Recent Developments in Brief
Banking & Credit
ARGENTINA
Banco Río Stock Market Debut
At the end of September, family-owned Banco Río will list an estimated 30% of its shares in the stock markets of Buenos Aires, New York and London. The sale could generate $500-$600 million for the Perez Companc family, which recently sold 35% of the bank’s shares to Banco Santander for an about $700 million. The sale was approved July 28 at a shareholders’ meeting. Banco Río’s debut on the stock market will be organized by Banco Santander and Merrill Lynch.
Postal Service Privatized
Privatization of the nation’s postal service could lead to opportunities for banks that want to expand their reach. Banks are among the most promising bidders to the government’s invitation to participate in the procurement process because 6,000 postal branches nationwide could eventually be adapted to offer banking services.
MEXICO
Dun & Bradstreet Operations Approved
The Department of the Treasury published a resolution authorizing Dun & Bradstreet to operate as a credit information entity in Mexico. Diario Oficial, 7/7/97.
Business Organizations
MEXICO
Chambers Authorized to Register Companies
The Department of Commerce and Industrial Development published a resolution authorizing various chambers of commerce to receive information that will be included in the Mexican Business Information System (SIEM). This system is an electronic database that contains different information about companies operating in Mexico. Diario Oficial, 7/7/97.
Consumer Law
MEXICO
Verification Units Published
A list of entities authorized to function as verification units was published by the Department of Commerce and Industrial Development. A verification unit is a company that may issue certificates of compliance with respect to a particular technical standard.
The importer in Mexico must obtain a certificate from such authorized entities stating that the product complies with the applicable technical standard. The list includes phone numbers and addresses of four entities authorized to issue certificates of compliance for technical standard NOM-051-SCFI-1994, which establishes the labeling requirements for foods and non-alcoholic beverages. Diario Oficial, 7/10/97.
Customs
MEXICO
Export Quotas Set for Corn Flour
The Department of Commerce and Industrial Development published the quotas for exporting with preferential treatment for corn flour. The Resolution applies for the remainder of 1997. Diario Oficial, 7/16/97.
Import-Export Forms Modified
New forms for obtaining import and export permits were published by the Department of Commerce and Industrial Development. Included in the resolution are four “.bmp” files, which have samples of the new forms. Diario Oficial, 7/16/97.
Import Quotas Established
The Department of Commerce and Industrial Development published quotas for importation with preferential treatment for various products, including cheese, corn and cigars. Interested parties should present request SC-5D at Ventanilla de Cupos TLC, Direccion General de Servicios al Comercio Exterior, Insurgentes Sun 1940, Planta Baja, Col. Florida, C.P. 01030, Mexico, D.F. Diario Oficial, 7/15/97.
Textile and Clothing Quotas Set
The Department of Commerce and Industrial Development published restrictions and quotas on exportation of textiles and different types of clothing to the United States. According to the resolution, export quotas will be assigned by a procurement. Diario Oficial, 7/10/97.
Import Quotas for Agricultural Products Established
A list of the quotas on importing different types of grains, including oatmeal, corn and alfalfa, were published by the Department of Commerce and Industrial Development. Diario Oficial, 7/10/97.
Sugar Export Quotas Published
Export quotas for sugar were set by the Department of Commerce and Industrial Development in an effort to maintain levels that will satisfy national consumption.
To obtain a quota certificate to export sugar from Mexico, the producer must present form SC-5D at “Ventanilla Cupos TLC” of the Dirección General de Servicios al Comercio Exterior, located at Insurgentes Sur # 1940, planta baja, Col. Florida, C.P. 01030, México, D.F., or at any of the federal offices of the Department located in different states. SC-5D may be obtained from these same offices. Diario Oficial, 7/8/97.
Textile Quotas Set
The amount of textiles that may be exported to and imported by different countries with which Mexico has free trade agreements was published in several resolutions by the Department of Commerce and Industrial Development. As established in various free trade agreements, the parties may give preferential treatment to certain types of textiles.
To obtain a quota certificate, the interested party must complete a questionnaire, "Cuestionario Unico de Registro de Bienes Textiles y prendas de vestir susceptibles de trato de preferencia arancelaria," available at "Ventanilla de cupos TLC" in the Dirección General de Servicios al Comercio Exterior, Ave. Insurgentes Sur 1940, planta baja, Col. Florida, C.P. 01030, México, D.F., or at the Department’s branch offices.
Parties assigned an amount should request an Eligibility Certificate for each shipment. Quotas were set for Bolivia, Canada, Colombia, Costa Rica, Mexico, the United States and Venezuela. Diario Oficial, 7/8/97.
Energy
MEXICO
Radiation Equipment Standards Set
New technical standards establishing requirements for certain radiation equipment were published by the Department of Energy. NOM-012-NUCL-1995 applies to equipment used to monitor radiation. The Department also published NOM-027-SEDG-1996, regulating burners that use natural gas and diesel fuel, among others. Diario Oficial, 7/16/97.
Energy Efficiency of Refrigerators Established
The Department of Energy published a technical standard regulating the energy efficiency of refrigerators and freezers. NOM-015-ENER-1997 includes testing methods and labeling requirements for these products. Diario Oficial, 7/11/97.
Environment
MEXICO
Mexico City’s Environmental Commission Bylaws Published
New bylaws for the Metropolitan Environmental Commission were published by Mexico City’s local government. The bylaws regulate the structure and duties of the different entities that comprise the Commission. Diario Oficial, 7/9/97. Pine Tree Imports to be Regulated
Technical standards regulating sanitary issues involved in the import of pinetrees were proposed by the Department of Environment, Natural Resources and Fisheries. Parties interested in submitting input on the proposed standards have 90 days to send comments to the following address: Comité Consultivo Nacional de Normalización para la Conservación, Protección, Restauración y Aprovechamiento de los Recursos Forestales y de Suelos y Costas, Ave. Periférico Sur # 4209, 1er. piso, Col. Jardines en la Montaña, C.P. 14210, México, D.F. Diario Oficial, 7/7/97.
Government Administration
MEXICO
Puerto Vallarta Port to be Auctioned
The auction for the assignment of a contract to purchase the total stocks of the Port Administration of Puerto Vallarta was announced by the Department of Communications and Transportation. Banco Santander de Negocios Mexico, S.A. will coordinate and conduct the procurement.
The registration procedure for the procurement process is included in the text of the document. Diario Oficial, 7/10/97.
Labor Law
MEXICO
Forms Approved
The Mexican Social Security Institute (IMSS) published a resolution authorizing 12 new forms, including those needed by employers to present information about fees paid to the IMSS. The forms are contained in several “.bmp” files of the Diario Oficial of 7/8/97, which can be downloaded.
Medicine & Health
MEXICO
New Regulations for Alcoholic Beverages
Sanitary specifications and various labeling requirements for alcoholic beverages were set by the Department of Health. NOM-142-SSA1-1995 establishes, among other items, that the water used for alcoholic beverages has to be potable. Also included are several requirements regarding information that should be included in labels. Diario Oficial, 7/9/97.
Securities
MEXICO
Stock Operation Rules Amended
The Department of the Treasury announced amendments to a “circular” which set rules regarding stocks of corporations registered or requesting registration in the National Registry of Stocks and Intermediaries. Circular 11-22, issued on March 8, 1993, was amended. Diario Oficial, 7/14/97.
Taxes
COLOMBIA
Tax Amendments Introduce Criminal Sanctions
Amendments to tax regulations were introduced in July. The amendments include new sanctions against individuals or corporations paying sales taxes late. Under the new sanctions, legal representatives can be charged in a criminal action and sentenced to a maximum of 22.5 years in prison.
Various
ARGENTINA
US West Acquires Vast Majority of VCC
US West Media Group increased its holdings of cable giant VCC, the third largest in Argentina with a value of approximately 850 million dollars, to 90%. US West Media Group had already acquired 50% of VCC when it took over Continental Cablevision in an earlier transaction. La Nacion, 7/17/97. BRAZIL
Taxes Declared Constitutional
The Supreme Court decided that increases on a special tax, called the finsocial tax, applied to certain service companies such as banks, was constitutional. Prior to this decision, the Court decided that the same tax was unconstitutional when applied to commercial or industrial companies. Gazeta Mercantil, 7/29/97.
CHILE
Constitutional Reform Proposed
The Senate will vote on proposed constitutional reforms to the Supreme Court on July 30 following testimony from the chief justice of the Supreme Court, judges, lawyers and constitutional scholars.
The proposed legislation calls for the Supreme Court leader’s term to be reduced from three to two years. The number of justices would increase from 17 to 21. El Mercurio, 7/17/97.
MEXICO
Supreme Court Declares State Law Invalid
The Supreme Court published a judgment in favor of the executive branch, declaring invalid a banking security regulation intended to be applied by the municipality of Guadalajara.
On 10/11/96, the county at issue approved the Regulation of Bank Security and Protection which contained certain requirements for banks to operate in Guadalajara.
The basis for the decision by the Supreme Court was that, as established by the Constitution, only Congress and the executive branch may legislate in matters related to intermediaries and financial services. Diario Oficial, 7/14/97.
Diario Oficial Index Published
An index of all June 1997 issues of the Diario Oficial was published by the Department of the Interior. The index is cataloged as Volume DXXV. Diario Oficial, 7/15/97.
