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What many do not know or understand is the fact that foreign interest in mexico was first facilitated in 1961, when the national border industrialization program was introduced. This program was created to attract foreign investors and stimulate mexico internal market. The maquiladora program, which allowed maquiladoras to be 100% foreign owned, was initiated three years later with the intent to foster border region employment rates as well as further attract foreign investment. Although these programs encouraged foreign-owned production facilities, product sales to mexican markets were controlled. A new maquiladora decree was issued in 1989, and relaxed mexico foreign investment laws further as well as allowing maquiladoras to sell up to 50% of their production to mexican domestic markets. Nafta, among other provisions, eliminated certain customs benefits enjoyed by the maquiladora program and defined strict rules of origin for products to qualify for preferential tariffs. The combination of nafta amendments to the maquiladora decree of 1989 and ever-changing mexican laws governing corporations and trade make the establishment and operation of a maquiladora appear daunting to even the most savvy of american businessmen. Yet thousands of companies have mexican operations, including a large percentage of small to medium-sized american manufacturing firms. The decision to establish a maquiladora was based on minimizing overhead and increasing profit margins, and the success of manufacturing operations south of the border stems from skilled, conscientious labor at a lower cost combined with a longer workweek. Still, the mystery and skepticism attached to setting up shop in mexico remains. Certainly the task is an immense challenge for an american firm wishing to establish a mexican corporation themselves without the knowledge of mexican culture, laws and logistics. While many fortune 500 firms choose this route, a diverse pool of consultants is required, and innumerable challenges arise in both the establishment process and operation of their maquiladora. Some companies choose to hire a contract manufacturer, but sacrifice complete control of production rate and speed. The third option companies may choose is the corporate shelter service. Although essentially the simplest way to open a mexican plant, it is the subject of considerable confusion. The shelter program has been in use since the 1960s. This service allows manufacturing firms to establish a maquiladora in tijuana without owning a mexican business. The process is quite simple. The american or foreign-owned company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the production volume and the specific process required to assemble or manufacture the client product, the shelter firm looks for an appropriate building. The shelter firm then leases the building for the client, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and prospective employees are screened, interviewed, and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to run the production area. Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and agencies which regulate taxes, customs, labor, zoning, facility management, and environmental protection. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing hiring, termination, incentive and disciplinary programs as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. Additionally, the shelter firm handles all border crossing documentation, u. S. And mexico broker coordination and transportation arrangements. The foreign-owned firm now has a maquiladora in mexico, but avoids the challenges associated with cultural differences, employee management and compensation policies, accounting and payment of taxes, and compliance with local and federal codes, regulations and laws. A thorough involvement and focus on production efficiency and quality is afforded to the foreign firm, and the shelter service performs all other functions required to keep the operation running smoothly. Most firms specializing in shelter services are a combination of american and mexican sister companies. All of the services discussed above are included in a weekly invoice from the american shelter firm to the foreign-owned company it has established manufacturing for. The efficiency of shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without making a single border crossing. Setting up a manufacturing facility in mexico promises reduced production overhead and better profit margins. It also represents a myriad of cultural, legal, and logistical challenges for those who endeavor to try it themselves. Many firms have established and manage their own made in mexico corporation with productive results, but the shelter option remains the simplest, most maintenance-free method for manufacturing in mexico. Call border assembly at (619) 710-0555 to find out if a corporate shelter program is right for your company or fill out our free estimate form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. What many do not know or understand is the fact that foreign interest in mexico was first facilitated in 1961, when the national border industrialization program was introduced. This program was created to attract foreign investors and stimulate mexico internal market. The maquiladora program, which allowed maquiladoras to be 100% foreign owned, was initiated three years later with the intent to foster border region employment rates as well as further attract foreign investment. Although these programs encouraged foreign-owned production facilities, product sales to mexican markets were controlled. A new maquiladora decree was issued in 1989, and relaxed mexico foreign investment laws further as well as allowing maquiladoras to sell up to 50% of their production to mexican domestic markets. Nafta, among other provisions, eliminated certain customs benefits enjoyed by the maquiladora program and defined strict rules of origin for products to qualify for preferential tariffs. The combination of nafta amendments to the maquiladora decree of 1989 and ever-changing mexican laws governing corporations and trade make the establishment and operation of a maquiladora appear daunting to even the most savvy of american businessmen. Yet thousands of companies have mexican operations, including a large percentage of small to medium-sized american manufacturing firms. The decision to establish a maquiladora was based on minimizing overhead and increasing profit margins, and the success of manufacturing operations south of the border stems from skilled, conscientious labor at a lower cost combined with a longer workweek. Still, the mystery and skepticism attached to setting up shop in mexico remains. Certainly the task is an immense challenge for an american firm wishing to establish a mexican corporation themselves without the knowledge of mexican culture, laws and logistics. While many fortune 500 firms choose this route, a diverse pool of consultants is required, and innumerable challenges arise in both the establishment process and operation of their maquiladora. Some companies choose to hire a contract manufacturer, but sacrifice complete control of production rate and speed. The third option companies may choose is the corporate shelter service. Although essentially the simplest way to open a mexican plant, it is the subject of considerable confusion. The shelter program has been in use since the 1960s. This service allows manufacturing firms to establish a maquiladora in tijuana without owning a mexican business. The process is quite simple. The american or foreign-owned company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the production volume and the specific process required to assemble or manufacture the client product, the shelter firm looks for an appropriate building. The shelter firm then leases the building for the client, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and prospective employees are screened, interviewed, and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to run the production area. Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and agencies which regulate taxes, customs, labor, zoning, facility management, and environmental protection. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing hiring, termination, incentive and disciplinary programs as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. Additionally, the shelter firm handles all border crossing documentation, u. S. And mexico broker coordination and transportation arrangements. The foreign-owned firm now has a maquiladora in mexico, but avoids the challenges associated with cultural differences, employee management and compensation policies, accounting and payment of taxes, and compliance with local and federal codes, regulations and laws. A thorough involvement and focus on production efficiency and quality is afforded to the foreign firm, and the shelter service performs all other functions required to keep the operation running smoothly. Most firms specializing in shelter services are a combination of american and mexican sister companies. All of the services discussed above are included in a weekly invoice from the american shelter firm to the foreign-owned company it has established manufacturing for. The efficiency of shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without making a single border crossing. Setting up a manufacturing facility in mexico promises reduced production overhead and better profit margins. It also represents a myriad of cultural, legal, and logistical challenges for those who endeavor to try it themselves. Many firms have established and manage their own made in mexico corporation with productive results, but the shelter option remains the simplest, most maintenance-free method for manufacturing in mexico. Call border assembly at (619) 710-0555 to find out if a corporate shelter program is right for your company or fill out our free estimate form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. What many do not know or understand is the fact that foreign interest in mexico was first facilitated in 1961, when the national border industrialization program was introduced. This program was created to attract foreign investors and stimulate mexico internal market. The maquiladora program, which allowed maquiladoras to be 100% foreign owned, was initiated three years later with the intent to foster border region employment rates as well as further attract foreign investment. Although these programs encouraged foreign-owned production facilities, product sales to mexican markets were controlled. A new maquiladora decree was issued in 1989, and relaxed mexico foreign investment laws further as well as allowing maquiladoras to sell up to 50% of their production to mexican domestic markets. Nafta, among other provisions, eliminated certain customs benefits enjoyed by the maquiladora program and defined strict rules of origin for products to qualify for preferential tariffs. The combination of nafta amendments to the maquiladora decree of 1989 and ever-changing mexican laws governing corporations and trade make the establishment and operation of a maquiladora appear daunting to even the most savvy of american businessmen. Yet thousands of companies have mexican operations, including a large percentage of small to medium-sized american manufacturing firms. The decision to establish a maquiladora was based on minimizing overhead and increasing profit margins, and the success of manufacturing operations south of the border stems from skilled, conscientious labor at a lower cost combined with a longer workweek. Still, the mystery and skepticism attached to setting up shop in mexico remains. Certainly the task is an immense challenge for an american firm wishing to establish a mexican corporation themselves without the knowledge of mexican culture, laws and logistics. While many fortune 500 firms choose this route, a diverse pool of consultants is required, and innumerable challenges arise in both the establishment process and operation of their maquiladora. Some companies choose to hire a contract manufacturer, but sacrifice complete control of production rate and speed. The third option companies may choose is the corporate shelter service. Although essentially the simplest way to open a mexican plant, it is the subject of considerable confusion. The shelter program has been in use since the 1960s. This service allows manufacturing firms to establish a maquiladora in tijuana without owning a mexican business. The process is quite simple. The american or foreign-owned company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the production volume and the specific process required to assemble or manufacture the client product, the shelter firm looks for an appropriate building. The shelter firm then leases the building for the client, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and prospective employees are screened, interviewed, and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to run the production area. Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and agencies which regulate taxes, customs, labor, zoning, facility management, and environmental protection. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing hiring, termination, incentive and disciplinary programs as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. Additionally, the shelter firm handles all border crossing documentation, u. S. And mexico broker coordination and transportation arrangements. The foreign-owned firm now has a maquiladora in mexico, but avoids the challenges associated with cultural differences, employee management and compensation policies, accounting and payment of taxes, and compliance with local and federal codes, regulations and laws. A thorough involvement and focus on production efficiency and quality is afforded to the foreign firm, and the shelter service performs all other functions required to keep the operation running smoothly. Most firms specializing in shelter services are a combination of american and mexican sister companies. All of the services discussed above are included in a weekly invoice from the american shelter firm to the foreign-owned company it has established manufacturing for. The efficiency of shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without making a single border crossing. Setting up a manufacturing facility in mexico promises reduced production overhead and better profit margins. It also represents a myriad of cultural, legal, and logistical challenges for those who endeavor to try it themselves. Many firms have established and manage their own made in mexico corporation with productive results, but the shelter option remains the simplest, most maintenance-free method for manufacturing in mexico. Call border assembly at (619) 710-0555 to find out if a corporate shelter program is right for your company or fill out our free estimate form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Corporate shelter a service that allows a manufacturing firm to establish operations in mexico without actually owning a mexican business. Corporate shelter services are provided by companies that specialize in this area, such as border assembly, inc. In particular, this service represents the fastest way a us or foreign-owned company can establish manufacturing operations in tijuana or other parts of mexico while maintaining strict production quality control. . In-bond manufacturing (in-bond industry) another name for the maquiladora industry. A us or foreign-owned company may import in-bond (on a provisional, duty-free basis) the equipment, parts and raw materials required to support its manufacturing or assembly process. . Naics (north american industry classification system) a coding system for business sectors used by the governments of the united states, mexico, and canada. Naics has replaced the united states standard industrial classification system (sic). . Pitex program (programa de importacin temporal para la exportacin) in english, the temporary importation program for exportation allows mexican companies, like u. S. And foreign-owned firms, to import equipment, parts, and raw materials without paying import duties. . Secofi (secretara de comercio y fomento industrial) in english, the secretariat of commerce and industrial development. The principal trade and tariff federal agency in mexico, both foreign investment and foreign-owned businesses are tracked and registered through this arm of the government. . Tijuana, mexico the sixth largest city in mexico, and the largest in the state of baja california, it shares a border and a multitude of social and economic ties to san diego, california. Due to logistical advantages and skilled workforce, tijuana is home to one of the largest maquiladora concentrations in the world. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. What many do not know or understand is the fact that foreign interest in mexico was first facilitated in 1961, when the national border industrialization program was introduced. This program was created to attract foreign investors and stimulate mexico internal market. The maquiladora program, which allowed maquiladoras to be 100% foreign owned, was initiated three years later with the intent to foster border region employment rates as well as further attract foreign investment. Although these programs encouraged foreign-owned production facilities, product sales to mexican markets were controlled. A new maquiladora decree was issued in 1989, and relaxed mexico foreign investment laws further as well as allowing maquiladoras to sell up to 50% of their production to mexican domestic markets. Nafta, among other provisions, eliminated certain customs benefits enjoyed by the maquiladora program and defined strict rules of origin for products to qualify for preferential tariffs. The combination of nafta amendments to the maquiladora decree of 1989 and ever-changing mexican laws governing corporations and trade make the establishment and operation of a maquiladora appear daunting to even the most savvy of american businessmen. Yet thousands of companies have mexican operations, including a large percentage of small to medium-sized american manufacturing firms. The decision to establish a maquiladora was based on minimizing overhead and increasing profit margins, and the success of manufacturing operations south of the border stems from skilled, conscientious labor at a lower cost combined with a longer workweek. Still, the mystery and skepticism attached to setting up shop in mexico remains. Certainly the task is an immense challenge for an american firm wishing to establish a mexican corporation themselves without the knowledge of mexican culture, laws and logistics. While many fortune 500 firms choose this route, a diverse pool of consultants is required, and innumerable challenges arise in both the establishment process and operation of their maquiladora. Some companies choose to hire a contract manufacturer, but sacrifice complete control of production rate and speed. The third option companies may choose is the corporate shelter service. Although essentially the simplest way to open a mexican plant, it is the subject of considerable confusion. The shelter program has been in use since the 1960s. This service allows manufacturing firms to establish a maquiladora in tijuana without owning a mexican business. The process is quite simple. The american or foreign-owned company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the production volume and the specific process required to assemble or manufacture the client product, the shelter firm looks for an appropriate building. The shelter firm then leases the building for the client, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and prospective employees are screened, interviewed, and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to run the production area. Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and agencies which regulate taxes, customs, labor, zoning, facility management, and environmental protection. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing hiring, termination, incentive and disciplinary programs as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. Additionally, the shelter firm handles all border crossing documentation, u. S. And mexico broker coordination and transportation arrangements. The foreign-owned firm now has a maquiladora in mexico, but avoids the challenges associated with cultural differences, employee management and compensation policies, accounting and payment of taxes, and compliance with local and federal codes, regulations and laws. A thorough involvement and focus on production efficiency and quality is afforded to the foreign firm, and the shelter service performs all other functions required to keep the operation running smoothly. Most firms specializing in shelter services are a combination of american and mexican sister companies. All of the services discussed above are included in a weekly invoice from the american shelter firm to the foreign-owned company it has established manufacturing for. The efficiency of shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without making a single border crossing. Setting up a manufacturing facility in mexico promises reduced production overhead and better profit margins. It also represents a myriad of cultural, legal, and logistical challenges for those who endeavor to try it themselves. Many firms have established and manage their own made in mexico corporation with productive results, but the shelter option remains the simplest, most maintenance-free method for manufacturing in mexico. Call border assembly at (619) 710-0555 to find out if a corporate shelter program is right for your company or fill out our free estimate form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. The most visited city. . There a reason tijuana is the world most visited city in the world. Actually, many more than one. Between duty-free shopping, enjoying the superb cuisine, listening to live, endemic music that can only be heard in mexico, and betting on jai alai, horses, dog races, and any major sporting event game taking place anywhere in the world, tijuana has lots to offer. While more u. S. Tourists visit tijuana than any other foreign city in the world, most stay only a few hours. That tends to be enough for most visitors, simply because there is so much to do in such a relatively small section of the city just a short walk from the border. Replete with the colors, sounds and sensory stimulation offered by cultures worlds away from the u. S. , tijuana allows visitors the opportunity to experience its unique blend of energy and charm with just a brief car or trolley ride from downtown san diego. . Welcome to tijuana, mexico, one of the most commercially and culturally dynamic regions in the world! Inside you ll find tips on the best way to open a manufacturing operation in tijuana, mexico, reaping the benefits of a highly skilled, affordable labor pool, ample industrial space, excellent commercial infrastructure, business-friendly tax structures, and logistical advantages for servicing u. S. And pacific rim markets that far exceed other options. You ll also discover the immense array of leisure time activities available to you both within tijuana and in close proximity to this exciting location to do business in. Some of the region best attractions, easily accessible by car or short plane ride, include. And so much more! We invite you to join us to profit from all the business opportunity and leisure possibilities this region has to offer. With the best climate in north america, a multitude of fun things to do, and a highly-efficient program designed to get your factory up and running in tijuana in no time, we have a lot to share! Enjoy the tour, and we hope to see you soon. Best regards, the staff of border assembly, inc. (bai). Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Products made in mexico have become synonymous with both first-rate quality and increased corporate profits. Since nafta was implemented in 1994, the maquiladora industry has been booming, and consumer goods made in mexico have increased in complexity and quality. A skilled, conscientious mexican work force and continuing upgrades in infrastructure have greatly enhanced the efficiency and value of products made in mexico and manufacturing south of the border. . Know your numbers. If you have a labor-intensive manufacturing business (50 assembly workers or more) and payroll accounts for at least 15% of your production overhead, consider having your product made in mexico. Is a maquiladora right for your company? Find out by requesting more info. . Explore the options associated with manufacturing in mexico. Weigh the costs, efficiency and establishment time of doing everything yourself, finding a contract manufacturer, or hiring a corporate shelter service provider, such as border assembly. Whatever option you choose, if your product is made in mexico, you can expect high quality and excellent output. . Visit some maquiladoras yourself (we d be glad to show you some of ours), and talk to operators of existing facilities to see if mexico manufacturing is right for your business. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Through its corporate shelter program, border assembly has helped more than 60 companies reap the benefits of manufacturing in tijuana. We present here just a few examples of our clients success. . The following are true case studies of actual border assembly clients. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Already a prominent player in the aerospace industry, with some 200 manufacturers and more than 25,000 employees, mexico shows little sign of slowing down in this sector. Industry analysts agree, and the numbers are impressive aerospace products valued at more than billion ($u. S. ) were traded by mexico in 2009, with most revenues coming from assembly and manufacturing operations. More than one quarter of these aerospace companies operates in baja california, taking advantage of the state close proximity to u. S. Markets and large, diverse labor pool. One of the keys to gkn success in baja has been the company utilization of a corporate shelter program. Goodrich, honeywell, lockhead martin, gkn and tyco electronics are some of the largest aerospace companies in baja, doing engineering and design, and testing and simulation as well as manufacturing and assembly. An example of both the diversity and growth of this dynamic industry in the border region of baja california is industry giant gkn aerospace one of the world largest engineering companies which plans substantial expansion and has already begun the transition to include manufacturing of composites of fiberglass and carbon used in helicopters and airplanes, and becoming a supplier of components for goodrich aerospace. One of the keys to gkn success in baja has been the company utilization of a corporate shelter program. While many companies of this size (annual revenues from gkn aerospace, depending on the year and various currency conversion factors, range from . 5 to billion u. S. ) possess the resources to establish a mexican subsidiary utilizing their own staff and a team of consultants, the process can take much longer and be substantially more burdensome than going the quicker, easier corporate shelter route. By the numbers san diego tijuana weather. Bordertalk baja california the northern and western most state in mexico, occupying 27,636 square miles, baja california shares a border with the united states and is the northern half of the second longest peninsula in the world. Over 75% of the population lives in one of three cities tijuana, ensenada, or its capital, mexicali. In addition to an excellent higher learning infrastructure with 32 universities, baja california has one of the best educational systems in mexico. Over 90% of children aged six to fourteen in the state attend school. Baja california is on the southern side of the most crossed international border in the world (tijuana, mexico to the south and san ysidro a community of san diego california to the north). . A series of suicides, worker strikes, and heightened media attention, prompts alan wheatley, reuters china economics editor, to question the viability of china as the manufacturing option it once was. The journalist cites rapid increases in pay with some industry experts predicting a 15-20% rise throughout the country by years end, and one manufacturing giant already raising wages 66% new labor laws that strengthen workers rights but also increase costs, and pressure from foreign interests to allow the yuan to continue rising. While arguably not bad enough for chinese and foreign-owned firms manufacturing in china to close their gates, there is much interest and already strong movement of facilities to other parts of asia and beyond. Demographers agree that chinas working-age population will peak around 2015-2016. Surplus labour will therefore shrink, even as farmers continue to leave the land for better-paying urban jobs. Alan wheatley, china economics editor as chinas price advantage is eroded, wheatley writes, the incentive will grow for international companies to move part of their production out of asia altogether, both to save on transport costs and to be able to supply consumer markets more quickly. The analyst continues, even if supply and demand put a lid on wages again next year, the spate of wage increases may be a harbinger of a turning point in the chinese economy. And china as a manufacturing option. Time will tell, but with wages steady and working conditions in maquiladoras run by responsible companies like border assembly conducive to workers well-being and productivity, interest in manufacturing in mexico, even by chinese companies as, is sure to continue. By the numbers the economic importance of mexico to the u. S. , and vice versa 22 number of u. S. States that call mexico their number one or number two destination for exports 4 number of u. S. States that share a border with mexico 31 number of states in mexico (plus one federal district) 92. 8 percentage of mexicans that can read and write 80 approximate percentage of mexicos 0 billion in global exports produced u. S. What is the pitex program? In spanish, its called la programa de importaci n temporal para la exportaci n, and in english, the temporary importation program for exportation, which is pretty self-explanatory, and andvantageous for american firms manufacturing in mexico under a corporate shelter program (which designates them as a mexican company without the complications of handling all labor, administration and legal issues themselves). Under the law, mexican firms can import equipment, parts, and raw materials on a conditional basis without paying import duties. . In competitive alternatives 2010 special report focus on tax, a report recently released by the business research firm kpmg, mexico ranked above all other countries studied for corporate tax friendliness. With the lowest total tax index, or tti, mexico beat ten other countries in corporate income tax, other corporate taxes, and statutory labor costs. Mexico also won the same honor in the firms 2008 study. Between the downturn in the global economy and a power struggle between drug cartels that has escalated violence in the region (but steadily in decline since the beginning of 2010), this is welcome news for businesses currently manufacturing south of the border or considering the option. Kpmg has a global network of professional companies in 146 countries that provides auditing, tax and various financial advisory services. It has been tracking tax rates around the world for more than 15 years. U. S. Tax costs were used as a baseline for comparison in the research cited. By the numbers the economic importance of mexico to the u. S. , and vice versa (note first in series of statistics compiled from the united states office of electronic information, bureau of public affairs and other online sources) 9 billion u. S. Goods exports to mexico in 2009 1 million legitimate travelers crossing u. S. Mexican border every day billion value of goods legally crossing the u. S. Mexican border every day 80% percentage of these goods crossing the land border on trucks and trains 7 billion u. S. Goods imports from mexico in 2009 billion aerospace manufacturing investment in mexico since 1990 80% percentage of all inputs for mexicos maquiladora manufacturing and assembly firms that came from the u. S. In 2009 90% percentage of all exports from mexicos maquiladoras returned to the u. S. . What is bancomext? Bancomext mexicos federally owned and run bank established in 1937 is an acronym for banco nacional de comercio exterior, or in english, national exterior commerce bank. The banks link to maquiladoras and manufacturing in mexico through corporate shelter programs lies in its mission and initiatives to stimulate economic growth through attracting foreign investment and promoting foreign trade. In addition to financial assistance, bancomext provides consulting, training and project coordination services for companies involved in import, export and cross-border trade. . Once again, travel + leisure magazine readers recognized several of mexicos hotels as top destinations in the world. In its worlds best awards, two mexican hotels made the top 25. The rosewood mayakoba in riviera maya is a new resort that features 128 suites and a natural limestone pool. The esperanza in los cabos has 57 rooms with handcrafted furniture and tequila tastings in el restaurante, overlooking the famous natural landmark lands end. Two mexican hotels also made the magazines it list 45 best new hotels of 2009. For water lovers the banyan tree mayakoba resort spa in riviera maya features its own private caribbean beach as well as numerous outdoor pools and jacuzzis, and a spa staffed with all thai-trained therapists. For cosmopolites, perhaps one of the hippest boutique hotels in mexico city is more like. Guests get to the lobby to the distrito capital a stunning, modern 30-room hotel located in the citys santa fe business district by taking a 28-floor elevator ride. Once checked in, head to the rooftop bar, pool terrace, or simply wander around inside and enjoy artwork by paris-based designer joseph dirand. If the hotels mentioned above sound pricey, its because they are (although the distrito capital is the most affordable and a bargain for a boutique hotel at 0 night). But mexico also made travel + leisures best affordable beach resorts of 2009 with its villas carrizalillo in puerto escondido (from 0 a night), and present moment retreat at troncones beach, near ixtapa (from 5 per night for a retreat package and a private bungalow). Mexico is more than a leading manufacturing location. Its a premier vacation spot too, and many border assembly clients have confessed the leisure opportunities this exciting country has to offer are among their most favored advantages to doing to business there. Benefit packages of maquiladora workers. . . Its no secret its less expensive to manufacture in mexico, but few people realize how good a maquila employee can have it. The federal labor law protects workers the same regardless if the company is mexican or foreign owned, a maquiladora or standard type of business structure. Some of these protections include the provision that every hourly and salaried maquiladora employee must have a written employment contract, overtime pay rates set by law, pregnant women granted a mandatory leave of absence and a guarantee their job will be waiting for them when they return, mandatory child care, statutory vacation pay, a christmas bonus, employee profit sharing and severance pay. Despite this comprehensive array of benefits, many maquiladoras actually provide more than what are required by law. And although the right to unionize is guaranteed by mexicos constitution, the working conditions in many maquiladoras especially those operated by border assembly, inc. Are so favorable to employees unionizing simply isnt necessary and seldom sought after. Starting maquiladora worker wages are typically twice that of minimum wages for the border region, and may increase by as much as 25% after six months of employment. In fact, remaining with the same company is heavily incentivized in the maquiladora industry, with steady increases in pay, profit sharing and vacation time common rewards for employees who put in years of service. These benefits may sound strange for an industry that is often accused of sweatshop conditions, but the truth is mexican workers have many protections that dont even exist in the united states. Sweatshops exist throughout the world, including in the u. S. You simply wont find anything close under border assemblys management, and we invite you to visit and judge for yourself, where youll see happy, productive, conscientious employees who are both skilled and proud to be working in a healthy environment. A tour of border assemblys facilities is among one of the first steps clients take before choosing our services. If youre exploring a corporate shelter program in mexico, we encourage you to visit. . What does the term maquila program mean? Mexico has historically favored and promoted foreign investment and is viewed by the government as a means to upgrade workers skills, transfer technology, and increase demand for mexican goods. It goes without saying the maquiladora industry is viewed by the mexican government as a highly beneficial vehicle for this investment, and the 1989 maquiladora decree, which loosened previous regulations and simplified the process of establishing and administering a maquila program, is a testament to the industrys popularity and continued success. A maquila program is a foreign-owned mexican corporation regulated by the mexican secretariat of commerce and industrial development (secofi), which allows the duty-free importation of foreign goods and materials (including machinery required to do the manufacturing and administrative equipment such as computers), provided they are used to assemble, manufacture or repair products which are then exported to the country of origin or to a third country outside of mexico. . And our first newsletter! Youre receiving this because youve requested to be kept informed about exciting developments in mexico manufacturing and the maquiladora industry. Welcome! Before we get into some of mexicos dynamic happenings and opportunities, a few words about us first border assembly, inc. Is an american firm located in san diego, california with more than 35 years of experience in the maquiladora industry. With our assisatnce, a client wishing to establish manufacturing operations in mexico can be up and beginning in as few as four weeks, already benefiting from a fully burdened hourly labor cost of around . 00 us, compared to . 00 or more in the states. The cost for workers comp is entirely eliminated. We can help your company overcome the present economic downturn and remain solvent and competitive with a skilled, conscientious and dynamic workforce. We thank you for subscribing to our newsletter, and invite you to explore joining the thousands of other companies already benefiting from manufacturing in mexico. We look forward to hearing from you! Best regards, ernesto bravo border assembly, inc. - - - - - - - - - - - - - - - - - - mexico passes india, china as best to serve u. S. Markets recent research conducted by the consulting firm alixpartners has found mexico to be the cheapest place in the world to manufacture products for the u. S. Market. India came in second, beating out china and brazil, respectively. Interestingly, numerous chinese companies have picked up on the value of manufacturing in mexico. While many u. S. Companies have failed to see the benefits, chinese firms have been setting up manufacturing operations in mexico for years as a means to decrease production costs and take advantage of its advantageous location. The truth is, costs are rising in china, the dollar-yuan relationship is tentative and likely to degrade, and its distance from the u. S. Equates to high, widely fluctuating transportation expenses as well as less control of production quality offered by closer, more accessible manufacturing locations, like mexico. In fact, chinese manufacturers began eyeing mexico about a decade ago, and by 2005, some 20-25 companies had already established maquiladoras employing almost 4,000 people to serve textile, cell phone, tv and auto sectors. As costs increase in china, and crude oil prices inflate transportation costs, analysts expect to see more chinese companies moving to mexico, especially those targeting u. S. Markets. . What does nearshoring mean? Nearshoring is a variation of the term offshoring, and means basically the same thing, sourcing manufacturing or assembly services from a foreign country to reduce production costs. Also known as nearshore outsourcing, the difference between offshoring and nearshoring is nearshoring involves looking for (or utilizing once found) a country that is closer to the u. S. Or country outsourcing. Nearshoring came into play when rising fuel costs prompted outsourcers to look for locations that required shorter transport distances. ? Request at free cost estimate at http borderassembly request-quote. Html. Yes, i& ,m interested in receiving additional information about manufacturing in mexico. I would appreciate hearing from you soon. (please allow 4-6 days for a mail response to your request. ). Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Products made in mexico have become synonymous with both first-rate quality and increased corporate profits. Since nafta was implemented in 1994, the maquiladora industry has been booming, and consumer goods made in mexico have increased in complexity and quality. A skilled, conscientious mexican work force and continuing upgrades in infrastructure have greatly enhanced the efficiency and value of products made in mexico and manufacturing south of the border. . Know your numbers. If you have a labor-intensive manufacturing business (50 assembly workers or more) and payroll accounts for at least 15% of your production overhead, consider having your product made in mexico. Is a maquiladora right for your company? Find out by requesting more info. . Explore the options associated with manufacturing in mexico. Weigh the costs, efficiency and establishment time of doing everything yourself, finding a contract manufacturer, or hiring a corporate shelter service provider, such as border assembly. Whatever option you choose, if your product is made in mexico, you can expect high quality and excellent output. . Visit some maquiladoras yourself (we d be glad to show you some of ours), and talk to operators of existing facilities to see if mexico manufacturing is right for your business. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Border assembly, inc. (bai) is a san diego based company that has helped more than 70 american and international manufacturing firms start-up and operate successful maquiladoras in tijuana, mexico. . With 35 years in the business, bai has perfected a corporate shelter program for clients that minimizes start-up costs, maximizes advantage of tijuana skilled labor and business friendly policies, and allows firms wishing to manufacture in tijuana get up and going in as little as six weeks. Privately held, bai employs over one thousand hard working, conscientious people at its corporate headquarters in san diego and sister firm in tijuana, mexico. Its clients in tijuana range from manufacturing operations with 10 employees to production facilities with more than 500 workers. Industries served include electronics, communications, textiles, apparel, furniture, sporting goods, toys, automotive components, and art, among others. Feel free to browse through our site, and don t forget to check our faq page for answers to some of the most common questions we receive. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. What many do not know or understand is the fact that foreign interest in mexico was first facilitated in 1961, when the national border industrialization program was introduced. This program was created to attract foreign investors and stimulate mexico internal market. The maquiladora program, which allowed maquiladoras to be 100% foreign owned, was initiated three years later with the intent to foster border region employment rates as well as further attract foreign investment. Although these programs encouraged foreign-owned production facilities, product sales to mexican markets were controlled. A new maquiladora decree was issued in 1989, and relaxed mexico foreign investment laws further as well as allowing maquiladoras to sell up to 50% of their production to mexican domestic markets. Nafta, among other provisions, eliminated certain customs benefits enjoyed by the maquiladora program and defined strict rules of origin for products to qualify for preferential tariffs. The combination of nafta amendments to the maquiladora decree of 1989 and ever-changing mexican laws governing corporations and trade make the establishment and operation of a maquiladora appear daunting to even the most savvy of american businessmen. Yet thousands of companies have mexican operations, including a large percentage of small to medium-sized american manufacturing firms. The decision to establish a maquiladora was based on minimizing overhead and increasing profit margins, and the success of manufacturing operations south of the border stems from skilled, conscientious labor at a lower cost combined with a longer workweek. Still, the mystery and skepticism attached to setting up shop in mexico remains. Certainly the task is an immense challenge for an american firm wishing to establish a mexican corporation themselves without the knowledge of mexican culture, laws and logistics. While many fortune 500 firms choose this route, a diverse pool of consultants is required, and innumerable challenges arise in both the establishment process and operation of their maquiladora. Some companies choose to hire a contract manufacturer, but sacrifice complete control of production rate and speed. The third option companies may choose is the corporate shelter service. Although essentially the simplest way to open a mexican plant, it is the subject of considerable confusion. The shelter program has been in use since the 1960s. This service allows manufacturing firms to establish a maquiladora in tijuana without owning a mexican business. The process is quite simple. The american or foreign-owned company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the production volume and the specific process required to assemble or manufacture the client product, the shelter firm looks for an appropriate building. The shelter firm then leases the building for the client, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and prospective employees are screened, interviewed, and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to run the production area. Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and agencies which regulate taxes, customs, labor, zoning, facility management, and environmental protection. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing hiring, termination, incentive and disciplinary programs as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. Additionally, the shelter firm handles all border crossing documentation, u. S. And mexico broker coordination and transportation arrangements. The foreign-owned firm now has a maquiladora in mexico, but avoids the challenges associated with cultural differences, employee management and compensation policies, accounting and payment of taxes, and compliance with local and federal codes, regulations and laws. A thorough involvement and focus on production efficiency and quality is afforded to the foreign firm, and the shelter service performs all other functions required to keep the operation running smoothly. Most firms specializing in shelter services are a combination of american and mexican sister companies. All of the services discussed above are included in a weekly invoice from the american shelter firm to the foreign-owned company it has established manufacturing for. The efficiency of shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without making a single border crossing. Setting up a manufacturing facility in mexico promises reduced production overhead and better profit margins. It also represents a myriad of cultural, legal, and logistical challenges for those who endeavor to try it themselves. Many firms have established and manage their own made in mexico corporation with productive results, but the shelter option remains the simplest, most maintenance-free method for manufacturing in mexico. Call border assembly at (619) 710-0555 to find out if a corporate shelter program is right for your company or fill out our free estimate form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Mexico manufacturing by foreign-owned companies is typically achieved by one of three ways. If you have the financial resources and lots of patience and time, you can hire consultants, bilingual staff and embark on mexico manufacturing yourself. With money to burn, many fortune 500 companies choose this route. Another option is to hire a contract manufacturer, if you can find a reliable one, but you ll likely sacrifice some production control of your products made in mexico. Another method, and one we re sure is the easiest and most cost effective way to establish a maquilador in mexico, is to use the corporate shelter program offered by border assembly. We offer the following services, designed to ensure your pursuit of manufacturing in mexico is efficient and rewarding. . The safest bet for manufacturing in tijuana, mexico. We source appropriate facilities and let you choose the one you like. Then we lease it for you, take care of all permits and licenses, hire the work force, set up administration, accounting, taxes, and payroll, and ensure compliance with all applicable mexican laws and regulations, including nafta. We do customs and transportation arrangements, and provide full-time, ongoing administrative services. You provide a production supervisor, and the machinery and materials required to do the work, we do the rest. Mexico manufacturing can& ,t get any more efficient. Start-up assistance. Border assembly will lease a facility that you select, handle all permitting, licensing and nafta compliance, hire the work force, set-up payroll, tax and administrative procedures, and perform everything it takes to get you manufacturing in mexico quickly and efficiently. The average time it takes for border assembly to get a client up and running is 6 weeks. Your supervisor runs the production operation. . Want some more info? Get some industry tips and find out which products are made in mexico. (2. 62 megabytes in size) why tijuana, mexico? Sure, there are other options, but given its superior logistics, including better access to california and pacific rim markets, proximity to san diego and los angeles, highly skilled workforce, better shipping options (including truck, rail, air and sea) and fully established manufacturing infrastructure, tijuana is by far the best location for mexico manufacturing. In fact, more companies have chosen tijuana for establishing a maquiladora than any other single city or state in all of mexico!. Visit made in mexico to get start-up tips and information on the maquiladora industry. Want to find out if manufacturing in tijuana is right for your company? Visit border assembly inc. , or request a free cost estimate. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Most of the expense you& ,ll incur is fitting the manufacturing facility to suit your production requirements, and transporting any equipment or machinery necessary for your operation. Border assembly inc. (bai) handles most of the start-up process for you, so you can begin quickly and with minimal capital expense. . Bai, an american company based in san diego, uses its subsidiary in tijuana to handle all of your permitting and licensing requirements, including regulatory compliance, staffing, facility leasing and legal issues. You provide manufacturing equipment and materials for making your product, a production supervisor, and bai does the rest. You pay us an hourly fee that covers payroll and our service charge. Even with bai fees factored in, you ll still pay half of what you re paying now for labor!. Bai does all the start-up work, minimizing your start-up costs, and lets you maintain total control over production and quality once your maquiladora is up and running. It your plant, your profit, and you benefit from lower labor costs without the expensive, time-consuming worries associated with owning a business in a foreign country. Now that simple isn t it?. No. Actually, the mexican government started it in the 1960 to stimulate the economy by attracting foreign investment. While it gone through some changes, including new provisions that came with nafta, the system has been operating efficiently, creating jobs and benefiting both mexico and the united states since it inception. . That depends on the requirements of your particular operation, but we& ,ve gotten some of our clients up and running in as few as four weeks. Sometimes it takes longer, but the average for bai clients has been six weeks. . You won t find a sweatshop or exploited workers under bai management. Our employees are paid well, get nice benefit packages, and are skilled, conscientious workers. It not fair to associate the entire maquiladora industry with poor working conditions. There are sweatshops in new york, los angeles, many other cities in the united states, and throughout the world as well. There are also lots of operations in these locations that are managed well and treat employees fairly. The same holds true for mexico. If you re considering a maquiladora, we encourage you to visit those we operate in tijuana. . The cost of living is lower, so employees make less. There& ,s also lower real estate costs, and laws and policies that encourage business, rather than impede it as many u. S. States do. . Tijuana is the television-making capital of the world. Electronics, fiber-optics, computer components, automobiles, and the some of the most sophisticated products being produced are manufactured in mexico by a young, dynamic, and highly-skilled workforce. In addition to conscientious line workers, tijuana has a large, growing pool of engineers, designers, and administrators. No matter how complex or specific your production needs are, the workforce in tijuana can meet and exceed your expectations. . Sure. If you have the time, energy, and money to burn, you can hire a multitude of consultants and do everything yourself. While some fortune 500 companies have chosen this route, it& ,s not for the timid, and requires a vast amount of diligence, resources, and patience. Another option is to hire a contract manufacturer, if you can find a reliable one. Enough said. . Tijuana has an excellent system of transportation, including truck, rail, air, and close proximity to major west coast marine terminals. The quality is the same as the u. S. , and the cost is comparable, if not cheaper. . Absolutely not, but when you visit, we guarantee you& ,ll enjoy the dry, sunny climate, warm culture, excellent food and music, and variety of fun things to do including world-class fishing and golf. In fact, many executives enjoy the region so much, they have chosen to live in san diego and work in tijuana. . No. Many cities in mexico have maquiladoras, but none have the benefit of being in the same business community of san diego, a logistical superior location to service the continental u. S. And the pacific rim, and a vibrant expanding labor pool. It& ,s easy to understand why there are more maquiladoras in tijuana and the state of baja california than any other region in mexico. . For one, you can be in tijuana in just a few hours by plane no matter what part of the united states you& ,re coming from. By being in relative close proximity to your operation, you can ensure quality control. Tijuana is in a superb logistical position to supply markets to both the u. S. And pacific rim. Moving materials there and finished products out of tijuana is cheaper due to its location, which is just minutes from u. S. Soil. A well-developed infrastructure, immense, talented labor pool, and ample supply of buildings and land for manufacturing also give tijuana an edge. . Anything that is currently being manufactured anywhere can be produced in tijuana. Electronics, automobiles, sporting goods, toys, furniture, and chemicals are a few examples. . Experience. We& ,ve teamed up with more than 60 companies to establish manufacturing operations in mexico. Bai has extensive knowledge of mexican laws, codes, and regulations pertaining to labor, business and taxes. Our clients profit from manufacturing in mexico without having a business in mexico. . Give us a call at (619) 710-0555 or fill out our info request form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Manufacturing in mexico has never been easier since border assembly perfected it& ,s corporate shelter program. An american company located in san diego, california, border assembly has more than three decades of experience, helping united states and international manufacturing firms reap the benefits of nafta and manufacturing in mexico. . And export products, is commonly known as a maquiladora, maquila, or twin plant. Manufacturing in mexico in a maquiladora is profitable, yielding high quality, and expedited production at a fraction of the cost of other options. If you want your product made in mexico, border assembly can help you establish a maquiladora quickly and with minimal effort and capital expense on your part. To maximize the benefits of manufacturing in mexico, with superior logistics a focus, we establish all client factories through our corporate shelter program in tijuana. . While nafta has facilitated manufacturing in mexico, the challenge of cultural and language differences remains as a stumbling block for many business owners considering a maquiladora. Border assembly& ,s corporate shelter program allows us to set up the maquiladora and handle all labor, legal, and administrative tasks, while you maintain control of production quality. Our service will enable you to manufacture in mexico with the following benefits. * border assembly handles all contact with mexico. This includes permitting and licensing, regulatory compliance, staffing, facility leasing, and legal issues. You provide equipment and materials for manufacturing your product in mexico, a maquiladora production supervisor, and border assembly does the rest. . * rapid start-up. With border assembly& ,s corporate shelter program, most of our clients have gotten up and running in about six weeks. . * labor savings of 50% or more. Border assembly& ,s corporate shelter service will cut your production overhead labor cost in half or more, while allowing you to maintain control of product quality. How much can you save? Why not let us give you a free cost estimate?. There& ,s a reason nearly every fortune 500 company has a maquiladora in mexico. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. What many do not know or understand is the fact that foreign interest in mexico was first facilitated in 1961, when the national border industrialization program was introduced. This program was created to attract foreign investors and stimulate mexico internal market. The maquiladora program, which allowed maquiladoras to be 100% foreign owned, was initiated three years later with the intent to foster border region employment rates as well as further attract foreign investment. Although these programs encouraged foreign-owned production facilities, product sales to mexican markets were controlled. A new maquiladora decree was issued in 1989, and relaxed mexico foreign investment laws further as well as allowing maquiladoras to sell up to 50% of their production to mexican domestic markets. Nafta, among other provisions, eliminated certain customs benefits enjoyed by the maquiladora program and defined strict rules of origin for products to qualify for preferential tariffs. The combination of nafta amendments to the maquiladora decree of 1989 and ever-changing mexican laws governing corporations and trade make the establishment and operation of a maquiladora appear daunting to even the most savvy of american businessmen. Yet thousands of companies have mexican operations, including a large percentage of small to medium-sized american manufacturing firms. The decision to establish a maquiladora was based on minimizing overhead and increasing profit margins, and the success of manufacturing operations south of the border stems from skilled, conscientious labor at a lower cost combined with a longer workweek. Still, the mystery and skepticism attached to setting up shop in mexico remains. Certainly the task is an immense challenge for an american firm wishing to establish a mexican corporation themselves without the knowledge of mexican culture, laws and logistics. While many fortune 500 firms choose this route, a diverse pool of consultants is required, and innumerable challenges arise in both the establishment process and operation of their maquiladora. Some companies choose to hire a contract manufacturer, but sacrifice complete control of production rate and speed. The third option companies may choose is the corporate shelter service. Although essentially the simplest way to open a mexican plant, it is the subject of considerable confusion. The shelter program has been in use since the 1960s. This service allows manufacturing firms to establish a maquiladora in tijuana without owning a mexican business. The process is quite simple. The american or foreign-owned company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the production volume and the specific process required to assemble or manufacture the client product, the shelter firm looks for an appropriate building. The shelter firm then leases the building for the client, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and prospective employees are screened, interviewed, and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to run the production area. Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and agencies which regulate taxes, customs, labor, zoning, facility management, and environmental protection. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing hiring, termination, incentive and disciplinary programs as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. Additionally, the shelter firm handles all border crossing documentation, u. S. And mexico broker coordination and transportation arrangements. The foreign-owned firm now has a maquiladora in mexico, but avoids the challenges associated with cultural differences, employee management and compensation policies, accounting and payment of taxes, and compliance with local and federal codes, regulations and laws. A thorough involvement and focus on production efficiency and quality is afforded to the foreign firm, and the shelter service performs all other functions required to keep the operation running smoothly. Most firms specializing in shelter services are a combination of american and mexican sister companies. All of the services discussed above are included in a weekly invoice from the american shelter firm to the foreign-owned company it has established manufacturing for. The efficiency of shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without making a single border crossing. Setting up a manufacturing facility in mexico promises reduced production overhead and better profit margins. It also represents a myriad of cultural, legal, and logistical challenges for those who endeavor to try it themselves. Many firms have established and manage their own made in mexico corporation with productive results, but the shelter option remains the simplest, most maintenance-free method for manufacturing in mexico. Call border assembly at (619) 710-0555 to find out if a corporate shelter program is right for your company or fill out our free estimate form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Mexico manufacturing by foreign-owned companies is typically achieved by one of three ways. If you have the financial resources and lots of patience and time, you can hire consultants, bilingual staff and embark on mexico manufacturing yourself. With money to burn, many fortune 500 companies choose this route. Another option is to hire a contract manufacturer, if you can find a reliable one, but you ll likely sacrifice some production control of your products made in mexico. Another method, and one we re sure is the easiest and most cost effective way to establish a maquilador in mexico, is to use the corporate shelter program offered by border assembly. We offer the following services, designed to ensure your pursuit of manufacturing in mexico is efficient and rewarding. . The safest bet for manufacturing in tijuana, mexico. We source appropriate facilities and let you choose the one you like. Then we lease it for you, take care of all permits and licenses, hire the work force, set up administration, accounting, taxes, and payroll, and ensure compliance with all applicable mexican laws and regulations, including nafta. We do customs and transportation arrangements, and provide full-time, ongoing administrative services. You provide a production supervisor, and the machinery and materials required to do the work, we do the rest. Mexico manufacturing can& ,t get any more efficient. Start-up assistance. Border assembly will lease a facility that you select, handle all permitting, licensing and nafta compliance, hire the work force, set-up payroll, tax and administrative procedures, and perform everything it takes to get you manufacturing in mexico quickly and efficiently. The average time it takes for border assembly to get a client up and running is 6 weeks. Your supervisor runs the production operation. . Want some more info? Get some industry tips and find out which products are made in mexico. (2. 62 megabytes in size) why tijuana, mexico? Sure, there are other options, but given its superior logistics, including better access to california and pacific rim markets, proximity to san diego and los angeles, highly skilled workforce, better shipping options (including truck, rail, air and sea) and fully established manufacturing infrastructure, tijuana is by far the best location for mexico manufacturing. In fact, more companies have chosen tijuana for establishing a maquiladora than any other single city or state in all of mexico!. Visit made in mexico to get start-up tips and information on the maquiladora industry. Want to find out if manufacturing in tijuana is right for your company? Visit border assembly inc. , or request a free cost estimate. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. What many do not know or understand is the fact that foreign interest in mexico was first facilitated in 1961, when the national border industrialization program was introduced. This program was created to attract foreign investors and stimulate mexico internal market. The maquiladora program, which allowed maquiladoras to be 100% foreign owned, was initiated three years later with the intent to foster border region employment rates as well as further attract foreign investment. Although these programs encouraged foreign-owned production facilities, product sales to mexican markets were controlled. A new maquiladora decree was issued in 1989, and relaxed mexico foreign investment laws further as well as allowing maquiladoras to sell up to 50% of their production to mexican domestic markets. Nafta, among other provisions, eliminated certain customs benefits enjoyed by the maquiladora program and defined strict rules of origin for products to qualify for preferential tariffs. The combination of nafta amendments to the maquiladora decree of 1989 and ever-changing mexican laws governing corporations and trade make the establishment and operation of a maquiladora appear daunting to even the most savvy of american businessmen. Yet thousands of companies have mexican operations, including a large percentage of small to medium-sized american manufacturing firms. The decision to establish a maquiladora was based on minimizing overhead and increasing profit margins, and the success of manufacturing operations south of the border stems from skilled, conscientious labor at a lower cost combined with a longer workweek. Still, the mystery and skepticism attached to setting up shop in mexico remains. Certainly the task is an immense challenge for an american firm wishing to establish a mexican corporation themselves without the knowledge of mexican culture, laws and logistics. While many fortune 500 firms choose this route, a diverse pool of consultants is required, and innumerable challenges arise in both the establishment process and operation of their maquiladora. Some companies choose to hire a contract manufacturer, but sacrifice complete control of production rate and speed. The third option companies may choose is the corporate shelter service. Although essentially the simplest way to open a mexican plant, it is the subject of considerable confusion. The shelter program has been in use since the 1960s. This service allows manufacturing firms to establish a maquiladora in tijuana without owning a mexican business. The process is quite simple. The american or foreign-owned company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the production volume and the specific process required to assemble or manufacture the client product, the shelter firm looks for an appropriate building. The shelter firm then leases the building for the client, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and prospective employees are screened, interviewed, and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to run the production area. Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and agencies which regulate taxes, customs, labor, zoning, facility management, and environmental protection. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing hiring, termination, incentive and disciplinary programs as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. Additionally, the shelter firm handles all border crossing documentation, u. S. And mexico broker coordination and transportation arrangements. The foreign-owned firm now has a maquiladora in mexico, but avoids the challenges associated with cultural differences, employee management and compensation policies, accounting and payment of taxes, and compliance with local and federal codes, regulations and laws. A thorough involvement and focus on production efficiency and quality is afforded to the foreign firm, and the shelter service performs all other functions required to keep the operation running smoothly. Most firms specializing in shelter services are a combination of american and mexican sister companies. All of the services discussed above are included in a weekly invoice from the american shelter firm to the foreign-owned company it has established manufacturing for. The efficiency of shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without making a single border crossing. Setting up a manufacturing facility in mexico promises reduced production overhead and better profit margins. It also represents a myriad of cultural, legal, and logistical challenges for those who endeavor to try it themselves. Many firms have established and manage their own made in mexico corporation with productive results, but the shelter option remains the simplest, most maintenance-free method for manufacturing in mexico. Call border assembly at (619) 710-0555 to find out if a corporate shelter program is right for your company or fill out our free estimate form. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Border assembly, inc. (bai) is a san diego based company that has helped more than 70 american and international manufacturing firms start-up and operate successful maquiladoras in tijuana, mexico. . With 35 years in the business, bai has perfected a corporate shelter program for clients that minimizes start-up costs, maximizes advantage of tijuana skilled labor and business friendly policies, and allows firms wishing to manufacture in tijuana get up and going in as little as six weeks. Privately held, bai employs over one thousand hard working, conscientious people at its corporate headquarters in san diego and sister firm in tijuana, mexico. Its clients in tijuana range from manufacturing operations with 10 employees to production facilities with more than 500 workers. Industries served include electronics, communications, textiles, apparel, furniture, sporting goods, toys, automotive components, and art, among others. Feel free to browse through our site, and don t forget to check our faq page for answers to some of the most common questions we receive. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Products made in mexico have become synonymous with both first-rate quality and increased corporate profits. Since nafta was implemented in 1994, the maquiladora industry has been booming, and consumer goods made in mexico have increased in complexity and quality. A skilled, conscientious mexican work force and continuing upgrades in infrastructure have greatly enhanced the efficiency and value of products made in mexico and manufacturing south of the border. . Know your numbers. If you have a labor-intensive manufacturing business (50 assembly workers or more) and payroll accounts for at least 15% of your production overhead, consider having your product made in mexico. Is a maquiladora right for your company? Find out by requesting more info. . Explore the options associated with manufacturing in mexico. Weigh the costs, efficiency and establishment time of doing everything yourself, finding a contract manufacturer, or hiring a corporate shelter service provider, such as border assembly. Whatever option you choose, if your product is made in mexico, you can expect high quality and excellent output. . Visit some maquiladoras yourself (we d be glad to show you some of ours), and talk to operators of existing facilities to see if mexico manufacturing is right for your business. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. Facilities, product sales to mexican markets were controlled. A new. The corporate shelter program has been in use since the 1960& ,s, and allows american-owned manufacturing firms to establish a maquiladora in tijuana, mexico without owning a mexican business. The process is quite simple. The american company wishing to manufacture in tijuana contacts border assembly inc. , a firm specializing in providing shelter services. Based on the specific manufacturing or assembly needs of the client, the shelter firm looks for and leases an appropriately-sized building for them, and handles all of the real estate transactions, permits and legal work required to acquire the facility. The shelter service also acquires the maquiladora register, import permits, and local and federal licenses and permits. Bank accounts and an accounting and tax payment program are established, and employees are interviewed and hired. The foreign manufacturing firm moves equipment and machinery required for assembly or manufacturing to the facility, and designates a production supervisor to ensure quality control. . Once the operation is established and running, the shelter firm ensures compliance with all mexican laws and regulations. Research and management required for fiscal compliance with transfer pricing, permanent establishment, safe harbor, asset taxes, and payroll, withholding and employee benefits packages are also handled by the shelter firm. Ongoing personnel management as well as compliance with labor laws and the labor board are performed as part of the shelter package as well. . Additionally, the shelter firm can handle all border crossing and transportation arrangements. The american firm maintains complete control of product quality while he shelter firm performs all functions required to keep the operation running smoothly. . The efficiency of border assembly, inc. & ,s shelter services has advanced to a point where an american business could potentially establish a mexican operation in as few as six weeks without even crossing the border. The american manufacturer profits substantially from labor costs cut in half, while bypassing any challenges associated with establishing a factory in tijuana themselves. . Border assembly inc. 1605 pacific rim ct. San diego, ca 92154 san diego (619) 710-0555. .

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