The IMMEX Framework

What is the IMMEX Program?

The IMMEX Mexico Program (Industria Manufacturera, Maquiladora y de Servicios de Exportación) is a federal initiative created by the Mexican government to encourage foreign investment and export-oriented manufacturing. It allows companies to temporarily import raw materials, components, machinery, and equipment into Mexico without paying general import duties or value-added tax (VAT)—as long as the finished goods are exported or returned abroad within authorized timeframes.

Designed to boost Mexico’s global competitiveness, the IMMEX Program supports operations in industries such as automotive, aerospace, electronics, and medical devices. It has become a critical component of nearshoring strategies for companies seeking cost savings, trade advantages, and supply chain flexibility within North America.

Key features of the IMMEX Program include:

• Duty-free temporary imports for manufacturing, repair, or transformation

• VAT deferral or exemption through certified VAT programs (A, AA, AAA)

• Five IMMEX modalities, including industrial, shelter, and services operations

• Strict compliance and monitoring by Mexican customs and tax authorities

By participating in the IMMEX Program, companies can maximize operational efficiency, reduce costs, and gain faster access to North American markets, especially under frameworks like USMCA.

Why the IMMEX Mexico Program Matters to Foreign Investors?

For companies pursuing nearshoring to Mexico, the IMMEX Program offers a powerful platform to operate efficiently and competitively within North America. It provides a legal framework for foreign manufacturers to establish operations without creating a Mexican legal entity—particularly through the shelter modality.

Key advantages include:

• Import duty deferral on raw materials and production inputs

• VAT exemptions or credits through IMMEX certification tiers (A, AA, AAA)

• Streamlined export processes aligned with USMCA and other trade agreements

By leveraging IMMEX, foreign investors can reduce operational costs, optimize cash flow, and accelerate time-to-market—making Mexico a strategic hub for global manufacturing.

Compliance Rules for IMMEX-Certified Companies

To benefit from the IMMEX Program, companies must meet strict compliance requirements enforced by Mexico’s tax and customs authorities. These rules are designed to ensure proper control over imported goods and alignment with export obligations.

Failure to comply may result in penalties, program suspension, or permanent cancellation. Below are key areas of compliance that IMMEX-certified companies must address:

Annex 24: Inventory Control Requirements

Annex 24 outlines the mandatory electronic inventory control system IMMEX companies must maintain. This system must provide real-time tracking of all temporarily imported goods—covering entries, exits, production usage, returns, and exports.

Compliance with Annex 24 ensures:

• Traceability of goods under the IMMEX regime

• Prevention of illicit use or domestic diversion of foreign inputs

• Avoidance of fines, audits, or program revocation

Annex 30: VAT Credit Certification

Annex 30 governs the requirements for obtaining and maintaining VAT Certification (A, AA, or AAA levels). This certification allows IMMEX companies to defer or recover the 16% value-added tax on temporary imports.

Benefits of VAT Certification include:

• Improved cash flow and financial planning

• Shorter customs clearance times

• Fewer compliance audits and reduced bond requirements (for higher tiers)

Reporting, Labeling, and Traceability Obligations

In addition to inventory controls, IMMEX companies must comply with additional reporting and traceability measures:

• Monthly reports to customs and tax authorities

• Labeling requirements for containers, packaging, and processed goods

• Procedures for managing returns, destruction of waste, and virtual operations

These requirements support transparency and facilitate alignment with broader customs laws and trade regulations.

Tax Considerations for IMMEX Operations

IMMEX operations offer clear tax advantages, but also come with legal obligations that must be carefully managed to avoid unexpected liabilities or regulatory challenges.

Value-Added Tax Law and IMMEX Certification

Under the VAT Law (Articles 25–28-A), companies importing goods under IMMEX must typically pay a 16% VAT. However, by obtaining VAT certification, they can defer this payment or qualify for VAT credits.

Certification level (A, AA, AAA) determines the:

• Scope of tax exemptions

• Compliance audit frequency

• Duration and renewal terms

Income Tax Law and Permanent Establishment Risk

Articles 181 through 183 of Mexico’s Income Tax Law define when a foreign company may be considered to have a permanent establishment in the country—potentially subjecting it to local income taxes.

This can apply even without a physical presence if operations involve:

• A local manufacturing facility

• Subcontracted labor through a shelter or services IMMEX

• Repetitive activities resembling business permanence

Understanding this risk is critical for structuring IMMEX operations correctly.

Federal Fiscal Code and Legal Consequences

Article 103 of the Federal Fiscal Code classifies certain non-compliant IMMEX practices—such as misuse of inventory systems or misreporting of exports—as contraband, carrying serious criminal penalties.

Consequences can include:

• High-value fines

• Suspension or termination of IMMEX benefits

• Criminal liability for corporate officers

IMMEX and the USMCA: Navigating Duty Deferral Limits

While IMMEX helps companies postpone duty payments, the USMCA (United States-Mexico-Canada Agreement) places limits on these deferrals to protect regional value chains.

USMCA Article 2.5

This article specifically prohibits duty deferral programs like IMMEX from being used to circumvent tariff obligations for goods re-exported under USMCA. Companies must reconcile import duties if non-originating inputs are involved.

Risks with Non-Originating Inputs

If your operation uses parts, components, or raw materials sourced from outside the USMCA region—such as Asia—those materials may still be subject to tariffs, even if the final product qualifies for duty-free export.

Companies need to:

• Track country of origin for all inputs

• Ensure proper harmonization of customs documentation

• Calculate and settle deferred duties when applicable

Managing Dual Compliance

Balancing IMMEX and USMCA rules requires:

• Strong internal controls and compliance teams

• Partnering with experienced customs advisors

• Transparent reporting to avoid penalties or shipment holds

Common Pitfalls and Compliance Risks

Even experienced manufacturers can face challenges when managing IMMEX operations. Some of the most common pitfalls include:

• Contraband classification (Article 103): Misuse of inventory or documentation can trigger criminal penalties

• Misuse of importation timelines: Delays in exporting or returning goods beyond approved periods may result in fines or back duties

• Poor recordkeeping: Inadequate documentation or failure to comply with Annex 24 and 30 can lead to audits, program suspension, or legal sanctions

Mitigating these risks requires proactive monitoring, staff training, and expert advisory support.

Need Help with IMMEX Compliance?

Mexico's IMMEX Program offers exceptional benefits—but only when properly managed. At Prodensa, we help foreign investors and manufacturers navigate every stage of the IMMEX journey, from program enrollment to VAT certification and USMCA compliance.

If your company needs support with:

• Setting up or maintaining Annex 24 inventory control systems

• Applying for Annex 30 VAT certification

• Auditing IMMEX compliance practices

• Avoiding common legal and tax pitfalls

👉 Request a proposal or speak with one of our IMMEX compliance specialists today.