| What are the U.S. Tariff/Duty Policies relating to this program? |
| U. S. Customs has three regulations that complement the maquiladora program. |
| 1) Allows the import into the U.S. of metal products process abroad with duties assessed on the value added to those goods (i.e., the total value of Mexican inputs, including labor, electricity, component parts, etc.) rather than levying an import duty on the total value of the product. The products must have been processed in the U.S. before being sent abroad and then must be further processed in the U.S. upon their return. |
| 2) Customs provision allows an article assembled in Mexico from U.S. made components to be exempt from duty on the value of such components. These goods may or may not involve metal components. U.S. customs law allows for machinery of U.S. origin to be returned to the U.S. duty free. |
| 3) If the value of the goods assembled or manufactured in Mexico contain at least 35% Mexican content upon import into the U.S., they may be eligible for treatment under the U.S. Generalized System Preferences (GSP). GSP eligible items may enter the U. S. market with no duty levied. |
What other options exist besides starting my own stand-alone maquiladora?
“Shelter”, “sub-contract”, and “turnkey” operations represent viable alternatives to full-fledged maquiladora operations. A sub-contract maquiladora operation involves the least commitment and/or activity on the part of the non-Mexican investor.
What about foreign employee and management entry into Mexico?
The maquiladora may bring in as many foreign employees as necessary with the exception of hourly laborers. All hourly employees are required to be Mexican. Foreign employees must obtain work visas which usually require a 3 – 5 day wait.
| The In-Bond (Maquiladora) Program |
| Was established in 1965 by the Mexican government to help alleviate unemployment along the U.S. - Mexico border. |
| Allows a foreign (non-Mexican) individual or firm to establish wholly owned operations in Mexico for the purpose of manufacturing products for exportation. |
| Allows for temporary, duty-free (in-bound) importation of the capital equipment and machinery as well as the materials for production. |
| Allows foreign ownership of real estate in border areas (and seashores) by establishing a trust through a Mexican bank. |
| Temporary immigration (work) permits can be readily obtained for foreigners to allow management, technical and support personnel to work in the Maquila operation. |
| Items assembled and manufactured in Maquiladoras are to be exported from Mexico, however, permission to sell in Mexico can be obtained. |
| Maquiladoras must be incorporated under Mexican law. |
| More than 440 Maquiladora plants in Juárez employ over 220,000 workers. |
| The state of Chihuahua has 488 Maquiladora operations employing 286,340 people. |
| As a whole, the Mexican Maquiladora industry employs more than 1,260,000 people in 3,384 plants. | |
