The location decision for industrial facilities takes on a special significance in Mexico. Call us to see if the maquiladora program is right for you. Environmental Justice Case Study. Under the original maquiladora program, foreign manufactures were required to return all waste to the country of origin.

This is a brief overview of the opportunities available in Mexico to firms contemplating overseas production sharing in the form of Mexico’s Maquiladora or “in-bond” program. Important factors which make Maquiladoras attractive include: • Low cost labor: Wages range from 15% to 25% of comparable rates in the U.S. Normal work week is 48 hours. Qualcomm Cpu Imei Repair Tool. Productivity often exceeds the U.S.

Bureau of Labor) • Favorable duty/tax treatment: Southbound, the Mexican government allows duty-free imports of all materials and machinery needed for the plant. Northbound, many North American sourced products are now duty free under NAFTA. • 100% Ownership of subsidiary: Leaves total control for all operations in the hands of the parent. There are professional services available to handle such matters as personnel, accounting and import/export management. • Proximity to U.S.: Lower turnaround times compared to other low labor rate countries, lower transportation costs, and the ability for managers or skilled technicians to commute on a daily basis to the Mexican facilities is possible in the border areas. • Access to the Mexican Market: Maquilas may currently sell up to 55% of their previous years export output in Mexico’s 90 Million person consumer market.

A Maquiladora or Maquila (used interchangeably) is a plant in Mexico that retains a Maquiladora Permit from the Mexican government to import raw materials duty free into Mexico for manufacturing, assembly, repair or other processing. The foreign company must agree to re-export a majority of its production. Originally known as the Border Industrialization Program, the Maquiladora or “in bond” industry was designed to reduce unemployment in the border regions. Mexico gains over $3 billion in hard currency each year for its foreign exchange balance, as much as from tourism. Mexico hopes to also benefit from the technology transfer and training provided by foreign companies as they integrate with the local economy. Each Mexican administration has supported the industry with new laws and decrees designed to streamline the process and increase foreign investment. Maquilas may now easily sell to other Maquiladoras.

Job creation south of the border reduces immigration pressure and helps strengthen and stabilize the Mexican economy. There are many jobs created in the U. Hotel Firenze Vista Ponte Vecchio. S.

To support and supply the industry, since over 95% of Maquiladoras’ raw materials and machinery are sourced in the U.S. Mexico’s currency was overvalued before the December 1994 financial crisis.

The subsequent free-fall in the value of the peso is now spurring Maquila growth. NAFTA is also forcing third country (mostly Asian) manufacturers to establish North American facilities to gain duty free access to the Mexican Market. Proximity to the world’s largest consumer market, favorable tariff treatment in both directions, and relative political stability has made Mexico an especially attractive site for off-shore production and assembly. The Mexican government allows 100% foreign owned subsidiaries to operate in Mexico.