Volume 6, Number 20, Page 3
Recent Developments
AGRICULTURE, MINES & CATTLE INDUSTRY
Argentina
New Regulations for Registration of Sanitary Products
The Department of Agriculture, Livestock, Fishing & Alimentation has passed Resolution No. 350/99, approving new regulations regarding the registration of phytosanitary products. Entitiled “Procedures, Criteria, and Scope of Phytosanitary Product Registration in the Republic of Argentina”, the new manual sets forth requirements for registering chemical and biochemical substances (and their physical properties) utilized in commercial products, including but not limited to organic preservatives, detergents and other cleaning solutions. Boletín Oficial, Resolución 350/99, 9/8/99
Brazil
USDA Approves Brazilian Beef
The US Department of Agriculture (USDA) announced recently that it may soon authorize the import of Brazilian fresh beef. After a two week visit, the USDA indicated that it would approve import quotas of aged beef and authorize fresh beef shipments in 9-12 months. US inspectors praised Brazilian inspection controls and said some aspects were superior to the US system. Brazilian Ministry of Agriculture
Mexico
Procedure Manual Published
The Department of Agriculture, Livestock and Rural Development (SAGAR) has published a manual establishing the procedure to comply with certain requirements for importing goods into Mexico. The manual sets the procedure for compliance with the phytosanitary requirements referred in Articles 3 and 4 of the Resolution, which establish the tariff categories of goods whose import are subject to regulations by SAGAR. Also published, the procedure manual for obtaining a certificate referred in Articles 1 and 3 of the above-mentioned resolution. Diario Oficial, 9/21/99 and 9/24/99.
ANTITRUST/ANTIDUMPING
Argentina
Antidumping Investigation Regulations Clarified
In response to solicitations from the private sector to clarify the impact of previous Resolution No. 224/99, April 8, 1999, relating to antidumping investigation procedures, the Department of Industry, Commerce, and Mining has issued Resolution No. 701/99. The new measure specifies the reach of Annexes 3 and 4 of the previous resolution, relaxing the reporting requirements for the declared nominal value of imported merchandise, as well as specifying the use of 1994 GATT tariff categories for certain merchandise. Terms of the new resolution go into effect immediately. Boletín Oficial, Resolución 701/99, 9/22/99
Multiple Investigations into Dumping of Steel Imports Announced
Argentina’s Department of Industry, Commerce, & Mining have announced the start of separate investigations into the alleged dumping of numerous iron and steel imports from Brazil, Russia, and Mexico. On July 19, 1999, the Foreign Commerce Office petitioned for an antidumping investigation into various laminated iron and steel products imported from Brazil and Russia under MERCOSUR tariff categories 7209.15.00, 7209.16.00, 7209.17.00,7209.18.00, 7209.25.00, 7209.26.00, 7209.27.00, 7209.28.00, 7209.90.00, 7211.23.00, 7211.29.10, 7211,29.20, 7225.50.00 and 7226.92.00, during the previous 12 months.
Likewise, an investigation was requested into prefabricated steel sheets imported from Mexico under MERCOSUR tariff category 8202.91.00, during the previous thirty-six (36) months. Firms under investigation in each case will have sixty (60) days to file the proper certifications of origin with the Customs Office. Argentine firms claiming negative impact from these import operations have forty-five (45) days from the date of publication in the Boletín Oficial to file their complaints with the Foreign Commerce Commission. Boletín Oficial, Resoluciones 623/99, 9/2/99 & 654/99, 9/16/99
Mexico
Preliminary Decision on Imports from Denmark Issued
The Department of Commerce and Industrial Development (SECOFI) has issued its preliminary decision on an antidumping investigation on certain products imported from Denmark. On December 9, 1998 the company Tekchem, S.A. de C.V. requested an antidumping investigation on a product imported from Denmark under tariff categories 2920.10.02 and 3808.10.99. The imported goods are used as anti-bacterial agents. SECOFI decided to continue the antidumping investigation and apply provisional antidumping duties of 39 percent on the above mentioned products. A public hearing on the present investigation will take place on January 14, 2000 at Unidad de Prácticas Comerciales Internacionales, Insurgentes Sur 1940, Planta Baja, Col. Florida, C.P. 01030, México, D.F. Diario Oficial, 9/15/99.
Polystyrene from the EU Investigated
SECOFI has published its final decision on an antidumping investigation into crystal polystyrene imported from the European Union under tariff categories 3903.19.02 and 3903.19.99. On October 7, 1997 Resirene, S.A. de C.V. and Poliestireno y Derivados, S.A. de C.V. requested an antidumping investigation of the above mentioned product, which is exported by Dow Chemical Company as well as by the European Union.
SECOFI decided to impose antidumping duties on the products imported from the EU whose export price is less than the normal value of reference of US$ 0.9274 per kilogram. The antidumping duties will be the amount that results from the difference between the export price and this value of reference. The maximum amount that may be set as antidumping duties will be of US$ 0.3431. Diario Oficial, 9/23/99.
BANKING & CREDIT
Brazil
Central Bank of Brazil Regulates Y2K Compliance
Brazilian banks are working on final internal control details devised to prevent failures that the “Y2K” millennium bug may cause in complicated computer systems. The majority of banks claim they have completed procedures that will allow computers to read dates correctly at the turn of year 2000. Now they are focusing on contingency plans, including solutions to problems that could be provoked by external sources. Cuts in the electricity supply and telephone system failures are among these. The Central Bank (BACEN) has stipulated a deadline of September 30 for all banks to adapt and prepare for Y2K. Banks have until then to submit reports on measures implemented. Gazeta Mercantil.
Mexico
Y2K Rules for IRA’s Published
The Department of the Treasury (SHCP) published additions to rules related to the Y2K problem and entities dealing with Individual Retirement Accounts. Circular CONSAR 35-2 ads rules that IRA Administrators, investment companies dealing with IRA’s, credit institutions and the entities that operate the National Database of the System of Savings for Retirement must be in compliance. Diario Oficial, 9/13/99.
Rules for Bond Institutions Published
The SHCP has published new rules that bond institutions must follow to assure that in cases of default, collateral can be reclaimed. The guidelines issued by the National Commission of Insurance and Bonds establish minimum requirements that bond institutions must comply with for taking collateral that may be recovered. Diario Oficial, 9/14/99.
Accounting Rules Amended
The accounting rules for IRA Administrators have been amended according to a circular published by the SHCP. Circular CONSAR 12-8 amends and appends the general rules for the accounting and elaboration of financial statements that IRA Administrators must file. Diario Oficial, 9/20/99.
Rules for Rating Credit Portfolio Amended
The SHCP has announced amendments to the regulations for credit portfolio ratings. The resolution amends regulations for the rating of credit portfolios from credit institutions, as referred by Article 76 of the Law of Credit Institutions. The SHCP has also published the rules for the capitalization of certain types of banking institutions. Diario Oficial, 9/22/99.
COMMUNICATIONS
Mexico
The Federal Commission of Telecommunications has published technical standards applicable to certain communication devices. NOM-151-SCT1-1999 establishes mechanical and electrical conditions as well as testing methods for all equipment connected by cable to a public telecommunications network. At the same time the Commission published NOM-152-SCT1-1999 establishing technical requirements for the connection between networks of telecommunication companies. Diario Oficial, 9/20/99.
CONSUMER LAW
Argentina
Numerous Consumer Protection Measures Enacted
Product labeling, automobile insurance, and paper products imports are among the recent targets of various consumer protection measures enacted recently. Argentina’s Department of Industry, Commerce and Mining issued Resolution No. 653/99, which established new labeling requirements for all commercial import products sold domestically, and Resolution No. 679/99, requiring all automobile insurers to report insurance premium rates to the National Interior Commerce Office on a semesterly basis. In addition, the National Interior Commerce Office published Disposition 960/99 regarding minimum standards for quality assurance of commercial import products.
Argentina’s Ministry of Economy passed Resolution No. 1117/99 on September 22, 1999, which establishes norms for the designation and quality assurance of paper products imported for special uses. Boletín Oficial, Disposición 960/99, 9/17/99; Resoluciones 653/99, 9/8/99; 679/99, 9/21/99; & 1117/99, 9/22/99.
Mexico
Standards for Watthour Meters Set
SECOFI published technical standards applicable to watt hour meters. NOM-044-SCFI-1999 establishes definitions and electrical, physical, mechanic, packaging and labeling requirements for watt hour meters type “A” and “S.” The watt hour meters covered by the technical standards are those used to measure the consumption of electricity. Diario Oficial, 9/13/99.
Standards Published
A list of several standards that will soon enter into effect was published by SECOFI. All of the sixteen standards refer to electrical devices. Diario Oficial, 9/14/99 and 9/21/99.
Training Subject to Standards
SECOFI has published technical standards related to entities and individuals providing technical training for workers. NOM-137-SCFI-1999 establishes the minimum information and content requirements of the contracts for providing private services of training for workers.
The standard applies to all individuals and corporations that, in Mexico, provide training services for workers, and that have not received certification from the corresponding authorities. Diario Oficial, 9/24/99.
Rules for Chambers of Commerce Amended
The rules for the creation of new chambers of commerce have been amended by SECOFI. The rules include the regions and industries that may request the creation of new chambers of commerce. Diario Oficial, 9/20/99.
ENERGY
Ecuador
Tariff Exemption Extended
The Ecuadorian Government extended the exemption for the importation of diesel, naphtha, gasoline, LPG and AVGAS by Petroecuador until October 25, 1999. The exemption is for rights pertaining to tariffs. Thereafter, any foreign company may export any petroleum product to Ecuador free of taxes. Contributed by Izurieta Mora Bowen of Quito, Ecuador, 9/29/99
Mexico
Energy Saving Institute Created
The Department of Energy (SE) published a decree which creates the National Commission for Energy Saving. The Commission will serve as a technical consulting entity for governmental agencies as well as state governments, municipalities and private parties regarding energy savings and efficient use of energy. Diario Oficial, 9/20/99.
ENVIRONMENT
Mexico
Zone Protected
Guidelines to protect an area of Mexico extending in the states of Oaxaca, Veracruz and Chiapas have been issued through a technical standard published by the Department of the Environment, Natural Resources and Fisheries (SEMARNAP). NOM-EM-001-SEMARNAP-1999 establishes guidelines for the environmental protection of the biological corridor of Chimalapas-Uxpanapa-El Ocote, located on the states mentioned above. The corridor includes an area of approximately 274,661 hectares. Diario Oficial, 9/13/99.
Standards Published to Control Virus
The SEMARNAP published technical standards to prevent and control the introduction of viruses affecting shrimp. NOM-EM-001-SEMARNAP-PESC-1999 establishes different requirements and measures to prevent and control the white spot syndrome virus and the yellow head virus. Diario Oficial, 9/24/99.
GOVERNMENT ADMINISTRATION
Mexico
Constitution Amended
The Department of the Interior (SG) published a decree announcing an amendment to the Federal Constitution. Amended was section B of Article 102 of the Constitution. The change to the Constitution allows the Congress and State Legislatures to establish human rights protection agencies. The amendment gives more autonomy to the National Commission of Human Rights and comes as the result of constant petitions formulated by the current president of the Commission, Dr. Mireille Roccatti. Diario Oficial, 9/13/99.
INSURANCE
Mexico
Rules on Interpretation Issued
The SHCP has published a circular establishing interpretation rules regarding reserve rules. Circular S-21.7 was issued to comply with the Law for the Protection and Defense of the User of Financial Services. Diario Oficial, 9/21/99.
FOREIGN INVESTMENT
Argentina
Bilateral Agreement Signed with Costa Rica
Argentina’s National Congress passed Law No. 25139, approving a previous bilateral agreement of August 4, 1999 with Costa Rica. Passage of the law allows for legal enforcement of the agreement, which provides for the reciprocal promotion, development and protection of public investments between the two nations. Boletin Oficial, 9/16/99
INTELLECTUAL PROPERTY
Ecuador
Administrative Protection of Intellectual Property Rights
In accordance with book five of the Ecuadorian Intellectual Property Law, intellectual property rights are considered of public interest. The Ecuadorian Government, acting through the Ecuadorian Institute of Intellectual Property (IEPI), will exercise administrative protection of intellectual property rights and will supervise their compliance.
Any person claiming a violation or possible violation of intellectual property rights may request to the IEPI the adoption of the following steps:
a. Inspection
b. Request of Information
c. Punishment for violation of the Intellectual Property rights.
Such petitions will remain in confidence until they are implemented.
The IEPI may also take preventative measures such as the removal of any label or sign that clearly violates Intellectual Property rights. Violators could then be sanctioned with a fine and face possible prison time. Contributed by Izurieta Mora Bowen of Quito, Ecuador, 9/29/99
MEDICINE & HEALTH
Mexico
Regulations of Law Regarding Chemical Products Issued
The Department of Health (SSA) published the regulations of the Law of Chemical Precursors, Essential Chemical Products and Machines to Manufacture Capsules and Tablets. The regulations have as purpose the control of the activities related to the products covered by above mentioned law. Diario Oficial, 9/15/99.
TAXES
Argentina
Rules Governing Transactional Use of T-Bills and Bonds Modified
The Department of the Treasury has modified the criteria for the tax reporting of financial transactions realized with treasury bills and/or treasury bonds. Resolution No. 444/99 specifies which transactions must be reported to the Treasury for taxation purposes. The measure allows exemptions for the simple sales or purchase of T-bills or bonds in the same transaction, as well as such sales or purchases for the restructuring of public debt, and requires that the face value of each T-bill or bond otherwise sold or exchanged in separate transactions be reported. Boletín Oficial, Resolución 444/99, 9/2/99
Ecuador
Ecuador Creates New Taxes
Ecuador has issued laws creating new taxes. These laws extend the number of institutions that must pay value added tax (IVA). Among the handful of products not required to pay the ten percent value added tax are medicines, agricultural products and professional fees that do not exceed US$1000 per service rendered.
A tax of 1% of the net assets of a company was created, as well as a tax for luxury cars. Ecuadorians whose income is over US$7000 must also pay income tax on their earnings. This tax is a 25% of the net utility. Contributed by Izurieta Mora Bowen of Quito, Ecuador, 9/29/99
TRANSPORTATION
Mexico
Hazardous Waste Transportation Standards Published
The Department of Communications and Transportation (SCT) published technical standards related to the transportation of hazardous waste. NOM-028-SCT2/1998 establishes special provisions to determine the risk level of packaging of hazardous substances and residues of class 3. Diario Oficial, 9/14/99.
List of Federal Driving Licenses Published
A list of various federal driving licenses have been published by SCT. Among the different driving licenses are those of category “B” which allows the holder to drive different cargo vehicles on federal highways except those transporting hazardous materials or waste. Diario Oficial, 9/15/99.
Y2K Compliance Standards Published
The SCT published technical standards related to Y2K compliance for all air transportation services. NOM-EM-0000-SCT/3-99 establishes the measures that must be taken by all entities that provide or operate air services so they may not be affected by the Y2K computer bug. Diario Oficial, 9/20/99.
VARIOUS
Regional
Peru, Chile, Bolivia, and Argentina Economic Reform Winners
In an on-going study performed by the Economic Commission for Latin America and the Caribbean (CEPAL), Peru, Chile, Argentina, and Bolivia reportedly grew more during the 1990s than they did during previous decades (1950s-1980s), due in part by newly implemented economic reforms. Barbara Stallings, the director of the Economic Development Division of CEPAL, explained that these four countries had previously undergone critical economic and political conditions, with hyperinflation and very low growth rates. As a result, negative consequences were minimal and economic reforms were implemented very quickly. Of the nine countries in the study, the reported losers were Brazil, Columbia, Costa Rica, Jamaica, and Mexico, according to yearly Gross Domestic Product (GDP) levels.
