits it has to offer to foreign and national companies.
How can your company benefit from the IMMEX Program
- Cash flow benefit
The IMMEX Program together with the VAT and IEPS Certification, represents one of the main benefits, which is not paying the value added tax (VAT) for the machinery and materials imported temporarily; this represents an important advantage in regard to cash flow.
- Taxes Deferment
Another main benefit is the ability to defer the general import tax on temporary imported goods and machinery.
Furthermore, IMMEX companies have the ability to consolidate their import and export operations, reducing costs related to custom broker fees and paperwork burden.
Is your company looking to obtain the IMMEX Program?
The application of the IMMEX program is a complex process and contains several requirements that need to be fulfilled and carried out by companies or consultors with experience in this matter. Furthermore, to maintain the IMMEX program the company must comply with several reporting requirements sucha as:
- Submit an annual electronic report of total sales and exports for the immediately preceding tax year.
- Submit INEGI report
- Maintaining an automated inventory control (Annex 24).
- Among many other obligations.
Therefore, many foreign companies, work with experienced partners such as a shelter service provider in Mexico, like Mexcentrix, in which you can start operations under a shelter company which already counts with an IMMEX Program and with experience in fulfilling the program obligations.
By starting operations under a Shelter company, you can have direct access to the benefits of the program. More and more manufacturers are choosing the shelter model, due to the time required to obtain the IMMEX program, which can take three to six months, occasionally even longer; resulting in quicker start up times.