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All
Rights Reserved © Baker & McKenzie
Abogados
,
S.C.
Mexico
2003
On
Oct. 13, 2003
, President Vicente Fox published in the Federal Official
Gazette amendments to the Decree for the Promotion and Operation
of the Export Ma-quiladora Industry (the Maquila Decree).
Essentially, this amendment corrects the one published
May 12, 2003
(the May Amendment), and brings
the Maquiladora Decree to a very similar state than it was prior
to the May Amendments. No new benefits or incentives for
maquiladoras were included in the Maquila Decree.
Our firm considered that the May Amendment was not in the
interest of the industry. Since then, Baker & McKenzie, in
close coordination with different organizations of the
maquiladora industry and with the Ministry of Economy (SECON),
participated in an effort to formalize this amendment. Also, our
firm will continue to work to persuade SECON to include
amendments that we believe to be necessary
Maquila
operation
A legal defect of the definition of Maquila Operation in
the May Amendment was corrected to include industrial processes,
as well as services. The May Amendment did not include service
process.
Holding
maquila
The definition of Holding Maquila was modified by
eliminating the specific legal citations of the Mexican Income
Tax Law, which were included in section VII of Article 3 of the
Maquila Decree. However, the eligibility requirements included
with the May Amendment continue to benefit only a limited number
of companies or groups (e.g. $500 million dollars in exports in
the previous tax year). Additionally, there are certain
operational and tax concerns that make this option not so
appealing for qual-ifying companies.
Services
maquila
The type of services that may be rendered through a
services maquiladora program, continue to be discretionally
determined by SECON through subsequent publication in the DOF.
The amendment, in essence, excludes the Ministry of Finance and
Public Credit’s (Hacienda) ability to jointly approve the list
of services, as indicated in the May Amendment. With this
amendment...
...Continued
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