FAQ’S


You have questions – We have answers!

  • By far and away the easiest and quickest way to get an answer to a question that you have about manufacturing in Mexico is to simply give us a call and ask – we will be more then happy to help.
  • Another option is to send an e-mail with your question to info@CaliBaja.com and we will respond within 48 hours.
  • Or, you can read through the following list of our answers to the questions that we hear the most:

 

 

 

What is a maquiladora?

Simply put, a maquiladora is a production facility located in Mexico that utilizes inexpensive Mexican labor to process or assemble components into finished goods.

How much will I save by Manufacturing In Mexico?

The potential for savings is huge! In fact, we estimate a bare minimum (5 operators) labor savings of around $45,000 annually!

What is the minimum volume of an order?

This is obviously one of the most common questions that we receive, however it is also one of the most difficult ones to answer as it varies drastically from product to product.  The best way to get an answer to this question is to simply give us a call and speak with one of our Mexico manufacturing experts.  We will be able to very quickly define what will be required as far as a minimum order quantity.

What is subcontract/contract manufacturing?

Contract manufacturing is when we handle every step of the entire production process, from the initial material purchasing and inspection through production to the final shipping of the finished product. Basically, you tell us what you want and we make it for you for an agreed upon price per piece- often significantly less expensive then if you were making it for yourself!
*To learn more please visit our contract manufacturing section.

What is a “shelter”?

With CaliBaja’s shelter program, we essentially “shelter” your company in Mexico by allowing you to operate under our legal permits and licensing. This system allows your company to enjoy the benefits of manufacturing in an inexpensive labor market without the otherwise prohibitive legal expense and hassle of establishing a Mexican legal presence of your own. We handle all of the human resource responsibilities, administration, facility leasing, and legal issues, while you provide the equipment, raw materials, and operation management.
*To learn more please visit our shelter services section.

What protection is offered when I manufacture in a foreign country?

This question is of utmost importance when choosing a contract manufacturer or shelter company to outsource your operation with. The answer to this question is completely dependent on whether or not you are dealing with a company that has a US side of their business. With CaliBaja you can be assured that you will enjoy all of the protection available under United States jurisdiction as all of your contracts would be with the US side of our business.
*To learn more please visit our safety of proprietary information section.

How large of a manufacturing operation do I need before I start thinking about outsourcing in Mexico?

Obviously the larger the operation you outsource, the more money you stand to save. However, we know that the size and scope of every businesses’ manufacturing needs vary and that in order for a small business to grow, it need a competitive edge. We are willing to provide that competitive edge to very small operations if there is adequate potential for growth. Please contact us to discuss in more detail the various options available for small businesses.

What kinds of visas and passports are required for foreign workers in Mexico?

An FMN is a 30-day temporary visa is usually sufficient, while a more permanent FM3 visa may required if a person intends to work in Mexico for a prolonged period. At CaliBaja, we are experts in Mexican government requirements and will handle all the complexities of the Mexican legal system for you.

What if I don’t speak Spanish?

Don’t worry, our management is 100% bilingual in English and Spanish so as long as you speak English you will be fine. It is our policy that all customer communications are handled in English and that all our contracts and other binding documentation are in English as well.
*To learn more please visit our language barriers section.

Who hires/fires the employees?

CaliBaja will take care of each and every step of the staffing process to accommodate your needs. CaliBaja will handle the recruiting and preliminary interviewing, then upon your approval we will either hire the employee or continue looking for a better fit. You can bring in whatever of your own specialized support that you need, however it is CaliBaja that will take care of the day to day management of the Mexican workers.

How are tariff and tax issues handled?

Arrangements under the Maquiladora agreement with the Mexican government, as well as trade pacts such as the North American Free Trade Agreement, eliminate the large majority taxes and tariffs normally associated with the importation and exportation of goods across international borders. CaliBaja has extensive experience in working with the complicated custom laws between the United States and Mexico, so contact us today for an in depth analysis of whether or not tariffs and taxes will affect your business.

What are the laws dealing with foreign land ownership in Mexico?

Mexico has a few unique property laws. The Constitution of Mexico prevents foreign land ownership of any property within 100 kilometers of the border or 50 kilometers of the coast, although the Mexican Foreign Investment Law of 1993 states that a foreigner or foreign corporation may acquire property ownership rights through a bank trust called a “fidelicomiso”. Also, non-residential property can be purchased through a Mexican corporation which can be foreign owned, provided it meets the conditions that corporation is subject entirely to the laws of Mexico and not those of the parent country.

What type of manufacturing operations can be outsourced to CaliBaja?

In the manufacturing outsource world, we are quite unique in this respect; we have not limited ourselves to any one particular type of manufacturing operation. A little research will quickly show that many manufacturing outsource companies are very limited in their scope of abilities. We are currently manufacturing a range of products as diverse as industrial wiring harnesses and high-tech resistive touch sensors. For further quantification of our diverse competencies, take a look at our experience page and our customer list, or simply contact CaliBaja today and allow us to further explain how we are able to undertake such varied operations.