What the Maquiladora Program Looks Like in Mexico in 2025

Changes continue to affect manufacturing in Mexico, though the anticipated update regarding Mexico’s IMMEX program may be a welcome one.

In the mid-1960s, the Mexican government created what was then known as the maquiladora program as an incentive to increase foreign direct investment. Approval into the program allows U.S. and other foreign companies to temporarily import goods, materials, and equipment necessary for the manufacturing process without having to pay the 16% value-added tax (VAT), as long as the goods are exported within the required amount of time.

Currently, the government is updating the rules for application, which is intended to make the process quicker and easier to obtain certification. As of now, it can take new entities weeks or even months to be approved and receive the VAT exemption.

While the new ruling has yet to be released, industry experts expect the changes to be rolled out any day. However, because of the overhaul to the IMMEX program, applications and challenges to decisions already in process have been delayed.

Therefore, now more than ever, it’s important to understand the benefits of enlisting the help of a shelter services company, even if you’ve operated in Mexico before.

Shelter Service Company Grants Manufacturers Faster Approval for IMMEX

One of the many advantages of working with a shelter services company is that manufacturers have quicker access to all the necessary licenses and permits needed to operate, including IMMEX program approval and VAT certification.

Exemption from the 16% VAT goes into effect as soon as the extension request of the shelter IMMEX program is approved, representing a significant manufacturing cost savings. Additionally, a shelter services company allows manufacturers to:

• Minimize risk and liability

Operating under a shelter company is the safest way to manufacture in Mexico. It protects foreign companies from legal exposure and provides a built-in team of trade compliance experts to prepare for and abide by the changing rules regarding tariffs and duties.

• Reduce costs

Partnering with a shelter company also allows manufacturers to save on administrative and management labor and infrastructure, including HR, accounting, payroll, and daily trade operations. Plus, having the guidance of experienced industry experts helps to reduce the learning curve associated with navigating trade laws and compliance in a foreign country.

• Initiate a quicker start-up time

Some manufacturers prefer to set up a standalone entity when manufacturing in Mexico. However, most seek the support of a shelter company because of the personnel and processes already in place.

From site selection to recruiting employees, a shelter company handles all of the administrative tasks necessary to get operations up and running in nearly half the time it takes a standalone entity. Furthermore, manufacturers working under a shelter still maintain full control over their production, processes, and intellectual property.

Seamlessly Transition to Manufacturing in Mexico with IVEMSA

The IMMEX program has benefited U.S. and other foreign manufacturers for decades, and working with a shelter services company like IVEMSA makes obtaining permits and certifications a seamless process, regardless of what changes are in store.

Whether you decide to set up your own entity or want to take advantage of the full scope of services offered, IVEMSA can support your needs every step of the way.

For more information about the IMMEX process or to inquire about manufacturing in Mexico, contact our team today.