How IMMEX and USMCA Help OEMs Lower Costs on Electronics Manufacturing

Electronics OEMs today face increasing pressure from rising tariffs, shifting global trade policies, and unpredictable supply chain costs. For companies that import high-value components and assemble products for the U.S. market, these pressures can significantly erode margins. Fortunately, Mexico offers a powerful combination of trade frameworks that help mitigate these risks: the IMMEX Program and the U.S.–Mexico–Canada Agreement (USMCA).

Together, these programs enable manufacturers to reduce landed costs, eliminate or defer import duties, and ensure tariff-free exports to the United States and Canada. For OEMs working in electronics, partnering with an EMS provider that is IMMEX-certified and compliant under USMCA can be a game-changer.

What Is IMMEX?

IMMEX (Industría Manufacturera, Maquiladora y de Servicios de Exportación) is a program established by the Mexican government that allows manufacturers to temporarily import components, raw materials, and equipment without paying VAT or import duties, provided that these inputs are used for export production.

For electronics OEMs, this means that semiconductors, resistors, connectors, and other critical components sourced globally can enter Mexico duty-free as long as they are assembled into finished goods that are exported outside of Mexico.

Key benefits of IMMEX include:

• Duty/VAT Suspension: Avoid the 16% VAT and import duties on raw materials and components.
• Cash Flow Relief: Duties are not paid upfront, freeing working capital.
• Global Sourcing Flexibility: Inputs can come from Asia, Europe, or the U.S., while final assembly happens in Mexico.

How USMCA Enhances the Advantage

USMCA, which replaced NAFTA in 2020, governs trade between the U.S., Mexico, and Canada. For manufacturers, the agreement ensures that products that meet rules of origin requirements can move across borders tariff-free.

In electronics manufacturing, this means that when an EMS provider in Mexico assembles PCBAs, telecom equipment, LED lighting, or other electronic systems under IMMEX, the finished goods can often qualify for duty-free entry into the United States.

USMCA benefits include:

• Tariff-Free Exports: Finished products that qualify under rules of origin avoid U.S. import duties.
• Supply Chain Resilience: U.S. OEMs can rely on nearshore production instead of long supply chains from Asia.
• Speed to Market: Border proximity reduces transit times from weeks to days.

IMMEX + USMCA = A Strategic Cost Advantage

When IMMEX and USMCA are leveraged together, OEMs can dramatically lower their total cost of ownership (TCO).

Here’s how it works in practice:

1. Components (e.g., PCBs, semiconductors, connectors) are imported into Mexico under IMMEX → no upfront duties or VAT.
2. EMS provider assembles products in a Mexican facility (e.g., PCBAs, telecom boxes, robotics controllers).
3. Finished products are exported to the U.S. under USMCA → no tariffs on final goods.

The result? OEMs avoid double taxation on components, eliminate tariffs on exports, and benefit from Mexico’s lower operating costs compared to U.S.-only production.

Why OEMs Are Moving from Asia to Mexico

Traditionally, many OEMs relied on Asia (particularly China) for electronics assembly. But with ongoing tariff disputes and the risk of 25–100% duties on certain products, the cost equation has shifted. Mexico provides several strategic advantages:

• Tariff Avoidance: IMMEX + USMCA eliminates duties that would otherwise apply.
• Geopolitical Stability: U.S.-Mexico trade is governed by clear frameworks.
• Proximity: Same time zones, shorter lead times, easier quality oversight.
• Skilled Workforce: Mexico has decades of expertise in electronics assembly and manufacturing.

A Practical Example

Consider a U.S.-based OEM producing telecom equipment:

• Components sourced from Asia carry duties of 5–15% if imported directly into the U.S.
• If the same components are imported into Mexico under IMMEX, those duties are waived.
• The EMS partner assembles the final product in Mexico.
• Finished equipment is exported into the U.S. under USMCA → tariff-free entry.

This creates a two-layer cost advantage: savings on component imports plus savings on final product exports.

The Role of EMS Partners

Not all EMS providers can offer this advantage. To maximize savings, OEMs need partners who are:

• IMMEX Certified – enabling duty-free imports for manufacturing.
• Fully Compliant with USMCA – ensuring products qualify for tariff-free export.
• Experienced in Cross-Border Operations – managing logistics, compliance, and certification requirements seamlessly.

At EMLinQ, our Mexicali facility is IMMEX-certified and governed by USMCA rules, allowing OEMs to confidently reduce costs while maintaining quality. Combined with our California site, we offer a dual-site advantage that balances proximity, compliance, and cost savings.

In today’s environment of rising tariffs and unpredictable trade policies, OEMs need more than just an EMS provider — they need a partner that can navigate global trade frameworks to reduce costs. IMMEX and USMCA provide exactly that.

For electronics companies, leveraging these programs through a qualified EMS partner is not just about saving money — it’s about building a resilient, competitive supply chain for the future.