Problems relating to Trade and Investment on Mexico

6. Reduction and elimination of preferential policies for foreign capital
Issue	Issue details	Requests	Reference

(1) Complex procedures on Temporary Import Incentive Measures	- The tracking of records, as required under Programme for Industry, Manufacturing, Maquila and Export Services (IMMEX), is so complex, and it requires employment of a staff exclusively dedicated for this purpose. It deprives FFEs of the privilege of benefiting from the tax saving under IMMEX. - The preferential measures, such as IMMEX, PROSEC, etc. are effective scheme to promote international trade, foreign investment and foreign entry into Mexico. However, due to the complexity in details, applicants must face the risk of exclusion from application, cancellation of permits and approvals, and even penalties.	- It is requested that GOM achieves facilitation of the IMMEX tracking requirements. - It is requested that GOM provides opportunity to give proper explanation and assures transparency in legislative interpretation.
	(Action) - On 24 March 2011, GOM released regulation on temporary import of steel materials under the IMMEX Programme that allows temporary import of parts, raw materials and machinery and equipment, subject to re-export of the products so manufactured, including the procedures to obtain the licence issued by Mexican Ministry of Economy (MME). - On 24 December 2010, when the Temporary Stay Period (TSP) of steel materials was reduced from 18-months to 9-months, confusions arose due to the absence of the provisions that excludes enterprises from the reduction in the TSP. On 12 June 2012, MME expressly announced exclusion of the 18-Month-Stay-Period for the temporary import from the case, where imported parts are re-exported after processing in Mexico such as automobile parts in the Official Gazette, the 32nd Amendment of "MME Decree Providing the General Rules and Standards on Trade." - On 23 September 2015, Ministry of Economy removed Qualification canceling the right to use IMMEX (The Mexican In-Bond (Maquila) Program) on more than 300-IMMEX enterprises that failed to supply the Annual Report beyond the Grace Period, (retroactive to 1 September 2015). - On 16 January 2016, Mexican Ministry of Economy (MME) promulgated Decree Amending the Decree on "Maquiladora Manufacture/Service Promotion Programme for Export" (The Mexican In-Bond (Maquila) Program). Hopefully, new decree will enable classifying, and streamlining of administrative procedures on enterprises, and assure improved compatibility with other legislative requirements on the designated sensitive items that apply the uniform domestic sojourn period of temporary import materials will enable streamlining enterprises administrative procedures and enhance compatibility with other legislative provisions. However, addition to bond deposit scheme, and registration requirement, pending rectification of other inadequate implementing rules, etc. is a matter of concern to enterprises for the additional burdens that may result.

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