Decree 29-89

Law for the Promotion and Development of Export and Maquila Activities

The purpose of the Law for the Promotion and Development of the Export and Maquila Activity is to promote, encourage and develop in the national customs territory, the activities of individuals or legal entities domiciled in the country, operating within the customs regimes established therein.

Law for the Promotion and Development of the Export and Maquila Activity, Decree Number 29-89 of the Congress of the Republic of Guatemala. This legislation recognizes maquilas under the Temporary Admission Regime, which allows the entry of goods into the national customs territory with suspension of tariffs, import taxes and Value Added Tax (VAT). These goods are destined to be exported or re-exported within one year after having undergone transformation or assembly.

In addition, VAT is exempted for the acquisition of locally produced inputs incorporated in the final product, as well as services used exclusively in its economic activity. This regime also contemplates the exoneration of Income Tax for the authorized activity for a period of 10 years. Within this Temporary Admission Regime are included both the maquila activity and the production and exportation.

Laws and regulations

Law for the Promotion and Development of Export and Maquila Activities, Decree Number 29-89.

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Regulations of the Law for the Promotion and Development of the Export and Maquila Activity

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Industry Activities

Maquiladora under the temporary admission regime

Production and/or assembly of goods to be re-exported

Exporter under the temporary admission regime

Production of goods intended for export or re-export

Producer under the temporary admission regime

Production, transformation, assembly, assembly and processing of industrial goods related to the apparel and textile industry, with the purpose of providing them with characteristics or uses other than those of their original materials or components.

Figures

Guatemala has several figures with tax and logistic benefits, including the promotion of maquila and exports, with various tax exemptions and terms.

Subcontract

Complementarity of Operations

Coexport

Obligations 29-89

Decree 29-89, Law for the Promotion and Development of the Export and Maquila Activity, establishes several obligations that the entities qualified under this Law must comply with, including obligations that must be complied with on a monthly and annual basis, as applicable: