What is The IMMEX Program? Benefits and Categories

The IMMEX Program for manufacturing in Mexico allows foreign companies with maquiladoras to defer Mexico’s import/export duties as well as taxes when the subsequent VAT certification is obtained.

Shelter companies in Mexico like CPI can help manufacturers access these savings for those who want to manufacture in Mexico, work with contract manufacturers, or open e-commerce, warehousing and 3PL facilities in Mexico.

What is the IMMEX Program for Manufacturing in Mexico?

The IMMEX Program, also known as Maquiladora Program, allows approved manufacturers and companies to defer taxes on temporary imports to Mexico as well as the ability to consolidate import declarations. This is highly beneficial for foreign companies manufacturing in Mexico.

In the case of temporarily imported goods, this often applies to raw materials that are imported into Mexico and then transformed into finish goods that are then exported from Mexico. The IMMEX program also benefits companies with warehousing operations or certified third-party logistics operations to perform services or manufacture products on another company’s behalf.

What are the Benefits of the IMMEX Program

Savings. Companies with a maquiladora who operate under the IMMEX program can defer Mexico import/export duties on temporarily imported goods and services as well as on imported machinery. On the backend companies are also allowed to consolidate import declarations reducing the costs of this paperwork burden.

Once approved for an IMMEX, your company will have access to other programs like VAT Certification which allows you to also defer 16% VAT on imports/exports from your maquiladora in Mexico. Being able to defer import/export duties in Mexico as well as defer VAT taxes is one of the many benefits of manufacturing in Mexico.

How Long can Goods that are Temporarily Imported Remain in Mexico?

There are different periods and time frames depending on the specific IMMEX Program you are approved for. For example, some materials can stay in Mexico for up to 18 months and containers for 2 years. If the IMMEX is certified, the time frame for materials can be extended up to 48 months. The equipment and machinery required to carry on the production process or services, can remain in Mexico up to the effectiveness of the IMMEX program.

What are the Types of IMMEX Program Categories?

There are several categories you can choose to qualify under to take advantage of the maquiladora tax benefits of Mexico’s IMMEX program.

• Holding Company Program
  The manufacturing operations of a certified holding company and one or more subsidiaries are included in the same program. Under the holding company each of these companies is an independent entity with their own tax ID number, but the import and export process are managed by the holding company. The goods and materials may remain in the facilities of any of the companies within the group and may be transferred among them with a very simple administrative process.

• IMMEX Industrial Program
  Goods are manufactured or transformed for subsequent export through an industrial process. This applies manufacturers who are a legal Mexican entity. Co-Production International operates under this program allowing companies operating under CPI’s Maquiladora Shelter Program to operate under this category.

• IMMEX Services Program
  Export goods are serviced, or export services are provided such as warehousing operations, third party logistics facilities (3PL), sorting of goods, distribution to another IMMEX companies, product labeling, product inspection sorting of goods, e-commerce sales, sales distribution, and direct to consumer sales outside of Mexico (for export). There is not a substantial transformation requirement of products for this type of IMMEX program (maquiladora y de servicio)

• IMMEX Shelter Program
  Under this category, Mexican companies may offer the IMMEX services to foreign companies who would receive all the IMMEX benefits without the need to be incorporated in Mexico, or having to comply with the correspondent legal or administrative requirements.

• Outsourcing Program
  This is for a certified company that lacks the facilities to perform production processes itself and performs the manufacturing operations through a third party who it registers in its Program. This applies to contract manufacturing type operations.

IMMEX Program Requirements:

• Be duly incorporated in Mexico providing articles of incorporation,
• Identify the site where the IMMEX will be located and where the services and production process will be performed and provide legal documents certifying your possession of this property,
• Have a business and financial plan with detailed information about the service and production process,
• Identify the Harmonized Tariff Code (HTS) of the materials, goods, machinery, equipment, etc. required to perform the services and production process,
• Inform about the number of employees and their roles within the company,
• Identify the industry sector,
• Present the company’s commitment to export over 500,000 USD abroad or 10% of its total sales (invoiced),
• Complete and file the required letters and formats,
• Depending on the industry sector and HTS code of the goods and materials, other requirements or restrictions may apply.

How Do I Know if My Company will Qualify for the IMMEX Program?

• Annual exports over 500,000 USD abroad or alternatively 10% of its total sales,
• Perform the specific production process or services as described and listed on the IMMEX authorization,
• Return or export abroad the temporarily imported materials, goods, etc.,
• Maintain such materials, goods, etc. within the IMMEX authorized facility,
• Maintain its records in compliance,
• Submit the correspondent reports (statistics, tax, customs),
• Keep the inventory control in accordance to the guidelines described under Annex 24 and 31 of the General Customs Rules

Shelter Services in Mexico: How Can CPI Help Me Qualify for the IMMEX Program?

When you work under CPI’s Shelter Maquiladora Program your company operates under CPI’s IMMEX permit without having to have your own legal entity in Mexico. If you need another type of IMMEX Program such as the Services Program, then CPI adds your company’s facility as an additional location under their existing permit which is much faster than applying for the program on your own. As a part of CPI’s Shelter Company Program, CPI handles all of the reporting and accounting requirements necessary to comply with IMMEX Program rules.