The Offshore Group affiliate companies in Mexico, namely Maquilas Teta Kawi, S.A. de C.V. and Manufacturas Zapalinamé, S.A. de C.V. have obtained the privileged status of being AAA certified by Mexico’s Treasury Department. This certification grants its manufacturing clients an exception from having to pay the 16% value added tax (VAT) at the time of importing certain goods into Mexico including raw materials, machinery and equipment. Those companies that are AAA certified receive an instant VAT credit at the time of importation.
Having the AAA certification means that our companies have been scrutinized by Mexican authorities as being tax abiding entities that are current on their declarations and payments, that have a positive track record with respect to fiscal and customs compliance, and that also encourage their service providers and suppliers to abide by Mexican tax regulations. The AAA certification is up for renewal every 3 years and the benefits derived from it give The Offshore Group and its Clients a competitive advantage over companies that face challenges of cash availability and flow requirements associated with paying the 16% VAT on imports related to production into Mexico.