B. What are the benefits of these programs?

C. Where do you find the customs procedures to import into Mexico under the maquiladora or pitex program?

D. Do I need to use Mexican Customs House Broker in order to import under a maquila or pitex program?

E. What happens if I decide no to export all of the goods, which were temporarily imported under a maquila or pitex program?

F. How will Mexico assess duties on raw materials imported into Mexico in the year 2001?

G. What are some of the necessary measures, as an established maquiladora that I should take in order to protect myself beginning in November 2000?

H. Who authorizes the establishment of new maquiladoras?

I. Who do I contact if I want to establish a new Maquiladora?

These are temporary importation programs that allow for the temporary entry of goods into Mexico for the purpose of repair, transformation, or manufacture. These programs require that a specific percentage of the processed, repaired, or transformed goods be exported abroad. (See #E)

B. What are the benefits of these programs?

Customs duties, countervailing duties, and the value added tax are not levied on merchandise imported temporarily into Mexico.

C. Where do you find the customs procedures to import into Mexico under the maquiladora or pitex program?

The procedures are established under Mexico's Customs Law (Ley Aduanera) and Regulations (Reglamento de la ley Aduanera). The specific Articles under the Customs law are Articles 104, 105, 108, 109, 110, 111, and 112. Under the Customs regulations the applicable Articles are 148, 151, 152,
153, 155, and 157. More specific procedures are also found under the Miscellaneous Customs Rules (Resolución Miscelánea de Comercio Exterior) in Sections 3.12 and 3.19

D. Do I need to use a Mexican Customs House Broker in order to import under a maquila or pitex program?

Yes, for customs purposes, the broker is the importer's legal representative. A temporary entry for repair, transformation, or production should be submitted via a temporary entry, which can only be filed by a broker or an in-house broker.

E. What happens if I decide no to export all of the goods, which were temporarily imported under a maquila or pitex program?

A certain percentage of these goods can be entered for consumption (importación definitiva) into Mexico. However, customs duties, countervailing duties, and most charges will be due at the time of filing the importation (importación definitiva).

F. How will Mexico assess duties on raw materials imported into Mexico in the year 2001?

If the materials used in the production of a good under the pitex or maquila programs are NAFTA originating, under the terms of the Agreement, there will be no change in current practice.
See questions #A and #B. This new program will not impact many maquila and manufacturing operations as raw materials imported under either program are frequently originating. These materials are excluded from treatment under Article 303 of the Agreement (Article 303, paragraph 6(3)). If the good is made from foreign materials and imported under the pitex or maquiladora program, duties will be assessed as described in Article 303 of the Agreement paragraph 3. Article
303 requires that Mexico shall assess the Customs duties as if the exported good had been withdrawn for domestic consumption. The duties due in Mexico may be reduced by the amount of duties paid in Canada or the U.S. when the manufactured good is exported to Canada or the U.S. Mexico will not be able to waive or reduce the duties due on the foreign inputs in an amount that exceeds the lesser of the total amount of customs duties paid or owed in Mexico and the total amount of duties paid to Canada or the United States upon exportation to those countries (Article 303, 1(c)). This duty payment will be waived for 60 days from the date of exportation for the production of "satisfactory evidence". The Duty Deferral provision is to insure that duties are paid one time on the foreign merchandise.

• Example: An importer in Mexico imports materials or components from Germany to be assembled into paper cutting equipment, which is subsequently exported to Canada. Upon exportation from Mexico the finished paper cutting equipment will be treated as if withdrawn for domestic consumption, thus subject to the applicable customs duties payable to Mexico. [Suppose that] The Customs duties due Mexico on the German components are $100.00. Upon entry into Canada the customs duties on the paper cutting equipment are $20.00. This results in a reduction from $100.00 to $80.00 customs duties owed to the Mexican government. The duties due in Mexico will be waived by the amount of duties paid in Canada ($20.00). Total duties due Mexico $80.00.

G. What are some of the necessary measures, as an established maquiladora that I should take in order to protect myself beginning in November 2000?

Please see International Trade Tip of the Month

H. Who authorizes the establishment of new maquiladoras?

The competent authority for authorizing maquiladora programs is the Ministry of Commerce and Industrial Promotion in Mexico (SECOFI).

I. Who do I contact if I want to establish a new Maquiladora?

For more information on the necessary requirements for establishing a maquiladora, please fill out the contact form, email or call us at services@casasinternational.com or 619-661-6162.