Home » Do You Know What IMMEX Stands For?

Do You Know What IMMEX Stands For?

It is common to hear that auto part manufacturers with plants in Mexico that export their final products or that sell them to Mexican Original Equipment Manufacturers (OEMs), operate under trade facilitation programs that allow them to import into Mexico raw materials, machinery and equipment with certain benefits. Most of the manufacturers operate as IMMEX authorized companies.

What is IMMEX? IMMEX is the Spanish acronym for the Manufacturing, Maquila and Export Services Industries Program. The IMMEX Program is a foreign trade facilitation instrument created by the Mexican government that allows authorized companies to import goods into Mexico on a temporary basis, to be used in the production of final products destined for export or in rendering export-related services.

This article provides a short overview of the IMMEX Program, its modalities, benefits, duration and primary obligations. To determine whether specific benefits can be obtained through joining the IMMEX Program, companies must conduct a thorough analysis.

Mexican companies may be authorized as IMMEX companies as long as they comply with the requirements set forth in the Decree for the Promotion of the Manufacturing, Maquila and Export Services Industries (“IMMEX Decree”).

There are 5 modalities in which the IMMEX Program may be authorized for a Mexican company. Within the most popular modalities in which companies enroll in the program, we find: (i) the industrial, (ii) the services and (iii) the shelter modality.

Under the IMMEX program, machinery and equipment may be imported under a temporary basis and kept in Mexico under the program as long as it is in effect. Raw materials may be kept in the country only for 18 months (as a general rule), during which time they must be incorporated to finished goods and exported or imported in a definitive basis.

There are a few benefits for IMMEX program participants. IMMEX authorized companies may, as a general rule, import raw materials and take advantage of benefits such as the exemption from the payment of import duties, preferential fixed customs processing fees, and when applicable, an exemption in the payment of countervailing duties. Import duties are always paid in the temporary importation of machinery and equipment.

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Previously published July 16, 2019 | Marcos Carrasco Menchaca

 

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