SOLO de Mexico Achieves IMMEX
- Adam C
- Aug 5, 2014
- 11 min read
Updated: Aug 2
SOLO de Mexico Achieves IMMEX Certification, Enhancing Value for Global Customers
Monterrey, Mexico – [Current Date] – SOLO de Mexico is proud to announce that it has received its IMMEX (Industria Manufacturera, Maquiladora y de Servicios de Exportación) certification as of August 5, 2014. This prestigious designation allows SOLO de Mexico to optimize its operations, reduce costs, and deliver greater value to its global customers.
The IMMEX program, established by the Mexican government, is designed to enhance the competitiveness of international businesses operating in Mexico. It allows companies like SOLO de Mexico to temporarily import raw materials and components without paying the corresponding import duties and value-added tax (VAT), provided that the final products are exported. This program facilitates streamlined manufacturing, lower production costs, and improved supply chain efficiencies.
With IMMEX certification, SOLO de Mexico can offer significant benefits to its customers, including:
Cost Savings – By eliminating import duties and VAT on temporary imports, SOLO de Mexico reduces overall production costs, allowing for more competitive pricing.
Faster Turnaround – Improved supply chain efficiency ensures quicker processing times, enabling faster delivery of products to global markets.
Enhanced Compliance and Security – Participation in the IMMEX program ensures adherence to international trade regulations, providing customers with confidence in SOLO de Mexico’s operational standards.
Stronger Market Presence – By leveraging the benefits of IMMEX, SOLO de Mexico is better positioned to serve its customers across North America and beyond.
“This certification marks a major milestone for SOLO de Mexico and underscores our commitment to providing high-quality, cost-effective solutions to our customers,” said [Spokesperson’s Name], [Title] of SOLO de Mexico. “The IMMEX program enables us to streamline our operations and enhance the efficiency of our supply chain, ultimately benefiting our partners worldwide.”
As a trusted leader in global supply chain solutions, SOLO de Mexico remains dedicated to innovation, operational excellence, and customer satisfaction. The company looks forward to leveraging its IMMEX certification to continue delivering exceptional service and value to its clients.
IMMEX - F.A.Q.
1. What is the IMMEX Program, and how does it relate to "maquiladoras"?
The IMMEX (Manufacturing, Maquiladora, and Export Services Industry) Program is a Mexican government initiative launched in 2006 that allows foreign companies to temporarily import raw materials, components, and equipment into Mexico duty-free and exempt from Value Added Tax (VAT), provided that these goods are used in manufacturing or processing for export. This program evolved from the original "maquiladora" program, established in the 1960s to promote economic growth and employment along the U.S.-Mexico border.
Essentially, "maquiladoras" are the factories or operations in Mexico that operate under the framework of the IMMEX program. While the terms are often used interchangeably, IMMEX refers to the legal framework and program itself, and maquiladora refers to the manufacturing facility leveraging its benefits. The program aims to attract foreign direct investment, boost manufacturing, increase exports, and make Mexico's export sector more competitive by reducing production costs and streamlining supply chains.
2. What are the primary benefits for companies operating under the IMMEX Program?
The IMMEX Program offers several significant benefits for foreign companies, particularly those from the U.S., looking to manufacture in Mexico:
Duty-Free and VAT-Exempt Imports: Companies can import raw materials, components, and machinery without paying import duties or VAT, as long as the finished products are exported within a specified timeframe. This significantly reduces overall production costs and preserves cash flow.
Cost-Competitive Labor: Mexico offers a skilled workforce at considerably lower labor rates compared to countries like the U.S., further contributing to cost savings.
Proximity and Streamlined Supply Chains: Mexico's close geographical proximity to North and Latin American consumer markets allows for shorter lead times, reduced freight costs, and more efficient logistics. The USMCA (United States-Mexico-Canada Agreement) also provides preferential treatment for most exported goods.
Infrastructure Support: Designated industrial zones and maquiladora hubs offer modern infrastructure, including reliable power and transportation networks.
Reduced Income and Property Taxes: IMMEX participants may benefit from reduced income tax rates on profits and lower property taxes on their facilities compared to operations elsewhere.
Access to a Skilled Workforce: Mexico graduates a significant number of engineers annually, many of whom are trained for manufacturing operations.
Scalability and Agility: The program, especially through shelter services, enables rapid production scaling with minimized capital investment.
3. What are the key requirements for companies to qualify for and maintain IMMEX status?
To qualify for the IMMEX program, companies generally need to:
Be legally registered in Mexico or operate under a shelter model.
Maintain precise records of all temporarily imported goods and production output through an automated inventory system (Annex 24).
Export at least US$500,000 annually, or at least 10% of their total sales.
Comply with timeframes for the import and export of their goods or services.
Operate in registered locations in Mexico.
Adhere to various Mexican customs and trade regulations, including those under USMCA.
Ongoing compliance is crucial, involving accurate financial record-keeping, timely tax declarations, adherence to labor laws, and strict environmental and safety protocols. Failing to meet these standards can lead to penalties or even the loss of IMMEX status.
4. What are some of the potential pitfalls or challenges associated with operating under the IMMEX Program?
Despite its benefits, companies considering the IMMEX program should be aware of potential challenges:
Legal and Tax Complexities: The program involves significant bureaucracy and detailed regulations, requiring expert advice to avoid legal or financial issues.
Strict Inventory Control: IMMEX administrators demand precise tracking of inventory and its time in storage.
Limited Support in Certain Sectors: While industries like electronics and automotive are well-established, benefits may not apply equally to all commodities (e.g., textiles and apparel have seen companies move out due to rising costs and recent tariff increases).
Labor Issues: A high percentage of workers are unionized, and there can be hidden costs in labor rates (social security, housing, profit sharing).
Less Developed Logistics Infrastructure: Increased manufacturing has strained seaports and cross-border truck capacity, leading to congestion and higher costs for production/warehousing space, especially along the border.
Crime and Corruption: Cargo theft and organized crime are known challenges, necessitating robust security measures and anti-bribery policies.
Protection of Intellectual Property Rights: Mexico still has progress to make in this area, requiring companies to leverage all available options for IP protection.
Country of Origin Issues: Nearshoring to Mexico doesn't automatically guarantee duty-free treatment if components are still sourced from non-preferential countries (e.g., China) and don't meet product transformation requirements.
5. How have recent changes impacted the IMMEX Program, particularly for the textile sector?
On December 19, 2024, the Mexican government published a decree introducing temporary tariff changes and amendments to the IMMEX Decree, primarily aimed at protecting domestic textile production. These measures are effective until April 23, 2026.
Key changes include:
Increased Tariffs: Tariffs were increased on 155 items in the textile sector for products originating in countries with which Mexico does not have free trade agreements. This includes:
A 15% tariff on items like cotton, synthetic/artificial staple fibers, special woven fabrics, and knitted fabrics (Chapters 52, 55, 58, 60).
A 35% tariff on articles of apparel and clothing accessories (knitted or crocheted, and not knitted or crocheted), other made-up textile articles, and certain bedding items (Chapters 61, 62, 63, and tariff item 9404.40.01).
IMMEX Program Restrictions: New restrictions were added to Annex I of the IMMEX Decree, which lists "Goods that cannot be temporarily imported under the IMMEX program." These changes specifically affect several items under chapters 61, 62, and 63 of the General Import and Export Tax Law, with some exceptions.
These changes could lead to higher costs for importers and disruptions in supply chains for IMMEX participants in the textile industry, highlighting the need for careful consideration of trade and business operations. The Mexican government temporarily suspended these restrictions for six months, citing concerns from compliant companies, but the underlying intent to increase revenue and ensure compliance remains.
6. What is a "shelter services" model, and why do companies use it for IMMEX operations?
A "shelter services" model is an alternative for foreign companies that want to establish manufacturing operations in Mexico under the IMMEX program without creating their own legal entity in the country. Under this model, the foreign company operates under a "shelter" – a Mexican-owned business that assumes the legal risk, administrative duties, and liabilities associated with complying with Mexican laws and the IMMEX program.
Companies choose shelter services to:
Bypass Complex Setup: Avoid the lengthy and often complex process of establishing a new legal entity and obtaining IMMEX certification from scratch.
Accelerate Start-up: Quickly "plug-in" to an already established infrastructure, allowing for faster operational commencement.
Mitigate Legal Risk: Transfer the responsibility for ensuring compliance with Mexico's intricate legal and tax frameworks to experts in the local business landscape.
Focus on Core Business: Allow the foreign company to concentrate on its core manufacturing processes, quality control, and training, rather than getting entangled in administrative and regulatory red tape.
Access Expertise: Leverage the shelter company's experience in human resources, payroll, accounting compliance, import-export, logistics, and facilities management.
While tax benefits may vary slightly compared to operating as a standalone entity, the significant reduction in administrative burden, legal risk, and start-up time makes the shelter model an attractive option, especially for smaller firms or those seeking to expand quickly.
7. What are the various types of IMMEX registrations available to companies?
The IMMEX program offers five distinct types of registrations, or "modalities," that companies can choose from depending on their operational structure and approach:
Holding Company: For a holding company that integrates the operations of its subsidiaries.
Industrial: This is the most common type, for companies engaged in manufacturing, transformation, or repair of goods for export.
Services: For companies offering export services (e.g., customer service, purchasing, design engineering, or other corporate functions that can take place in Mexico). This modality also benefits from tax incentives for temporary imports related to their service provision.
Shelter: As described previously, this allows foreign companies to operate under the legal framework of a Mexican-owned shelter company, which handles administrative and compliance responsibilities.
Outsourcing: For companies that contract out their production processes to third parties in Mexico.
These different modalities allow flexibility for various business models seeking to leverage the benefits of the IMMEX program.
8. What is the broader economic impact of the IMMEX Program on Mexico?
The IMMEX Program plays a crucial role in Mexico's economy, serving as a primary driver of industrial activity, employment, and exports:
Economic Growth and Foreign Investment: IMMEX was designed to promote and attract foreign direct investment, significantly contributing to Mexico's Gross Domestic Product (GDP).
Job Creation: As of January 2025, over 6,530 establishments were active under IMMEX, employing more than 3.2 million people. Approximately 35% of all manufacturing employees in Mexico work in IMMEX companies, and these workers often earn about 40% more than those in non-IMMEX companies.
Export Driver: The program heavily influences Mexico's export sector, with IMMEX companies driving an average of 55.8% of Mexico's total exports and 43.3% of its imports between 2016-2021. Nearly three-quarters of Mexico's exports go to the United States.
Technology Transfer and Talent Development: The IMMEX sector facilitates significant technology transfer to Mexico, as engineers, designers, and technical experts collaborate with foreign counterparts on development, innovation, and process improvement. This concentration of experienced and skilled talent sets a tone for the manufacturing industry as a whole.
Regional Integration: The program reinforces Mexico's position as a key manufacturing partner within North America, supporting regionally integrated supply chains and making the country a natural destination for companies seeking manufacturing and administrative talent for the U.S. market.
The IMMEX program continues to be a cornerstone of Mexico's trade strategy, positioning the country as a global manufacturing powerhouse and fostering significant economic development and social mobility for Mexicans.
TIMELINE
Detailed Timeline
1960s:
1960s: The Maquiladora program is established by the Mexican government. This program exempted maquiladoras (factories run by foreign companies in Mexico) from a 16% Value Added Tax on imported manufacturing goods and materials, provided these items were subsequently exported as finished products. The program aimed to create jobs along the U.S./Mexico border following the termination of Mexico’s Bracero program.
1965: The Maquiladora program is officially launched, with early maquiladoras focusing on labor-intensive tasks like garment sewing, particularly in cities like Ciudad Juárez.
1970s-1980s:
1970s-1980s: The maquiladora industry expands, seeing growth in electronics and automotive assembly. Factories multiply along the U.S. border, encouraged by Mexico’s economic reforms.
Program Revision (Date Unknown, during this period): Benefits under the Maquiladora program increase, allowing companies to sell up to half of their products to domestic Mexican markets.
1990s:
1994: The North American Free Trade Agreement (NAFTA) is passed, significantly boosting maquiladora growth, increasing foreign investment, and diversifying into more complex manufacturing. This allowed maquiladoras to operate under a preferential tax model.
2000s:
2006: The Mexican government modernizes and renames the Maquiladora program to the IMMEX (Manufacturing, Maquiladora, and Export Services Industry) program. This decree aims to make Mexico's export sector more competitive by improving tax incentives and offering new operating modalities, including the introduction of "shelter companies."
2014:
August 5, 2014: SOLO de Mexico achieves its IMMEX certification, enabling it to optimize operations, reduce costs, and offer more competitive pricing by eliminating import duties and VAT on temporary imports, and enhancing supply chain efficiency and compliance.
2016-2021:
2016-2021 (Average): An average of 55.8% of Mexico's exports and 43.3% of its imports are driven by IMMEX companies, highlighting their significant impact on the country's economy.
2020:
2020: The USMCA (United States-Mexico-Canada Agreement) becomes effective, reinforcing trade benefits for IMMEX companies and promoting advanced manufacturing sectors like aerospace and medical devices.
2022:
2022: The Bill of Lading Supplement becomes mandatory in Mexico, requiring specific information on merchandise, locations, and transportation means to be incorporated into an electronic invoice and transmitted to the customs system.
2023:
2023 (Up to October): INEGI reports that IMMEX employment in Mexico reached approximately 3 million workers across more than 5,000 certified operations.
2024:
January 22, 2024: Prodensa publishes "The IMMEX Program in Mexico: A Quick Guide," highlighting the program's requirements, importance, and impact on Mexico's economy.
May 14, 2024: Dimerco publishes "IMMEX Program in Mexico: Potential Benefits & Pitfalls," discussing the advantages and challenges of the program, particularly in the context of nearshoring.
July 26, 2024: Prodensa publishes "Manufacturing Compliance in Mexico: Operating an IMMEX Facility," detailing the ongoing compliance requirements for IMMEX operations.
December 19, 2024: The Mexican government, under President Claudia Sheinbaum Pardo, publishes a "Decree modifying the tariff on the General Import and Export Tax Law and the Decree for the Promotion of the Manufacturing, Maquila and Export Services Industry." This decree introduces temporary tariff increases on 155 textile sector items (15% for chapters 52, 55, 58, 60; 35% for chapters 61, 62, 63, and tariff item 9404.40.01) and amends Annex I of the IMMEX Decree, adding new restrictions on goods that cannot be temporarily imported under the IMMEX program. This is part of a government crackdown on alleged misuse of the IMMEX program.
2025:
January 2025: Greenberg Traurig LLP publishes an "Alert | International Trade" detailing the tariff increases and IMMEX Decree amendments enacted on December 19, 2024.
January 2025: Mexico’s Instituto Nacional de Estadística y Geografía (INEGI) reports 6,530 active IMMEX establishments, employing over 3.2 million people and generating 720.5 billion pesos in revenue for the month, with over 57% tied to exports.
February 3, 2025: Weber Logistics publishes "Understanding Mexico’s IMMEX Program and What It Means for US Shippers," discussing recent changes and temporary reversals by the Mexican government regarding IMMEX program restrictions, citing concerns from compliant companies. The government alleged misuse by companies, particularly in the apparel and 3PL industries.
April 23, 2026 (End Date): The temporary tariff changes enacted on December 19, 2024, are set to remain effective until this date.
June 23, 2025: Shelmex publishes "Maquiladoras in Mexico Insights and Opportunities," providing an overview of maquiladoras, their history, locations, industries, and strategic advantages.
May 28, 2025: NAPS Inc. publishes "The IMMEX Program Demystified: How U.S. Manufacturers Benefit," explaining the program's advantages for U.S. manufacturers.
June 30, 2025: NAPS Inc. publishes "How Mexico Is Strengthening Supply Chains in 2025," highlighting Mexico's role in global supply chains.
July 7, 2025: Shelmex publishes "Electronic Contract Manufacturing Benefits."
July 14, 2025: Weber Logistics publishes "What Drayage Looks Like with an Integrated Cold Chain 3PL."
July 16, 2025: Weber Logistics publishes "Happening Now: Port of Los Angeles Sees Record June."
July 17, 2025: Prodensa publishes "Understanding Rules of Origin: How to Prove Eligibility Under Trade Agreements."
July 22, 2025: Prodensa publishes "Why Hiring Remote Teams in Mexico is a Game-Changer for Global Employers."
July 24, 2025: Prodensa publishes "Monte
