When shipping goods internationally, you have to worry about customs and quality control issues. If your business works with maquilas, knowing how the industry operates can help reduce costs and improve efficiency.
Maquilas are manufacturing plants in Mexico where goods are assembled for export, mostly to the U.S. They offer companies lower labor costs and maintain quality standards. In this article, we’ll define maquila and explain how a Texas logistics company can help manage such operations effectively.
Key Takeaways
- Maquilas are factories in Mexico that assemble goods for export, usually to the U.S.
- A maquiladora is a facility that operates under a duty-free program to reduce production costs.
- Santos International helps streamline maquila logistics with expert cross-border support.
What is a Maquila?
In Spanish, maquila can refer to a factory or a processing fee. Maquila in English refers to a manufacturing process where a company contracts a factory in Mexico to process or assemble its products before shipping them to another country. Expenses are much lower given the lower labor costs for Mexican and Latin American workers. Many maquilas run under trade programs like USMCA (formerly NAFTA), which allow raw materials to enter Mexico duty-free and finished goods to return with minimal tariffs.
“Maquiladora” is another name for the same type of facility. Companies use maquilas to lower production costs while maintaining control over product quality and timelines.
Manage Your Maquila Logistics With Santos International
Santos International is a logistics service provider that helps maquilas run smoothly with support for transport, customs procedures, and storage conditions. Their team ensures your goods move quickly and stay compliant across borders. This means your business can easily access maquila solutions that help meet the growing demand for quality products across international markets.