This activity is carried out under the Maquila Contract, signed between a company domiciled within the national territory (Maquiladora) and another company domiciled abroad (Matrix).
Import Regime of the maquiladoras: they will operate under the figure “Temporary Admission”; Which allows the entry of capital goods, raw materials and inputs with the temporary suspension of the payment of tariffs and taxes, prior assumption in the form of mortgage guarantee, pledge, bank guarantee, cash, insurance policies or warrant.
In substitution of any other tax, a Unique Tribute of One is established (1)% to be applied on:
– Value Added in National Territory (maquila service invoice, issued by the maquiladora to the matrix), or
– on the total value of the product, in case the maquiladora issues invoice to the final customer for that total value, on account and order of the matrix.
VALUE ADDED IN NATIONAL TERRITORY
a. Goods acquired in the country to comply with the maquila and sub-maquila contract
It should be understood by purchases in the country the goods of local purchase or definitively imported by the maquiladora or sub-maquila party.
b. Hired services
• Electric power, water, telephone, other similar.
• Services of independent professionals.
• Operational capital financing cost of the factory.
• Insurance of industrial plant, raw materials and finished products.
• Depreciation of machinery in case of being owned by the Maquiladora
• Rentals or leases paid, whether for real estate, plant equipment, etc.
• Other contracted services not detailed above.
c. Salaries paid in the country
Including social charges.
RECOVERY OF VAT
For sales in the local market (maximum 10% of the previous year’s production, with prior authorization from the CNIME), all tariffs and taxes that have been suspended should be paid. The same is required for the nationalization of by-products, products and waste.
This exemption extends to:
A. The importation of the goods included in the tolling agreement.
B. The re-export of imported goods under the referred Contract.
C. The re-export of goods transformed, processed, repaired or assembled under the referred Contract.
SCOPE OF EXEMPTIONS
1. Customs Taxes established in Law 1.173/85 “Customs Code” and its amendments.
2. Payment of Fees for Customs Valuation Service.
3. Consular fees.
4. Rate of the National Institute of the Indigenous (INDI).
5. Port (50%) and Airport Taxes.
6. Payment for Computer fees.
7. Any other taxes, levies or contributions existing or to be created, which tax the entrance and/or exit of the
Assets under the Maquila Industries Regime.
8. The totality of taxes, fees and contributions that are subject to the guarantees that Companies and/or Third Parties
Grant and relate to the Maquila Industries Regime.
9. All taxes, fees and contributions on loans to finance Maquila Operations.
10. The taxes that could tax the remittances of money related to the Maquila Industries Regime.
BENEFITS FOR COMPANIES THAT MAKE EXCLUSIVELY MAQUILA OPERATIONS
1. Exoneration of the Tax of Patents to Shops, Industries, Professions and Trades.
2. Exoneration of the Construction Tax that has a link with the Industrial Plant and/or Services as approved in the Maquila Program.
3. Exoneration of fees directly related to the Maquila Process.
4. Exemption from Value Added Tax levied on the leasing or leasing operations of the Machinery and equipment that are part of the Maquila Program.
5. Any other taxes, levies or national or departmental contributions created or to be created.
HIGHLIGHTS OF THE MAQUILA REGIME
WHO CAN ACHIEVE THE BENEFITS OF THIS LAW?
WHERE CAN THEY BE INSTALLED?
WITH WHAT LEGAL MODE?
WHAT ARE THE DEMANDS WITH RESPECT TO OWNERS?
HOW ARE THE ENVIRONMENTAL ASPECTS REGULATED?
HOW ARE THE LABOR ASPECTS REGULATED?
PROCEDURE TO MAKE MAQUILA
STEP BY STEP
Of the Physical or Legal Person in the Executive Secretariat of CNIME-National Council of Export Maquiladoras Industries.
SUBMISSION OF THE MAQUILA PROGRAM
It must contain the description and characteristics of the industrial or service process, detail of imports, production, exports, employment generation, value added, percentage of decrease and waste, time covered by the program and other specified in the corresponding regulation (the model of Program is facilitated by the Executive Secretariat of the National Council of Export Maquiladoras Industries). Accompanied by a Letter of Intent in case that the tolling agreement is not yet available.
APPROVAL BY THE NATIONAL COUNCIL OF EXPORT MAQUILADORAS INDUSTRIES – CNIME
The CNIME proceeds to evaluate, to issue prior opinion and to communicate to the Ministries of Industry and Commerce and of Finance, so that they grant their approval for the execution of the “Maquila Program” by corresponding Resolution from both ministries.
ISSUE OF BIMINISTERIAL RESOLUTION
After approval by the CNIME and completed all pertinent legal provisions, the Biministerial Resolution is drawn up, which is signed by the Ministers of Industry and Commerce and Finance.
SUBMISSION OF TOLLING AGREEMENT
From the delivery of the Biministerial Resolution, the maquiladora company has a deadline of 120 days for the presentation of the tolling agreement, being it indispensable to start the operations contemplated in the Program.
START OF OPERATIONS
Once all the requirements have been fulfilled, the Company initiates the maquila operations, with the corresponding monitoring and supervision of CNIME.