The four regimes of Decree 29-89 (maquila law)

Article 5 of Decree 29-89 establishes four regimes: (1) Temporary Admission - receiving goods intended to be exported or re-exported within one year after processing or assembly, with suspension of import duty (DAI), import taxes and VAT; (2) Duty Drawback - reimbursement, after export, of the DAI, taxes and VAT paid on deposit (art. 13: the refund must be requested within 6 months of acceptance of the customs entry; art. 30: payment by check within 30 days of the request); (3) Duty-Free Replacement - for the indirect exporter, a franchise equal in value to the taxes paid, to replace raw materials and inputs (art. 14; the Ministry of Public Finance (MFP) must rule within 90 days, art. 31); (4) Total National Value Added - firms that export using 100% domestic or nationalized goods (they file the machinery import entry within 45 days, art. 35).

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