Revisting maquiladora operating models: Strategic alternatives. Background. The maquiladora regime has been a central component of Mexico’s manufacturing growth since the 1990s, driving foreign direct investment, particularly in sectors such as automotive, electronics, and medical devices. This regime allows multinational corporations to establish manufacturing operations in Mexico under the IMMEX program, which grants fiscal and tariff exemptions when importing machinery, equipment, and raw materials to produce goods for export.

September 19, 2024 Renewal of the Qualified The IRS and Mexico’s Servicio de Administración Tributaria (SAT) have agreed to again renew the Qualified Maquiladora Approach Agreement (QMA), a coordination arrangement previously renewed between the U.S. and Mexican competent authorities in 2020 (2020 Renewal QMA). The 2024 renewal applies for the Mexican taxable years ending December 31, 2020, through December 31, 2024. The QMA allows a U.S. taxpayer to avoid double taxation on the contract manufacturing and assembly functions performed by its maquiladora if the Mexican taxpayer enters into a unilateral advance pricing agreement (APA) with the Large Taxpayer Division (Administración General de Grandes Contribuyentes) of the SAT under terms negotiated in advance between the competent authorities.

On July 22, 2024, the Tax Administration Service (hereinafter “SAT”) updated its website regarding the “Resolutions for Companies Providing Maquila Services” (hereinafter the “Website”), pursuant to the renewal of the Qualified Maquiladora Approach agreement (“QMA”) by the SAT and the Internal Revenue Service of the United States of America (hereinafter “IRS”).

July 10, 2024, Adjustments to Imports of Aluminum and Steel into the United States. Presidential Proclamations Concerning Imports of Aluminum and Steel. The White House today posted on its website two presidential proclamations concerning imports of aluminium and steel into the United States.

On December 18, NOM-002-SCT-SEMAR- ARTF/2023, List of Hazardous Substances and Materials (Dangerous Goods) (“NOM” for its acronym in Spanish), issued by the Ministry of Infrastructure, Communications and Transportation, was published in the Federal Official Gazette (“DOF” for its acronym in Spanish), specifying the hazardous goods and the measures that must be taken for their proper transportation.

On August 15, 2023, the Mexican Executive Branch temporarily amended, pursuant to Article 131 of the Mexican Constitution, several applicable tariffs to products set forth in the Tariff of the Law of General Import and Export Taxes dated June 7, 2022. The temporary increases could increase from 5% up to 25% in import tariffs for 392 products

On March 15, 2023, the Supreme Court of Justice of Mexico established a core precedent where the civil compensation is not a form to extinguish obligations between creditor and debtor, nor a mean of payment of Value Added Tax (Hereinafter “VAT”) for its accreditation and refunding.

According to Jair Bravo, managing partner of the Law Firm Bravo Abogados, Mexico is the fourth most attractive country for nearshoring investments, surpassed only by Japan, Canada and the United States. The spokesperson informed that thanks to its geographical location, Mexico concentrates 80% of the nearshoring market at a global level.

On February 17, 2023, the Agreement that establishes the goods whose importation is subject to regulation by the Ministry of Labor and Social Welfare (hereinafter the “Agreement”) was published in the Official Gazette of the Federation, which represents an effort by the Mexican government to comply with one of its many obligations under the Treaty between the United Mexican States, the United States of America and Canada (hereinafter the “T-MEC”) by implementing a system of prohibition against forced or compulsory labor.