Labor costs tend to lead the conversation when companies look to reduce spending. And while Mexico certainly delivers on that front, there’s another advantage that’s just as impactful: the IMMEX Program.

Created by the Mexican government to promote global manufacturing in Mexico, IMMEX gives qualified companies a way to import goods tax-free and reduce their total production costs. It’s not a loophole, but a structured, government-backed framework built to support the country’s manufacturing industry.

If you’re looking to set up operations in Mexico, here’s why IMMEX should be on your radar, and how to use it as a cost-cutting engine for long-term growth.

What Is the IMMEX Program?

IMMEX (Industria Manufacturera, Maquiladora y de Servicios de Exportación) allows foreign companies operating in Mexico to temporarily import raw materials, components, and equipment without paying import duties or value-added tax (VAT). The condition: Those materials must be used to produce goods that will be exported out of Mexico within an approved timeframe.

This structure makes IMMEX a high-impact tool for:

• Reducing manufacturing costs
• Improving supply chain flexibility
• Protecting margins in volatile trade environments
• Scaling efficiently in North America

But the true power of IMMEX goes beyond tax savings. When integrated properly, it transforms the way companies operate in Mexico, from how they source and produce to how fast they get finished products to market.

IMMEX Advantages: Breaking Down the Cost Impact

Here’s how the IMMEX program drives manufacturing savings from the ground up.

1. Zero VAT and Duty on Imports

Without IMMEX, importing goods into Mexico comes with steep costs: 16% VAT on most goods, plus import duties based on classification.

With IMMEX, this means:

• You cut costs at the source: raw materials, subassemblies, and select equipment
• You free up working capital to reinvest in your operation
• You build a more cost-effective production model from day one

If you’re importing $10M annually in materials, that’s potentially $1.6M in VAT savings before you even factor in duties.

2. Lean, Agile Manufacturing Process

IMMEX creates room to build a smarter, more efficient production process. Its compliance structure and streamlined customs procedures enable companies to optimize for:

• Just-in-time inventory
• Faster turnaround from import to export
• Reduced warehousing and storage costs

The program also helps improve forecasting and planning thanks to its real-time tracking requirements, which give manufacturers better visibility into material flows and inventory levels.

3. Lower Total Landed Cost

Labor in Mexico is often touted as the biggest cost saver, and understandably so. Companies can significantly reduce labor costs compared to U.S.-based or offshore operations. But IMMEX multiplies that advantage by also attacking soft costs:

• Reduced customs delays = faster time to value
• Improved energy efficiency by enabling leaner production through streamlined imports
• Lower risk of penalties with well-managed compliance

This full-system impact helps manufacturers gain an edge, not just in unit cost, but in resilience, scalability, and market responsiveness.

The Bigger Picture: IMMEX and Global Strategy

Global conditions have made it harder to compete from afar. IMMEX and Mexico’s thriving manufacturing industry give companies a practical way to move production closer to key markets without sacrificing cost control or operational scale.

Why it’s especially powerful now:

• Tariffs on China have raised costs on Asian manufacturing inputs
• Global freight instability has made long-distance production unpredictable
• Customer expectations demand faster turnaround and regional flexibility
• U.S.–Mexico trade agreements (like USMCA) support long-term investment

Companies using IMMEX gain more than tax relief. By simplifying cross-border trade, the program helps manufacturers improve control and respond more quickly to supply chain shifts.

Avoiding Mistakes: IMMEX Is Powerful, But Not Simple

The benefits of IMMEX are real, but so are the risks. Common mistakes include:

• Misclassifying imports, which can trigger audits and disqualify goods from exemption
• Missing timeframe to export goods, potentially resulting in retroactive taxes or penalties
• Incomplete documentation, a common issue that undermines compliance
• Violations of labor, safety, or energy efficiency standards, which can jeopardize program eligibility

Any of these missteps can lead to fines, back taxes, or even removal from the program. That’s why companies work with shelter partners like NAPS to ensure IMMEX isn’t just accessed, but also used correctly over time.

Where Mexico Shelter Companies Come In

IMMEX is a high-reward program, but only if managed carefully. Even experienced manufacturers can run into challenges without the right local expertise, which is why many choose to work with a shelter company that offers administrative, legal, and compliance support on the ground in Mexico.

Of the five types of IMMEX registration, the shelter modality is often the most practical and efficient for foreign companies. It allows manufacturers to operate in Mexico without establishing a separate legal entity or obtaining their own IMMEX certification. Instead, they operate under the shelter company’s existing registration and legal structure, while the shelter assumes responsibility for regulatory compliance and risk.

While not all shelter companies provide end-to-end services, NAPS offers full administrative and compliance support designed to help manufacturers fully leverage IMMEX.

Under our Administrative and Compliance Program, NAPS is responsible for:

• Import/export logistics and compliance
• Managing HR, payroll, and labor requirements
• Overseeing site selection and setup, utilities, and vendor contracts
• Environmental compliance and permitting

In short, NAPS handles the complex administrative side, so you can launch quickly, remain compliant, and focus fully on production and performance.

IMMEX Isn’t a Shortcut. It’s a Smarter Strategy.

For manufacturers in Mexico, IMMEX should be treated as a core part of any cost reduction plan. When managed correctly, it supports predictable and scalable cost savings, stronger control over the supply chain, and better margins even in volatile markets. And with a shelter company like NAPS behind your operation, you don’t have to choose between compliance and speed; you get both.

Take the First Step Toward Smarter, Cheaper Manufacturing

If your goal is to build a leaner, more profitable operation, don’t overlook manufacturing in Mexico. The IMMEX program isn’t just a tax advantage but a strategic framework for reducing costs and strengthening your global position.

With decades of experience guiding U.S. manufacturers through IMMEX and beyond, NAPS provides the compliance expertise and on-the-ground support you need to succeed. Contact NAPS today to explore how the IMMEX program can help you save money and operate with confidence.