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IMMEX

Industria Manufacturera, Maquiladora y de Servicios de Exportacion — Mexico's customs and tax program that allows manufacturing companies to temporarily import raw materials, components, machinery, and equipment into Mexico without paying import duties (IGI) or IVA (16%), provided the imported inputs are used to manufacture finished goods that are exported. IMMEX is the successor to the Maquiladora and PITEX programs and is the legal framework under which over 6,000 maquiladoras operate in Mexico. Key benefit: significant cost reduction for export-oriented manufacturers — avoiding 5-25% import duty plus 16% IVA on all imported inputs dramatically improves competitiveness. Requirements: company must export at least $500,000 USD annually (or 10% of total sales), maintain an IMMEX authorization from the Secretaria de Economia, and track all temporary imports in an inventory control system (Annex 24 of General Foreign Trade Rules). For rubber and belt suppliers: IMMEX customers import large quantities of rubber sheet, gaskets, seals, belts, and conveyor belts duty-free for their manufacturing operations. If selling to IMMEX companies: the transaction may be structured as a virtual export/import (pedimento virtual) for domestic suppliers. Per Mexican Foreign Trade Law and Decree for IMMEX.

What you need to know

  • Industria Manufacturera, Maquiladora y de Servicios de Exportacion — Mexico's customs and tax program that allows manufacturing companies to temporarily import raw materials, components, machinery, and equipment into Mexico without paying import duties (IGI) or IVA (16%), provided the imported inputs are used to manufacture finished goods that are exported.
  • IMMEX is the successor to the Maquiladora and PITEX programs and is the legal framework under which over 6,000 maquiladoras operate in Mexico.
  • Key benefit: significant cost reduction for export-oriented manufacturers — avoiding 5-25% import duty plus 16% IVA on all imported inputs dramatically improves competitiveness.
  • Requirements: company must export at least $500,000 USD annually (or 10% of total sales), maintain an IMMEX authorization from the Secretaria de Economia, and track all temporary imports in an inventory control system (Annex 24 of General Foreign Trade Rules).
  • For rubber and belt suppliers: IMMEX customers import large quantities of rubber sheet, gaskets, seals, belts, and conveyor belts duty-free for their manufacturing operations.

Full definition

IMMEX (Industria Manufacturera, Maquiladora y de Servicios de Exportación) is a pivotal customs and tax program in Mexico that facilitates the operation of manufacturing companies focused on export activities. Established to replace the previous Maquiladora and PITEX programs, IMMEX allows businesses to temporarily import raw materials, components, machinery, and equipment without incurring import duties (IGI) or the 16% Value Added Tax (IVA). This provision significantly enhances the cost-effectiveness of manufacturing processes, as companies can avoid the 5-25% import duty on materials. The program aims to bolster Mexico's competitiveness in the global market by attracting foreign investment and promoting export-oriented manufacturing.

To qualify for the IMMEX program, companies must meet specific criteria, including an annual export volume of at least $500,000 USD or 10% of total sales. They are also required to maintain an IMMEX authorization from the Secretaria de Economia and must implement an inventory control system to track all temporary imports, as stipulated in Annex 24 of the General Foreign Trade Rules. This rigorous tracking is essential for compliance and ensures that all imported materials are used for manufacturing goods destined for export.

For suppliers of rubber sheets and power transmission products, the IMMEX program presents significant opportunities. Companies involved in manufacturing rubber products, such as gaskets, seals, and belts, benefit from the ability to import these materials duty-free. This not only reduces operational costs but also allows suppliers to offer competitive pricing to their clients who are engaged in export activities. Moreover, transactions with IMMEX companies may be structured as virtual exports/imports (pedimento virtual), streamlining the procurement process for domestic suppliers. Overall, the IMMEX program is a crucial element in fostering a robust manufacturing environment in Mexico and enhancing the country's export capabilities.

What you need to know

  • What you need to know: IMMEX allows duty-free import of materials for export-oriented manufacturers.
  • Companies must export at least $500,000 USD annually or 10% of total sales to qualify.
  • Maintaining an IMMEX authorization from the Secretaria de Economia is mandatory.
  • An inventory control system is required to track temporary imports per Annex 24 of General Foreign Trade Rules.
  • Suppliers of rubber sheets and belts can benefit from reduced costs due to duty-free imports.
  • Transactions can be structured as virtual exports/imports for efficient procurement.

Industrial applications

  • 1Manufacturing companies importing rubber sheets for automotive parts production.
  • 2Maquiladoras utilizing duty-free belts and pulleys for assembly lines.
  • 3Export-oriented firms importing seals and gaskets for machinery without paying duties.
  • 4Companies using IMMEX provisions to enhance competitiveness in consumer goods manufacturing.
  • 5Domestic suppliers structuring sales to IMMEX clients as virtual exports.

Common mistakes

  • Failing to maintain accurate inventory records for imported materials.
  • Not adhering to the annual export threshold, risking IMMEX authorization.
  • Misclassifying products leading to compliance issues with customs regulations.
  • Overlooking the need for proper documentation for virtual export transactions.
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Pro tip

Ensure thorough tracking and documentation of all temporary imports to maintain compliance with IMMEX requirements.

Technical standards

  • Mexican Foreign Trade Law - Legal framework governing trade and customs.
  • Decree for IMMEX - Specific regulations guiding the IMMEX program and its requirements.

Suppliers of industrial products in Mexico

Related terms