About Kenn Morris, CrossborderBusiness.com Expertise Kenn Morris is an bilingual expert in Mexico and US-Mexico business issues and crossborder markets. His areas of expertise include Mexico`s maquiladora (manufacturing) and technology industries; US-Mexico market research, border business and consumer markets, Mexican culture and business etiquette; and strategic analysis of Mexico business and political situations. Kenn has over 14 years experience working in various capacities in California-Baja California border region and in key business regions in Mexico (including Nuevo Leon, Jalisco, Mexico City and others). His firm provides border market research, industrial marketing, consulting, and governmental relations services.
Experience Kenn started Crossborder Business Associates in 1996 while living in Mexico, with the goal of providing market research, analysis, and consulting support to both US and Mexican firms interested in business across the border. Since that time, CBA has evolved into Crossborder Group Inc. (www.CrossborderBusiness.com), serving a wide range of clients -- from smaller firms, to Fortune 100 companies, to government agencies and universities -- in such areas as maquiladora research and siting studies, crossborder technology research, border crossing studies, analysis of crossborder economic relationships, marketing strategies and more. In addition to his work for Crossborder Group, he is also the past-coordinator for US-Mexico Business program at the University of California at San Diego (UCSD) Extension; and directed UCSD San Diego Dialogue's Crossborder Innovation & Competitiveness Initiative.
Expert: Kenn Morris, CrossborderBusiness.com Date: 4/17/2008 Subject: renting equipment to sister company in Mexico
Question Our sister company is located in Mexico and they are wanting to rent some equipment from us here in the USA. what are the laws regarding sending the product to them and how is the paperwork to send it to them filled out does the product have value since it is really ours here in the USA?
Answer Hi, Resa. Many companies lease capital equipment to their sister companies in Mexico -- in fact, this might be preferred from a legal standpoint, since it becomes harder for anyone to "take possession" of equipment that doesn't belong to the Mexican entity in case of a strike or other legal problem.
For example, lets say your US company is "Resa USA Inc." and your Mexican entity is "Resa de Mexico", and Resa USA leases equipment to Resa de Mexico. If someday there is a labor or legal problem that shuts down Resa de Mexico, then Resa USA still has rights to the leased equipment (there may still be a fight, but at least Resa USA would have a chance at getting the equipment back).
Back to your question: you will need to find a good accountant and a good attorney familiar with maquiladora rules, and they will advise you on developing and implementing the appropriate, legally binding lease agreements that are most beneficial to your company. In other words, it is possible, but you will need professional assistance here to draft the appropriate agreements.
If you have any questions, or would like to follow up, please feel free to contact me directly at answers [at] crossborderbusiness [dot] com. Good luck,
-Kenn Morris
President/CEO
Crossborder Group Inc.
www.CrossborderBusiness.com
619-710-8120
San Diego, California
Tijuana, Baja California
