Client Alert

Publication date in the Federal OfficIal Gazette:
February 27^th, 2019

The “Industrial Productivity and Competition Program” (PPCI for its acronym in Spanish) is an economic support program from the Secretary of Economics, with national reach, which targets entrepreneurial organisms, legal entities, as well as civil associations that belong to the manufacture industry[1] and have at least 51 workers registered in the Mexican Institute for Social Security (IMSS by its acronym in Spanish). The general goal is to improve the entrepreneurial productivity by supporting projects and initiatives that favor an inclusive economic growth. The maximum support given is 25% of the projects’ cost, for a maximum of MXN$20’000,000.00 (approximately USD$1’036,270.00) for conventional projects, and MXN$35’000,000.00 (approximately USD$1’813,472.00) for strategic projects. Economic support for the buying of equipment or machinery that potentialize the productivity of the beneficiary will also be available.

The following, among others, are criteria for eligibility:

• That a specific problem that obstructs productivity growth, with either national or regional reach, is resolved.
• That the beneficiary shows the compliance with its tax obligations, including those regarding Social Security matters.
• That the beneficiary is not receiving support from other federal programs for the same project.

Applications can be filed at any of the Federal Representations of the Ministry of Economics.

The evaluation and, given the case, approval of the projects, will be carried out by the Competition Unit in two stages:

First Stage: Confirmation (i) that the applicant, as well as the participating companies, belong to the targeted entrepreneurial organisms, and (ii) that there is compliance with the eligibility criteria.

Second: Evaluation of the alignment of the goals and impacts of the project with the public policy pursued by the PPCI.

For further questions or comments, please do not hesitate to contact our team.

[1] Sectors 31 to 33, according to the North American Industrial Classification System (NAICS).

Contact

Rafael Sánchez
rsanchez@cuestacampos.com

Franscela Sapien
fsapien@cuestacampos.com

www.cuestacampos.com

The above is provided as general information prepared by professionals with regard to the subject matter. This document only refers to the applicable law in Mexico. While every effort has been made to ensure accuracy, no responsibility can be accepted for errors or omissions. The information contained herein should not be relied on as legal, accounting or professional advice being rendered.