Background on the IMMEX Program and its Significance
The Import-Export Manufacturing and Maquiladora (IMMEX) program is a crucial initiative by the Mexican government that allows companies to temporarily import goods without paying general import taxes. This program is essential for businesses engaged in manufacturing or providing services for export, as it enables them to import necessary materials and components duty-free. The IMMEX program has been instrumental in fostering Mexico’s export-oriented industries, such as textiles and footwear.
Government’s Actions Against Unfair Practices
In a decisive move to safeguard the national industry from unfair practices, the Mexican Secretariat of Economy has suspended 670 companies from the IMMEX program. This action is part of the “Operation Clean-up” and “Plan Mexico,” aimed at ensuring fair competition in the domestic market.
Operation Clean-up and its Impact
As part of Operation Clean-up, the Secretariat of Economy initiated proceedings to cancel the IMMEX program for two steel companies, Elegant Fashion S.A. de CV and El Grande Industrial S.A. de C.V., due to illegal imports. This strategic move targets sectors vulnerable to contraband, such as textiles and footwear.
- Measures Taken: The government has implemented several measures, including imposing tariffs on 155 tariff classifications of textile and apparel products from countries without existing trade agreements with Mexico.
- Special Enforcement Operations: These operations have led to the seizure of illegally imported goods, thereby reducing contraband entries and protecting domestic producers.
- Strengthened Customs Surveillance: The government has reinforced customs oversight through the review of importers enrolled in programs like IMMEX, establishing reference prices to detect undervaluation in sensitive sectors (textiles, footwear, and electronics), and collaborating with other agencies to close loopholes for illicit trade.
Decrees and Their Implications
In response to the textile sector’s failure to comply with returning merchandise, which harmed national industry competitiveness, a decree was published in the Official Gazette (DOF) on December 19, 2024. This decree modified the tariff of the General Import and Export Tax Law and the Decree for the Promotion of the Manufacturing, Maquiladora, and Export Service Industry. The objective was to restrict the temporary importation of finished garments classified under chapters 61, 62, 63, and subheadings 9404.40 and 9404.90.
However, the decree exempted subheadings 6117.90, 6217.90, 6302.91, 6302.93, and 6302.99, which classify cut fabric for garment-making.
Annual Reporting Requirement and Subsequent Suspensions
Companies benefiting from the IMMEX program are required to submit an annual report detailing total sales and exports corresponding to the immediate preceding fiscal year. On June 1, 2025, 416 companies were suspended due to the failure to submit the annual report, as per the DOF report published on June 30, 2025.
Key Questions and Answers
- What is the IMMEX program? The Import-Export Manufacturing and Maquiladora (IMMEX) program allows companies to temporarily import goods without paying general import taxes, fostering Mexico’s export-oriented industries.
- Why were 670 companies suspended from the IMMEX program? The Mexican Secretariat of Economy suspended these companies as part of “Operation Clean-up” and “Plan Mexico” to protect the national industry from unfair practices.
- What measures has the government taken against contraband and unfair practices? The government has implemented tariffs, special enforcement operations, and strengthened customs surveillance to combat contraband and ensure fair competition.
- What is the annual reporting requirement for IMMEX companies? Companies with IMMEX benefits must submit an annual report detailing total sales and exports from the preceding fiscal year.
- Why were 416 companies suspended for failing to submit the annual report? These companies were suspended due to their failure to comply with the annual reporting requirement.
