Maquiladoras in Mexico operate under preferential tariff programs that allow for materials, assembly components, and production equipment used in maquiladoras as they are allowed to enter Mexico duty-free. Reduced labor costs of 50% or more, a highly skilled and conscientious workforce, and logistical advantages position Mexico as an attractive nearshore investment destination.
The maquiladora program was established in 1964 along with the National Border Industrialization Program to enhance employment and the economy along the border of Mexico and the United States. It was later integrated into the North American Free Trade Agreement (NAFTA) in 1994. Furthermore, the IMMEX Program was started in 2006 to offer additional benefits, including reduced costs.
Maquiladora facilities are important for a range of industries, most notably the automotive, aerospace, plastics, and textile production.
Nexus ensures the maquiladora complies with all Mexican laws concerning taxes, customs, labor, zoning, facility management, and environmental protection. We also assist your company with its fiscal compliance regarding transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages. Additionally, we help you manage the maquiladora’s human resources with disciplinary programs and compliance with labor laws. Moreover, we complete all border crossing documentation, U.S. and Mexico broker coordination, and transportation arrangements. Maquiladoras can leverage Mexico’s 14 trade agreements to ship their products duty-free to 46 different countries.
As a result, companies can ramp up operations in Mexico in 30 days with an IMMEX registration and benefit from a low costs, skilled workforce, tax incentives, and rapid regulatory approval. Additionally, companies are able to work with Nexus’s team of experts to make their processes more efficient with the latest software and hardware technologies, as well as energy solutions that reduce utilities costs up to 50%.