IN - BOND (MAQUILADORA) INDUSTRY

TTo encourage industrial production, Mexico allows duty-free and permit-free importation of materials for processing, assembly or finishing for final export. Exempted from foreign investment rules, maquiladora companies, as they are called, may be entirely foreign controlled. The government has further facilitated such manufacturing activity by opening the Mexican market to these manufactured goods under certain circumstances and in increasing percentages. Although the in-bond industry can be located anywhere in the country, most activity remains concentrated in cities along the United States border, serving as a gateway to U.S. markets.

Our lawyers work closely with manufacturers on issues including incorporation, leasing, construction, contracts, labor relations and the establishment of land trusts when necessary. In addition, we negotiate "shelter" programs to allow manufacturers to begin production without facilities of their own.

The companies involved in the in-bond industry have been the first to benefit as trade relations among the United States, Mexico and Canada have become more open in the move toward free trade under NAFTA.