Manufacturers today are under real pressure to stay lean and move quickly, but rising shipping costs and shifting trade rules are making that harder. To stay competitive, more U.S. companies are turning to Mexico, where they can regain control of their supply chains and protect margins with a more cost-effective production strategy.

One key advantage behind that shift: the IMMEX Program.

Short for Industria Manufacturera, Maquiladora y de Servicios de Exportación, IMMEX gives manufacturers a way to lower costs, simplify cross-border trade, and build more resilient supply chains. But while the benefits are significant, making the most of the program requires a clear understanding of how it works and how to stay compliant as you scale.

Competing in a Shifting Manufacturing Landscape

Between rising costs, trade uncertainty, and supply chains that just don’t move like they used to, staying competitive has never been tougher. Offshore strategies that once made sense are now creating more friction than flexibility.

That’s why more companies are looking to Mexico, not just for lower labor costs or faster shipping, but for something more strategic. Mexico offers robust infrastructure and strong talent pipelines, among many other built-in advantages for U.S. manufacturers. When it comes to simplifying cross-border operations and keeping material costs in check, Mexico also has the edge thanks to the IMMEX program.

Launched in 2006, the IMMEX program allows manufacturers in Mexico to temporarily import raw materials and components without paying import duties or value-added tax (VAT), so long as the finished goods are exported within a set timeframe.

The program builds on Mexico’s earlier maquiladora program and remains one of the country’s most effective tools for driving economic growth through export-oriented production. At the same time, it gives foreign manufacturers a way to produce goods more efficiently, reduce operating costs, and stay competitive in global markets.

For Mexico, IMMEX continues to attract investment and strengthen the national manufacturing sector. For foreign companies looking to reduce costs and simplify complex supply chains, it offers a clear competitive advantage.

Why the IMMEX Program Creates a Competitive Edge

More than simply a tax exemption, IMMEX is a strategic tool for global manufacturers. Here’s how it sharpens your competitive position against offshore production models:

1. Immediate Savings on Imported Materials

By eliminating duties and VAT on imported inputs, IMMEX delivers immediate cost savings on the materials and equipment used in export production, with no waiting period or refund process. Companies see cash flow relief right away.

Manufacturers keep more capital on hand, which can then be reinvested in production. These savings are especially important for capital-intensive manufacturing sectors, such as the aerospace and automotive industries.

2. Lower Total Cost of Production

IMMEX directly reduces production costs by eliminating VAT and import duties on raw materials, components, and equipment. Combined with Mexico’s lower labor and facility costs, this creates a leaner, more competitive manufacturing model.

Even in sectors like the medical device industry, long known for strong growth and healthy margins, manufacturers are now feeling the pressure of rising costs and tighter pricing. By reducing import taxes and streamlining production in Mexico, IMMEX helps companies rein in costs while maintaining quality and compliance.

3. Faster Cross-Border Logistics

IMMEX-certified companies benefit from streamlined import/export processes. By simplifying customs and cutting down processing times, the program supports more agile supply chains and reduces the need for excess inventory. And when goods move faster, manufacturers can respond quickly to demand without sacrificing quality or control.

4. Tighter Operational Control

The IMMEX program requires companies to closely track how imported goods are used. This promotes inventory accuracy, reduces waste, and enhances traceability throughout the supply chain.

Though these requirements add some complexity, with the right systems and support from a trusted partner, they become a strength, not a burden.

5. Aligned with North American Trade Rules

IMMEX and the United States-Mexico-Canada Agreement (USMCA), formerly the North American Free Trade Agreement (NAFTA), serve different roles, but together they give manufacturers a powerful advantage.

IMMEX reduces production costs through tax and duty exemptions, while USMCA ensures predictable trade rules, stronger intellectual property protections, and smoother market access across North America.

Together, they create a stable, cost-effective framework for cross-border manufacturing.

6. Flexible for All Business Sizes

IMMEX is designed to accommodate a wide range of operations, from large multinational manufacturers to small and mid-sized contract manufacturers. The program scales easily, with no minimum investment required and no one-size-fits-all structure. Many companies start small, often through a shelter company, and expand over time.

Staying on Top of IMMEX Compliance

However, with the program’s advantages come strict regulations. IMMEX participants must:

• File monthly and annual compliance reports
• Track material usage and production output
• Follow all labor, environmental, and safety laws
• Maintain clear records for importing goods and export declarations

Missteps can lead to fines or even program suspension. Many companies choose to work with experienced partners who know how to manage these details correctly.

How Shelter Companies Make IMMEX Work

One of the fastest and most effective ways to access IMMEX is through a shelter company. This entry pathway lets you operate under the shelter provider’s existing IMMEX registration, with no need to form a legal entity or wait for approval from the Mexican government.

At NAPS, you’re up and running right away. You get full access to IMMEX benefits without the red tape, and we handle all the heavy lifting so your team can stay focused on production and performance.

We manage:

• Customs and import/export coordination
• HR, payroll, and tax reporting
• Regulatory compliance and permits
• Material sourcing and inventory tracking

With NAPS, you don’t need to set up a legal entity in Mexico or build a compliance team from scratch. You get fast access to the benefits of manufacturing in Mexico while reducing risk and complexity.

The NAPS Advantage

NAPS has helped hundreds of U.S. companies expand in Mexico, from large brands adding new facilities to small firms exploring Mexico for the first time.

With over 30 years of experience and deep knowledge of Mexico trade policy, we’re here to help you build smart, compliant operations that support long-term success.

Ready to explore IMMEX for your business? We’ll walk you through how it works, and how we can help you stay competitive in a rapidly changing world.