Contract

A U.S. company sends the raw materials, maquilas ship them back as a finished product, fully imported into the U. S.

• The U.S. company has wide flexibility for production changes
  
• 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/assembling of product
  • Handling the logistics of transportation, delivery and customs
  • Invoicing by the hour, or price by unit basis
  
  
• The U. S. company is responsible for:
  • Providing and sending raw material and equipment

Shelter

Provides U.S. company with a legal "umbrella" or shelter while U.S. company manufactures products in Mexico The U.S. company has wide flexibility for production changes Does not have any legal presence in Mexico The Shelter company is responsible for: Personnel management Transportation into Mexico from the border Legal and Customs paperwork Complies with Mexican taxes Can locate or build the facilities the U.S. corporation needs Providing space and labor force Invoicing by the hour, piece unit, or product The U. S. company is responsible for: Production scheduling Furnishing raw materials and equipment Quality control Supplying the Maquiladora with the managers and supervisors to control the process

Turnkey

Production changes are agreed between the U.S. company and the Maquiladora The Turnkey company is responsible for: Making the complete assembly of the product according to customer specifications Purchasing all raw material and equipment in order to manufacture the product Total quality, production and delivery The U.S. company is responsible for: Supplying the Maquiladora with managers and supervisors to control the process

Maquiladora Operation (Stand Alone)

Ships to and from Mexico-U.S. border. Completes customs paperwork (Maquiladora is importer of record in many cases). Manages entire Mexican operation and supervises quality control of the product (with technical assistance from U.S. corporation) The U.S. company retains title to machinery, equipment, raw materials or component and ships these items on consignment to the U.S. Mexico-border. The U.S. company gives technical assistance to Maquiladora on quality control. The U.S. company pays a piece-part price or hourly rate to Maquiladora. There is no corporate "link" between U.S. companies and Maquiladora other than a contract.