Highlights on Maquiladora Topics

Transcription

1 Highlights on Maquiladora Topics Carlos Angulo-Parra Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a partner means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an office means an office of any such law firm.

2 Decalogue to increase the competitiveness of the Mexican economy 2008 Baker & McKenzie 2

3 DECALOGUE The Ministry of Economy has recently published 10 strategies that are intended to be implemented during the period of with the purpose of increasing competitiveness in Mexico in the international market of goods, services and investment Baker & McKenzie 3

4 DECALOGUE / STRATEGIES Commercial Facilitation 1. Review and simplification of duty framework 2. Review and simplification of non tariff regulations and promotion programs 3. Legal and institutional certainty of the foreign trade operations 4. Use of information technology and communication to reduce transaction costs and to optimize the foreign trade operations 2008 Baker & McKenzie 4

5 DECALOGUE / STRATEGIES Sectoral Policies 5. Promote the growth of activities with high value added 6. Accelerate the reconversion of traditional industries 7. Support the development and use of advanced technology 8. Position Mexico as a distribution center of services of information technologies and logistics 2008 Baker & McKenzie 5

6 DECALOGUE / STRATEGIES Innovation 9. Innovation / incorporation of new technologies in productive processes 10.Strengthen internal market 2008 Baker & McKenzie 6

7 Simplification Decree Issued by: The Department of Economy Date of publication: March 31, 2008 Effective Date: April 14, 2008 Objective: Simplification of Red tape to help with the enhancement of Mexico s competitiveness Baker & McKenzie 7

8 Requirements that were eliminated Guarantee the payment of taxes for goods subject to estimated official price scheme. Registration in the Specific Sectors Importers Registry. Except for goods that represent a risk in public health and national security. Additional information in the Import Entries for the identification of goods (Annex 18 of the Foreign Trade General Rules) 2008 Baker & McKenzie 8

9 Requirements that were eliminated Include the certificate of country of origin in the import pedimento. Need to extend the IMMEX program to add machinery and equipment, raw materials, among others, as well as additional finished products to be exported on a definitive basis, excepting some sensible goods (i.e. poultry pieces, silk materials, some sensitive automotive products like used tires) Baker & McKenzie 9

10 Presidential Decree of November 5, 2007 Relief from the Single Rate Tax for the Maquiladora Industry On November 5, 2007, President Calderon issued a Decree, which among other items, it includes special relief to the Maquiladora Industry: The Decree implements relief on terms proposed by Baker & McKenzie and Industry Associations Purpose of the Decree: Total combined income tax and IETU equal to an effective tax rate of 17.5%, calculated under taxable income for income tax purposes 2008 Baker & McKenzie 10

11 New Customs Law Under Development Based in Kyoto Convention. Trying to preserve special Mexican customs concepts like the maquiladora regime, but under new concepts. The draft changes some current prerrogatives for maquiladoras (i.e. reduces from 18 months to 12 months the temporary importation term, opens the road for export duties) Baker & McKenzie 11

12 World Manufacturer Supplier SALES Canada & USA Parent Supplier PRODUCT 100% OWNERSHIP - 1 Customer RAW MATERIALS AND MACHINERY & EQUIPMENT Mexico Maquiladora Maquiladora II Former PITEX PRODUCT PRODUCT Supplier Customer The Maquiladora World OEM Automotive 2008 Baker & McKenzie 12

13 New Customs Law Under Development Conclusions The Goal: Preserve and Enhance Maquiladora s Competitiveness! 2008 Baker & McKenzie 13

14 Thank you! Carlos Angulo Baker & McKenzie Abogados, S.C Baker & McKenzie 14

15 [Post Data] Today s Published Amendments to the IMMEX Decree Highlights Restricts service maquiladora importations for sugar related products. Shortens the importation terms to six months for sugar and syrups Baker & McKenzie 15