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The importance of inventory control in Mexican maquiladoras

The importance of inventory control in Mexican maquiladoras

As a result of the Mexican tax reform of 2014, firms that are manufacturing in the country that wish to reap the full benefit of the Maquiladora, or IMMEX program must be “certified.”

Gaining the above mentioned maquiladora certification will exempt export manufacturers in Mexico from the levy of a sixteen percent value-added tax on the temporarily imported raw materials, components and assemblies that are used in the elaboration of end products. Certified companies will be those firms that can demonstrate that 100% of temporarily imported items have left the country via incorporation into thier exported finished goods. Accurate inventory control in Mexican maquiladoras is critical to gaining the exemption provided for the value-added-tax under recently passed reforms, and is governed by a Mexican law called “Anexo 24,” or Annex 24 in English.

In brief, Annex 24 law requires that inventory control in Mexican maquiladoras must be kept through an automated system. There are various companies that have produced software products that enable companies to fulfill this requirement.

As an example, for purposes of reporting, companies tracking inventory control in Mexican maquiladoras are required to use systems that provide company and other specific data. Some required information includes the name of the exporter, its Mexican taxpayer ID, or “RFC,” and the IMMEX program number that it was issued by the government’s Ministry of Economics.

In the inventory control of their Mexican maquiladoras companies must also supply bills of materials and a listing of products manufacturered. Any software utilized must also keep a record of temporary import information from Mexican Customs, as well as a record of all finished product exported by the maquiladora.

The rules for inventory control in Mexican maquiladoras should be understood and complied with to ensure the granting of value-added tax exemption.

Under its Mexico Shelter Manufacturing Partnership, or MSMP, the Tecma Group of Companies is responsible for making sure that everthing is in order in this  very important area, and that company clients receive the exemption benefits that they are due.

Those with questions regarding Anexo 24, or other Mexican Customs matters, are welcome to use the link provided below to connect with me on LinkedIn.

Remember, relevant and useful Mexico manufacturing content is available at one’s finger tips by downloading the Tecma Group mobile app from the Google Play Store, interested parties can also receive Mexico manufacturing information on a weekly basis by SMS Texting the word Tecma to 96000.

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