Volume 6, Number 19, Page 3
Recent Developments
ANTITRUST/ANTIDUMPING
Mexico
Binational Panel Consultations Dismissed
Two consultations dealing with requested binational panel revisions in two different antidumping cases were dismissed by SECOFI. On June 14 SECOFI published a notice of consultation to the parties in a case regarding hot rolled steel, since LTV Steel Company, Inc. had requested a bi-national panel to review the case under the rules of NAFTA. The company later withdrew its request for the panel revision and SECOFI dismissed the notice for consultation. A similar notice of consultation was dismissed on an antidumping case involving rolled steel. Diario Oficial, 8/10/99.
Cancellation of Duties Examined
The cancellation of antidumping duties imposed on a chemical product from France was recently studied by SECOFI. After an appeal, SECOFI confirmed antidumping duties of US$.24 per kilogram on a chemical product entering Mexico under tariff category 2905.44.01 which had been imposed on August 4, 1995. SECOFI decided to review the case to consider the cancellation of the antidumping duties. After an extended evaluation, SECOFI has decided to continue assessing the antidumping duties. Diario Oficial, 8/23/99.
Preliminary Decision on Steel Case Published
The Department of Commerce and Industrial Development (SECOFI) published its preliminary decision on an antidumping investigation on hot rolled steel imported from Russia and Ukraine. On October 7, 1998 Mexican companies AHMSA and HYLSA requested to SECOFI the initiation of an antidumping investigation on the above mentioned products. SECOFI announced that the investigation will continue and assessed preliminary antidumping duties of up to 46.66 percent on the steel products. Diario Oficial, 8/23/99.
Preliminary Decision on U.S., Russian Urea Published
SECOFI published its preliminary decision on an antidumping investigation on the imports of urea from the U.S. and Russia. On September 30, 1998 the corporation Agro Nitrogenados, S.A. de C.V. requested to SECOFI the initiation of an antidumping investigation. SECOFI decided to proceed with the investigation, not imposing preliminary antidumping duties at this time. Diario Oficial, 9/10/99.
Steel Dumping Investigation Against Eight Countries Denied
The Department of Commerce and Industrial Development (SECOFI) has denied Field Brother Industries’ solicitation of an antidumping investigation into special steel products imported from eight countries under tariff categories 7214.91.01, 7214.91.02, 7214.99.01, 7214.99.02, and 7228.30.99. Field Brother Industries alleged in their solicitation unfair competitive practices by the United States, Italy, Spain, France, Sweden, Germany, The Netherlands, and North Ireland between January 1998 and March 1999. In rejecting the solicitation SECOFI stated that Field Brother Industries did not demonstrate complete evidence of price discrimination which damaged national production of identical or similar merchandise. Diario Oficial, 9/6/99; El Universal, 9/7/99, http://www.el-universal.com.mx/net2…sep99/07sep99/finanzas/04-fi-b.html
BANKING & CREDIT
Mexico
Financing Limits Set
The central bank, Banco de Mexico, published the limits of financing that a bank may give to a same individual, entity or group of individuals. The set limits are based on a fixed percentage of net capitals of financial institutions. The limit of financing for individuals is of $643,235,000 pesos and for corporations the limit is of $7,718,824,000 pesos. Diario Oficial, 8/27/99.
Rules for Money Exchange Agencies Published
Mexico’s Central Bank published new rules for money exchange agencies. The rules relate to the operations by money exchange agencies dealing with foreign currencies and also precious metals. Diario Oficial, 8/27/99
CONSUMER LAW
Mexico
Standards on Measuring Tapes Published
SECOFI published new technical standards related to measuring tapes. NOM-046-SCFI-1999 establishes specifications and testing methods for steel measuring tapes and other measuring devices. Diario Oficial, 8/24/99.
CUSTOMS
Mexico
Natural Gas Import Duties Eliminated
According to a decree published by SECOFI, import duties for natural gas will be eliminated. The General Import Tax Law had established duties of ten percent on natural gas, but the new decree repeals these duties, for natural gas imported under tariff category 2711.21.01 of the General Import Tax Law. Diario Oficial, 8/16/99.
Quota Rules Published
SECOFI published the 1999 quota rules for importing certain lactose products. The products covered by the quota rules enter Mexico under tariff category 1901.90.03. Form SECOFI-03-011-1 must be filled out and presented to SECOFI in order to be assigned part of the quota. Also published were the minimum quota under NAFTA to import powdered milk from the U.S., as well as regulation for importing duty-free powdered milk from member countries of the WTO. Diario Oficial, 8/4/99.
Safeguards Established
SECOFI announced safeguards on certain products imported under NAFTA. The tariffs are applied since the quotas for importing with preferential treatment have been exceeded. The new quotas for several meat products imported from Canada are 20 percent ad valorem. Diario Oficial, 8/30/99.
Tax Rules Amended
For a fourth time, the Department of the Treasury (SHCP) published several amendments to the tax rules for 1999. Also amended was annex 3 to the tax rules, which establishes the fees to be paid for second inspections and value added tax in different customs ports. Diario Oficial, 8/31/99.
Tariffs Amended, Deleted
SECOFI announced the amendments and deletion of several tariffs from the General Export Tax Law. Several products are now exempt of paying export tariffs, while other tariff categories were just eliminated. Diario Oficial, 9/6/99.
Permit Rules on Import-Export Amended, Created
The list of tariff categories of products whose import and export are require a permit from SECOFI, has been amended by the same Department. On a different publication, SECOFI published a list of chemical products which import and export require a permit from the Department of Health (SSA). Diario Oficial, 9/6/99.
Tariff Rules for Mexico FTA’s Partners Amended
SECOFI published a decree amending the tariff rules for 1999 for products entering Mexico from countries with which it has free trade agreements. At this time, Mexico has free trade agreements with Canada, United States, Colombia, Venezuela, Costa Rica, Bolivia, Chile and Nicaragua. Several of the amendments relate to the new free trade agreement with Chile that replaces a previous trade agreement. Diario Oficial, 9/8/99.
ENERGY
Mexico
L.P. Gas Distribution Subject to New Standards
The Department of Energy (SE) published new technical standards establishing safety regulations for L.P. Gas distribution. NOM-EM-010-SEDG-1999 establishes the method to evaluate safety conditions of vehicles transporting and distributing L.P. Gas. The technical standard also sets minimum safety requirements for the operation of such vehicles. Diario Oficial, 8/23/99.
ENVIRONMENT
Mexico
Emissions Limits Set
The Department of Environment, Natural Resources and Fisheries (SEMARNAP) published a technical standard establishing the emission limits for vehicles. NOM-042-ECOL-1999 establishes the limits on the emissions of non-burned hydrocarbons, carbon monoxide, nitrogen oxides and other particles from the exhaust systems of new vehicles. Diario Oficial, 9/6/99.
UNESCO Investigates Proposed Saltworks
The United Nations’ scientific and cultural body UNESCO visited the Laguna San Ignacio in northwestern Mexico on August 23-28, where environmentalists fear plans to build the world's biggest saltworks may threaten endangered gray whales, black sea turtles, and prong-horned antelopes among other animals. The Laguna San Ignacio is located in the heart of the Vizcaino Biosphere Reserve, Latin America's largest wildlife sanctuary, which the United Nations declared a World Heritage Site in 1993.
The International Fund for Animal Welfare (IFAW) was confident the UNESCO team would urge the Mexican government and its Japanese partner, Mitsubishi Corp., to concentrate on cleaning up their smaller salt evaporation plant already in operation at Guerrero Negro. Environmentalists claim the existing plant, which is operated by the joint venture ESSA, has breached countless ecological restrictions and is to blame for the salt poisoning deaths of black sea turtles.
ESSA has vigorously defended its environmental record, and along with locals cite the creation of new jobs in a sparsely populated and poverty-ridden area in support of the planned saltworks, which would supply 100 percent of Japan's industrial salt needs. However, the proposal has led to a massive outcry from numerous ecological groups and from the public at large, which sent in some 30,000 e-mails to UNESCO.
GOVERNMENT ADMINISTRATION
Mexico
Bylaws of Congress Published
The bylaws of the Congress were published by the same. The bylaws include a list of all the commissions of the House as well as those of the Senate. Diario Oficial, 9/3/99.
Supplement to Standardization Program Published
SECOFI has published a supplement to the standardization program for 1999. The program lists different standards and proposed technical standards, including its time of elaboration and entities involved in its elaboration. Diario Oficial, 9/1/99.
INTELLECTUAL PROPERTY
Mexico
WIPO Treaty Ratified
The Department of Foreign Relations (SRE) published a decree approving a treaty from the WIPO. Mexico now joins the WIPO treaty signed on December 20, 1996 during the Diplomatic Conference on Certain Copyright and Neighboring Rights Questions in Geneva. Diario Oficial, 8/24/99.
LABOR LAW
Mexico
Business Licenses Registry Amended
New procedures registered in the Business Licenses Registry that are related to the Department of Labor and Social Services (STyPS) have been published by the same Department. The new procedures include one to register the individual or individuals that may represent a company when petitioning a license.
Thereafter, StyPS published forms to be used in the Fund for Promotion and Guarantee for the Consumption of Workers (Fonacot). Diario Oficial, 8/25/99 and 8/26/99.
SECURITIES
Ecuador
Utilization of Renegotiated CD’s Expanded
Executive Decree No. 1726 was passed on August 27, allowing certificates of deposit (CDs) whose nominal value has been renegotiated after initial endorsement to be utilized to settle debt obligations, including credit card debt and corporate capital debt. Financial institutions are now obliged to receive the renegotiated CDs at their full nominal value without penalties for early withdrawal. The measure is aimed at protecting national bank depositors who previously were exchanging their CDs for cash with significant penalties, in order to satisfy debts in cash form, as mandated by most financial entities during the current financial crisis. Corporate shareholders and board members of financial institutions also have the option to suspend or cancel credit operations when such renegotiated CDs have not been previously endorsed. El Universo, 9/2/99.
TAXES
Mexico
Tax Rules Amended
The Department of Treasury (SHCP) has published the sixth set of amendments to the tax rules for 1999. Also amended were annexes 1, 2, 4, 5, 7, 9, 11, 14, 15 and 17. The tax rules were originally published on March 3, 1999. Diario Oficial, 9/8/99 and 9/9/99.
TRANSPORTATION
Argentina
Vehicle Exchange Plan Extended
Bending to increasing domestic political pressure as well as lobbying efforts from the automotive industry, Argentina’s vehicle exchange plan was restructured via presidential decree. Foremost among the changes is an extension of the plan’s exchange discount to the purchase of cars manufactured in all MERCOSUR nations, so long as such cars are imported by companies that have plants installed in Argentina. Previously, the discount only applied to cars fabricated in Argentina, but these modifications were concessions to pressure from Mercedes-Benz and Ford, who have their production distributed between plants in Brazil and Argentina.
The decree also extends the period for which current discounts apply to October 19; $4000 or more IVA for autos, $6000 or more IVA for utility vehicles between 800 and 5000 kilos of load, and of $18,000 or more IVA for trucks and omnibus. From October 20, 1999-January 31, 2000, the discounts will decrease to $3500, $5300 and $15,800 or more, respectively. Starting February 1, the maximum discount will be 20% of the vehicle, within each automotive category.
This program was originally initiated by the Argentine government to reduce pollution, by providing incentive to remove older, less efficient vehicles from the road, through subsidized discounts on the purchase of newer, cleaner automobiles. Under the modified plan, a consumer that has scrapped a car older than 10 years before October 19 has a right to continue demanding the prevailing discount before that date. Certificates obtained after the price drop in vehicles can be used by anyone who buys a car via the previous savings system, but the discount can only apply at the time of the invoicing. Certificates can also be used to buy a vehicle of another category, but the discount is always from the smaller category. The previous antiquity limit of 15 years was also eliminated, allowing all cars older than 10 years to be scrapped and exchanged. La Nacion, 8/25/99
Mexico
Airport Privatization Continues
The Department of Communications and Transportation (SCT) announced it has been granted authorization to proceed with the privatization of the Grupo Aeroportuario del Centro Norte, S.A. de C.V. Such company includes the airports of Ciudad Juárez, Chihuahua, Culiacán, Mazatlán, Torreón, Durango, Monterrey, Reynosa, Tampico, Zacatecas, San Luis Potosí, Zihuatanejo and Acapulco. Diario Oficial, /8/31/99.
