Across numerous manufacturing industries, Baja California provides a myriad of benefits to the overall supply chain. This is in large part to its close proximity to West Coast shipping and trade cities, such as San Diego. In this region, it is also considerably easier to ensure reliable and on-time transportation of raw materials and finished goods, as compared to many offshore locations where those factors can be uncertain.
As with manufacturing operations that are located elsewhere in Mexico, this particular region is also home to the Maquiladora Program, also referred to as the IMMEX Program. Maquiladoras (or “maquilas”) are manufacturing plants and factories that benefit from preferential tax and fiscal treatment.
Essentially, the IMMEX program allows for tax breaks on imported goods, including raw materials, assembly components, machinery and various kinds of production equipment. Consequently, when used by maquilas, these items can enter Mexico duty and Value Added Tax (VAT) free.