29-89

Vestex offers advice and guidance to exporters to ensure compliance with national legislation both for the industry in general and for companies under Decree 29-89.

Integrated cluster

The production chain of the apparel and textile sector is made up of more than 500 companies ranging from spinning, weaving, dyeing, cutting, tailoring, finishing, to packaging, making Guatemala the most robust and sophisticated cluster in the entire region, with the capacity to offer products with high added value, making it an ideal destination for sourcing and investment.

Services or Supplies

Contractors

Sewing thread

Spinners

Accessories

Finishes

Textile

Confection

Apparel and textile conglomerate in Guatemala

fibras
Fiber
Fundamental raw material for the production of textile products, they are filaments or yarns of natural or synthetic origin.
hilo
Thread
Industrial process in which fibers are interlaced to form yarn or thread.
tela cruda
Raw Fabric
The process of interlacing or knotting by the use of needles of one or more yarns, resulting in the textile or fabric. Knitted or woven fabrics can be produced.
tela acabada
Finished Fabric
Fabrics that through chemical or mechanical processes obtained defined characteristics and provides value to the product.
piezas cortadas
Cut Pieces
Set of organized pieces that will be used for the assembly of a garment.
prenda terminada
Finished garment
As a result of the confection, the finished garment goes through a phase of inspection and verification of quality and safety. Once these phases are approved, the garment goes through the final process of washing, ironing, packing and packaging, ready to be marketed.
hilatura
Spinning
Industrial process in which fibers are interlaced to form yarn or thread.
tejeduria
Weaving
The process of interlacing or knotting by the use of needles of one or more yarns, resulting in the textile or fabric. Knitted or woven fabrics can be produced.
acabados de tela
Fabric Finishes
Chemical or mechanical processes on the fabric to modify its appearance, feel or behavior. For example, dyeing or printing.
corte
Cut
Cutting process performed to the fabric, it can be done on a large scale with specific measures for the classification of pieces by size, quantity and style.
confeccion
Confection
The process of joining the cut pieces by sewing and the manual use of machinery for the creation of the finished garment.
infografia cadena vertical 04

Producer under the Temporary Admission Regime

More than 90% of the apparel and textile companies operate under the qualification of Producer Under the Temporary Admission Regime. Temporary Admission Regime established in Decree 29-89, because it allows them to complement the production process and the provision of services among them, in a more efficient way.

Qualification as a Producer under the Temporary Admission Regime includes the production, transformation, assembly, assembly and processing of industrial goods related to the apparel and textile industry, with the purpose of providing them with other characteristics or uses, different from those of their original materials or components.

Services

VESTEX has a wide range of tools to help the exporter to be prepared for compliance with applicable national and international legislation, among these:

servicios hilos cumplimiento 29 89

Advice on current account and warranty disclaimers

servicios hilos cumplimiento 29 89 2

Counseling on compliance with obligations qualified under Decree 29-89

servicios hilos cumplimiento 29 89 4

Training and consultancy on the transformation factor

In which we show how to identify the sources of internal information in their companies, how to collect records and thus achieve the calculation of raw materials and inputs needed for processing according to their production processes.

servicios hilos cumplimiento 29 89 5

Transformation coefficient tool

Legislation and regulations

There are three main laws that govern companies in the apparel and textile sector according to the selected operating scheme, which establish a series of benefits, conditions and specific obligations that must be complied with.

Decree 29-89

The purpose of the Law for the Promotion and Development of Export and Maquila Activities is to promote the growth of export-oriented industrial activities. This law establishes a legal framework to encourage investment in maquilas, allowing companies to obtain tax and customs benefits.

Decree 65-89

The purpose of the Free Trade Zones Law is to encourage and regulate the establishment of Free Trade Zones in the country, which promote national development through the activities carried out therein, particularly in actions aimed at strengthening foreign trade, employment generation and technology transfer. To this end, a series of tax and tariff incentives applicable to the country's free zones are established.

Decree 22-73

The Organic Law of the Free Zone of Industry and Commerce "Santo Tomás de Castilla" (Decree 22-73) regulates the operation of this free zone in Guatemala. It promotes economic development through tax, tariff and customs exemptions to encourage investment, foreign trade and industry in the region.

Maturity Schedule

Eventos 29-89

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