Amendments to the IMMEX and other Mexican Decrees

By: Brenda Cordova, Mexico Attorney

On July 28, 2016, the Mexico government published on the Diario Oficial de la Federacion amendments to the following Decrees:

  1. Promotion of Industry Sector Programs (PROSEC)
    (Decreto por el que se establecen diversos programas de promoción sectorial)
  2. Import duty for northern border areas
    (Decreto por el que se establece el impuesto general de importación para la región fronteriza y franja fronteriza norte)
  3. Maquila/IMMEX
    (Decreto para el fomento de la industria manufacturera, maquiladora y de servicios de exportación)

The amendment to the PROSEC decree adds certain materials, machinery and/or equipment that the Mexico industry sectors may import with reduced duties. These industries are Electric, Electronics, Furniture, Toys, Shoes, Metals, Photographic, Agriculture Machinery, Chemical, plastics and rubber, iron and steel, Pharmacy, Drugs, and Medical Equipment, Transportation, Paper and Cartoon, Wood, Leather, Automotive, Textile, Sugar and Coffee.

Companies authorized by the government to participate under any of these sectors may receive the duty reduction benefit as long as they show permanent compliance and the imported materials, machinery and/or equipment are only used for their authorized production process.

The amendment to the decree for the regional and border areas modifies the list of goods that authorized individuals and companies located at the Mexico border can import under a reduced duty. Some of these companies can be trading companies and companies proving these services: restaurants, hotels, recreation and amusement, cultural, sports, education, investigation, medical and social work, leasing certain goods among others.  These individuals and companies must have an authorization number issued by the Mexican government and have no fiscal/tax restrictions.

Finally, the amendment to the Maquila/IMMEX decree changes the list of materials included under Annex II, Section C list of this decree, classified under Chapters 52, 54, 55, 60, 61, 62 and 63, of the LIGIE (Mexican Tariff Schedule).

As a general rule, Maquilas/IMMEX may temporarily import into Mexico materials, equipment, machinery and almost everything they need to manufacture, transform or repair a good for subsequent export or return abroad. Provided they comply with the law, they may receive customs, fiscal and administrative benefits.  However, there are goods, mainly from the textile and sugar industry, considered as sensitive for the economy for which the government has implemented some restrictions or limitations.  These goods are the ones listed under the above mentioned Annex II, Section C of the IMMEX decree.