If your company imports goods into Mexico for use in specific manufacturing industries, PROSEC is a program you need to know about. It is one of Mexico’s most significant — and least understood — mechanisms for reducing the cost of imported inputs, and it can make a meaningful difference in the landed cost structure of manufacturing operations in the country.
What Is PROSEC?
PROSEC — the Promotion Programs for the Manufacturing, Maquiladora and Export Services Sector — is a Mexican government program that allows certified companies to import specific goods at preferential tariff rates, regardless of whether those goods will be exported or sold in the domestic market.
Unlike IMMEX, which is based on the temporary importation of inputs for export production, PROSEC provides a reduced tariff rate on a permanent basis — meaning the imported goods can be used in products sold domestically in Mexico without triggering the full import duty.
How Is PROSEC Different from IMMEX?
- IMMEX: Provides duty and VAT deferral on temporarily imported inputs — but those inputs must ultimately be exported. If you sell in the Mexican domestic market, IMMEX does not apply.
- PROSEC: Provides a reduced permanent tariff rate on imported inputs regardless of whether the finished product is exported or sold domestically. This makes PROSEC particularly valuable for companies that serve both the export market and the Mexican domestic market simultaneously.
Which Industries Does PROSEC Cover?
PROSEC is organized into sector-specific programs. The main sectors covered include:
- Automotive and auto parts
- Electronics and electrical equipment
- Furniture
- Footwear
- Steel and iron
- Textile and apparel
- Capital goods (machinery and equipment)
In some cases, the PROSEC tariff is 0% — eliminating the import duty entirely on qualifying inputs.
Can IMMEX and PROSEC Be Used Together?
Yes — and for many manufacturing companies in Mexico, using both programs simultaneously is the optimal structure. IMMEX covers the temporary importation of inputs destined for export production, while PROSEC covers the permanent importation of inputs at reduced tariff rates for domestic market production. The two programs are complementary and are frequently used together.
How Much Can PROSEC Save?
For companies in high-import-intensity sectors — electronics, automotive, capital goods — PROSEC can reduce the effective tariff burden on imported inputs by 50% to 100%, translating into significant landed cost reductions.
PROSEC eligibility and the specific products covered vary significantly by sector. A customs broker with experience in the relevant industry is essential for determining whether PROSEC is applicable to your specific operation.
Want to understand if PROSEC applies to your operation? Contact Entering Mexico.