The Manufacturing, Maquiladora and Export Service Industry Program (IMMEX) is an instrument that allows temporary imports of goods with productive processes and/or services to export goods or to provide export services, deferring the payment of the general import tax, the Value Added Tax and, if applicable, the countervailing duties of the goods necessary to be used in an industrial or service process for the manufacturing, transformation or repair of goods of foreign origin temporarily imported for export or for the provision of export services.
In the eighties with the opening of trade and in the mid-nineties with the signing of NAFTA (Today, United States-Mexico-Canada Trade Agreement (USMCA), the Maquiladora Export Industry began to be considered as the main channel for international inclusion of Mexico’s economy and as a tool to modernize the Mexican productive network.
GENERAL ASPECTS
Pillars of the IMMEX Program
1.- Strength of the domestic and international market.
2.- Financial Strategy.
3.- Facility of initiative.
Objective
The objective of the IMMEX program is to increase and promote exports and access to international markets by Mexican companies, in addition to stimulating the modernization of the country’s productive infrastructure.
Through this program, facilities are granted for:
- Industrial processes.
- Export merchandise services and
- Provision of export services.
For several years, the IMMEX program has been a strategic ally for Mexico to position itself as an attractive place to operate and produce high-tech goods, being the largest exporter of manufactured goods in Latin America; contributing with almost 60% of the region’s total exports.
Benefits
The IMMEX Program offers its holders the possibility of temporarily importing, free of VAT import taxes, the equipment necessary to be used in an industrial or service process for the manufacturing, transformation or repair of goods of foreign origin temporarily imported for export or for the rendering of export services.
The main benefits of the program are highlighted below:
- Exempt from payment of the General Import Tax (IGI-arancel-Advalorem).
- A VAT (Value Added Tax) credit may be applied to temporary imports.
- Compensatory quotas are not paid.
- Reduction of the Customs Processing Duty (DTA), from 8% per thousand, according to art. 49 of the Federal Law of Duties, to 1.76% for machinery and $331.18 for inputs or the fixed rate in effect.
- Non-payment of VAT on domestic purchases.
- Process virtual declarations.
- Preparation of consolidated import declarations.
- A Sector Promotion Program (PROSEC) is authorized simultaneously. For the services modality, it may import all that is established in article 4 of the IMMEX decree, section III. (Machinery, equipment and spare parts).
Modalities
- IMMEX Controlling Company Program: when the manufacturing operations of a certified controlling company and one or more controlled companies are integrated in the same program.
- Industrial IMMEX Program: when an industrial process of elaboration or transformation of merchandise destined for export is carried out.
- IMMEX services program: when services are performed to export goods or export services are rendered, only for the development of the activities determined by the Ministry, with the prior opinion of the Ministry of Finance and Public Credit (SHCP).
- IMMEX Shelter Program: when one or more foreign companies provide the technology and production material, without the latter operating directly under the Program, and
- IMMEX Outsourcing Program: when a certified company that does not have facilities to carry out production processes performs manufacturing operations through third parties that register their program.
The Ministry of Economy, may simultaneously approve a Sector Promotion Program, according to the type of products it manufactures or the export services it performs, and must comply with the regulations applicable thereto.
Benefits of the IMMEX Program
These benefits are grouped under the following categories:
- Raw materials, parts and components; lubricants, containers, packaging, fuels, labels and brochures.
- Machinery, equipment, tools, instruments, molds and parts used in the production process.
- Containers and trailer boxes.
- Equipment and apparatus for pollution control, research or training, industrial safety, telecommunication and computing.
Term of stay
Periods of stay: Goods temporarily imported under an IMMEX Program may remain in Mexican territory for the following periods:
The Maquiladora and Manufacturing export industry is a nucleus of growth and dynamism in the non-financial external sector.
General requirements to obtain authorization:
- Articles of Incorporation of the company and, if applicable, any amendments thereto (for this document you can submit the original or certified copy).
- Federal Taxpayers Registry (RFC).
- Electronic signature certificate (e. signature) of the Tax Administration Service (SAT).
- Description of the productive process or type of services, object of the IMMEX program application.
- Maquila contract, sales contract, purchase orders or firm orders, in order to prove the existence of the export project.
- Address where the imported merchandise will remain.
- Document that legally accredits the possession of the property where the IMMEX program is to be carried out, indicating the location of the property, and attached photographs of the property.
- That the tax address and the addresses where it carries out its operations under the Program are registered and active in the Federal Taxpayers Registry.
- Data sheet of the partners and/or shareholders indicating their name, relationship with the company, address, telephone, fax and e-mail.
- List of goods with fractions to be imported under the requested program.
- Inventory of machinery, equipment and furniture used in the production or service process.
- The investment program describing the amounts of investment in real estate, machinery and equipment, personnel hired and/or to be hired, estimated value of imports and production or service for a period of 2 calendar years.
- Documentation proving the hiring of personnel.
- Certification of facts issued by a notary public.
Commitments
The main commitments that companies must comply with in order to obtain authorization for the IMMEX Program are as follows:
1) To export 500,000 thousand dollars or 10% of their sales.
2) To import only the authorized fractions.
3) To use the goods for the purposes for which they were authorized.
4) To observe the terms of stay.
5) To be legal entities and to be taxed under Title II of the Income Tax Law.
6) To keep the goods at the registered addresses.
7) To inform the SE, previous procedure before SHCP, of the following:
- Changes in the name or corporate name, RFC and domicile.
- Changes in the addresses of the companies that perform the submaquila, 3 days in advance.
- Notice of the suspension of activities, not exceeding 10 days.
8) To keep the inventory control in accordance with the provisions of section I of article 59 of the customs section.
9) Presentation of annual reports of foreign trade before the SE (with respect to sales and exports).
10) Submitting statistical reports to INEGI.
Our services
We provide specialized comprehensive advice to obtain the authorization for the program as well as the maintenance and continuity of its benefits, once the authorization has been obtained.
1.- Initial Stage: Legal review and preparation of the required documentation to obtain the IMMEX Program authorization before the Ministry of Economy.
2.- Integral process: to obtain the IMMEX Program Authorization in the required modality. We accompany the company in all the stages of the process until a successful result is achieved.
3.- Permanent compliance: We provide permanent specialized coverage to ensure due compliance with all obligations applicable to the authorized IMMEX program modality.
Contact us for more information!
This document does not constitute a particular consultation, and therefore Asesores Stratego S. C., is not responsible for the
interpretation or application granted. We are in your service to respond to any questions or comments. For more information regarding this subject and our services: info@asesores-stratego.com