Export Maquila Regime
Manufacture in Paraguay, export to Mercosur, pay just 1%.
Paraguay's Maquila Law (Law No. 1,064/97, regulated by Decree No. 9,585/2000) lets your company set up a manufacturing or assembly plant in Paraguay under contract with a parent company abroad, temporarily importing machinery, equipment, and inputs duty-free, then exporting the finished product. We handle the entire structuring of your maquila program, from drafting the contract to final approval with CNIME.
The regime replaces the taxes that would otherwise apply to the operation, such as VAT, corporate income tax, and import duties, with a single 1% tax on the value added within Paraguayan territory, calculated monthly on the value of the maquila contract. Before production can start, the program must be approved by the National Council of Export Maquiladora Industries (CNIME), which reviews the contract between the foreign parent company and the local maquiladora, the investment plan, and the list of inputs and capital goods to be temporarily admitted. We handle putting together that entire file, so the program gets approved without back and forth.
What's included
- Drafting and reviewing the maquila contract with the parent company abroad
- Putting together the program and investment plan for CNIME approval
- Enabling the temporary admission regime for inputs and capital goods
- Monthly calculation and filing of the 1% single tax
- Tracking exports and reporting requirements with CNIME
Who it's for
Ideal for manufacturers who already produce outside Paraguay and want to shift or replicate part of their production in the country, taking advantage of competitive labor costs and preferential access to Mercosur.
Ready to move forward with this service?
A poorly drafted maquila program stalls at CNIME approval. Let's structure your contract right from the first draft. Talk to a Migranova specialist and understand the next steps for your specific case.
Frequently asked questions
It's a regime created by Law No. 1,064/97 that lets a foreign company set up a manufacturing or assembly unit in Paraguay under contract with a parent company abroad, temporarily importing inputs and equipment duty-free, then exporting the finished product.
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