IMMEX Explained: Benefits, Compliance, and Strategic Use in Mexican Trade.

The IMMEX Program (Manufacturing, Maquiladora and Export Services Industry) is a scheme created by the Mexican government that allows companies to temporarily import goods necessary for use in an industrial or service process aimed at producing, transforming, or repairing merchandise intended for export. These goods can be imported without paying import taxes (such as VAT, IEPS, and duties), as long as the final products are exported.

The IMMEX Program (Manufacturing, Maquiladora and Export Services Industry) allows companies to temporarily import goods free of general import tax and VAT, as long as those goods are used to manufacture products for export.

In broad terms, the IMMEX program operates as follows:

1. Registration and Authorization:

• • The company must apply for registration in the IMMEX program through Mexico’s Ministry of Economy.
  • Once authorized, the company receives an IMMEX program number, allowing it to operate under the scheme’s tax benefits.

2. Temporary Importation:

• • Companies can temporarily import raw materials, parts, components, machinery, tools, and equipment needed for their production or service processes.

3. Transformation or Repair:

• • The imported goods must be used to manufacture products for export or to provide export-related services.

4. Exportation:

• • The final product must be exported within the time limits set by law (maximum of 18 months for raw materials, longer for machinery and equipment).

5. Tax and Customs Compliance:

• • Companies must follow strict control regulations, submit monthly reports (such as the Foreign Trade Operations Report), and keep their records updated with both the SAT (Tax Administration Service) and the Ministry of Economy.

1. Tax Exemptions:

• • No payment of general import duties, VAT, or IEPS on temporarily imported goods.

2. Streamlined Foreign Trade Operations:

• • IMMEX companies enjoy more agile and simplified customs procedures.

3. Cost Reduction:

• • Tax deferrals or exemptions significantly lower production costs and improve competitiveness in international markets.

4. Access to the VAT-IEPS Certification Scheme:

• • Allows for VAT credit on temporary imports, avoiding negative impacts on cash flow.

Please note: To qualify for VAT exemption, it is also necessary to have VAT and IEPS certification.

5. Global Competitiveness:

• • Encourages the integration of Mexican companies into global value chains and attracts foreign investment.

6. Strategic Alliances:

• • Facilitates partnerships with foreign companies interested in manufacturing or outsourcing services in Mexico under maquila or subcontracting models.

In accordance with Articles 11 and 24 of the IMMEX Decree, Articles 59 and 144 of the Customs Law, Articles 84 and 85 of the Customs Law Regulations, and the General Rules of Foreign Trade, in order to maintain authorization in the IMMEX program, compliance with all of the following obligations must be guaranteed:

It is important to know that failure to comply with a single obligation will result in the suspension or cancellation of the program. Therefore, maintaining IMMEX authorization involves numerous internal monitoring and compliance activities.