Mexico Export: Special Provisions
National Bank for Foreign Trade (Banco National de Comercio Exterior or Bancomext)
National Bank for Foreign Trade (Banco National de Comercio Exterior or Bancomext) funding grants meet the requirements of both short- and medium-term and long-term corporate participants in Mexican foreign trade, including exporters and their suppliers.
Bancomext has designed a range of products and services to support Mexican export companies and to meet their various financing needs. Thus, it offers a comprehensive portfolio of financial solutions to support export activity. These include:
Loans for Working Capital
These loans are designed to support the financial needs of companies to carry out their productive activities related to Mexican exports. They provide financing up to 100 percent of its requirements for purchase of raw materials, payment of production, and other services.
Equipment Credit
These are grants to support purchase of equipment and machinery whether new or used equipment, of national origin or imported, or for growth and modernization of the productive plant. It supports up to 85 percent of the Invoice in the case of modernization or expansion of running companies, not including taxes, transportation, and insurance facility among others.
Loans for Investment Project
These are credits greater than US$2million to support investment projects for implementation, adaptation, expansion or modernization of production facilities and storage warehouses, including the purchase of machinery and equipment. The loans are provided in dollars as well as local currency.
Funding for the Construction of Ships
This is a funding for the construction and equipping of industrial buildings for sale or lease maquiladoras and/or exporters who have a concerted recovery scheme. The funding is up to 100 percent of the cost of building the factory and its equipment, but not to exceed 90 percent of total investment.
Loans for Leasing of Premises and Warehouse
The funding flows from anticipated income from leases arranged with maquiladoras and/or viable exporters. It is generally for the long term. There is advance funding of up to 90 percent of the property value with depreciation comparable to regular payment of rent.
Structured Credit
This credit line designs and structures the finance schemes greater than US$10 million so that Mexican companies can compete in international competitive bidding, both in Mexico and abroad. This scheme provides for development of financial engineering schemes that address the specific needs of projects involving companies. It also supports companies for incorporation in foreign trade activities and strengthening the functional international projects and internationalization of Mexican companies.
Syndicate Loan
The syndicated loan is a loan instrument that seeks the allocation of risk in lending operations where there is a community of interest between different entities that entrust the management of a loan jointly to an agent bank, which handles relations lenders and the borrower.
Corporate Credit
This also provides credit of more than US$10 million for Mexican companies to compete in international markets. It differs from structured credit, as it is financing for the acquisition of supplies and payment of the holding company and the subsidiary, term financing of sales, debt refinancing, and funding for the payment of taxes and other liabilities.
IMMEX Program
The Manufacturing, Assembly, and Export Services (Industria Manufacturera, Maquiladora y de Servicios de Exportación or IMMEX) is a program to temporarily import goods and services that are manufactured, transformed or repaired, and then re-exported without payment of taxes, compensatory quotas, and other specific benefits.
A Mexican maquiladora is a Mexican company that obtains a license to operate under the IMMEX program. Such companies process (assemble and/or transform in some way) components imported into Mexico which are in turn exported. Companies that provide services to other maquiladoras may also qualify under the IMMEX program.
The objective of the IMMEX program is to promote the export of goods so Mexican companies may access international markets. In addition, IMMEX stimulates modernization of the national manufacturing infrastructure by attracting specialized technology and transferring technical knowledge to the workforce in the region.
The main benefit of the IMMEX program is the ability to defer taxes on goods that are temporarily imported into Mexico and the ability to consolidate import declarations.
Import Tax Refund to Exporters
The Program for Import Tax Refund to Exporters allows beneficiaries to recover the general imports tax caused by imports of inputs, raw materials, parts and components, packaging and bottles, fuels, lubricants, and other materials used for the processing and final delivery of exported products, or by the import of goods that are returned in the same condition, or goods to be repaired or altered.
The amount of the refund is determined by dividing the amount paid on account of the general import duty in Mexican currency by the peso-United States dollar exchange rate in force on the date of payment. The result is multiplied times the exchange rate in force on the date when the refund is authorized.
The amount of the import tax refund is deposited by the Ministry of Treasury to the exporter’s account with any of the authorized banking institutions.
Programs of Sectoral Promotion (Programas de Promocion Sectorial or PROSEC)
The Mexican Ministry of Economy has designed and implemented production promotion programs and instruments with the aim of providing the productive sector with improved conditions to compete in various markets, as well as for enhancing supply conditions.
The Programs of Sectoral Promotion (Programas de Promocion Sectorial or PROSEC) are intended for companies that produce specific goods that allow them to import, with a preferential ad valorem tariff (General Imports Tax) and various goods used in the manufacturing of specific products, regardless of the fact that goods produced are assigned for export or for the domestic market.
The main purpose is to support certain sectors by facilitating access to inputs, parts, components, machinery, equipment, and other goods associated with their productive processes.
Foreign Trade Companies (Ecex)
Ecex registration is a promotion instrument by means of which commercialization companies may access international markets with administrative terms and development banking financial support.
- There is automatic issuance of the Highly Exporting Companies Certificate (ALTEX). See below.
- Promexico allows a 50 percent discount on the cost of nonfinancial products and services, as determined by the institution through its integral support program for these companies
- Nacional Financiera may provide financial assistance and support for completing the company's projects and for specialized training services and technical assistance. This benefit is granted to Ecex companies as well as to their suppliers.
Highly Exporting Companies (ALTEX)
The ALTEX program is a promotion instrument for exporting Mexican products, intended to support the operation of exporting entities with tax and administrative benefits. The benefits of the program are as follows:
- VAT favorable balances refund in a period of approximately twenty business days
- Free access to the Trade Information System managed by the Ministry of Economy
- Exemption from the second inspection requirement for export goods at the export customs station whenever such goods have previously received clearance in an interior customs station
- Faculty to appoint a customs agent for several customs and various products
Note: The above information is subject to change. Exporters are advised to obtain the most current information from a customs broker, freight forwarder, logistics professionals, or local customs authorities.
Source: National Customs Agency of Mexico (Agencia Nacional de Aduanas de México or ANAM)
Article written for World Trade Press by Felicia Topp, Jennifer Goheen, and Nina Bellucci.
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