If you are an investor, you’ve probably heard of maquiladoras before. But if you haven’t had the chance to know how they work, they may be a mystery to you, especially the details surrounding their renown. If you want to get to know maquiladoras in Mexico and why companies speak wonders of it, let us talk about the secret behind this.
What’s a maquiladora?
First of all, we need to learn the proper definition of this term. A maquiladora is a manufacturing plant belonging to a foreign company that decides to settle in another country to process materials.
This is how it works: raw materials are imported to Mexico; here, that material is processed and turned into products; then, the merchandise is exported, usually to the country of origin.
It is important to know that this model was born in Mexico and it’s exclusive from this country; that is, there’s no other country with a maquiladora model and its benefits.
What are the benefits of a maquiladora?
When you join the maquiladora program, your company won’t pay taxes or duties for temporarily imported materials to be manufactured in Mexico. This is the best an incredible advantage, since the final cost of production decreases to a great extent.
Furthermore, Mexico’s workforce is one of the most qualified and skilled; this ensures a good product development and perfect results.
How to join the maquiladora program?
The regulatory decree of maquiladoras (IMMEX) is a program that regulates the behavior maquiladoras. Submitting a request to the Secretariat of Economy if the first step if you want to operate a maquiladora in this country.
Nevertheless, way before you start making it official, you’d want to get to know if Mexico is the place for you, and which state will benefit your company.
Investing in Tijuana, Mexico
Luckily, at Tijuana EDC we’re there to advise you and guide your journey. We have worked with foreign companies for helping them to set up a maquiladora in Tijuana, Baja California.