In addition to the maquiladora program and NAFTA, there are other ways to obtain special tariff rates for importing manufacturing material into Mexico products.  Many opportunities exist for U.S., foreign and local companies that import non-NAFTA products and machinery with manufacturing operations in Mexico; these are the benefits that PROSEC offers. The PROSEC decree, unlike the Maquiladora and PITEX decrees, was designed based on NAFTA.

      In 2000, the Mexican Ministry of Economy (SE) published in the Federal Gazette the regulations governing the procedure for companies to register in Mexico’s Sectoral Programs. These programs, known in Spanish as PROSEC, allow Mexico-based manufacturing companies to import qualifying non-NAFTA inputs and machinery at reduced fixed duty rates ranging from 0 to 7 percent.

      The PROSEC application seeks key information that will determine whether your company qualifies or not to operate under a Sectoral Program(s). In this regard, we herein provide further description of PROSEC.

      PROSEC was primarily designed as instruments for manufacturers of certain products as well as to offset the negative impact of NAFTA Article 303 on manufacturers. Companies that are not utilizing a maquiladora regime and are paying duties on materials and goods used in their...

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