The IMMEX program in Mexico was established in 2006 and has since frequently been updated due to its high relevance to the Mexican market. Nowadays, it has become a pillsar of the Mexican economy and a vital element of US competitive manufacturing. In Spanish it means “Industria Manufacturera, Maquiladora y de Servicio de Exportación” which translates to “Manufacturing, Maquiladora and Export Service Industry”.
The governmental definition of it is the following: “[It] is an instrument which allows the temporary importation of goods that are used in an industrial process or service to produce, transform or repair foreign goods imported temporarily for subsequent export or provision of export services, without covering the payment of general import tax, value added tax and, where appropriate, countervailing duties.”
Described more precisely, the IMMEX program allows mainly foreign manufacturers to import raw materials and components into Mexico tax- and duty-free under the condition that 100% of all finished goods will be exported out of Mexico within a government-mandated time frame.
The goal of this was and still is the expansion of Mexico’s economy by enabling foreign countries in a competitive environment and to modernize the globalization of Mexico’s manufacturing infrastructure.
Nonetheless, there are some requirements for companies to gain access to this program. Along other more specific requirements, it has to be proven that the planned export project will generate at least 500 thousand dollars a year or that 10% of the annual sales will be from exports. There are also different time frames depending on the sort of goods.
But even regarding the admittedly complex registration process, signing up for the IMMEX program to produce in Mexico is definitely worth it for foreign companies.
Do you have further questions about current economic developments in Mexico? Do not hesitate to contact us!