Volume 6, Number 4, Page 6
Recent Developments
Agriculture/Mines
Mexico
Mining Law Regulations Published
The Regulations of the Mining Law have been published by the Department of Commerce and Industrial Development (SECOFI). Among other things, the regulations cover the specific functions of various entities involved in mining permits. Diario Oficial, 2/15/99.
Antitrust/Antidumping
Mexico
U.S. Pork Subject to Investigation
The Department of Commerce and Industrial Development (SECOFI) has published a preliminary decision on an antidumping investigation on pork imported from the U.S. under tariff category 0103.92.99. On June 3, 1998 the Mexican Pork Council requested that SECOFI implement an antidumping investigation on pork imported from the U.S. Secofi decided to apply an antidumping duty of the difference between the export price of the pork, and its market value of US$ 1.08 per kilogram. The imports of pork with a price equal to or superior to the one mentioned above, will not be subject to the duty. Diario Oficial, 2/1/99.
Antidumping Cases Initiated, Reviewed
Several antidumping cases are under investigation or being reviewed by SECOFI. Among the most important cases are the following:
- Appeal of antidumping duties imposed on a chemical product imported from China under tariff category 2935.00.99;
- Initiation of an antidumping investigation on a chemical product imported from China under tariff category 2941.90.16;
- Final decision of the revision by a binational panel of an antidumping investigation on imports of rolled steel from Canada;
- Final decision of the revision by a binational panel of an antidumping investigation of pipelines from Mexico;
- Preliminary decision of an antidumping investigation on a polystyrene product imported from the European Community under tariff category 3903.19.02 and 3903.19.99.
Diario Oficial, 2/2/99 and 2/17/99.
Consumer Law
Mexico
Time Share Subject to New Requirements
Technical standards setting up information requirements on time-share transactions have been published by SECOFI. NOM-029-SCFI-1998 sets different requirements regarding commercial information that those providing time-share services must comply with. Diario Oficial, 2/29/99.
Standards Regarding Maintenance Services Published
SECOFI published technical standards applicable to real estate maintenance services. NOM-130-SCFI-1998 establishes information requirements that allow the knowledge of the prices and other terms set up to contract maintenance services on real estate property. The standard also applies to maintenance services of the goods inside a real estate property. Diario Oficial, 2/2/99.
Verification Company Approved
SECOFI has approved a private company to begin verifying compliance with a technical standard. The Sociedad Mexicana de Normalización y Certificación, S.C. was approved to certify compliance with technical standard NOM-141-SSA1-1995. The standard sets labeling requirements for beauty products and perfumes. Diario Oficial, 2/3/99.
Customs
Argentina
Revised Pre-shipping Inspection Registration Approved
Modifications to the current customs inspection regime were approved by the Federal Public Revenue Administration, in relation to imported goods inspected before shipment. The new requirements revise the procedures for registration and tracking of pre-inspected imports and the accompanying inspection certificates. These revisions will assist Argentina’s Customs Headquarters in monitoring imported goods, primarily from their Mercosur partners.
Boletín Oficial, Resoulución General 392/99, 2/16/99
Mexico
Rules for Auto Imports Published
SECOFI published rules for the import of used cars into the border regions of Mexico. The rules allow used car dealers to import used cars that will remain in the border region. The government allows, under certain circumstances, the import of used cars from the U.S. but only for use in the border region and in the states of Baja California and Baja California Sur. Diario Oficial, 2/8/99.
Regional
New Trade Agreement Implemented Between Chile and Panama
The Foreign Relations Commission of Chile approved an agreement between the Chilean and Panamanian governments on January 29. The agreement’s purpose is to avoid the double taxation of air traffic businesses operating in the air space of both countries.
The agreement, initially signed in Panama on June 5, 1996, proposed the elimination of the double taxation of benefits, income or profits by means of a reciprocal exemption system. The system is set up in such a way that Chilean and Panamanian businesses pay taxes only in their respective countries.
Brazil, Argentina set Commission to Monitor Bilateral Trade
In the shadow of Brazil’s currency devaluation and the resulting economic slowdown in Latin America, President Carlos Menem of Argentina and his counterpart Henrique Cardoso of Brazil agreed to create a bilateral commission to monitor trade flows between the two regional powers. Aimed at stabilizing economic relations between the two countries as well as their Mercosur partners, Brazil agreed to temporarily abandon financing of consumer goods in efforts to avoid dumping of cheaper products into Mercosur markets. Argentina agreed in turn to not impose quotas on Brazilian imports. Buenos Aires Herald
Latest NAFTA Tarif Reductions Benefit Textiles
Since January 1, 1999, products classified under the “B6” code enter the US and Mexican markets duty free. NAFTA’s sixth round of scheduled tariff reductions is consistent with NAFTA’s tariff schedule. The B6 category covers products in the textile sector, such as woven wool fabric, cotton yarn, blue denim, gauze, textile wall coverings and clothing.
In 1993, US exports entering Mexico under the B6 code faced a weighed average import duty of 17 percent while in 1998 the same duty was 3 percent.
Conversely, Mexican B6 exports to the US paid a weighed average import duty of 6.5 percent in 1993, which was reduced to 1.1 percent in 1998. These tariff reductions demonstrate that NAFTA is lowering costs for producers in the region.
Environment
Argentina
Pollution Standards for Imported Automobiles
Recommendations made by Argentina’s National Institute of Water & Environment will be incorporated into recently passed pollution standards for imported passenger automobiles. The Department of Natural Resources and Sustainable Development will inspect 0.4% of all incoming vehicles to satisfy the new standards, in accordance with National Transit Law No. 24.449. Results of the Institute’s studies indicate a substantial increase in noise and air pollution within Argentina’s major urban centers.
Boletín Oficial, Resolución 61/99, 2/15/99
Mexico
Water Tanks Subject to Standards
The Department of the Environment, Natural Resources and Fisheries (SEMARNAP) published new technical standards applicable to water tanks. NOM-007-CNA-1997 sets safety requirements to be met in the construction and operation of water tanks with a capacity superior to 3,000 cubic meters. Diario Oficial, 2/1/99
Foreign Investment
Cuba
Cuba Opens to Foreign-Only Investment
The Cuban government has approved the construction of a power plant that will be built, for the first time, with strictly foreign funds.
While some completely foreign-owned small businesses are located in Cuba's free trade zones, this plant, to be built by Genpower Cuba S.A., is considered to be the first of its kind in Cuba outside of these zones.
After four and a half years of ownership, the plant will be transferred to the Cuban government and will be absorbed into the state-run electricity company. After the transfer, however, Genpower Cuba S.A., will continue to earn money on its investment.
The construction of the plant is being sub-contracted to the German company B & W, and the Israeli company, Telemania. It is expected to serve 100,000 people.
The plant is expected to begin operating at the end of this year.
(El Nuevo Herald from Reuters, Miami, 2/10/99; La Nacion from AFP, Costa Rica, 2/11/99)
Mexico
Investment Treaties Approved
A series of investment treaties have been approved by the Senate according to notices from the Department of Foreign Relations (SRE). Mexico signed investment treaties with the following countries: Belgium-Luxemburg Union; Germany, Netherlands and Austria. At the same time, a commercial agreement with Rumania was published. Diario Oficial, 2/16/99.
Government Administration
Mexico
Department of the Interior Publishes its Own Organizational Manual
A new organizational manual from the Department of the Interior (SG) has been published. The manual includes the functions of the different parts of the SG. Diario Oficial, 1/29/99.
Labor Law
Mexico
Dangerous Chemical Products Subject to Standards
The Department of Labor and Social Services (STyPS) published technical standards related to the transportation, storage and handling of dangerous chemical products. NOM-005-STPS-1998 sets security and hygiene requirements for handling, transporting and storing dangerous chemical products at the work place. Diario Oficial, 2/2/99.
Securities
Panama
Panama Implements New Authorization Requirements for Securities Traders
With the recent passage of Resolution Nº CNV-185-98, the Panamanian government has established that all individuals and corporations acting as a distributor, a broker or other intermediary must now obtain previous authorization from the National Commission on Securities (Comisión Nacional de Valores). In order to obtain such authorization, the relevant party need present the request and the power of attorney that will draw up the authorization. The application for such authorization must be provided in the authorized format an annotated list of the attached documents to be presented, copies of the articles of corporation of the relevant party and any amendments duly noted in the Panamanian Public Registry. Morgan & Morgan S.C. de Panama
Taxes
Mexico
Tax Rules Amended
Several amendments to the tax rules applicable for 1998 have been amended by the SHCP. Each year, the SHCP publishes a list of specific rules regarding the payment of different taxes. Throughout the year several amendments to the rules were published. The ninth, tenth and eleventh set of amendments were published during the last two weeks. Diario Oficial, 1/29/99, 2/15/99 and 2/18/99.
Transportation
Mexico
Fire Extinguishers Subject to Standards
The Department of Communications and Transportation (SCT) has published technical standards applicable to fire extinguishers in boats and ships. NOM-031-SCT4-1996 applies to portable fire extinguishers and was created with the purpose of complying with the International Convention for the Security of Human Life at Sea. Diario Oficial, 2/2/99.
Entrance of Dangerous Materials to Ports Regulated
Standards applicable to the entrance of hazardous materials into port facilities have been published by the SCT. NOM-033-SCT4-1996 sets the requirements that must be met by dangerous materials entering ports by land or sea. Diario Oficial, 2/3/99.
Liability Fund Requirement Set
Requirements for transportation companies creating a liability fund have been published by the SCT. Cargo transportation companies may create a liability fund to respond to damages to third parties. Authorization by the SCT is required previous to establishing such a fund. Diario Oficial, 2/9/99.
