Legal Framework

Legal Framework

The legal framework of this program includes the following legal and fiscal regulations and provisions:

The objective of the IMMEX program is to increase and promote exports and access to international markets by Mexican companies, in addition to stimulating the modernization of the country's productive infrastructure. In addition to strengthening the competitiveness of the Mexican export sector and providing certainty, transparency and continuity to companies' operations by specifying and simplifying compliance factors; allowing them to adopt new ways of operating and doing business; reducing their logistical and administrative costs; modernizing, streamlining and reducing paperwork, in order to increase the capacity for auditing in an environment that encourages the attraction and retention of investments in the country. It grants facilities for:

- Industrial processes.

- Services to export goods and

- Provision of export services 

Duty drawback or drawback, is a fundamental principle of international trade law and policy under which duties, taxes and fees paid on imported merchandise are refunded upon the exportation of qualified articles.

Essentially, duty drawback is an export promotion program intended to eliminate or recover the costs of duties, taxes and fees on merchandise sold on international markets; in fact, it is one of the few export incentive programs acceptable under World Trade Organization rules.

The duty drawback program is designed for Mexican companies that import products from the U.S. – typically raw materials or component parts. It allows Mexican importers to claim refunds of duties paid on those imports, which typically are processed and assembled into a finished product, that are exported out of Mexico. The program benefits also apply to products and/or equipment that need to be repaired or modified after they have been imported under the definitive import regime. In almost all the cases, the Mexican buyer is responsible for obtaining permits, making payments to Mexican authorities, and contracting a Mexican custom broker agent. It is also true that it is very useful for U.S. exporters to understand the basics of the Mexican import process.

The IMMEX Program offers its holders the possibility of temporarily importing, free of import taxes and VAT, the goods necessary to be used in an industrial or service process for the manufacturing, transformation or repair of goods of foreign origin temporarily imported for export or for the rendering of export services.

These goods are grouped under the following categories:

The Drawback program is intended for those exporting companies and its main benefit is the facilitation of the refund of taxes caused by the import and subsequent export of products such as:

Also for the import of goods returned abroad in the same state in which they were imported or for goods imported for repair or alteration.

It also has the following benefits:

 

The IMMEX program allows to differ customs duties provided that the manufactured or assembled goods are exported, among other conditions. Due to Article 2.5 of the USMCA, when exporting to another USMCA party, companies would have to pay the resulting import duties applicable to the non-USMCA materials.

Eligible goods subject to USMCA drawback

Substituted by a good of the same kind and quality as defined in §182.44(d) and used as a material in the production of another good that is subsequently exported to Canada or Mexico.