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Maquiladoras in Mexico

Maquiladora in Mexico is a factory that operates under tariff programs established and administered by Mexico and the United States. Also known as a maquila, foreign companies that produce goods receive special tax breaks from Mexico’s government when they establish a maquiladora. The Maquiladora Program, now referred as the immex program was introduced to improve the border region’s employment rates as well as attract foreign investment. However, constant changing Mexican laws continue to make management of a maquiladora in Mexico confusing. Labor in Mexico is inexpensive and courtesy of NAFTA (the North American Free Trade Agreement), custom fees and taxes are a much lower cost, which helps benefit the profits of corporations.

The fast growth of the maquiladora industry has created over 900,000 jobs and has lowered the unemployment rate significantly in areas along the US-Mexico border. Additionally, maquiladoras also comprise fifty percent of all exports from Mexico. This ensures that manufacturing in Mexico will be an integral aspect of the global economy for the foreseeable future.
Maquiladoras can create highly efficient and cost effective operation possible. As a result of manufacturing goods in Mexico, companies can continue to offer products to the consumer at low cost pricing.

NAPS is the leading outsourced administration and compliance management company in Mexico helping maquiladoras manufacture in Mexico for over 25 years.

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