IMMEX DECREE. El Paso Marriot Hotel. Maquiladora Industry Outlook Meeting. June 8, Victor G. Yanar
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1 IMMEX DECREE El Paso Marriot Hotel June 8, 2007 Victor G. Yanar 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 New Decree? 2007 Baker & McKenzie 2
3 IMMEX Decree PITEX and Maquiladora merged into one Decree New modalities were created Benefits of certified companies are incorporated into the Decree (Tariff Items) More intervention from Hacienda Lower threshold for performance requirements (10%) Continuity of tax benefits 2007 Baker & McKenzie 3
4 General Aspects PROSEC duty rates for M&E imported by service companies New registration number has been or will be issued by SECON (three Decrees already published). Companies with more than one registration will have only one Validity of programs will remain open-ended One single annual report before Hacienda and SECON 2007 Baker & McKenzie 4
5 Inventory Control System The Decree includes as Annex IV the parameters for the inventory control system. Although Annex IV is a resemblance of Annex 24, IMMEX companies may elect to use Annex IV (which excludes some general aspects of Annex 24). Failure to comply with this obligation may result in the cancellation of the program (before, only an administrative fine) 2007 Baker & McKenzie 5
6 Sensitive Goods The Decree restricts the legal timeframe for temporary imports. Sensitive goods include: Beans, Alcoholic beverages and used or damaged apparel or clothing*; Meats, dairy products and corn; Textile products. *The importation is restricted Baker & McKenzie 6
7 Modalities Holding: Certified and controlled companies Industrial: Manufacturing of export products Services: rendered in connection with export activities Shelter: Unchanged Outsourcing (terciarización): Certified company producing through third parties 2007 Baker & McKenzie 7
8 Sub-manufacture An IMMEX company may subcontract with a third party ALL the industrial or services activities required to be rendered under its program No pedimentos required Similar to outsourcing modality 2007 Baker & McKenzie 8
9 Suspension Suspension: Failure to present annual report Inconsistencies with the Tax Id Inconsistencies with the automated electronic signature Operate in a domicile that is not active with the tax authorities Baker & McKenzie 9
10 Cancellation Failure to comply with ANY obligation of the Decree Tax assessment higher than 400K pesos Being subject to collections procedures Declaring false or incorrect information of the foreign supplier/buyer Failure to have an inventory control system in place 2007 Baker & McKenzie 10
11 IMMEX DECREE El Paso Marriot Hotel June 8, 2007 Victor G. Yanar 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.
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