Volume 6, Number 1, Page 7
Recent Developments
Antitrust/Antidumping Cases
Mexico
Payment Evasion Decided
The Department of Commerce and Industrial Development (SECOFI) announced its decision on a case dealing with the evasion of antidumping duties. On August 22, 1997 antidumping duties of 81 percent were imposed on “STP Gas Treatment,” a fuel additive imported from the U.S.
A Mexican manufacturer, Bardahl de Mexico, S.A. de C.V. complained to the Department that the product “STP Gas Treatment” was imported, without paying antidumping duties, by entering Mexico under a different tariff category. For such reasons the Department concluded the investigation by re-imposing antidumping duties of 81 percent. Diario Oficial, 12/16/98.
Antidumping Duties Under Review
SECOFI announced it will review the antidumping duties imposed on candles imported from China and considering their elimination. On August 19, 1993 antidumping duties of 103 percent were imposed on Chinese candles. On August 5, 1998 several companies requested the initiation of a study on the consequences of eliminating such antidumping duties.
The companies allege that if antidumping duties are eliminated, new dumping cases will proliferate. SECOFI admitted the request and will start an investigation to determine the cost of eliminating said duties.
A similar investigation will take place with regards to starch imported from the Netherlands; laminated steel imported from the U.S.; pipelines from the U.S. and Spain, and sorbitol from France. Diario Oficial, 12/16/98, 12/17/98 and 12/18/98.
Consumer Law
Mexico
Business Ventures Approved
The Federal Competition Commission announced its approval on several business ventures. Among the ventures approved by the Commission is an asset purchase agreement between Gillette, inc. and Warner Lambert. Under the agreement, Gillete acquires the production and sale of products of the brand PRO from Warner Lambert Company.
Other ventures approved by the Commission involve companies such as Anderson Clayton & Co. S.A. de C.V.; ITT Automotive Electrical Systems de Mexico, S.A. de C.V.; The Seagram Company Limited and Bancomer, S.A.
Additionally, the Commission approved business ventures involving Price Waterhouse y Cia. and Coopers & Lybrand Asesores, S.C.Diario Oficial, 12/16/98 and 12/18/98.
Customs
Mexico
Standard Related Rules Amended
SECOFI announced the amendment to the rules establishing which goods must comply with certain technical standards when imported or exported from Mexico. The original rules, which include a list of such products, were published on June 2, 1997.
These amendments include a list of different products, with their respective tariff categories, and the technical standards with which the product must comply when imported or exported. Diario Oficial, 12/16/98.
List of Products Requiring Permit Amended
A list of products whose importation or export requires a previous permit by SECOFI has been amended. On August 29, 1997 a list with the name and tariff categories of such products whose import and export require a permit from SECOFI was published.
The amendments come as a result of NAFTA. According to the Appendix 300-A.2 paragraph 21 of NAFTA, as of January 1, 1999, Mexico can not restrict or prohibit the importation of certain automotive vehicles. Diario Oficial, 12/23/98.
Format of Quota Certificate Published
SECOFI published the format for quota certificates to be used in imports and exports. Those who are assigned a quota, will receive a certificate, from SECOFI and a special card in order to verify that the quota was assigned by customs officials. Diario Oficial, 12/24/98.
Energy
Mexico
Use of Radioactive Materials Subject to Standards
The Department of Energy (SE) published technical standards related to the handling of radioactive waste. NOM-028-NUCL-1996 establishes requirements to be met during administrative and operational activities related to the handling of radioactive materials. The standards do not apply to activities related to the mining of urainum and thorium. Diario Oficial, 12/22/98.
Rules of Certificate of Origin Amended
The format of the certificate and the declaration of origin used in the free trade agreement between Bolivia and Mexico have been amended. Several parts of the certificate as well as the information to be included have been revised. Diario Oficial, 12/28/98.
Foreign Investment
Peru
Government Begins 1999 Privatization, Concession Plan
Peru’s government will undertake a privatization and concession process this year to promote private investment in the modernization of Peru’s infrastructure, according to the Private Investment Commission (Copri).
Infrastructure projects include the US$150mn sale of the Highway 5 Concession (Lima-Pativilca-Paseo-Huacho-Pativilca) and the upgrading of the North Peruvian Pipeline
Among other projects planned for the first part of the year is the US$2.5bn investment in Antamina, a polymetalic project carried out by Canada’s Rio Algom among others, the sale of four important state-owned electricity distributors: Electro Norte, Electro Noreste, Electro Centro and Electro Norte Medio, and the sale of state-owned sugar refineries.
Copri executive and Labor minister Jorge Gonzalez said the government plans to raise US$800mn in the privatization process during 1999. La Republica/El Sol, Peru
Cepri Sets Quicay Auction for February
Peru’s privatization body Cepri has set the auction of state-owned gold deposit Quicay for February this year at a base price of US$10mn and a further US$10mn minimum investment expenditure over five years. The pre-qualification deadline is February 12, with presentation of proposals due February 22.
Quicay contains 14 concessions totaling 11,100ha located in Rancas district, Pasco department. The state mining company Centromin estimates the deposit could produce at least 60,000 ounces annually with recently-increased reserves of at least 1.5Mt with 1.9g/t of gold.
The company said Quicay’s geological conditions were “very favorable” given that the ephemeral deposit was close to the surface with high concentrates of gold less than 40m deep.
Canada’s Barrick Gold Corp (NYSE: ABX) returned Quicay in August last year in order to concentrate on completing development of the US$260mn Pierina gold mine in Ancash department, designed to produce 750,000 ounces of gold per year plus silver credits. Barrick had previously paid US$202mn for Quicay. (Source: El Sol, Peru)
Government Administration
Mexico
Organizational Manual Published
The Department of Labor and Social Services (STyPS) has published an organizational manual. The manual includes all statutes, regulations, agreements and technical standards related to the STyPS. Additionally, a list of the organization of the different areas of the Department have been published. Diario Oficial, 12/18/98.
Real Property
Honduras
Constitutional Reform Allows Foreigners to Own Beach Property
Article 107 of the Honduran Constitution has long prohibited foreign ownership of lands along the nation’s coasts and international borders. A proposed reform, approved in late November by the National Congress, overturns this stipulation, opening prime beach property to investors of any nationality.
The Honduran Congress made the decision in the aftermath of Hurrican Mitch which has created a need for foreign investment and enterprise during the rebuilding process.
Prior to passage of the reform, no foreigner could own land on Honduran beaches or within forty kilometers of its borders. As tourism becomes an increasingly important contributor to the national economy, the government has sought ways to encourage and promote foreign investment in the sector.
Taxes
Mexico
Tax Rules Amended
The Department of the Treasury (SHCP) announced the amendment of the tax rules for 1998. These are the seventh set of amendments to the rules. Several Annexes of the rules were also amended. Diario Oficial, 12/29/98.
Transportation
Mexico
Standards on the Transportation of Hazardous Materials Published
The Department of Communications and Transportation (SCT) published technical standards dealing with the maritime transportation of hazardous materials. NOM-027-SCT4-1995 establishes the requirements to be met in order to transport materials considered hazardous by Mexican technical standards; chapter VII of the 1974 SOLAS agreement; rule 1 of the Annex III of the MARPOL 73/78 agreement; and the provisions of the IMDG Code. Diario Oficial, 12/21/98.
Standards on Fire Extinguishing Systems Published
SCT has published technical standards related to fire extinguishing systems in ships transporting hydrocarbons, chemical products and petrochemical products of high risk. NOM—025-SCT4-1995 establishes the conditions for the detection, identification and prevension of fires as well as the requirements for fire prevention systems on ships transporting the aforementioned goods. Diario Oficial, 12/21/98.
Notice of Report Published
A notice to companies transporting different kinds of chemical products and machinery has been published by the SCT. A special form, included in the notice, must be filed with the SCT before transporting such goods. Diario Oficial, 12/23/98.
