When thinking of maquiladoras and setting up a company in another country, the IMMEX Program Mexico is a concept that we cannot let go unnoticed. All types of businesses have regulations that we must follow in order to do things right but also to get the most benefits out of it. If you want to know more about IMMEX and how it works, we will keep you informed.
What is the IMMEX Program Mexico?
IMMEX is the Mexican Program for the Manufacturing, Maquiladora and Exporting Services Industries, and it is in charge of the promotion of exporting activities. It does so by allowing the exemption of the general import tax, value added tax or countervailing duties, depending on the activities carried out by the participating companies.
Also, this program acts as the regulatory decree of maquiladoras and has the responsibility to analyze if a company meets the proper requirements to be part of the program.
How Does IMMEX Work?
In order for IMMEX to provide the exemptions of taxes and duties, the beneficiary must dedicate their activities to carry out an industrial process or to provide elaboration/transformation or exporting services. Therefore, it is a perfect fit for maquiladoras.
It is important to notice that this exemption only works when the raw materials are temporarily imported, and then exported as finished goods. IMMEX regulates the operations of the companies under its program in order to keep everything under control, but also to improve the processes of each company and promote their growth.
The Path to Success
A tax exemption significantly reduces manufacturing costs; that is why many foreign companies are choosing to set up in Mexico and enjoy all the benefits they get by making this decision. Besides, it is clear that the local and federal governments work together to boost the growth and proper operation of these plants.
Maquiladoras are greatly benefited by the IMMEX program and companies set up in Mexico are rapidly growing, increasing earnings and improving their manufacturing quality. If you want to be part of these success stories, contact the experts at Tijuana EDC and start your path to success.