Prosec is a program implemented by the Mexican government after the implementation of NAFTA to overcome the challenges of NAFTA article 3. Article 3 states that no NAFTA member can waive or reduce import tariffs conditioned upon the export of the finished good to another NAFTA country, i.e. Mexico cannot allow low cost Chinese imports into the country conditioned on the finished good being exported to the US or Canada.
Mexico has traditionally had very high tariff rates (averaging around 50%), although the export oriented Maquila sector was given preferential tariff rates. NAFTA Article 3 eliminated the maquiladora's preferential tariffs, exposing the industry to very high tariffs for parts and raw materials sourced from countries outside of NAFTA.
Prosec allows either a maquiladora or domestic Mexican manufacturing company to petition for reduced tariffs (usually from 0 to 5%) on parts or raw materials to be used in a wide range of manufacturing sectors irrespective of whether the finished good is intended for domestic sale or export (see list below).
| Prosec Section | Sector Name |
|---|---|
| I | From the Electric Industry |
| II | From the Electronics Industry |
| III | From the Furniture Industry |
| IV | From the Toy, Attractions and Sports Items Industry |
| V | From the Shoe Industry |
| VI | From the Mining and Metallurgical Industry |
| VII | From the Capital Goods Industry |
| VIII | From the Photography Industry |
| IX | From the Agricultural Machinery Industry |
| X | From Several Other Industries |
| XI | From the Chemical Industry |
| XII | From the Plastic and Rubber Manufacturing Industry |
| XIII | From the Iron and Steel Industry |
| XIV | From the Pharme-Chemical, Medical and Medical Equipment Industry |
| XV | From the Transport Industry, excepting Automobile Industry |
| XVI | From the Paper and Cardboard Industry |
| XVII | From the Wood del Papel y Cartón |
| XVIII | From the Leather Industry |
| XIX | From the Automobile and Spare parts Industry |
| XX | From the Textile and Clothing Industry |
| XXI | From the de Chocolate, Candy and Similar Products |
| XXII | From the Coffee Industry |
© 2007 UnderstandMexico - Privacy Policy - Mexico Manufacturing / Manufacturing in Mexico
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i need following dokument.
XV From the Transport Industry, excepting Automobile Industry
XIX From the Automobile and Spare parts Industry
XX From the Textile and Clothing Industry
I need information on
I need information on construction of homes in Mexico as i am from USA. what does it take to become legal to do this in Mexico.
I need following
I need following dokument.
XIX From the Automobile and Spare parts Industry
Thanks a lot.
Please give me information
Please give me information about that if auto plants in Mexico, who need to import the car components outside of Mexico to assemble into a car, give their orders to China and already applied for PROSEC program, Is the range of the import duty on the goods from 0% to 5%?
If PROSEC program works, will NAFTA members charge extra import duty on the goods, For example, if Mexico exports the assembled cars to USA with the car components imported from China.
Million thanks!