Many U.S. filmmakers are under the impression that filming in Baja is similar to filming in México City, and they tend to rely on advice from contacts they made while filming in México 10 to 20 years ago. México has undergone numerous changes in the past 10 years and laws, which relate to foreign film productions, have also changed. Additionally, the border region and Baja California is much different than México City.
Hiring a local production manager is an advantage for any production. Local production managers understand union contracts, work permits, availability of local crews and import/export procedures; exactly the same issues most productions have trouble with. Productions may choose to back up a local UPM with another UPM or line producer, it depends somewhat on the size of the production.
Some large productions bring their coordinators and production managers from the U.S. or in some cases, México City. The result is that these projects end up having office staff with little local knowledge making it difficult to identify and utilize many of the cost saving ways of doing business in Baja.
Hiring Baja Crew is the secret to real savings. In some cases the rates are lower, but the significant savings are due to lack of expense for per diem, travel and housing for locally based crew. There are about 300 Baja crew and 150 or so of these have construction skills. Many smaller productions that film in Baja on a regular basis use 90% local crew. Each year since 1996, larger productions have used greater percentages of Baja Crew. Most Baja crew have experience on four to six large productions and on numerous television and smaller feature productions.
Foreign productions filming in México are required to sign a labor agreement with one of three film unions (STIC, SITATYR & STYM). Unions negotiate most salaries and terms on a picture-to-picture basis based on production needs, budget and length of time in México. Unions with local Baja representation are STIC and SITATYR. The only union based exclusively in México City is STYM.
Most film crew in Baja and México City are not affiliated with a union, and those that are can usually work on another union’s contract. The negotiation of a union contract should be done in collaboration with a local production manager. For budgeting purposes and current rates, it is essential to consult a local production manager. Deal points to negotiate with a union include: displacement fees for foreign workers; turn around times; travel and per diem (if required); and overtime. The unions may also assist with ANDA (National Association of Actors) contracts. If the crew’s labor agreement is with STIC or STYM, a separate ANDA contract is needed to obtain foreign actor work permits. The ANDA agreement is included in a SITATYR contract.
Anyone traveling to México for the purpose of employment is required to have an FM3 (work visa). In order to obtain FM3’s, the production usually needs prior approval from one of the three film unions. The production manager (or one of the local production assistants) can secure FM3’s from the Department of Immigration. The process is easier if the production office has all the passports, forms, photos and copies ready for all the crew at one time. There is no need to have a lawyer handle this process.
The Mexican Consulate in the U.S. and in other countries can provide information regarding work permits and special permits.
| Mexican Consulate in Los Angeles, CA. | (213) 351 6800 - 07 |
| Mexican Consulate in San Diego, CA. | (619) 231 8414 |
A shipping coordinator allows a production to keep control of everything that crosses the border. Under a temporary importation program for the film industry, items brought into México are not charged duty, but must be returned at the end of production. A local shipping coordinator is already familiar with the procedures and agents required to import and export film equipment and materials.
Temporary importation means bringing merchandise into the country for a limited time and for a specific purpose, with the understanding it must be returned to its country of origin at a later date. The application for temporary importation must list and give a full description of each piece of equipment, specifying the name and including brand, serial number and value. Any item that is shipped by truck should be listed as part of a detailed inventory. You must leave an access aisle in the truck when loading it so that customs inspectors can get to everything listed on the inventory manifest.
Everything that will be used up (expendables) must enter the country as a permanent import. It is important not to mix goods to be imported temporarily with those imported on a permanent basis in the same truck.
To temporarily import film equipment you have two choices:
Two custom brokers used by production companies in the past are:
| Contact: Yolanda Lopez | (619) 661 1972 |
| 8649 Avenida de la Fuente | (619) 661 1988 |
| San Diego, CA 92154 | cymse@aol.com |
| Contact: Carlos Morineau | (619) 661 1858 |
| 9255 Customhouse | Fax: (619) 661 5514 |
| Plaza Suite F, San Diego, CA 91154 | mapcargo@prodigy.net |
Both importation processes require a letter from the Baja California State Film Commission.
Foreign productions can do a temporary importation of specialized vehicles for the film industry. Vehicles over eight tons need a letter of authorization from Baja California Film Commission (in which they recognize the production company and state that the vehicle will be returned to the U.S.). In order to avoid any misunderstanding in transit to a studio or location the production should notify Secretaria de Comunicaciones y Transportes.
The following documents should be presented to customs when entering México:
For more information about this process please contact: Ulises Hernández (B.C. Film Commissioner) Tel (664) 634 6330
Vehicles can be rented in San Diego or Tijuana; the price in Tijuana is about 20% more. If the production schedule is for a month or less, it is easier and better to do business with a company in Tijuana. You will save more money on the Mexican insurance. If the production schedule is more than one month, it is best to negotiate deals on both sides of the border. And pick the one which best suits your need.
Since most department heads are often based in Los Angeles, and because Baja and Los Angeles are less then 150 miles apart, there is often a tendency to make purchases from the same U.S. vendors one would use if filming in L.A. In the rush to get production running, it is easy to forget that everything brought into México under a temporary import permit will carry with it the expense and administration to ship it back to the US through a customs broker at the end of production.
The mandate from producers to their department heads should be to buy as much as possible from local vendors. By purchasing locally you generally save on the purchase price because markup in México is lower than in the U.S. You also save by not incurring shipping expenses and costly cross border paperwork.
Mexican suppliers purchase many of their materials in bulk from the same U.S. vendors a production would normally use, but Mexican suppliers often receive discount rates for importation and resale (lumber and steel are two good examples). In order to manage purchases, the production should have a local purchasing coordinator, especially for construction. Most office supplies can be purchased in Baja; Office Depot, Costco, Sam’s Club, Home Depot, Smart & Final and other chain stores are located in Tijuana and can provide the same articles that one would find in the U.S., usually at lower retail prices. Additionally, local vendors often deliver material to the site.
These permits take a minimum of two months to obtain. Studios de la Playa (Fox Studios Baja) has an explosive storage permit issued by the Secretary of Defense, which allows SPX inventory to be held on site. Enrique Guinea, a local Tijuana explosives expert can usually assist in purchasing explosives in México or in obtaining an import permit from the Secretary of Defense (52) 664-634 2275/76.
Some U.S. companies (ATT, VERIZON ) provide service in Baja California. The roaming charges are about $1.29 U.S. per minute. Verizon has a North America plan which eliminates roaming in some areas of Baja. Telcel and Nextel are two options for local cell phones. Local cell companies will send a representative to the production facility and activate as many Mexican cell phones as a production needs. Rates vary and may be negotiated.
Food and catering services can be obtained from local caterers. We recommend using local caterers for all pre-production and construction. It is best to delay a decision about hiring a U.S. caterer for the first unit until after production and construction are on location and there has been a chance to observe first hand the capabilities of the local caterer. It may not be necessary to change.
Municipal and state police are extremely mindful of the economic importance of a film production to Baja California and generally help film crew whenever possible. If you have special security issues you may wish to contact Miguel Munoz (Head of Security, Fox Studios Baja) (52) 661 614 9000, or Charlie Arneson, General Manager of Fox Studios Baja.
The international law firm of Baker and Mckenzie has extensive experience with film production issues in Baja. Baker and Mckenzie has helped many film production studios (including Fox Studios Baja) with various legal and business-related issues. The law firm knows the correct procedures and agencies necessary to deal with film production needs in a timely manner. Contact: José (Pepe) Larroque (52) 664 633-4300.
Film México is a Mexican production service company that offers a tax rebate incentive for foreign film producer.
| Grant Allan | US Cell (210) 392 6023 |
| filmmexico@sbcglobal.net | MX Phone (664) 971 0257 |
Benefits for U.S. production companies when utilizing the tax rebate program in Baja California