Companies with a maquiladora who operate under the IMMEX program can defer Mexico import/export duties on temporarily imported goods and services as well as on imported machinery. On the backend companies are also allowed to consolidate import declarations reducing the costs of this paperwork burden.
Once approved for an IMMEX, your company will have access to other programs like VAT Certification which allows you to also defer 16% VAT on imports/exports from your maquiladora in Mexico. Being able to defer import/export duties in Mexico as well as defer VAT taxes is one of the many benefits of manufacturing in Mexico.
The IMMEX program, also known as the Mexican Maquiladora Industry and Export Services Program, is a program in Mexico that provides benefits to companies that engage in manufacturing, assembly, and export activities. Some of the benefits of the IMMEX program include:
- Duty-free imports: Companies can import raw materials and components duty-free for use in the manufacturing and assembly of products for export.
- Reduced taxes: Companies can take advantage of reduced value-added tax (VAT) and income tax rates on imported goods and services.
- Simplified customs procedures: Companies can take advantage of simplified customs procedures, which can help to reduce lead times and costs associated with importing goods.
- Increased flexibility: Companies can take advantage of the flexibility of the program, which allows them to adjust production volumes and export destinations as needed.
- Access to government support: Companies can access government support, including technical assistance and training programs, to help them improve their competitiveness and efficiency.
- Access to a supply chain: Companies can access to a local and international suppliers network and take advantage of the local expertise and knowledge to improve their competitiveness.
- Compliance with regulations: Companies can take advantage of the compliance with regulations and laws that the program offers, which helps to avoid problems and delays.
- Access to financing: Companies can access to financing and credit programs that the government and private sector offers, which can help to improve their cash flow and investment capabilities.