Background on the Mexican Steel Industry and IMMEX Program
The Mexican steel industry is a crucial sector for the country’s economy, contributing significantly to manufacturing and infrastructure development. The IMMEX (Industria Maquiladora de Exportación) program is a Mexican initiative that allows foreign companies to import goods duty-free, process or assemble them, and then export the finished products. This program has been instrumental in attracting foreign investment and fostering growth in various sectors, including steel production.
Who are the Companies Involved?
Two steel companies, Elegant Fashion S.A. de CV and El Grande Industrial S.A. de C.V., have been implicated in misusing the IMMEX program for illegal import activities.
Details of the Cancellation
The Mexican Secretariat of Economy (SE) announced on Monday that it has initiated the process to cancel the IMMEX program for these two steel companies due to their involvement in illegal imports. This action is part of the “Operación Limpieza” (Cleaning Operation) strategy, aimed at protecting the national industry from unfair practices.
Elegant Fashion S.A. de CV
Elegant Fashion, identified as a maquiladora with operations involving various merchandise such as diapers, cakes, and non-seam tubing for oil well drilling, saw a dramatic increase in its temporary import volume. From 119 tonnes in the first half of 2021, the company imported 68,919 tonnes in July alone.
El Grande Industrial S.A. de C.V.
El Grande Industrial, which first reported temporary imports of hollow steel tubes and profiles in 2024, saw a 1,590% increase in such imports in 2025. The company also promoted the extended use of its IMMEX status through digital media, offering operations that allow other established Mexican companies to avoid Value Added Tax (VAT).
Impact and Response
Both companies attempted to evade the control of steel imports implemented by the SE through the IMMEX program. Their imports primarily originated from countries such as China, South Korea, Malaysia, New Zealand, and Vietnam.
The SE reaffirmed its commitment to legality across all industrial and economic sectors in Mexico, emphasizing its collaboration with chambers, associations, and organized sectors to ensure the successful implementation of Plan México.
Key Questions and Answers
- What is the IMMEX program? The Industria Maquiladora de Exportación (IMMEX) program allows foreign companies to import goods duty-free, process or assemble them in Mexico, and then export the finished products.
- Which companies were affected? Elegant Fashion S.A. de CV and El Grande Industrial S.A. de C.V., both steel companies, were involved in misusing the IMMEX program for illegal import activities.
- Why were these companies’ IMMEX programs canceled? The Mexican Secretariat of Economy initiated the cancellation process due to these companies’ involvement in illegal import activities, aiming to protect the national steel industry from unfair practices.
- What countries were the imports primarily from? The illegal imports originated mainly from China, South Korea, Malaysia, New Zealand, and Vietnam.
