The IMMEX Program is an instrument which allows the temporary importation of goods that are used in an industrial process or service to produce, transform or repair foreign goods imported temporarily for subsequent export or provision of export services, without covering the payment of general import tax, value added …
How do you get Immex?
The requirements of the IMMEX program in Mexico Companies that are eligible to reap the benefits of the IMMEX program must export a minimum of at least US $500,000 dollars’ worth of finished products on an annual basis or must have exports that account for a minimum of 10% of yearly sales.
Do you need a Mexican partner to operate a maquiladora?
Some Fortune 500 firms have been successful in this endeavor, even when working on their initiative. Using corporate shelters allows foreign manufacturing companies to develop a Maquiladora without owning a Mexican business in the first place.
What is the maquiladora system?
Key Takeaways. A maquiladora is a low-cost factory in Mexico that is owned by a foreign corporation. Facilities are usually located near the U.S.-Mexico border. These plants assemble products and export them back to the United States and other countries.
How much do maquiladora workers earn?
Despite working long hours doing many times strenuous and dangerous work, maquila workers earn only 50 cents to 1 dollar per hour. At this rate, a worker in a maquiladora working 8-10 hours would earn about $8 dollars for a day’s work.
Why would a company want to have a maquiladora?
Maquiladoras receive raw materials from companies in the U.S. to assemble and export back as finished manufactured goods. Simply put, maquiladoras benefit Mexico because they incentivize external investment by encouraging foreign investors and businesses—especially United States ones—to set up plants in Mexico.
What is the benefit of a maquiladora?
Maquiladora Benefits U.S. firms become more competitive in world markets by combining American advanced technology with the lower costs of Mexican labor and materials. Mexico offers lower wage rates than many Asian countries. The average company can save nearly $1 million a year in labor costs.
What industries use maquiladora?
Examples of Maquiladoras
- 3 Day Blinds.
- 20th Century Plastics.
- Acer Peripherals.
- Bali Company, Inc.
- Bayer Corp./Medsep.
- BMW.
- Canon Business Machines.
- Casio Manufacturing.
Why are Mexican wages so low?
Mexican-Americans earn lower wages than African-Americans mainly because they possess less human capital. With respect to Americans of European descent, their lower wages are also a product of their smaller rewards for skills and underrepresentation at the top of the occupational structure.
Where is maquiladora located?
Maquiladoras are mostly found in the Mexican border states of Baja California and Chihuahua. To be precise, the 6 border states of Mexico that make up the maquiladora border are: Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, and Tamaulipas.
How does a maquiladora operate?
A maquiladora (Spanish: [makilaˈðoɾa]), or maquila (IPA: [maˈkila]), is a company that allows factories to be largely duty free and tariff-free. These factories take raw materials and assemble, manufacture, or process them and export the finished product.
What is it like to work in a maquiladora?
Working conditions in maquiladoras are described to be poor, run-down, dirty facilities that are usually poorly ventilated. Workers work long hours with little breaks in between and no benefits. The work done in maquiladoras is low-skilled labor which makes workers in the maquila replaceable, and jobs unstable.
