NAFTA and Maquiladoras
Maquiladora, is derived from the word maquila, which is defined as “the price (multure) that a miller traditionally charged for milling” or “the act itself of milling someone else’s grain.” This is similar to the way in which most maquiladoras provide services to their foreign affiliates and to the manner in which the latter pay their maquiladoras for services.
Now, rather than milling grain, a maquiladora or “in-bond” manufacturing plant, typically takes the form of an industrial enterprise dedicated to the assembly, transformation or manufacture of foreign inputs temporarily imported free of customs duties and tariffs and subsequently exported after having undergone assembly or processing.
To assist our clients and help them understand and comply with the applicable rules and regulations, Rosen Law provides a range of value-added services including:
- Maquiladora, PITEX and PROSEC program permitting and compliance
- NAFTA Section 303 compliance
- Rules of origin and HS Code analysis
- Import licenses and related permitting
- Associated tax analysis and contractual framework
- Standards and labeling
- Use of customs brokers, importers and intermediaries
- Distribution, shelter, manufacturer’s rep, know-how, technical services, franchise and licensing agreements
- NAFTA Chapter 11 dispute resolution
- Customs litigation