Amazines Free Article Archive
www.amazines.com - Thursday, May 26, 2022
Read about the most recent changes and happenings at Amazines.com
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Google
Subscriptions Manage Ezines
CATEGORIES
 Article Archive
 Advertising (133514)
 Advice (161571)
 Affiliate Programs (34788)
 Art and Culture (73835)
 Automotive (145676)
 Blogs (75393)
 Boating (9851)
 Books (17221)
 Buddhism (4129)
 Business (1329938)
 Business News (426412)
 Business Opportunities (366443)
 Camping (10970)
 Career (72776)
 Christianity (15844)
 Collecting (11639)
 Communication (115069)
 Computers (241913)
 Construction (38921)
 Consumer (49947)
 Cooking (17078)
 Copywriting (6730)
 Crafts (18205)
 Cuisine (7547)
 Current Affairs (20307)
 Dating (45901)
 EBooks (19700)
 E-Commerce (48246)
 Education (185373)
 Electronics (83517)
 Email (6439)
 Entertainment (159836)
 Environment (28922)
 Ezine (3040)
 Ezine Publishing (5452)
 Ezine Sites (1550)
 Family & Parenting (110928)
 Fashion & Cosmetics (196538)
 Female Entrepreneurs (11851)
 Feng Shui (132)
 Finance & Investment (310501)
 Fitness (106442)
 Food & Beverages (63005)
 Free Web Resources (7939)
 Gambling (30225)
 Gardening (25192)
 Government (10512)
 Health (629868)
 Hinduism (2206)
 Hobbies (44078)
 Home Business (91593)
 Home Improvement (251123)
 Home Repair (46209)
 Humor (4717)
 Import - Export (5456)
 Insurance (45103)
 Interior Design (29588)
 International Property (3488)
 Internet (191001)
 Internet Marketing (146662)
 Investment (22855)
 Islam (1161)
 Judaism (1352)
 Law (80455)
 Link Popularity (4596)
 Manufacturing (20901)
 Marketing (99269)
 MLM (14140)
 Motivation (18232)
 Music (26996)
 New to the Internet (9496)
 Non-Profit Organizations (4048)
 Online Shopping (129726)
 Organizing (7809)
 Party Ideas (11853)
 Pets (38070)
 Poetry (2229)
 Press Release (12687)
 Public Speaking (5639)
 Publishing (7561)
 Quotes (2407)
 Real Estate (126594)
 Recreation & Leisure (95456)
 Relationships (87647)
 Research (16180)
 Sales (80345)
 Science & Technology (110280)
 Search Engines (23496)
 Self Improvement (153285)
 Seniors (6216)
 Sexuality (35996)
 Small Business (49286)
 Software (83017)
 Spiritual (23466)
 Sports (116146)
 Tax (7659)
 Telecommuting (34072)
 Travel & Tourism (308167)
 UK Property Investment (3122)
 Video Games (13382)
 Web Traffic (11760)
 Website Design (56867)
 Website Promotion (36614)
 World News (1000+)
 Writing (35833)
Author Spotlight
MARBLEPLUS AUSTRALIA

Marble Plus - Sydney & Brisbane's leaders in stone and marble tiles. We honour small and wholesale o...more
DESIGNPLUZ DIGITALAGENCY

Designpluz has steadily matured from a passionate graphics design start-up, into a full service digi...more
SANTOSH GUPTHA

Certified Medical coder with 42 certifications,15 years experience in Medical records coding, HIPAA,...more
HANVEY HUANG

I'm a Chief Operated Officer from KIMKOO Mattress machinery.The pen is mightier than the sword.so I ...more
JOHN WHARTON

img border="0" height="22" src="3.bp.blogspot.com/-lwbCHWyiaZE/UkU4PxcWj8I/AAAAAAAAAA0/QooVAHCHbx4/...more


What is the maquiladora industry PROSEC program? by Alan Russell





What is the maquiladora industry PROSEC program? by
Article Posted: 10/23/2013
Article Views: 284
Articles Written: 27
Word Count: 548
Article Votes: 0
AddThis Social Bookmark Button

What is the maquiladora industry PROSEC program?


 
Manufacturing
Before the NAFTA agreement came into effect, Mexico’s maquiladora industry rules once allowed inputs from virtually any country to be duty free. Regardless of their country of origin, materials and components used in the manufacturing of end products for export were imported completely duty-free, since the materials were considered to be in Mexico only temporarily (the only condition on this tariff waiver being that the materials be exported out of Mexico before their export deadline).

However, things changed with NAFTA, to establish a similar system, but only among member nations. Without restricting tariff waivers to member nations only, NAFTA members might be able to import their maquiladora industry materials from non-members, which would undergo assembly and then possibly enter the US or other member nations duty free. In other words, NAFTA necessarily excluded from non-members the privileges its members enjoyed. Otherwise, there would be no incentive for signers of the North American Free Trade Agreement to use materials from other NAFTA members.

In particular, Article 303 of the NAFTA treaty required that non-NAFTA materials imported into a NAFTA country into a duty-deferral program be subject to the same duty rates that they would ordinarily be subject to, if they were permanently imported into the NAFTA country. Previously accustomed to manufacturing products in Mexico from duty-free inputs, the maquiladora industry would have to raise tariff rates and the price of the finished goods for export in order to account for these materials being subject to the duties faced by materials imported into Mexico permanently. Since the standard tariffs for inputs have been between 15% and 25%, the maquiladora industry had to find a work-around.

The answer came in the form of the Promotional Sector Program or PROSEC. A PROSEC was created for each of several industries vital to the Mexican manufacturing industry, including electronics, automotive, aerospace, and textiles. Each PROSEC has a list of HTS classifications that are covered by the program. In turn, the usual tariffs these industries would be subject to in importing materials without any sort of waiver had been drastically lowered, or even eliminated. This way, the crisis of a spike in cost for end products using inputs from non-member nations was averted. Non-member nations may not be able to get their duties waived, but the duties they now face are either completely gone or reduced below 5% as long as the materials can be found under the specific HTS classifications in their industry’s PROSEC.

Still, not all HTS classifications that a maquiladora industry plannt may use are listed in the PROSEC for their industry, but there are other options in that scenario. For those HTS classifications not in the PROSEC list and thus face the standard duty, a maquiladora may still be given a special status under Mexico’s “Regla Octava” or “Rule 8,” which may grant a 0% duty. Maquiladoras can apply for this preferred status by petitioning the Mexican government. If the Mexican government finds the Mexican national supply, availability, and level of quality of the specific material to be lacking or unsatifactory, their potential 15+% tariff would be reduced to a 0% duty rate.

some_text

K. Alan Russell, President and C.E.O. of the Tecma Group of Companies. manufacturing in Mexico, Mexico manufacturer, Mexico supply chain

Related Articles - Mexican Fiscal Reforn, Mexico industries, maquiladoras Mexico,

Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.

 

Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
Name:
Email:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
 
Please enter the code in the image:



 Author Login 
LOGIN
Register for Author Account

 

Advertiser Login

 

ADVERTISE HERE NOW!
   Limited Time $60 Offer!
   90  Days-1.5 Million Views  

 

Great Paranormal Romance


LAURA JEEVES

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
STEPHEN BYE

Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through The...more
STEVERT MCKENZIE

Stevert Mckenzie, Travel Enthusiast. ...more
SHALINI MITTAL

A postgraduate in Fashion Technology. Shalini is a writer at heart! Writing for her is an expression...more
GENE MYERS

Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
ALEX BELSEY

I am the editor of QUAY Magazine, a B2B publication based in the South West of the UK. I am also the...more
NEVIO GARDASANIC

Hello, my name is Nevio Gardasanic. If you want to go beyond being just a perpetual beginner at thin...more
SANJIB DAS

Sanjib Kumar Das is an Indian business enthusiast and entrepreneur who is motivated to help small an...more
AKSHAY CHOPRA

Akshay Chopra is an experienced certified personal trainer and the founder of WERSTUID. An organizat...more
TIM FAY

I am not a writer nor am I trying to become a writer. I am an average person with average intelligen...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2022, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from wikipedia.org under the GNU FDL license