Whether you want full shelter manufacturing services, administrative solutions for your current business operation in Mexico, or assistance setting up your independent Mexican entity, IVEMSA can help.
Working with a shelter company is a significant advantage when setting up production, no matter what solution you choose.
Implementing Mexico shelter services is the safest and fastest way to do business. Working under a shelter company protects foreign manufacturers from being legally exposed, minimizing risk and liability. Additionally, with infrastructure, permits, and business licenses already in place, it expedites setup and ensures compliance is met every step of the way.
Making the transition to manufacturing in Mexico is simplified with the support of local experts in charge of coordinating all administrative services. This includes project management coordination, identifying local suppliers, and producing documentation needed for the customs inspection, all of which is time-consuming and complex, yet a necessary part of a complete solution.
IMMEX program registration, along with VAT certification, allows maquiladoras exemption from the 16% VAT when importing raw goods, materials, and equipment designated for production, so long as finished goods are exported within the established time. These tax savings are applied from day one when working under the shelter model, though can still be applied for standalone entities when approved.
Contract manufacturing in Mexico requires companies to outsource production to a third party. This may be the preferred solution for smaller to medium-sized companies that seek a consistent run of specific products.
Though this method has its conveniences, the majority of manufacturers choose to partner with shelter services companies instead. This solution allows companies to maintain complete ownership over production and quality assurance, as well as work with a trusted program that’s been proven successful for the past 50+ years.
When looking at the comparison of contract manufacturing in Mexico vs. a shelter company side-by-side, several points make it clear why the latter is the preferred way to operate.
A shelter company maintains all permitting, including IMMEX program certification and VAT licensing, which exempts manufacturers from the 16% VAT on temporarily imported products, materials, and machinery. Whereas, outsourcing production to a third party means there is no factory ownership or established entity.
A shelter company has the unique experience and expertise of working with Mexican customs and understanding the complex nature of importing and exporting goods to avoid penalties and delays. Companies that choose contract manufacturing are at greater trade compliance risk, which often results in hefty fines and and affects project timelines.
A shelter company handles all the administrative responsibilities needed to launch production. This includes site selection and utility setup, securing permits and licenses, HR and accounting services, and more. These services are not available through contract manufacturing.
A shelter company ensures manufacturers can focus fully on production, quality control, and customer service. This allows for adaptability if and when changes to the process need to be made. When handing a project to a third party, companies must completely trust their hired contractors to adhere to production requirements.
Download our free Mexican Manufacturing Cost Fact Sheet to learn how much you can save on labor, real estate, utilities and more.
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