his labor force to perform a production process, the payment being fixed percentage of the processed product.
Border Industrialization Program (BIP) was originally adopted in order to provide employment for approximately 200,000 Mexican workers who had returned from the United States because of the ending of the Braceros Program, which had provided them with temporary employment in the United States in times of labor shortage, especially during the Second World War and the Korean War. BIP was essentially a program to attract foreign direct investment of United States origin for export - oriented assembly operations along the Northern Border. Behind the program lay the hope that it would really work as a full blown regional policy that would turn the traditionally backward and isolated frontera norte into a dynamic growth pole for the whole northern region, if not the whole country
The promise of cheap but efficient Mexican labor was combined with duty – free importation of machinery, equipment and raw materials, provided everything produced back to the country of origin . According to the Tariff Schedule of the United States (items 806.30 and 807.00) the only tariff paid would be on the value added, principally the low labor costs, which in 1968 was three dollars per day, or less than one – sixth of the concurrent rate in the United States . Item 807 comprises:
Articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating, and painting...[are liable to] ... A duty upon full value of the imported article, less the cos...