Understanding Mexico's IMMEX Program Video Overview. #IMMEX #manufacturinginMexico . Secretaria de Relaciones Exteriores MEXICONOW Mexico Business News
Transcript
Understanding Mexico's IMAX Program Mexico's IMAX Program is a pivotal initiative that fuels growth in export oriented manufacturing. Whether you are a CEO, sales director, or marketing executive, understanding IMEX can unlock significant opportunities for your business. The IMAX program is designed to boost Mexico's competitiveness by allowing manufacturers to temporarily import raw materials. Components and equipment without paying duties as long as they are used to produce goods for export. The Amex program has evolved since its inception in the late 1960s. Initially focused on leveraging Mexico's law, labor costs, and proximity to the US, it expanded significantly under NAFTA in the 1990s. The program now aligns with international standards. Encouraging high value added activities. The IMAX framework is structured as follows. Companies interested in leveraging the IMAX program should consider establishing a contractual relationship with Prince Manufacturing. Based in the USA. Prince Manufacturing operates as a subsidiary Prince de Mexico, located just across the border in Mexico. This arrangement facilitates. Manufacturing operations in Mexico while managing contracts, financial transactions, and business dealings through the US entity, All in US currency. Prince Manufacturing simplifies the process for companies looking to capitalize on manufacturing opportunities in Mexico. Offering a streamlined and efficient business solution, this program spans a wide array of industries. Including electronics, automotive, aerospace and textiles, the benefits are substantial. Duty free imports, preferential tax treatment and labor flexibility. Some key provisions also include duty free imports, VAT exemptions and preferential tax treatments. Companies can also hire foreign personnel under certain conditions. Promoting local supplier development and technology transfer. The IMAX program offers several key. Benefits that are crucial for businesses looking to enhance their operational effectiveness. One is geographical proximity. Located near U.S. markets, the IMAX program significantly improves supply chain logistics. Then there are extensive free trade agreements. Participants in IMAX program benefit from Mexico's expansive network of free trade agreements with 50 countries. Leveraging its 13 comprehensive trade agreement intellectual property protection, Mexico ensures the protection of patents and intellectual property for businesses operating under the IMAX framework. Alignment with US time zone is another benefit. Operations within the IMAX program run in the US time zone, facilitating smoother coordination and communication with US based partners and. Clients These advantages collectively offer a comprehensive edge to companies looking to optimize their manufacturing and distribution strategies. I'm X simplified customs clearance processes and virtual inventory systems, reducing paperwork and enhancing tracking through electronic documentation. This program is export oriented, incentivizing production of international market IT. Creates jobs, develops local suppliers and promotes technology transfer. Driving economical growth. Compliance is crucial. Companies must maintain proper registration, operational documentation and inventory control. Regular audits ensure a Terence to program rules. The Amex program is a cornerstone of Mexico's economic strategy. It promotes industrial development, international trade and job creation. Offering tremendous benefits to businesses looking to expand their operations, it is a cornerstone of Mexico's economical strategy. I'm X companies employ over 3 million workers, representing approximately 35% of Mexico's manufacturing employment. Nearly half of Mexico's GDP comes from exports, with IMAX companies contributing about 55% to this figure. Now, when establishing manufacturing operations in Mexico under IMAX, program roles and responsibilities are typically divided between your company and Rince manufacturing, but we will review these functional divisions here. Typically, your company will handle core manufacturing activities such as assembly, fabrication, design, engineering, quality control, testing and material purchasing and the other functions are done. As a service to you by Prince Manufacturing and those are human resources, financial and accounting, customs, logistics, et cetera. Prince Manufacturing also offers a hybrid shelter program that integrates contract manufacturing, leveraging our expertise in metal fabrication for clients and to benefit from the specialized services. This program may also encompass materials purchasing. Order processing and shipping as well as quality control and testing to deliver comprehensive manufacturing solution. We prepared a quick animated video also that shows IMAX or Makila Dora or Shelter as they are also referred to in action. Mexico is one of the most cost competitive countries to manufacture in. This is because in part of the political and macroeconomic stability it has enjoyed an over many decades. However, establishing Mexican manufacturing. Capabilities there by yourself can be a complex matter. In order to avoid any potential pitfalls, you must have an experienced and trusted partner. Prince Manufacturing is your solution. As a shelter company in Mexico and in the US, a Prince takes care of non core manufacturing functions while you focus fully on your business. You bring your know how, your equipment, your raw materials and your expertise while maintaining. Ownership of your intellectual property. We take care of the rest. This includes finding your company a facility, importing and exporting your raw materials and finished products, recruiting both direct and indirect labor, administering your payroll, benefits and accounting, executing your transportation and logistics, assisting with compliance with government regulations, and managing your MRO vendors. Providing these services to a number of companies. And a shared services model enables us to provide our customers with cost savings that are generated by economies of scale. Our staff works for you full time to take the guesswork out of manufacturing in Mexico. Prestigious companies that have trusted us include Ford, Siemens, Schneider, Volvo, GM, GE, Honda, Toyota and Tesla. Take advantage of our 30 years of doing business in Mexico. We removed the risks. And execute your non core functions so that you can focus on what you do best. Manufacturing. In contrast to other shelter providers in Mexico, we serve companies both large and small. Additionally, we have an in-house capability to manufacture parts and components for you should you need this service. In addition to the traditional shelter service, we also offer contract assembly, JIT sequencing, kidding and VMI vendor managed. Inventory We at Prince provide everything you need to establish, to operate and to succeed in your manufacturing operations in Mexico or USA. Prince offers a customized cost model for your operations taking into consideration your exact situation. As a result, you will have a detailed cost model of how your operation would look if you were manufacturing in Mexico our under IMAX. Or shelter program. This analysis is typically quite costly when done by one of the five consulting firms that are the biggest in the industry. Prince offers these complementary to qualified companies. We invite you to contact us and ask for the Manufacturing in Mexico cost analysis.To view or add a comment, sign in
Prince Manufacturing Senior Sales Development Manager
3moGood job explaining how IMMEX works #csnyder@princemanufactuing.com