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Manufacturing in Paraguay under the new maquila law: a customs-first guide for foreign companies

What Law 7547/2025 says about temporary imports, taxes and timelines, and where the customs work fits

By Frontanilla Estudio Aduanero · 19/10/2026

Paraguay's maquila regime lets a company set up in Paraguay to process, assemble or repair goods for a foreign principal, importing inputs and equipment temporarily and re-exporting the result. Since 8 September 2025 the regime is governed by Law 7547/2025, which replaced Law 1064/97. Its implementing decree was signed on 6 April 2026, according to the Ministry of Industry and Trade (MIC).

The numbers explain the interest. Maquila exports reached USD 1,149 million between January and September 2026, with 36,382 people employed in the sector. Mercosur received 74% of those shipments, mainly Brazil and Argentina (MIC bulletin, reported by ABC Color on 16 October 2026).

Here is a summary of what the law sets out, from a customs perspective.

How the structure works

The law defines three pieces: the principal (a company domiciled abroad), the maquiladora (a company established in Paraguay) and a maquila contract between them. The maquiladora submits a maquila program describing the process, jobs, value added, waste rates and duration. Programs are reviewed by the National Council of Maquila Export Industries (CNIME). A company that already produces for the local market can also apply for a program to use idle capacity.

The tax side, in one paragraph

Activities under an approved program pay a single maquila tax of 1%, applied to the value added in Paraguay or to the export invoice value, whichever is higher (art. 37). They are exempt from other national taxes, including import taxes on goods covered by the contract and corporate income tax on maquila income, except fees for services actually received (art. 38). Maquiladoras can also request the VAT credit refund available to exporters (art. 39). Benefits last up to 20 years from program approval and can be renewed (art. 13).

Temporary imports: the core of the customs work

Under art. 14, an approved maquiladora can import temporarily, with taxes suspended:

• raw materials, parts, components, packaging and other inputs;
• machinery, instruments, spare parts, laboratory and testing equipment;
• tools, moulds, IT and telecom equipment;
• containers and trailer boxes.

The time limits matter:

• Raw materials and inputs: up to 12 months from import. An extension can be requested, with justification, by joint ministerial resolution, for no longer than the original period.
• Machinery and other equipment: may stay as long as the program remains in force, subject to DNIT conditions.
• Containers and trailer boxes: up to 12 months from arrival.

Every movement is tracked in the program's electronic current account (art. 17). What comes in must leave as an export or re-export, or be nationalised by paying the applicable taxes (art. 19). The DNIT may also require guarantees covering the suspended duties.

Selling locally

A pure maquiladora may sell up to 10% of the previous year's export volume on the local market. It has to notify the Executive Secretariat and pay import and domestic taxes on those sales (art. 18).

Timelines to plan around

• Operations must start within 18 months of program approval; this can be extended once, with justification (art. 15).
• Inputs should be scheduled so they are processed and exported within their 12-month window.
• Machinery imports benefit from early checks on tariff classification and technical documentation, so the first shipments clear without surprises.

Where a customs broker helps

In Paraguay every customs operation goes through a licensed customs broker (Customs Code, Law 2422/04, art. 22). In a maquila project, the customs work starts before the first container: classifying inputs and equipment, aligning the program's bill of materials with the import declarations, keeping the current account reconciled, and handling prior permits when products fall under DINAVISA, SENAVE or SENACSA.

Frontanilla Estudio Aduanero is a customs firm in Luque, Paraguay, founded in 2019 by Montse Frontanilla, BA in International Trade and licensed customs broker, who grew up in a family industry that produces, imports and exports. We work with maquila programs, temporary admission and prior permits, in Spanish, English and Portuguese.

If you are evaluating Paraguay as a production base, write to us before your program is filed: https://wa.me/595981875830

This article is general information, not legal or tax advice. Each program has its own conditions.