International Trade Programs And Intran – What You Need To Know

Intran has over 50 years of experience in the automotive manufacturing industry. Staying relevant and competitive in this business for so long has taught us that optimizing processes and delivering true value to our customers are key ingredients for longevity.

To achieve this, we have established an efficient global supply system of raw materials and are heavily involved in several international trade programs. Here, we cover three of the most important programs, namely IMMEX, PROSEC, and CTPAT, and how they benefit INTRAN, our manufacturing process, and its customers.

What Is IMMEX?

IMMEX Allows for tax exemption on raw materials used for producing goods

IMMEX is an acronym for the Manufacturing, Maquila, and Export Services Industries Program.

It allows foreign manufacturers to temporarily import raw materials and components into Mexico to be used in the production of goods. These goods must be for export purposes, and the raw materials and components used will be tax and duty-free – as long as all IMMEX conditions are met. These include:

• Export sales are greater than $500,000 annually.
• Maintaining an automated inventory control.
• Ensuring a raw material turnaround time of 18 months.

INTRAN constantly ensures that these conditions are met, allowing us to make the most of this trade agreement.

One of the most important benefits of the IMMEX program is the Value Added Tax (VAT) Certification. This allows companies to avoid paying VAT on the goods imported for the manufacturing process.

INTRAN benefits from lower production costs while simultaneously contributing to the Mexican economy. The result is top-quality products manufactured by skilled employees and sold at globally competitive prices.

What Is PROSEC?

PROSEC reduces raw material tariff rates introduced by the NAFTA agreement

PROSEC is an acronym for Program of Sectoral Promotion. It was enacted by the Mexican government soon after the North American Free Trade Agreement (NAFTA) came into being on 1 January 1994.

PROSEC addressed an issue with a specific NAFTA article 3. It stated that no NAFTA member could waive or reduce import tariffs to other NAFTA countries. This meant that the cost of raw materials to manufacturing companies in Mexico would rise significantly after the NAFTA agreement.

PROSEC allows foreign or domestic producers to petition the government for either a reduction or removal of the tariff rate. INTRAN is involved with the PROSEC program as it is vital to helping reduce overall costs in the manufacturing process. 

What Is CTPAT?

CTPAT is an initiative designed to enhance international supply chain security measures

CTPAT is an abbreviation for Customs-Trade Partnership Against Terrorism. It is an initiative that came about after the 9/11 attacks and was launched in 2001 to help reduce terrorist activities.

It does this by increasing specific security measures in the international supply chain through public-private collaboration. Membership is free, but becoming compliant may require additional expenditure. INTRAN is committed to becoming CTPAT validated and projects to have approved membership by this Fall.  This is a step above mandatory regulatory compliance and shows the business entity’s willingness to engage in enhanced security practices. CTPAT members also benefit from:

• Shorter border waiting times.
• Enhanced supply chain integrity.
• Easier access to the Free and Secure Trade (FAST) lanes at land borders.

This all translates into an improvement in business efficiency and shorter shipping times, resulting in enhanced customer satisfaction.

INTRAN Is Committed to Manufacturing Quality Parts

By participating in these trade programs, INTRAN can offer quality products to our international customers. All at competitive rates and with fast turnaround times.

These are the hallmarks that define our business and will help ensure that we continue making parts for automotive OEMs and aftermarket manufacturers for the next 50 years and beyond.

Contact us if you have additional questions or want to know more about how we can support your business with our manufacturing expertise.