HIRE A LOCAL PRODUCTION MANAGER
Most large productions bring their coordinators and production managers from the U.S. or in some cases, Mexico City. The result is that productions end up with office staff which have little local knowledge and have trouble understanding how to identify and utilize many of the cost saving ways of doing business in Baja.
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 areas most productions have trouble with. Productions may choose to back up a local UPM with their own UPM or a good line producer. It depends somewhat on the size of the production.

HIRE BAJA CREW
Hiring Baja crews is the secret to real savings. In some cases the rates are lower, but the significant savings are due to zero expenses for per diem, travel and housing for locally based crew. There are about 300 Baja crews and 150 or so of those have construction skills. Many smaller productions film in Baja on a regular basis using 90% local crew. Each year since 1996, larger productions have used greater percentages of Baja crews. Most Baja crews have experience on four to six large productions and on numerous television and smaller feature productions.

MEXICAN UNIONS
Most U.S. studios are under the impression that filming in Baja is similar to filming in Mexico City, and they tend to rely on advice from contacts they made while filming in Mexico City 10 to 20 years ago. Foreign productions filming in Mexico 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 Mexico. Unions with local representation are STIC and SITATYR. The only union based exclusively in Mexico City is STYM.

Most film crew in Baja and Mexico City are not affiliated with a union, and those that are can usually work on another union’s contract. The negotiation of the union contract should be done in collaboration with a local production manager. For budgeting purposes and current rates, it is also essential to consult a local production manager. Negotiated items with the union include: displacement fees for foreign workers; turn around times; travel and per diems (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 contract is needed to obtain foreign actor work permits. The ANDA agreement is included in a SITATYR contract.

VISAS & WORK PERMITS
Anyone traveling to Mexico for the purpose of working is required to have a FM3 (work visas). In order to obtain FM3s, the production first needs approval from one of the three film unions. The production manager (or one of the local production assistants) can secure crew FM3s, from the Department of Immigration. The process is easier if the production office has all passports, forms, photos and copies ready at the same time. There is no need to have a lawyer handle this process.
The Mexican Consulate in the U.S. and other countries can provide information regarding work permits and special permits.

Mexican Consulate in L.A. 213-351-6800
Mexican Consulate in San Diego 619-231-8414

RAW MATERIAL, CONSTRUCTION, OFFICE SUPPLIES, LOCAL VENDORS
Since most department heads are often based in Los Angeles, and since Baja and Los Angeles are less than 150 milles apart, there is a strong impulse to purchase from the same vendors one would use if filming in L.A. In the rush to get a production up and running, it is easy to forget that everything brought into Mexico under a temporary import permit will have to be shipped back to the US through a customs broker at the end of production.
The mandate should be to buy as much from local vendors as possible. By purchasing locally you generally save on the purchase price because markup in Mexico is lower than in the U.S. You also save by not incurring shipping expenses and costly paperwork.
Mexican suppliers purchase many of their materials in bulk from the same U.S. vendors a production would normally use, but Mexican suppliers ofters receive discount rates for importation and resale. 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, Office Max, Costco, Sam’s Club and other chain stores are located in Tijuana and can provide almost 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.

IMPORT OF EQUIPMENT AND SUPPLIES
A shipping coordinator allows productions to keep control of everything that crosses the border. Under the temporary importation program, items brought in to Mexico must be returned at a later date with original paperwork. 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 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.

CUSTOM BROKER
Using an experienced custom broker will ensure that imports arrive on time. A local production manager can help recommend and negotiate rates with customs brokers.

TRUCKS LOADS
Vehicles over eight tons need a letter of authorization from the 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 locations, the production should also notify Secretaria de Comunicaciones y Transportes.

VEHICLES
Vehicles can be rented in San Diego or Tijuana; the price in Tijuana is about 10% 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 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.

EXPLOSIVES AND WEAPONS
These permits take a minimum of two months to obtain. Studios de la Playa (Fox Baja) has an explosives storage permit issued by the Secretary of Defense, which allows SFX inventory to be held on site. Enrique Guinea, a local Tijuana explosives expert can usually assist in obtaining explosives in Mexico or an import permit from the Secretary of Defense (52) 664-634 2275 / 76.


CELL PHONES
Some U.S. companies (AT&T) provide roaming in Baja California, allowing use of U.S. cell phones in Baja. The roaming charges are about $1.80 U.S. per minute. Telcel is a local cell phone company that can send a representative to the production facility and activate as many mexican cell phones as a production needs.

CATERING
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.

SECURITY
Municipal and state police are extremely mindful of the economic importance of film production to Baja and generally help film crew whenever possible. If there are special security issues you may wish to contact Miguel Muñoz (Head of Security, Fox Studios Baja) (52) 661-614-9000.

LEGAL ASSISTANCE
The international law firm of Baker and McKenzie has extensive experience with film production issues in Baja. Baker and McKenzie has helped several film production studios (including Fox Studios Baja) with various legal and business-related issues. The firm understands the correct procedures and agencies required to obtain production related results in a timely manner. Contact Jose (Pepe) Larroque Phone (52) 664 633-4300