Mexico Import: Special Provisions
Manufacturing, Maquiladora and Export Services Industry (Industria Manufacturera, Maquiladora y de Servicios de Exportación or IMMEX) Program
The Manufacturing, Maquiladora and Export Services Industry (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 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.
Temporary Importation Relief
There are different types of temporary imports into Mexico, including:
- Temporary imports to be returned in the same condition
- Musical instruments for artists
- Temporary imports for cultural and sporting events
- Temporary imports for conventions, congresses, and trade shows
- Temporary imports for press, journalism, and cinematography
The first category applies to temporary imports that remain in Mexico for a limited time and with a specific purpose and are returned to the United States in the same condition and within the time limits established in the Customs Law. Such is the case of equipment for demonstration that is temporarily imported into Mexico for exhibitions or sales visits. US representatives do not need to contract the services of a Mexican customs broker, and may complete the declaration themselves, using the declaration lane at the time of entry. Overlooking this requirement may result in the confiscation of the products, with a high penalty fee for recovery. Temporary imports may remain in Mexico for up to six months.
In the case of medical devices, interested parties need to request an import permit for the specific exhibition and/or sales visit. The request needs to be submitted by a Mexican company authorized to sell/distribute medical devices in Mexico. The import is processed under a temporary importation form and there are basic requirements to obtain the clearance from Mexican customs, including:
- A list of the products for temporary importation into Mexico.
- A letter from the US company stating that the product is for temporary entry into Mexico and that it will not be sold.
- A letter from the Mexican partner or company indicating the nature of the business relationship with the United States indicating that they take full responsibility for returning the product to the United States within the designated period.
- Preparation of a Temporary Customs Entry form (Pedimento de Importación Temporal).
- The list of the products to be temporarily imported into Mexico must also be presented to US Customs before the equipment enters Mexico in order to facilitate the duty-free return to the United States.
The laws on IVA (value added tax) and the Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios or IEPS) as enacted in 2015 require that these taxes be paid on temporary imports by deposit, bond, or tax credit (the latter only applying provided that the company has a certification). The benefit of the certification is not having to pay IVA or IEPS at the time of importation by obtaining a tax credit for the payment of these taxes.
Mexico is party to the ATA Carnet convention. For temporary imports for trade shows, sales promotion, commercial samples, exhibitions, and demos, some exporters including from the US have the ATA Carnet as a resource to ship and use equipment and merchandise in Mexico duty free and tax-free for up to six months. Many US companies have had samples or equipment impounded when attempting to import the goods without an ATA Carnet.
The ATA Carnet can be used in two ways. A passenger can directly show the equipment or merchandise to the Mexican customs authority without needing to contract a Mexican customs broker. In this way one obtains approval directly from Mexican customs officers upon arrival. Alternately, if the equipment or merchandise is shipped via cargo airplane, ship, or in considerable volume, it is recommended to contract a customs broker to support the import process. Using an ATA Carnet will eliminate the paperwork involved in a regular import operation.
There are several advantages of the ATA Carnet:
- Duty- and tax-free temporary import of goods
- No need to use a customs broker for clearance in the import process
- Easy steps to arrange customs clearance, without losing time
- For shipments arriving in the morning, goods can be cleared on the same day
- Replacement of regular customs documentation for temporary entry—i.e., the traveler or the Mexican importer simply provides the ATA Carnet to Mexican Customs officers
Strategic Bonded Warehouse (SBW)
The Strategic Bonded Warehouse (SBW) import regime was implemented in 2004 to allow raw materials or components of foreign or domestic origin to be not only stored for up to 10 years, but also transformed into finished goods. The warehouses are privately held by Mexican companies. While in the SBW, the goods are exempt from the following:
- Import tariffs
- Countervailing duties other than those required by foreign trade agreements
- Value-added tax
- Excise tax
- Nontariff regulations
- Mexican technical regulations other than those for sanitary, environmental, or security reasons
Free Trade Zone (FTZ)
The Free Trade Zone (FTZ) of Logistik Industrial Park at San Luis Potosí is located in the center of Mexico with ready access to the road and rail network. The bonded distribution center on the site offers facilities for storage, repackaging, light manufacturing, and customs clearance. Foreign goods may be temporarily imported into the zone for storage, exhibition, sale, distribution, production, processing or repair. Under this regime, customs clearance is efficient, and no taxes or duties are due until the goods are removed from the industrial park for free circulation in Mexico.
Note: The above information is subject to change. Importers 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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