MANUFACTURING OPTIONS

There are several manufacturing options at your disposal to suit your manufacturing requirements. The Borderplex Alliance can help you navigate the choices and help determine which option will work best for your operation.

Contract

Under the contract option, a United States company sends the raw materials to a maquiladora in Cd. Juárez, México. The maquila then ships the material back as a finished product, fully imported into the United States. This option gives the United States company wide flexibility for production changes.

The U.S. company is responsible for …

  • Providing and sending raw material and equipment

The contract company is responsible for …

  • Providing space, labor force, and production management
  • Producing according to U.S.-customer quality specifications and production schedule
  • Manufacturing and assembling of product
  • Handling logistics of transportation, delivery and customs
  • Invoicing by the hour, or on a price-by-unit basis
     

Shelter

This option provides a United States company with a legal umbrella, or shelter, while it manufactures products in México. The United States company has wide flexibility for production changes and does not have any legal presence in México.

The United States company is responsible for …

  • Production scheduling
  • Furnishing raw materials and equipment
  • Quality control
  • Supplying the maquiladora with managers and supervisors

The shelter company is responsible for …

  • Managing personnel
  • Transportation into México from the border
  • Legal and customs paperwork
  • Complying with Mexican taxes
  • Locating or building the facilities the U.S. corporation needs
  • Providing space and labor force
  • Invoicing by the hour, piece unit or product

 
Turnkey 

With the turnkey option, production changes are agreed upon between the United States company and the maquiladora.

The United States company is responsible for …

  • Supplying the maquiladora with managers and supervisors to control the process

The turnkey company is responsible for …

  • Completing assembly of the product according to specifications
  • Purchasing all raw material and equipment
  • Total quality, production and delivery


Maquiladora Operation (Stand-Alone)

Under the maquiladora operation, there is no corporate link between the United States company and the maquiladora other than a contract.

The United States company …

  • Retains title to machinery, equipment, raw materials or components
  • Ships these items on consignment to the U.S.-México border
  • Gives technical assistance to the maquiladora on quality control
  • Pays a piece-part price or hourly rate to the maquiladora

The maquiladora …

  • Ships to and from the U.S.-México border
  • Completes customs paperwork (maquiladora is importer of record in many cases)
  • Manages entire Mexican operation and supervises quality (with technical assistance from U.S. corporation)
     
 

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