Possible Modifications to the Decree for the Development and Operation of the Maquiladora Export Industry

July 26, 2006
Possible Modifications to the Decree for the Development and Operation of the Maquiladora Export Industry

Recently the National Commission of the National Council of the Maquiladora Export Industry (CNIME) and the Association ofMaquiladoras, A.C. (AMAC) presented to the Department of Economy a series of proposals contained in a document titled “Decree of theManufacturing Export Industry” (Decreto de la Industria Manufacturera de Exportación), with various development programs to increaseexports from those now in place (PITEX, ALTEX, PROSEC and Maquila). Additionally, it proposed to the Department of the Economy theconvenience of carrying out, among others, the following reforms to the Decree for the Development and Operation of the MaquiladoraExport Industry now in force: 1) the possibility of authorizing separate maquila programs to maquila companies that are subsidiaries ofMexican maquiladora operations; 2) the possibility that the subsidiary companies could have their own maquila programs with operationsdistinct from those contracted by the parent maquiladora company; 3) a change in the definition of service maquiladoras in order to eliminatethe condition that services be converted to merchandise, and to allow “Export Services”; 4) Expanding the definition of a maquiladora plantto include a fixed project oriented maquiladora, in order to facilitate outsourcing operations; 5) a change in the definition of “maquilaoperation,” eliminating the condition that it be subject to foreign merchandise temporarily imported and including the export of services; 6)simultaneous approval of PROSEC and ALTEX programs; 7) eliminating the requirement of formalizing (protocolizing) a Maquila ServiceAgreement before a notary public; 8) reducing the term for responding to maquila permit applications from 15 to 10 working days; 9)presenting documentary filings via electronic communications; and 10) transfers of finish products resulting from the production process.

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