New procedure for maquiladoras could leave goods stranded on the border
JUĂREZ, Chihuahua (KVIA) -- A new procedure for maquiladoras and industries, issued by Mexico's Ministry of Economy, is raising concerns among business leaders due to a potential delay in goods exported to the U.S.
The Ministry of Economy (SE) has imposed a new procedure known as "automatic notification."
According to Mexico's Association of Importers and Exporters (ANIERM), this new procedure will slow industrial exports, as companies must automatically notify the Ministry of Economy for each request and wait for a response, which can take up to 10 days.
This procedure was scheduled to take effect on Wednesday, but it had to be postponed as it would halt industrial production.
Exporters of nearly all products made in JuĂĄrez will need to provide notification by email or through the one-stop shop for each export request; they must then wait up to 10 days for the Ministry of Economy to approve before they can export.
This procedure has been extended until June 30 because exporters simply cannot comply with it.
Although extended, business leaders in JuĂĄrez warn that this remains a threat since most of what JuĂĄrez produces is subject to this notification.
According to ANIERM, among the items that must be reported are electronics, which represent the largest export for maquiladoras in the El Paso - JuĂĄrez border region.
It also includes auto parts, the second largest export, and certain household appliances; additionally, it will impact malt beer, tequila, and even pure silver.
"It is very complicated for the maquila industry because they work with very small inventories and do not store production," ANIERM stated. "The maquila industry cannot wait 10 days for the Ministry of Economy and Trade (SE) to authorize exports because that implies storage costs."
"We estimate that approximately 1,500 loads would be stopped each day (in JuĂĄrez), at an average value of $ 82,000, resulting in a standstill of $123 million," ANIERM added. "This easily puts 140,000 of the 260,000 maquiladora jobs we have left in the city at risk, which is why it is so important."