FAQs about outsourcing Mexico China Taiwan Asia India

A: Yes.  Mexico is the lower cost destination closest to the U.S. market. Moving operations there will enable you to reduce your costs and increase your profitability . Mexico's privileged geographical position makes it an ideal place from which to supply the North American market "Just in Time" with access to world-class inputs, infrastructure, labor force and state of the art technologies.  Manufacturing in Mexico enables manufacturers to:

• Reduce cycle and lead times
• Enhance flexibility
• Manufacture at a low cost
• Access an experienced labor force
• Ensure economic stability and investment security
• Operate in a North American business culture
• Take advantage of a network of 11 extensive free trade agreements

A: Transferring your operation to a border state allows you to have Just in Time processes. Proximity enables you to have flexibility and control over your production while enjoying the lower cost labor benefits of Manufacturing in Mexico.  The U.S. Mexico Border is a perfect fit for products that need quick turn around and that are freight intensive. It is also the location to find high quality labor force: skilled and bilingual.

A: Ciudad Juárez is the major manufacturing hub in North America, therefore, its workforce is highly trained, educated and ready to serve the industry. It's also the largest Maquiladora employer in Mexico.
The area has young and skilled workforce that is used to do business "the American way".
Ciudad Juárez is home to over 350 Maquiladoras such as: Delphi, Foxconn, Cardinal Health, Electrolux, Lexmark, and Flextronics among other top fortune 500 companies.   A large number of smaller companies are well represented in the region as well.
The top industries in the Ciudad Juárez/El Paso border region are: automotive, aerospace, electronics, medical, appliances, consumer products and textile assemblies

A: In 2002 the turnover rate was 7%.  The situation has improved, and today turnover is under 2%, which is equal to or less than every other city in Mexico.  Turnover has been considered a non-issue in recent years.

A: The most common ways of beginning operations in Mexico are through:
Contract Manufacturing . Shelter Operations Management are for companies that want to set up an operation in Mexico through a wholly owned subsidiary

A: MFI International started manufacturing activities in Mexico since 1982, when our CEO Lance Levine opened his first subsidiary called Manufacturas y Servicios Internacionales. He then transferred labor intensive operations from the U.S. to Ciudad Juárez, Chihuahua (along the U.S.-Mexico border).

Our team has remained strong in establishing Maquiladora operations in Mexico since then.
Because MFI's background is manufacturing, we understand the importance of having the right Maquiladora program, permits and licenses to make your operation efficient and viable in Mexico.
We have the knowledge of NAFTA, which equips us to handle all matters related to Mexican and U.S. Customs, to take advantage of Mexico's extensive network of free trade.

Additionally, our expertise of the US Harmonized Tariff Schedule will enable you to deal with U.S. Customs rules and regulations at a greatly decreased level of risk.
The logistics of handling JIT processes will be a key element for your Mexican operation.  Our warehousing and distribution capabilities, as well as freight services providers to will make sure your operation is  efficient, timely and cost-effective manner.

Our experienced Mexican labor will enable you to significantly cut your costs. Our HR experts have a combined experience of more than 30 years in hiring the appropriately workers for a diversity of Mexican Maquiladora operations. MFI International executes and oversees all HR related activities on your behalf.

Our business model enables companies to outsource their critical support functions, while you concentrate on production and strategy. A solid support structure: legal, human resources, customs, accounting and environmental are the key elements in making your Mexican project a success.

A: Shelter is often called in many different ways. Shelter Operations Management or Shelter Services means "manufacturing support for companies that want to establish their own operations in Mexico" or "Outsourced Maquiladora (manufacturing) support. Those support services are in the following management areas of: Legal, HR, Accounting, Facilities, Environmental, Customs (Import/ Export).

A: Legal Services:

• Client uses MFI's Maquiladora permit
• Client uses Mexican subsidiary import license for Mexican Customs
• Client uses MFI's importer of record for U.S. Customs (optional)
• MFI oversees environmental regulations for each clients needs
• Human Resources:
• A thoroughly experienced team in HR management handles all aspects, including staffing services
• Facilities:
• MFI works with all Real Estate entities in Mexico, not confined to any specific group
• MFI negotiates for you: location, space requirements, leases cost, terms
• Lease costs are pass-through expenses
• Works with all types of buildings
• Other unique benefits in MFI’s Shelter Program:
• Start your operation in 30 days
• Flexibility

Outstanding relationships with local, state and federal governments

A: Our cost structure is a gradual fee based on headcount. As you grow your operation (increase the number of people) our service fee decreases.

A: By transferring your most labor-intensive projects to Mexico you will reduce your labor costs by approximately 30%. You quickly begin to operate in a Mexico by utilizing an established maquiladora structure. That translates into no risk, low cost versus having to set up your own legal entity and costly support structure in Mexico.
By utilizing an established and experienced team you don't have to worry about staffing your operation, finding the right skill sets, setting up your accounting department and managing your own customs and logistics department. We do it for you. We provide an added value that has its source in over 30 years of experience performing these functions in Mexico.

A: MFI International is a U.S. corporation with a subsidiary in Mexico. The agreement is protected under U.S. law, and our team provides the service of managing your Mexican operation utilizing our long established Maquiladora infrastructure.

A: According to NAFTA certificate of origin. Manufactured articles produced by Maquiladoras will receive preferential duty rates, upon importation into the United States, Canada and Mexico if the goods meet rules of origin and a valid certificate is supplied to the importer.  In order to obtain the certificate, four general rules must be followed:

• Criterion A: NAFTA certificate of origin. This rule establishes that if goods are produced in NAFTA territory they must qualify for a NAFTA rule of origin. These goods include items such as minerals, seafood, agricultural products, fish and goods produced from these raw materials.
• Criterion B: On the NAFTA certificate of origin. Even though a manufactured product has some materials which are not of NAFTA origin, a product can qualify under NAFTA if the product meets a regional value content requirement.
• Criterion C: On the NAFTA certification of origin. In this rule of origin, an imported product coming from non-NAFTA country could qualify for NAFTA if the component of the good has undergone sufficient processing in a NAFTA territory.
• Criterion D: On the NAFTA certificate of origin. This rule applies to limited circumstances according to different tariff headers depending on the classification of the product. In those cases, the good must meet regional value content requirements specified by each country.