How will NAFTA 2001 affect the Maquiladora Program?
Effective November 20th, 2000, Non-NAFTA originating raw materials and components incorporated into goods exported to the United States or Canada will pay, within 60 days, the lesser of the Mexican import duties on the raw materials or components or the U.S. or Canadian import duties on the finished goods. The Mexican government has publicly stated that duty drawback will be phased out for all equipment imported into Mexico after the year 2000. As a result, machinery and equipment imported into Mexico for use in Maquiladora operations will be as a “definite” import and subject to corresponding duty obligations. However, the Mexican government has committed to the reduction of the duties on machinery and on raw materials imported into Mexico for incorporation into finished goods exported to the U.S. or Canada. Maquiladoras can in fact petition the Mexican government for the reduction of duties on such imported equipment and components.
