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IMMEX Program

Benefits of the IMMEX Program for FDI

Mexico created the IMMEX Program to stimulate the growth of its economy. Therefore, it implemented measures that support the operation of its industrial parks, especially the manufacturing sector. The IMMEX Program seeks to increase the competitiveness of the national industry in the international context.

Among the objectives, it adapts the facilities’ physical and technological infrastructure to the demands of the modern world. However, the main goal is to create the ideal conditions for foreign direct investment and increase job sources. For example, Chihuahua generates over 407,956 direct jobs, ranking first nationally in employability among the manufacturing sector with 490 companies affiliated to IMMEX.

What is the IMMEX Program about?

The IMMEX Program is an initiative to stimulate foreign investment in the country’s manufacturing sector. This program establishes a series of tax benefits for the manufacturing companies that repair, transform or manufacture merchandise.

IMMEX offers incentives to the foreign industries for the raw material shipment that the Mexican industries will process. These incentives are focused on tax exemption, VAT (Value Added Tax) payment, and customs fees. The program contains a series of benefits for the temporary importation of raw materials, machinery, parts, and spare parts for incorporation into the production process.

Chihuahua has numerous companies engaged in export manufacturing, being the third-largest number of establishments in this subsector.

Companies with the IMMEX program in Chihuahua that have shown strong growth are electrical, metal-mechanical, medical, electronics, automotive, aerospace, home appliances, agroindustrial, and plastic injection sectors.

IMMEX Program modalities

Chihuahua offers different IMMEX program modalities, depending on the companies and their functions in the manufacturing field:

  1. Controllers. They are certified companies that control the operations of other companies, all being under the coverage of a comprehensive program.
  2. Industrial. It carries out manufacturing processes on raw materials.
  3. Hostels. Local factories are part of the production chain of a foreign company, to which the finished product will return.
  4. Services. Any company that provides services to an IMMEX beneficiary even in the same country carries out an export. Therefore, they qualify for the benefits of the program.

Advantages of the IMMEX Program for FDI

Among the facilities offered by IMMEX, we can mention the following direct benefits:

  • A reduction in the duties for customs procedures.
  • Exoneration of import taxes and customs fees.
  • VAT (Value Added Tax) exemption for purchases in the country.
  • Facilities to carry out digital procedures.
  • Refund for VAT for positive balance in the declaration, duly certified by the IEPS (Impuesto Especial sobre Producción y Servicio).
  • PROSEC (Programas de Promoción Sectorial) authorization for the importation of equipment, machines, and parts.
  • Automatic inclusion in the list of importers without registering.

IMMEX program initially focused on the textile sector, simple electronics, and industrial products. Today Mexico has rapidly expanded manufacturing, so it now reaches a wide range of industries. Chihuahua leads the automotive industry, which fosters the development and integration of high-level supply chains. This sector contributes 25.8% of total exports.

IMMEX program achievements in Chihuahua

IMMEX program became formal with Mexico’s first industrial park construction in Ciudad Juarez, which brought investment from many manufacturing enterprises.

Thanks to the IMMEX program in 2018, Chihuahua represented 10% of the 6,166 companies nationwide. For example, Lexmark, a company that has been in operation since 1978 and manufactures inkjet printers with printer cartridges to many other companies, also opened one of the biggest plants on our estate. 

The Taiwanese Company Inventec chose Ciudad Juarez for its new complex expansion that houses its two existing plants and will add one more with which it intends to increase its local workforce to 5,000 workers. The automotive field has more than 155 thousand employees and counting 150 companies working here too!

Another advantage of the IMMEX program is that it can provide a way to save on expenses by avoiding metal return trips.

Requirements to access the program

These are the main requirements for a company to qualify as an IMMEX beneficiary:

  • To be a legal entity.
  • To be an ISLR taxpayer (Title II of the Law).
  • Exportation of 10% of your production or $ 500,000 per year
  • To keep the goods produced in official addresses.
  • Importation of only authorized quantities
  • To stay within the deadlines set by the decree.
  • To make known to the authorities: name change, TAX ID or move, and stop activities. In addition, you must notify the mobilization to another address of the factories that provide subindustries services.

It is also essential to monitor inventory levels to keep them within the provisions of article 59, section 1, of the Customs Law.

Manufacturing and service export industries

The IMMEX Program is considered an update of the state guidelines to promote the economy during the 1960s. In that decade, the increase of US labor costs stimulated the growth of Mexican manufacturing companies.

For that reason, the Mexican government tried to develop the maquiladora industry on the northern border. Chihuahua’s incentives emerged to strengthen the sector, generate more employment and increase exports, building an internationally competitive profile.

The IMMEX Decree (2006) has become the renewal of these measures. It is the continuity of a 60-year industrial development policy, whose main objective is to develop the Mexican economy.

This program attracts goods or services for foreign investment as well as technology and infrastructure. All these reflect an increase in the quality of life of Chihuahua’s industrial workers.

IMMEX will continue to expand the success of the manufacturing export industry by consolidating the performance of the regional industrial sector on the growth and importance of this economic sector.

While there are numerous benefits of participating in the IMMEX program, Chihuahua has a ton of benefits that make it the ideal place to do business, such as:

  • The property tax, building permits, payroll taxes, and training programs.
  • Providing cost savings and world-class real estate infrastructure.
  • Access to highly skilled talent in engineering, manufacturing, technology.
  • Excellent logistics due to its border-crossing advantage, as we provide excellent transportation infrastructure like ports and airports if needed. 
  • Our cities are highly connected to strong supply chain providers.

Chihuahua is a sure bet for growth opportunities, and the region will help you boost your company’s future. Chihuahua Global, Your Gateway to North America.


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