Mexico Manufacturing News Archives

September 23, 2020

Mexico VAT Tax Benefits When Manufacturing in Mexico

If you’re a business based in the United States considering nearshoring some manufacturing operations to Mexican territory, you will not only want to understand the Mexcian business culture itself but how Mexico’s Value Added Tax (VAT) may impact your operations. What is the VAT Tax? Locally referred to as the impuesto al valor agregado tax […]

September 10, 2020

Understanding Mexican Business Culture

Mexican business culture is distinct from business culture in the United States, which has the potential to present challenges during negotiations. Though there is probably more common ground between business cultures than you realize, it is important to understand the differences as well. It’s important for US companies in Mexico to recognize and understand these […]

August 27, 2020

Understanding Intellectual Property Rights in Mexico

If you’re considering nearshoring to Mexico, you’ll want to do so with a firm understanding of how intellectual property rights are registered, protected, and enforced. The protection of intellectual property (IP) is critical in the modern world, and carries with it particular importance for companies based in the United States but who are manufacturing in […]

August 10, 2020

Why More Companies are Nearshoring to Mexico

Many companies are recognizing the substantial benefits associated with nearshoring their operations. Seen as an increasingly promising alternative to offshoring, some of the benefits of nearshoring in a nearby country like Mexico include a shorter supply chain, duty-free imports, and robust intellectual property rights (IPR) protection. To help you understand whether nearshoring is right for […]

July 30, 2020

What Changed from NAFTA to USMCA?

The landmark United States-Mexico-Canada Agreement (USMCA) has come into effect as of July 1st, 2020. Having been ratified by all three nations, the USMCA replaced the former North American Free Trade Agreement (NAFTA), which had gone into effect in 1994. And, like the old agreement, it ensures the prosperity and cooperation of all three […]

July 20, 2020

Cost of Industrial Buildings in Mexico vs. U.S.

Manufacturers of all sizes are always looking for ways to optimize efficiency. If your operation is currently based in the U.S., you know firsthand that industrial space is extraordinarily expensive. Rather than looking for cost-cutting measures elsewhere, one of the most beneficial ways to maximize your bottom line is reconsidering where your warehouses are stationed. […]

March 30, 2020

Effects of COVID-19 on The International Supply Chain

The global pandemic began due to the initial outbreak of the coronavirus epidemic in Wuhan, China. With no new deaths in the Hubei province for several days, one might assume that manufacturing in China will soon return to business-as-usual, ending the disruptions to the global supply chain that have affected companies in the U.S. and […]

March 23, 2020

Understanding the IMMEX Decree

Over the last two decades, Mexico has become an attractive nearshoring destination for many American businesses. The growing popularity of establishing manufacturing operations south of the border is due much in part to the IMMEX Decree, which provided significant incentives, exemptions, and economic benefits to IMMEX-registered businesses. But how does the IMMEX program work? What […]

March 13, 2020

Maquiladora System and Labor Unions in Mexico

Is your business seeking to take advantage of the maquiladora system and IMMEX program by expanding manufacturing operations into Mexico? If so, your success will depend upon your ability to cooperate with the local communities, organizations, and the government. In particular, building relationships with the labor unions—organizations that help employers create healthy work environments and […]

March 5, 2020

Anexo 24 / Annex 24 Inventory Control

In 2014, the Mexican Customs and Tax Authority added Annex 24 (Anexo 24) to its Mexican Tax Reform, and in 2018, further provisions were made. The statute required that businesses manufacturing in Mexico employ automatized inventory control systems as a way to track goods that had been temporarily imported duty-free under the IMMEX decree (which […]

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