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Amendments to the Maquiladora/IMMEX Decree

April 2011

On December 24, 2010, the Mexican Government published amendments to the Maquiladora/IMMEX Decree in the Official Federal Gazette. The changes include both changes designed to streamline the administrative burdens and those related to the tax status of the IMMEX company. The tax-related changes went into effect on January 1, 2011.  The administrative changes took effect on March 24, 2011. The changes also harmonize some of the provisions of the IMMEX decree with Mexican Trade Rules, eliminating a source of legal confusion.

Major amendments

Administrative changes

Tax-related changes
Permanent Establishment in Mexico: The Decree clarifies what is required to qualify as a “maquila operation” for tax purposes so a company domiciled outside Mexico may avoid creating a permanent establishment in Mexico:

- At least 30% foreign owned machinery must be used

- Under a maquila agreement between the IMMEX company and the foreign company

- If the manufacturing also requires permanently imported or domestic goods, these must be exported at the same time as those temporarily imported

Grandfather clause
The above amendments do not apply to Maquila/IMMEX operations that were in existence and compliant with all requirements as of December 31, 2010. 

Repeal of Rules

The following major rules are repealed:

Please let us know if you need assistance in determining how these amendments may affect your operation and/or on how to implement the necessary changes by the effective date.

Alberto J. Murga

Otto H. Sampogna