The Tecma Group of Companies’ entities gain certification for Mexican VAT tax exemption
The Tecma Group ensures its Mexico manufacturing clients’ competitiveness by obtaining Mexican VAT tax exemption.
One of the consequences of the broad tax reforms passed last year by the Mexican Congress is that companies operating as maquiladoras in Mexico that do not go through a defined IMMEX certification process must pay a value-added tax of sixteen percent on temporary imports. Companies that successfully apply for and receive IMMEX certification are exempted from making such payments.
To qualify as an IMMEX company under current taxation statutes, manufacturers must be audited by Mexico’s Tax Administration Service (SAT) to ensure that eighty percent of the goods that they produce in Mexico are exported, for the VAT tax exemption to be applicable.
The Tecma Group of companies recently made application for Mexican VAT tax exemption for two of its operating entities, Integrated Maquila Solutions, S de RL de CV and Elamex de Torreon, SA de CV, passed the required IMMEX audit and received its certification, which has secured a sixteen percent tax exemption for the companies manufacturing as maquiladoras under the auspices of its Mexico Manufacturing Shelter Partnership (MSMP). The work required to gain the exemption was performed by Tecma’s in-house Mexican Customs brokers, David Romo and Carmen Ramirez.
According to the Tecma Group of Companies’ president and CEO, Alan Russell, “The IMMEX certification of two of our companies’ Mexican entities in accord with the requirements set by last years’ tax reform legislation will be a critical contribution to keeping our shelter company clients’ manufacturing operations competitive in their respective industries. Exemption from the payment of Mexican VAT tax will preserve manufacturers’ cash flow, as well as will eliminate their exposure to charges related to money borrowed to finance the purchase of raw materials and inputs used in their production processes.”
ABOUT THE TECMA GROUP OF COMPANIES
The Tecma Group of Companies, Inc., headquartered in El Paso, Texas provides services that have enabled firms from a wide range of industries to establish and maintain manufacturing in Mexico operations for almost three decades. Under its Mexico Shelter Manufacturing Partnership (MSMP) companies control and focus on their core, value-added functions, while Tecma tends to their human resource, payroll, accounting, logistics, and other needs that, although important, are not part of the manufacturing process. In addition to making Tecma content available at one’s finger tips, interested parties can also receive Mexico manufacturing information on a weekly basis by SMS Texting the word Tecma to 96000. Instantaneous access to all of the Tecma Group’s informative Mexico manufacturing content can be achieved by downloading the Tecma Group of Companies mobile app from the Google Play Store.
Alfa will invest US$700 million in Altamira electric plant in 2015
Grupo Alfa will invest up to US$700 million in an electric power generation plant located in Altamira, Tamaulipas; the first stage of its construction will start in 2015, while the second stage will take place in 2016, Raul Millares, Energy Director, said.
“The new electric power generation plant will be aimed for self-consumption and also for sale to customers and it consists of two stages; the first one is 300 megawatts (MW), where between US$350 million and US$400 million will be invested. Construction will start on January 1st, 2015, we have obtained practically every permit, and only the interconnection permit is still to be granted, where everything related to transmission will be addressed”.
He added that the second stage of the project consists of 300 MW more, with an additional investment of US$300 million, which is expected to start in 2016.
Eosol Energy will increase investments
With over 14 photovoltaic electric power generation projects, Eosol Energy will increase their investments in Mexico to reach 500 megawatts (MW) within 5 years, according to Oscar Bernal, Eosol Energy’s CEO in Mexico.
“The two countries where we have our greatest hopes are Mexico and Chile. Mexico with the development of 500 photovoltaic megawatts (MW), 17 MW already built and producing since March, and now 111 MW with the construction of an electric substation started five weeks ago”, Mr. Bernal said.
14 projects spread throughout three estates in Durango account for 284 MW under construction, with an estimated investment over US$900 million.
These solar parks will start operating late in 2015 and early in 2016. Eosol Energy has 7 projects approved by the Energy Regulating Commission, which add to 122 MW.
Mexico manufactures 85% of pieces for the aerospace sector
The Mexican market currently manufactures 85% of the metal-mechanic pieces used by the aerospace sector in Portugal, Germany, China, and Spain, ITESM pointed-out.
The Monterrey Institute of Technology, Tecnologico de Estudios Superiores de Monterrey (ITESM) at Puebla says that 24 students from their School of Engineering and Applied Sciences are the only people in Mexico certified in CAE, a certification granted by the US-based company MCS Software.
There are few certifications of this kind in Mexico and therefore this knowledge will help the future professionals to find a job by working at companies to reduce time and costs in the manufacture of the above-mentioned pieces.
These trainings are necessary for the students, since in 2013 the foreign direct investment by this industry exceeded US$35 billion.
Rassini grows capacity by 40% at their Puebla plant
Rassini, the breaks and shock absorbers manufacturer, invested US$24 million to expand 40% their installed capacity at their smelting plant located at San Martin Texmelucan, Puebla, Juan Pablo, Sanchez, Chief Financial Officer, informed.
Going from 120,000 to 170,000 tons of cast iron will allow Rassini meet the requirements of 50 new projects started in the last year, both for new models and for platform changes, Sanchez pointed-out.
Among the new projects there is Audi Q50, to be assembled at a plant in Puebla, while the platform changes includes some General Motors pick-up trucks (such as Silverado and Cheyenne).
With these new projects, by 2016 the company will be manufacturing components for 250 platforms, reaching sales for US$985,000; the sales in 2013 amounted to around US$758,000.