IMMEX Program: What It Is and Its Benefits 

Programa IMMEX en qué consiste y qué beneficios tiene

Did you know that the Manufacturing, Maquiladora, and Export Services Industry Program (IMMEX) includes over 6,300 companies responsible for 66% of Mexico's manufacturing exports and 57.6% of its total exports? 


If your business is involved in exports and looking to reduce costs while increasing market competitiveness, this program could be the key to achieving your goals. 


Every business faces challenges, including high production costs, tariff barriers, and the need to meet stringent standards. 


In this context, the Mexican government’s initiative is designed to help overcome these obstacles through tax incentives, easier importation of supplies, and a framework that promotes competitiveness. 


Don’t let inertia hold you back. Keep reading to learn what the IMMEX Program is and the many benefits it offers to participating companies. 


What Is IMMEX and What Is It For? 


The IMMEX Program (Manufacturing, Maquiladora, and Export Services Industry) is a Mexican government initiative aimed at fostering competitiveness and growth among companies dedicated to manufacturing and exporting goods. 


In simple terms, it allows businesses to temporarily import supplies, machinery, and equipment necessary for producing export-bound goods without paying General Import Tax (IGI), Value Added Tax (VAT), and in some cases, other obligations. 


The program is managed by the Ministry of Economy and jointly supervised by the Tax Administration Service (SAT). To participate, companies must meet specific requirements and register with these authorities. 


Over time, the program has become a tool for attracting foreign investment to Mexico, as it helps reduce operational costs associated with foreign trade and serves as a platform for creating and growing businesses in the country. 


Some key aspects of IMMEX and how it supports Mexican exports include: 


  • Encouraging foreign investment: If your company is considering operations in Mexico, the program simplifies the process. Tax incentives and adequate industrial infrastructure make Mexico an attractive destination for investment. 
  • Access to tax benefits: Such as VAT exemption on temporary imports of supplies and machinery, helping businesses optimize resources, reduce costs, and improve profitability. 
  • Flexibility in manufacturing processes: Businesses can temporarily import supplies without tax costs, allowing them to adjust production to market trends. 
  • Export potential: IMMEX participation opens the door to exporting products to various countries. 
  • Skill development and employment: By operating in Mexico, companies access skilled labor, enhancing competitiveness and quality in production processes. 
  • Compliance with international standards: This not only improves corporate reputation but also ensures products meet market demands. 

IMMEX is more than a government tool; it’s a strategic opportunity for businesses seeking growth and enhanced competitiveness. 


How Does the IMMEX Program Work? 


The IMMEX Program operates as follows: 


  • Registration and certification: Companies must register with the Ministry of Economy and meet requirements such as being enrolled with the SAT, having a valid Federal Taxpayer Registry (RFC), and presenting a detailed export plan demonstrating their capacity to perform. 
  • Temporary importation: Once certified, businesses can temporarily import supplies, machinery, and equipment needed for producing export-bound goods, free from tax obligations, reducing costs. 
  • Regulatory compliance: Participating companies must adhere to customs and tax laws, maintain detailed control over imported goods, and submit regular reports showing the use of supplies. 
  • Duration of goods: Goods imported under the program have specific time limits for remaining in the country. For example, raw materials can stay for up to 18 months, depending on their classification. 
  • Restrictions: Not all goods can be imported under the program. Annex I of the IMMEX Decree lists goods excluded from these benefits. 
  • Control and supervision: The Ministry of Economy and SAT oversee and regulate the program to ensure compliance with applicable legal and regulatory provisions. 


Benefits of IMMEX in Mexico 


The IMMEX Program offers significant benefits for participating companies and Mexico’s economy: 


  • Additional deductions for exempt benefits: As stated in the Federal Official Gazette (DOF), companies can reduce labor costs. 

Specifically, 47% of the amount allocated to exempt benefits and wages for maquila workers is deductible, providing significant financial relief for businesses with large workforces. 

  • Preferential VAT rates: IMMEX companies can apply a 0% VAT rate on goods exported abroad for final sale, reducing costs and improving liquidity. 
  • Savings on customs processing fees (DTA): Participating companies benefit from a reduced customs fee of 1.76% instead of the usual 8%, as outlined in Article 49 of the Federal Rights Law. 
  • Sector Promotion Program (PROSEC): IMMEX companies can request PROSEC benefits, including tariff reductions on imported supplies and materials, offering significant advantages. 
  • Importation of sensitive goods: IMMEX allows the importation of regulated goods such as tobacco, sugar, aluminum, textiles, and iron minerals. 
  • Virtual customs procedures: Facilitates the transfer of goods between companies within the program, optimizing logistics and reducing wait times. 
  • General Import Tax exemptions: Exemptions from IGI on temporary imports reduce costs and improve cash flow. 
  • VAT refunds: Short-term VAT refunds improve liquidity and allow businesses to reinvest in training or production improvements. 
  • Business growth: IMMEX provides a favorable regulatory environment and government incentives that reduce operational costs and simplify imports. 


How Long Can Raw Materials Stay Under IMMEX? 


For goods listed in Annexes II and III of the IMMEX Decree, raw materials can remain in Mexico for up to 18 months. Equipment or machinery can stay temporarily for the program's duration or be transitioned to a permanent regime at any time. 


Two additional considerations include: 


  • Renewal of deadlines: Extensions can be requested for goods under the program, provided compliance with regulatory requirements. 
  • Prohibited goods: Certain items listed in Annex I of the IMMEX Decree cannot be imported under the program, which must be considered in planning operations. 


Conclusion 



Implementing this program could be the difference between maintaining the status quo and achieving sustainable growth. 


If you’re unsure about the process or hesitant to take this step, KENSA Logistics is here to help. 


Our team of experts will provide the guidance you need to ensure your business meets program requirements and fully utilizes its benefits. 


So, what are you waiting for? Contact us today.