The Maquiladora Regime (or IMMEX) is designed to promote exports and encourage foreign investment. Maquiladoras are Mexican registered entities that process, transform, assemble or repair imported materials, parts and components into finished goods that are subsequently exported. Maquiladora companies typically are owned by a foreign corporation (often a US company since many maquiladoras are located near the US border) with whom the maquiladora contracts to produce semifinished or finished goods for shipment to the foreign company. To qualify to operate under maquiladora status, a foreign investor must have a corporate presence in Mexico (which may be up to 100% ownership of a Mexican corporation). The foreign parent provides most of the machinery and equipment (M&E) required for the maquiladora activities, as well as the raw materials or the parts to be processed and/ or assembled; these items are imported by the maquiladora but remain the property of the foreign company.