- Manufacturing in Mexico
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If your are wondering about what are Maquiladoras? They are foreign-owned manufacturing facilities that are used by companies in order to export high quality goods from Mexico at a lower cost than they might be obtained elsewhere. Maquiladoras are also known as maquilas. This is particularly common for corporations in the United States and Canada.
Mexico is one of the largest trading partners for U.S . They have long been one of the primary sources of goods exported to the US for many important reasons.
Maquiladoras can be found throughout Latin America. However, Tacna’s expertise is in working with maquiladoras in Mexico. Particularly in the Baja region of Mexico. These border towns are close to the United States and along the west coast. Proximity to the United States is one of the benefits of maquiladoras.
Many large US-based corporations and businesses are utilizing maquiladoras in Mexico and have been for many years. Maquiladoras were first established in Mexico in 1964. That was when the government in Mexico introduced the “Border Industrialization Program” (BIP).
The purpose was to attract capital investment in Mexico from foreign investment entities. The Border Industrialization Program lowered taxes (duties) on equipment, materials, raw materials, and machinery. This is one of the ways foreign owned start up businesses are able to save money.
The maquiladora program has been a big success. It is a significant means of employment and has stimulated the Mexican economy. In mexico city manufacturing operations costs less then san diego. According to american free trade agreement shipping costs of the production materials is low cost when the consignment is pass through u.s border to mexico border. According to free trade agreement NAFTA(north american free trade agreement) business association export the goods with in the agreement is duty free but for the foreign investment they pay the taxes.
There are several factors that make Mexican maquiladora program more affordable. First of all, Mexico is in close proximity to the U.S . Some of the best practices locations in Mexico for a maquiladora program is in the region of Baja. These cities include Tijuana, Tecate, Mexicali, Ensenada, and Rosarito.
This close proximity makes for quicker shipment of products. Additionally, these areas have bilingual, skilled workers that can provide valuable labor force at lower costs.
Low duties are also helpful in lowering production costs. labour costs is less. the IMMEX program produce, transform, repair or package foreign goods imported temporarily for subsequent export, without the need for payment of import tax, countervailing duties and value added tax, if certified.
As you might expect, the cost of running a manufacturing facility in Mexico is less expensive when compared to the United States and Canada.
Labor costs, income tax, customs tax, Vat tax, payroll tax, tax incentives proximity to the US and Canada, real estate costs, and exchange rates favor moving manufacturing to Mexico. Due to increment in unemployment rate maquiladora industry has created job opportunities and over one million jobs for Mexico maquiladora workers.
Our expertise in guiding companies along the journey of setting up a maquiladora program in Mexico is just one of the reasons for our growth. Mexico has been promoting policies that make them an appealing location for maquiladoras for decades. Tacna has been assisting companies in this endeavor since 1983, and we can do it for yours in a matter of weeks.
Partnering with a shelter service provider company such as ours can help you quickly find a maquiladora that will fit the needs of your company as seamlessly as possible.
Tacna has been helping companies do this for decades. In maquiladora industry Compliance human resources & Recruiting federal reserve & Legal Compliance Tax. In maquiladora model we include bracero program, shelter program and tariff programs. maquiladora system has due diligence process which answering all of the questions.
With our shelter company, Tacna will assume all of the liability and take care of everything. All you have to do is focus on the manufacturing costsprocess.
Establishing a manufacturing operation in Mexico is a complex, yet worthwhile endeavor. Tacna can support you before, during, and after the transition to production in Mexico. Our experience in working as a shelter company gives our clients a huge advantage and saves them time and money.