Volume 5, Number 8, Page 5
Agriculture, Mines & Cattle Industry
VENEZUELA
Aftosa Fever Targeted
At the Twenty-Fifth Reunion of the South American Commission for “Aftosa” Fever Eradication, advances in the fight against this fever affecting cattle were presented and discussed. Due to these advances, many countries in the region will soon be able to export beef products. Because of the absence of reported fever cases within the last two years, Venezuela will likely be issued a certification as being “aftosa” fever free. Manuel Cipriano Heredia, Director of the Venezuelan National Ranchers Federation, reacted to the news by stating that, “with the certification we will be able to start exporting beef and again, in particular, to the Caribbean, our natural market.” El Universal, 3/31/98.
Antitrust/Antidumping Cases
MEXICO
Steel Case Still Underway
The antidumping case involving several U.S. companies, including the National Steel Corporation and USX Corporation, has taken an important turn. The Department of Commerce and Industrial Development (SECOFI) published a notice, in compliance with an Amparo decision of a federal judge, that actions occurring after Sept. 21, 1992 are null. The case was remanded to SECOFI. Diario Oficial, 3/23/98.
Appeal on Gas Additives Published
SECOFI published its decision, on appeal, of a case involving gas additives imported from the U.S. On Aug. 22, 1997, the Department published a final decision of an antidumping investigation of gasoline additives manufactured by First Brands Corporation. At that time, the Department imposed antidumping duties of 81% on imported gasoline additives of the brand “STP Gas Treatment.” On Oct. 28, 1997, the decision was appealed. On appeal, SECOFI confirmed its previous decision. Diario Oficial, 3/23/98.
Chinese Apparel Antidumping Case
Antidumping duties imposed on clothing imported from China were appealed according to a resolution published by SECOFI. The Department amended its final decision establishing that brassieres imported under tariff category 6212.10.01 from Cheung Hing Brassieres and Lingerie Manufacturing will not be subject to the payment of antidumping duties. Diario Oficial, 3/23/98.
Payless Shoesource Appeal Resolved
SECOFI resolved an appeal of an antidumping decision on shoes imported from China. The appeal was made by Payless Shoesource, Inc. The Department confirmed its original final resolution published on May 27, 1997.
Antidumping Duties on Rolled Vinyl Floors
On Nov. 15, 1991, SECOFI published a final resolution of an antidumping investigation on rolled vinyl floors imported from the U.S. The resolution imposed antidumping duties of US$.368 dollars per kilogram on imported rolled vinyl floors from the company Tarkett, Inc. and US$1.7 dollars per kilogram on all other imports. On July 9, 1996, a Mexican company asked the Department if specialized carpets for industrial use were subject to the above-mentioned antidumping duties. In 1998, SECOFI specified which types of rolled vinyl floors were subject to antidumping duties. Diario Oficial, 3/23/98.
Antidumping Duties Allegedly Evaded
An investigation into whether payment of antidumping duties is being evaded was announced by SECOFI. On Oct. 18, 1994, the Department published a final resolution of an antidumping investigation of Chinese chemical products. The resolution imposed antidumping duties of 208.81 percent on various products. On Oct. 27, 1997, Tekchem requested that the Department impose duties on products imposed under tariff category 3808.10.99. Tekchem says that, due to small physical differences among the two products, one product was imported under tariff category 38083.10.99, thus avoiding the payment of duties. Diario Oficial, 3/23/98.
Investigation Initiated
SECOFI agreed to initiate an investigation of gas lighters. On Oct. 17, 1997, Tokai de Mexico presented a request to initiate an antidumping investigation regarding gas lighters imported from China under tariff category 9613.10.01. A public hearing will take place on August 11 at the Unidad de Prácticas Comerciales Internacionales, located at Insurgentes Sur 1940, planta baja, Col. Florida, C.P. 01030, México, D.F. Tel. (52-5) 229-6100, ext. 3105 and 3106. Fax (52-5) 229-6502 and 229-6503. Diario Oficial, 3/20/98.
Preliminary Decision in Imported Steel Case Published
SECOFI published a preliminary decision with respect to an antidumping investigation of steel imported from Russia and Ukraine. On April 4, 1997, Altos Hornos de Mexico requested the antidumping investigation. The steel enters Mexico under tariff categories 7208.51.01 and 7208.52.01. The Department imposed preliminary antidumping duties of up to 67.99 percent. Diario Oficial, 3/20/98.
Banking & Credit
ARGENTINA
Buenos Aires Legislature Opposes Privatization
The Buenos Aires Legislature announced its intention to oppose the privatization of the Nacion and Provincia Banks. The announcement was supported by many businesspersons of Buenos Aires. During a meeting organized by the Chamber of Deputies, legislators and bank officials expressed their concern about the transfer of the banks to the private sector.
MEXICO
Reforms to Central Bank’s Independence
Last week, the governor of the Central Bank, Guillermo Ortiz, praised financial reform initiatives that will enable the Banco de Mexico (Banxico) to help control inflation and increase economic growth.
Controlling and reducing inflation is necessary for sustained economic growth, Ortiz stated. The reforms issued by President Zedillo and sent to Congress will give Banxico additional powers so it “can complete its priority of lowering inflation, along with establishing a strong financial system.”
Communications
ARGENTINA
Telecom Argentina Enters Internet Market
Telecom Argentina announced that, under the name Arnet, it will enter the competitive Internet market with their new provider Telecom Solutions. Installation of fiber optic lines has already begun in the southern area of the country, in what was once the exclusive territory of Telefonica Argentina.
Consumer Law
MEXICO
Catalog Sales Standards Proposed
SECOFI proposed standards for direct marketing of goods and services to households. NOM-035-SCFI-1994 describes the type of information that must be provided to the consumer in such sales. Diario Oficial, 4/2/98.
Electric Equipment Standards Published
A list of five standards related to electrical products was published by SECOFI. The standards were drafted and approved by the National Association of Standardization and Certification of the Electrical Industry. A complete text of the standards may be obtained at the Association’s offices located at Ave. Puente de Tecamachalco 6 - Bis, Col. Fuentes de Tecamachalco, Naucalpan de Juárez, Estado de México, 53950.
SECOFI also published a list of standards related to electrical equipment and developed by Normalización y Certificación Electróncia A.C. A copy of the various standards may be obtained at Ave. Lomas de Sotelo 1097, Col. Lomas de Sotelo, Del. Miguel Hidalgo, C.P. 11200, México, D.F. Diario Oficial, 4/1/98 and 4/2/98.
Standards Proposed
SECOFI proposed technical standards applicable to talavera. NOM-132-SCFI-1998 sets the characteristics of talavera, a special ceramic manufactured in Mexico’s central region. Diario Oficial, 3/27/98.
List of Commercial Activities Proposed
A list of service and commercial activities, as well as industrial regions, was proposed by SECOFI. The list will serve as a basis for authorizing the creation of chambers of commerce. The list includes a code that will be assigned to a specific activity. Comments regarding the list, including suggested modifications, should be sent to the Legal Department of SECOFI, located at Blvd. Adolfo López Mateos 3025, sexto piso, Col. San Jerónimo Aculco, C.P. 10700, México, D.F., or to any of the state offices of the Department. Diario Oficial, 3/23/98.
Construction Related Standards Published
SECOFI announced the effectiveness of 25 technical standards. The various standards were developed, approved and published by the National Entity of Standardization and Certification of Construction and Edification. SECOFI also published two other standards related to the construction industry. The complete texts of the standards may be obtained from the above-mentioned entity at the following address: Constitución 50, planta alta, Col. Escandón, Del. Miguel Hidalgo, C.P. 11800, México, D.F., or at the library of the Standards Office of the Department located at Puente de Tecamachalco 6, Lomas de Tecamachalco, Sección Fuentes, Naucalpan de Juárez, Edo. de México. Diario Oficial 3/19/98 and 4/1/98.
Call for Certifying Entities Published
SECOFI published a notice for those interested in becoming approved certifying entities. The notice calls for entities that wish to provide the service of certification of compliance with technical standard NOM-141-SSA1-1995, related to the labeling of beauty and perfume products. Diario Oficial, 3/19/98.
Customs
MEXICO
Uniform Registry Created
A sole registry for individuals certified to file permit applications related to foreign trade was announced by SECOFI. The announcement includes a format to register individuals and corporations. Diario Oficial, 3/30/98.
Import Tax Law Amended
Amendments to the General Import Tax Law were published by SECOFI. The Amendments create and modify several tariff categories. The document also amends the decree establishing the 1998 tariffs of products from North America, Colombia, Venezuela, Costa Rica, Bolivia and Chile. Diario Oficial, 3/23/98.
Tax Rules Annexes Published
The Department of the Treasury published several annexes to the tax rules applicable to foreign trade for 1998. Annexes 2 through 25 were published and the annexes include the following:
- Annex 4 - Working hours of customs facilities
- Annex 6 - Criteria for tariff category classification
- Annex 21 - Customs facilities authorized to process the clearing of certain products
- Annex 22 - Instructions to fill official customs forms
- Annex 23 - List of revision stations throughout the country
Diario Oficial, 3/19/98, 3/23/98 and 3/25/98.
Energy
ARGENTINA
Argentina Exports Heavy Water to Canada
A joint venture of the CNEA atomic energy commission and the province of Neuquen signed an agreement with the Atomic Energy of Canada Limited to produce 468 tons of heavy water for the Canadian company.
DOMINICAN REPUBLIC
Privatization of the Electricity Sector
Following Law 141-97 concerning privatization of state-owned companies, the qualification process for participation in the privatization of the Dominican Electricity Corporation (CDE) began last week. The pre-qualifying round of the privatization process is scheduled to end this month with the chosen companies participating in the subsequent tender.
VENEZUELA
Government Decree May Discourage Electric Sector Investments
The Venezuelan electric industry association has demanded governmental compensation after a decree that froze electrical rates.
The vice-president of the group warned that the quality of electric service was threatened because companies will not have the resources necessary to make improvements. The government’s action is considered a bad signal for investors who are watching the privatization process.
Environment
MEXICO
Standards for Cellulose Factories Published
The Department of Environment, Natural Resources and Fisheries (SEMARNAP) published NOM-105-ECOL-1996 which sets standards regarding the maximum permissible levels of emissions of pollutants into the air, including sulfur. The limits affect factories where cellulose is manufactured. Diario Oficial, 4/2/98.
Wastewater
SEMARNAP published guidelines to improve wastewater quality. According to the Law of Fees and Imposts, those dumping wastewater with levels exceeding those established by law will pay a fee. An exemption to the fee is available for those entities with qualifying efforts to reduce the pollution levels of wastewater.
The guidelines include the procedures and forms to qualify a pollution reduction effort. Diario Oficial, 3/31/98.
Foreign Investment
CHILE
Off-Shore Stocks Regulated
Chile’s Central Bank has confirmed its desire to completely liberalize all off-shore stock capital. Chile’s long-term goal is to reduce existing differences between international and national investors and stocks. The bank will eliminate the requirement that money be placed into Chilean banks in order to grant third party country credits. The measures to liberalize off-shore capital which is not destined for Chile is expected to be finalized by the end of this year. Diario Estrategia, 3/31/98.
Labor Law
ARGENTINA
U.S. Health Care Provider Enters Argentine Market
Blue Cross Blue Shield will soon offer health care in Argentina. The company plans to target corporations for group coverage and will contract with doctors and hospitals in Argentina to provide health services. The company is the largest health care provider in the United States and has also provided coverage in Uruguay for the last four years.
MEXICO
Rubber Industry Contract Revised, Strike Averted
Amendments to the labor agreement concerning the rubber industry were published by the Department of Labor and Social Services. The revisions include an increase in wages of 18 percent. In response to the changes, a call to strike was canceled by the unions. Diario Oficial, 3/26/98.
Sugar, Alcohol Industries Contract Published
The Department of Labor and Social Services published a new labor agreement for the sugar and alcohol industries. The labor contract increases wages of unionized workers by 18 percent. The monthly food support was increased from $40 pesos to $107 pesos. The contract includes rules regarding wages, vacations and sick leave. Diario Oficial, 2/25/98.
Medicine & Health
MEXICO
Catalog of Interchangeable Generic Medicine Published
The Department of Health published the “Agreement through which Pharmaceutical Specialties can be Incorporated in the Catalog of Interchangeable Generic Medicine and Applicable Tests are Described.” The Agreement describes 90 products that can be incorporated in the first Generic Medicine Catalog. It also specifies the types of tests applicable to such products in order to be considered Interchangeable Generic Medicine. The Agreement provides that the Catalog can be expanded or reduced when determined necessary by the Department of Health and the General Health Council. Diario Oficial 03/19/98.
Standard Regarding Tests to Interchangeable Medicine
The National Committee of Regulatory Standardization and Sanitary Development published the “Emergency Technical Standard NOM-EM-003-SSA1-1998, Interchangeable Generic Medicine.” NOM-EM-003-SSA1-1998 establishes the criteria and requirements that shall be followed for performing tests of bioavailability, bioequivalence (including bioequivalence in human subjects) and dissolution with respect to interchangeable generic medicine. This technical standard became effective on March 26, 1998. Diario Oficial 03/25/98.
Notice to Interested Parties to Operate As “Authorized Third Party”
The Department of Health published a Public Notice to invite individuals or legal persons interested in operating as an “Authorized Third Party” to perform testing and certification relating to bioavailability, bioequivalence and dissolution. An “Authorized Third Party” receives authorization from the Department of Health to issue certificates regarding the fulfillment of administrative requirements. Interested parties may participate as research units (unidades clínicas) or testing laboratories. A request to participate in this process must be presented in the official format available at the General Directorate of Health Supplies of the Department of Health. There is no time limit established for participating in this process of authorization. Diario Oficial 03/26/98.
Taxes
ARGENTINA
Interest Rates Amended
The Ministry of Economy, Infrastructure and Public Services passed a resolution which establishes new compensatory (2% monthly) and punitive (3% monthly) interest rates, through the modification of Articles 794, 797, 845 and 924 of the Customs Code and Articles 42 and 55 of the relevant Law No. 11.683. In addition, Articles 811 and 838 of the Customs Code and Article 161 of Law No. 11.683 were modified to establish 0.50% monthly interest tax rates, imposed in cases of recovery, devaluation, reimbursement or compensation and accrued from the date of such loss, claim or demand. Boletín Oficial, 4/2/98.
MEXICO
Special Treatment on Taxes Announced
Special treatment for those involved in agriculture, fishing and small business was announced by the Department of the Treasury. Diario Oficial, 3/30/98.
Annexes Published
The Department of the Treasury published several tax annexes to the tax rules for 1998. The Department published annexes 9 through 16 and 18. The annexes include various lists, such as the entities authorized to issue tax deductible invoices. Other annexes provide instructions for filing electronic financial statements. Diario Oficial, 3/20/98, 3/23/98, 3/27/98 and 3/30/98.
Transportation
MEXICO
Standards Published
The Department of Communications and Transportation published a standard dealing with the transportation of oversized items. NOM-040-SCT-2-1995 sets the weight and measures specifications for vehicles used to transport overweight or oversized items on federal highways. Diario Oficial, 3/31/98.
Various
ARGENTINA
Government Seeks to Transfer Airports Soon
The Jefatura de Gabinete wants to proceed with the transfer of airports to the new operators. The transfer was stopped yesterday by judge Martin Silva Garreton.
CHILE
Free Trade Zone with Venezuela by Next Year
A free trade zone between Chile and Venezuela will enter into effect by January 1, 1999, according to an official with the Chilean embassy in Caracas. The new trade zone eliminates the list of exceptions devised under a 1993 agreement in which tariffs were reduced on all but 10% of the products traded between the two countries. Tariffs will now be lowered on products from the agroindustrial and petrochemical sectors.
REGIONAL
Alcohol Law Dispute Update
The WTO will decide if Chilean laws protecting the national production of a liquor called Pisco violates article III of GATT, as claimed by the European Union. An arbitration panel handling the matter is expected to issue its report within the next six months. Diario Estrategia, 3/26/98.
US$79.92 Billion in Latin American Privatizations Predicted in ‘98
Latin American privatizations will generate an estimated US$79.92 billion this year, according to a study by Chile’s Chamber of Commerce. This amount is twice that generated in 1997 and almost equals the total proceeds generated in the region for the last five years combined. Between 1990 and 1997, 827 of Latin America’s state enterprises were sold at a price of more than US$110 billion.
The study projects that an estimated 61% of the revenue generated by privatizations this year will be for the electricity industry, followed by telecommunications with 32%, and banking with 4%. Brazil’s privatizations are expected to generate the region’s highest revenues, with an estimated US$66.8 billion, of which a third will come from the sale of telecommunications giant Telebras (US$22 billion). Argentina will follow with US$7.32 billion in privatizations, Peru with US$755 million, Ecuador with US$639 million, and Colombia with US$524 million. El Nacional, 4/7/98.
VENEZUELA
Revisions to Trade Accord with Cuba to be Finalized in June
Venezuela will expand its trade relationship with Cuba under a new agreement to be signed in June, according to Cuba’s ambassador to Venezuela.
Revisions to the current trade agreement between the two countries will add to the 400 Venezuelan products and 200 Cuban products whose tariffs have already been reduced. Trade between the two countries generated an estimated US$456 million in 1997, of which US$56 million corresponded to non-petroleum products. El Universal, 4/7/98.
