What Is a Maquiladora and What Benefits Can My Company Get?


In business, a maquiladora is an important concept all investors need to grasp if they want their business to succeed. Over the years, it has taken importance and many countries are turning to Mexico to try this model that benefits everyone. But, what is a maquiladora? Let’s elaborate on that.

What is a Maquiladora?

A maquiladora is a business manufacturing model in which an international company sets up a twin plant in another country. They do so to assemble and process raw materials and then turn them into finished goods, which are exported back to the original country.

The most important feature of a maquiladora is that, since raw materials are temporarily imported, it operates under a tariff or duty free regulation. There are many types of industries that work under this model, and they can go from medal device and electronics to automotive or aerospace manufacturing, to mention a few.

History of Maquilas

Maquiladoras are a model born in Mexico. It began with its precursor, the Bracero Program (1942-1964), which allowed Mexican workers to be employed in the United Stated for a season. After that period, the duties for material and equipment were reduced, facilitating the business operations between Mexico and the U.S. until the present date.

Nowadays, there are organizations in charge of regulating the companies that can work under the maquiladora model, such as IMMEX and the Secretary of Economy.

Benefits for Companies

what-is-a-maquiladora-and-what-benefits-can-my-company-getCompanies that decide to set a maquiladora in Mexico can get a high-quality production at lower costs. This is possible because of the exemption of taxes, collaboration with Federal and State governments and access to funds and waivers, which allow foreign investors to improve their operations while increasing earnings.

Also, the Mexican workforce is one of the most qualified: they meet the standards set by international companies and deliver the best assembled, manufactured or processed products to the world.

As experts in the field, we can say that the growth of foreign companies deciding to set their businesses in Mexico is not just a matter of luck. A maquiladora can be the solution to boost the productivity of your company and lead you to success. If you want to go into detail about the benefits for your business, contact us. One of our experts will get in touch.