PROSEC Program Explained: Import Tariff Relief for Strategic Sectors in Mexico.

The Sectoral Promotion Program (PROSEC) is an industrial development mechanism authorized by Mexico’s Ministry of Economy, which allows companies to import specific goods at preferential tariff rates—including zero duty—regardless of whether the goods are intended for export or for the domestic market.

Unlike the IMMEX Program, PROSEC does not require export activity as a condition to access its benefits, making it a strategic tool for both exporters and domestic manufacturers.

• • It applies to specific industrial sectors (such as automotive, electronics, steel, chemicals, and textiles).
  • Companies must register under one or more authorized sectors to access benefits.
  • It allows the importation of raw materials, components, and machinery with reduced or zero tariffs, provided they are listed in the current PROSEC Decrees and used in a production process.
  • The imported goods must be incorporated into production, not directly sold.

The PROSEC Program is a strategic instrument to enhance Mexico’s industrial competitiveness. By allowing the importation of inputs at reduced tariff rates, it helps lower production costs, incentivizes manufacturing, and provides flexibility for companies that add value in Mexico, whether or not they export.

However, this program is also bound by a wide range of obligations, which must be complied with in full.

Participation in the PROSEC Program represents a strategic advantage for manufacturing companies in Mexico, as it allows them to significantly reduce import costs and enhance their operational competitiveness. However, these benefits are conditional upon the strict fulfillment of legal, operational, and documentation requirements set forth by the Ministry of Economy and customs authorities.

In this context, ongoing monitoring and supervision of the use of the PROSEC Program is essential. Companies must ensure that imported inputs are used exclusively in authorized production processes, that proper traceability of goods is maintained, and that materials are not diverted for resale or use outside the approved scope—any of which could lead to sanctions or cancellation of benefits.

Furthermore, internal oversight allows companies to anticipate government audits, reduce fiscal risk, and protect access to the tariff benefits granted under the program. A strong compliance system not only ensures legal integrity in operations but also strengthens the company’s credibility with government authorities and commercial partners.

Therefore, maintaining a robust system for control, tracking, and full compliance with PROSEC requirements is not optional—it is essential for preserving the program’s validity and leveraging its benefits in a sustainable and responsible manner.