Manufacturers in Mexico source components globally for importation into Mexico with no duties or Value Added Taxes. These imported components are used for final assembly, test and packaging into a finished or semi-finished product. Typically, by importing these goods in raw material form and assembling them into finished products in Mexico the assembled article becomes a Mexican origin product and qualifies for duty free treatment into the United States, Canada and many other countries of the world.
Many globally sourced components would be assessed a duty upon importation directly into the United States, Mexico or Canada. With utilization of the IMMEX program benefits raw materials, otherwise dutiable, are imported to Mexico duty free, assembled into a finished product, and experience a change in Harmonized Tariff System (HTS) code, otherwise known as a tariff shift. This tariff shift qualifies the finished product as Mexican origin. The resulting conversion to a Mexican country of origin allows the finished product to enter many global markets at a reduced or zero duty rate verses manufacturing and transforming products in other low cost manufacturing geographies. Mexico currently has in place 12 Free Trade Agreements with 46 nations, the most of any country in the world.
TACNA serves a variety of industries including: aerospace, EMS/electronics, CNC machining, medical disposable products, medical devices, furniture, injection molding and metal fabrication. Our clients include fortune 50, fortune 500, private equity funded and privately held enterprises. If your work stream is labor dependent or labor intensive with meaningful market concentration in North America, Mexico’s low cost manufacturing environment is a significant savings opportunity.
