What is a Mexican Shelter Company?
A shelter company is defined as a service provider that allows a foreign company to conduct business in Mexico under specific guidelines. A shelter company manages all administrative, legal, and human resource aspects of operations in Mexico, while the foreign business focuses on its core manufacturing.
Simply put, a shelter business doesn’t know your business. However, it does know how to retain talent, move goods, and maintain operations in Mexico. To eliminate distractions around your business and focus on success in an unfamiliar environment, a shelter might be the right choice for you.
The Mexican term “maquiladora” refers to foreign operations in Mexico. These foreign companies operate under an IMMEX program, allowing USMCA rules to be applied to their operations. This program facilitates a smoother transition for companies moving from locations in the United States and abroad to Mexico.
The shelter program acts as a catalyst for faster operational start-ups. A reputable shelter will have expertise in customs processing in both the US and Mexico. They assist with site selection criteria, such as ensuring the facility is in an area with good human resources and partnering with a reputable trucking firm with a strong security program. Additionally, they ensure that necessary permits are in place for the foreign operation’s goods.
Specifically, the IMMEX company, operated by the shelter, serves as the legal employer for workers and is held liable for all compliance-related concerns in Mexico. This entity is responsible for CTPAT, IVA, OEA certifications, among others, and acts as the primary point of contact for business partners in Mexico, governmental customs agencies, environmental compliance, and more.
Contracts for shelter services can be established in various venues. Most are negotiated in the United States between the shelter’s owning company and the client organization. This approach ensures clarity in terms of service and facilitates effective expectation management. The real value lies in aligning two organizations towards the success of a foreign manufacturing operation.
The value added by choosing the right shelter partner is immense. While some operations can start in just weeks, many take upwards of four months due to equipment relocation and facility preparation. Without a trusted partner in Mexico, these timelines can significantly extend.
Trade Flex is a shelter company headquartered in McAllen, Texas.
Written by: Pilo Waters – CEO
