Título de la presentación Fecha IMMEX Publications Last June 27 th Publication created confusion regarding VAT inter-maquila transfers. Such rule is limited to “Empresas Certificadas” certified enterprises.

Título de la presentación Fecha VAT on Maquila companies VAT rules on inter-maquila company transfers, except for “empresas certificadas” have not changed.

Título de la presentación Fecha Current Inter-Maquila Transfers VAT Implications

Virtual Exportation Transfers Scheme A Scheme according to Rule Section 1, of the Miscellaneous Foreign Trade Provisions. 1 According to Art. 9 section IX of VAT Law. Company ACompany B IMMEX A IMMEX B Alienation Delivery (Virtual Pedimento) USA MEX 0% of VAT, the operation is considered as export No VAT, the operation is considered exempt 1 Temporary import Export

Scheme according to Rule Section 2, of the Miscellaneous Foreign Trade Provisions. 1 According to Art. 9 section IX of VAT Law. Company A IMMEX A IMMEX B Alienation USA MEX 0% of VAT, the operation is considered as an exportation No VAT, the operation is considered exempt 1 Company B Temporary import Export Delivery (Virtual Pedimento) Virtual Exportation Transfers Scheme B

Scheme according to Rule Section 3, of the Miscellaneous Foreign Trade Provisions. Company A IMMEX A IMMEX B Alienation USA MEX 0% of VAT, the operation is considered as an exportation Company B Temporary import Export Delivery (Virtual Pedimento) Virtual Exportation Transfers Scheme C

Traditional scheme according to Rules and , of the Miscellaneous Foreign Trade Provisions. Company A IMMEX A Alienation USA MEX 16% of VAT, the operation is considered as final import Temporary import Withholding 16% of VAT, the operation is considered as executed in Mexico Export IMMEX B Company B Mexican Entity Delivery (Change from Temporary to Definitive Pedimento) Change of Customs Regime Transfers Scheme D

Título de la presentación Fecha New Customs Regulation VAT Implications

Scheme according to Rules Section VII, and , of the Miscellaneous Foreign Trade Provisions. Company A CERTIFIED IMMEX Alienation USA MEX 16% of VAT, the operation is considered as final import Temporary import IMMEX B Withholding 16% of VAT, the operation is considered as executed in Mexico Delivery (Change from Temporary to Definitive Pedimento) Change of Customs Regime Transactions Certified IMMEX Company

Contacts Mauricio Monroy Guillermo Gomez Francisco Cortez (664) Blvd. Agua Caliente Suite 805, Col. Aviación Tijuana, B.C. CP 22420