The main meaning of the term IMMEX in English is Importers and Merchandise Exchange, and Maquiladora. This refers to a programme for foreign-born manufacturers who wish to bring their products into Tacna, Mexico and so they can be processed for export into another country. The most common type of IMMEX is the General Exhibitor’s Show, which is hosted by the Mexican Government and Exhibition de Oriente.
The other type of IMMEX is the Special Economic Zone, which is similar to the General Exhibitor’s Show in that it highlights national brands and international brands. Another example is the Mexican Product Improvement Program (PPI), which highlights Mexican innovations, technology and manufacturing techniques. The PPI program was developed with the aim of attracting more foreign direct investments (DDI) into Mexico. It also highlights the importance of Mexican goods internationally, and the need for Mexican exporters to expand their reach beyond their domestic market. Some of the advantages of participating in a Mexican IMMEX are as follows:
There are three main objectives of a marketing strategy related to Mexican merchandise exports. These objectives are to meet the requirements of consumers domestically, to strengthen economic ties between Mexico and other foreign countries, and to improve trade relations between Mexico and its trading partners. All these objectives are met when Mexico becomes an IMMEX partner. Mexico is very vulnerable to attacks from foreign retailers who may not be fully satisfied with Mexican processing and production of their imported goods. Imports of raw products can only strengthen a country’s economy and help it obtain financial assistance from the international community if it has a functioning IMMEX program.
To encourage companies to participate in the IMMEX, Mexico offers various incentives. Companies can use these incentives as a tool for promoting sales of their Mexican goods worldwide. They also benefit from increased foreign direct investment (FDI) in their Mexican businesses as companies must first ship their manufactured goods to Mexico before they can sell them on the local market. Some companies even receive discounted freight rates and free shipment services when they make purchases of Mexican goods to other companies within the IMMEX.
Mexican manufacturers need foreign investment in order to develop new products, gain new technological know-how and increase productivity. A strong IMMEX will help these manufacturers compete internationally against those of Asian and European countries that are close to their markets. However, the process of becoming a full IMMEX member involves much waiting and careful consideration by Mexican government officials. For example, the Mexican government needs to see that the proposed proposals of IMMEX will provide significant benefits to Mexico. If these benefits are not forthcoming, then Mexico should be reluctant to become an IMMEX participant.
As an IMMEX participant you have to comply with certain requirements. You have to ship your manufactured goods only to Mexico and you must meet their production standards. Furthermore, you need to have a Mexico customs broker that is authorized to receive shipments from IMMEX member companies. Most importantly, companies must fulfill all the IMMEX guidelines, such as paying the appropriate taxes and complying with certain licensing conditions. In order to become a full IMMEX member, companies must successfully pass through three different stages during the application process. These include: