Frequently Asked Questions

 

1. What exactly is a "shelter" company?

A shelter company provides the complete legal and administrative framework for a foreign company to run its own manufacturing operation in Mexico.

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Under Mexico's IMMEX Decree (Decreto para el Fomento de la Industria Manufacturera, Maquiladora y de Servicios de Exportación), this is formally defined as a "shelter operation" (operación de albergue). In this legal structure, the foreign client provides the technology and production materials, while the certified shelter company, like Javid LLC, acts as the legal entity in Mexico, responsible for all compliance before the Mexican government.

 

The key advantage of this arrangement is that the foreign company avoids having a "permanent establishment" in Mexico for fiscal purposes, as defined within Mexico's Income Tax Law (Ley del Impuesto Sobre la Renta). This shields you from direct legal and tax liabilities while giving you full control over your production.

 

2. What is a Maquiladora?

In modern business terms, a "maquiladora" is a manufacturing facility in Mexico that operates under a special government program, now officially known as IMMEX (Maquiladora, Manufacturing, and Export Services Industry Program).
 

Originally established by the Mexican government in the 1960s to create jobs and attract foreign investment, the maquiladora industry has since transformed Mexico into a global manufacturing powerhouse.
 

Companies with IMMEX certification can import raw materials, components, and equipment into Mexico on a duty-free basis. These materials are then used to manufacture finished goods that are subsequently exported. A shelter company like Javid LLC provides the complete legal and administrative framework, allowing you to gain all the benefits of the IMMEX program without the complexities of navigating it alone.

 

3. What is the IMMEX program?

The IMMEX Program is a critical designation from the Mexican government that allows companies to import raw materials, components, and equipment into Mexico on a temporary, duty-free basis. The primary condition is that these materials are used in a manufacturing process and the resulting finished products are exported out of Mexico within a specified timeframe.

The program's key benefits for a U.S. manufacturer are significant:

• Tax & Duty Savings: It allows for the temporary deferral of Mexico's Value-Added Tax (VAT) and relief from import duties on most raw materials and equipment, drastically reducing operational costs.

• Simplified Logistics: It streamlines the customs process for both importing materials and exporting finished goods, making your supply chain more efficient.

• Increased Competitiveness: By reducing tax burdens and simplifying logistics, the IMMEX program makes manufacturing in Mexico highly competitive on a global scale.

Gaining and maintaining an IMMEX certification involves complex administrative and compliance requirements. As a certified shelter company, Javid LLC handles 100% of this responsibility. When you operate under our shelter, you receive all the powerful financial and logistical benefits of the IMMEX program from day one, without having to manage any of the bureaucratic burdens yourself.

 

4. What is an IVA (VAT) Certification?​

Mexico's 16% Value-Added Tax (IVA) is normally paid on all temporarily imported goods, creating a major cash flow expense.

To solve this, a special IVA Certification from Mexico's tax authority allows a company to defer this tax, eliminating the upfront payment. This certification is only granted to trusted companies that meet strict compliance standards.

Javid LLC holds this vital certification. When you operate under our shelter, you receive this full financial benefit from day one, without the risk or administrative burden of securing and maintaining it yourself.

 

5. What is the US-Mexico-Canada Agreement (USMCA)?

The United States-Mexico-Canada Agreement (USMCA) is the free-trade agreement that governs all commerce between the three member countries. It replaced the previous NAFTA agreement in 2020.

For manufacturers, its most important benefit is that it allows goods meeting specific "rules of origin" (meaning a high percentage of their value was created in North America) to be traded across the border with zero tariffs. This means products you manufacture in Mexico can be shipped to the massive U.S. market duty-free, providing a significant cost advantage.

Navigating USMCA compliance is a key part of our customs and logistics expertise. We ensure our clients' operations are structured to meet these requirements so they can fully leverage the benefits of tariff-free trade.

 

6. How is the Shelter Program different from using a contract manufacturer?

The key difference is control. With a shelter, you run your own operation, using your own employees and processes, inside our legal framework. With a contract manufacturer, you are outsourcing production to a third-party factory. Our model is for companies that want to protect their intellectual property and maintain direct control over quality and production.

 

7. What are our company's legal responsibilities in Mexico?

When you partner with Javid under our Shelter Program, essentially none. Javid, as the legal employer and corporate entity, assumes all Mexican legal responsibility for labor, fiscal, and customs compliance. Your responsibility is focused on production and quality.

 

8. How long does it take to get a facility operational?
While every project varies, leveraging our shelter program can dramatically accelerate the timeline. A typical setup, from signing an agreement to beginning production, can take as little as 90 days.