Volume 6, Number 23, Page 4
RECENT DEVELOPMENTS
AGRICULTURE, MINES & CATTLE INDUSTRY
Mexico
Coconut Palm Seeds Subject to Standards
The Department of Agriculture, Livestock and Rural Development (SAGAR) has published technical standard NOM-067-FITO-1999, establishing the guidelines to manufacture and produce the special type of coconut palm seeds, pollen and the hybrid plant of coconut that resists the plague known as “amarillamiento letal.” Diario Oficial, 10/14/99.
Price of Reference on U.S. Apples Established
SECOFI has established a price of reference on apples imported from the U.S. of US$ 0.59 per kilogram. Apples affected by this measure include the red delicious and golden delicious variety. The price was set by mutual agreement as a settlement between SECOFI and U.S. apple producers and exporters after SECOFI had started a dumping investigation. Diario Oficial, 10/26/99.
Price of Reference for Sugar Set
SECOFI established a price of reference to be used for the sale of sugar during the 1999/2000 harvest season. The price for cane sugar was set at $4,295.1 pesos per ton. The price of reference is effective from October 1, 1999 to September 30, 2000. Diario Oficial, 10/28/99.
ANTITRUST/ANTIDUMPING
Mexico
Antidumping Duties on EU Meat under Examination
The Department of Commerce and Industrial Development (SECOFI) has published a notice initiating a study, to determine the consequences of eliminating antidumping duties on meat entering Mexico from the European Union (EU). On April 26, SECOFI announced the possible elimination of the antidumping duties, allowing for petitions from parties interested in maintaining the duties. In response, the National Confederation of Livestock Producers among other associations requested an investigation on the possible consequences of eliminating such duties. SECOFI accepted the Confederation’s request and will evaluate eliminating an antidumping duty of 45.74 percent on certain types of meat from the EU, established by SECOFI through a resolution published on June 3, 1994. Diario Oficial, 10/11/99.
Chinese Toy Import Appeal Resolved
SECOFI has resolved an appeal to a previous decision regarding toys imported from China. On November 25, 1994, SECOFI issued a resolution imposing antidumping duties ranging from 2.58 to 351 percent depending on the type of toy, while several toys from two Chinese manufacturers were excluded from the imposition of duties. On September 14, 1998, SECOFI announced a procedure where, for certain products, an importer may request an authorization to import goods without paying any antidumping duties. Casa de Lloyd, S. de R.L. de C.V. requested on October 7, 1998, to import certain toys from China without paying antidumping duties. SECOFI denied permission to Casa de Lloyd, and the company appealed SECOFI’s decision on January 28, which was later affirmed. Diario Oficial, 10/13/99.
Elimination of Duties on Several Chinese Products under Consideration
SECOFI has announced an investigation into whether eliminating certain antidumping duties will cause the resumption of antidumping practices of bicycles, bicycle tires, locks, pencils and other products from China. Existing duties may be eliminated if SECOFI decides dumping practices for such imported goods have discontinued. SECOFI’s notice includes a list of the tariff categories of the products being evaluated. Diario Oficial, 10/18/99.
Fiscal Tribunal Intervenes on Antidumping Case
SECOFI has announced changes to an antidumping case on steel from Brazil due to a Fiscal Tribunal order. On November 18, 1994, SECOFI imposed antidumping duties of up to 64.96 percent. Later on, due to an appeal, the antidumping duties were reduced. Two companies appealed the decision to the Federal Fiscal Tribunal and such tribunal accepted the appeal nullifying SECOFI’s resolution. Followed such decision, SECOFI appealed to a Circuit Court, who denied the appeal. For such reasons SECOFI announced the elimination of the antidumping duties established on November 18, 1994. Diario Oficial, 10/21/99.
Hot Rolled Steel Antidumping Duties Under Review
The elimination of antidumping duties on hot rolled steel imported form the U.S. has been studied by SECOFI. The same Department has also resolved on the possible elimination of the duties. On April 28, 1993, antidumping duties of up to 12.88 percent were assessed to the above-mentioned product. After evaluation the possibilities of ongoing dumping practices if the antidumping duties were eliminated, SECOFI has decided to reverse all the antidumping duties imposed on hot rolled steel from the U.S. covered by the 1993 resolution. The antidumping duties are eliminated as of April 28, 1998. On the same day, SECOFI announced the elimination antidumping duties on sheet steel from the U.S. assessed on August 2, 1994. Diario Oficial, 10/21/99.
Preliminary Decision on Polystyrene Investigation Issued
A preliminary decision on polystyrene from the U.S. has been issued by SECOFI. A Mexican company requested on November 10, 1998 an antidumping investigation on polystyrene from the U.S. SECOFI decided to proceed with the antidumping investigation, not imposing preliminary antidumping duties on the U.S. product. Diario Oficial, 10/22/99.
U.S. Pork Decision Issued
SECOFI has published its final decision on an antidumping investigation on U.S. pork entering into Mexico. After an extensive analysis, SECOFI has decided to impose an antidumping duty of US$ 0.351 per kilogram of a pork entering Mexico under tariff category 0103.92.99. Diario Oficial, 10/20/99.
Various U.S. Steel Duties Eliminated
The Department of Commerce and Industrial Development (SECOFI) announced the elimination of antidumping duties on certain types of steel from the U.S. On August 2, 1994, several kinds of steel were assessed antidumping duties of 38.21 percent. The duties were eliminated going back to August 2, so any antidumping duties charged on the products from such date until now shall be reimbursed. Diario Oficial, 10/27/99.
Synthetic Plastics Dumping Investigation Closed
An antidumping investigation on plastics from the U.S. was decided by SECOFI according to a resolution published by the same Department. On November 18, 1998, Negromex, S.A. de C.V. requested an antidumping investigation on certain synthetic plastics from the U.S. entering the country under tariff category 4002.19.02.
On March 8 SECOFI announced it was going to investigate the alleged dumping practices. Negromex, S.A. de C.V. later withdrew its petition and SECOFI closed the investigation. Diario Oficial, 10/27/99.
BANKING & CREDIT
Brazil
Authorization for Energy Related Bank Accounts Denominated in Foreign Currency
On September 10, 1999, the Central Bank of Brazil (BACEN) issued Resolution No. 2644, authorizing the opening and operation of bank accounts denominated in foreign currency in Brazil. Such accounts are authorized only when related to projects in the following areas: (i) prospecting, production, operation, processing and transportation of oil and gas; and (ii) generation and transmission of electric power. Companies in charge of the setup and development of these projects may open and operate such foreign currency-denominated accounts in banks duly accredited by BACEN to deal in foreign exchange (DOU-I of September 13, 1999). Pinheiro Neto Advogados, www.pinheironeto.com.br
BACEN Sets Election Rules for Senior Management Positions at Financial Institutions
The Central Bank of Brazil (BACEN) issued Resolution No. 2645 on September 22, 1999, repealing previous Resolution 1763/90 and defining the basic conditions for election to senior management positions in financial institutions and other entities authorized to operate by BACEN. Soon thereafter, BACEN issued Circular No. 2932 on September 30, 1999, setting out the procedures for ratification of the election or nomination of a person to such senior management positions. These rules were issued in efforts to foster the knowledge and skills of professionals acting in the Brazilian financial system (DOU-I of September 22 and October 1, 1999). Pinheiro Neto Advogados, www.pinheironeto.com.br
Mexico
Bylaws of Protection Entity Published
The bylaws of the National Commission for the Protection and Defense of the Users of Financial Services have been published by the SHCP. The Commission is public entity created to enforce the Law for the Protection and Defense of the Users of Financial Services. The bylaws of the Commission establish its composition as well as the authorities of the different parts that compose the Commission. Diario Oficial, 10/15/99.
CONSUMER LAW
Argentina
Rigid Quality Assurance Certification Procedures Established
Disposition 963/99 has been issued by Argentina’s Domestic Commerce Office, establishing further registration requirements for all products commercialized in the national market. In addition to existing prerequisites for quality assurance certification (as set by the Department of Industry, Commerce & Mining for all commercial products), the legal declaration form contained in Annex I of this disposition must accompany all obligatory quality assurance certificates provided by the manufacturer or importer for each respective product. The form must first be certified by a Notary before registration with the National Domestic Commerce Office, as set forth in Law No. 22.802. Boletín Oficial, Disposición 963/99, 9/27/99
Mexico
Building Materials Subject to Standards
SECOFI has published technical standards related to the sale of building materials. NOM-135-SCFI-1999 establishes commercial information requirements that must be provided to consumers in establishments that sell building materials. The standards also establish minimum information requirements for inclusion in purchase orders, in order to provide consumers adequate information when purchasing such goods. Diario Oficial, 10/19/99.
Standards Applicable to Child Strollers, Playpens Published
SECOFI has published technical standards regarding strollers and playpens manufactured, imported and/or sold in Mexico. NOM-133/2-SCFI-1999 establishes safety requirements and testing methods for the strollers. NOM-133/3-SCFI-1999 establishes the safety requirements and testing methods for playpens as well as several labeling requirements. Similar technical standards were also published for baby walkers. Diario Oficial, 10/15/99; 10/18/99; 10/20/99.
Price Fixing Alleged
The Federal Competition Commission has announced it will investigate an alleged agreement between competitors to fix prices. The Commission stated it will investigate an alleged agreement that would have established minimum prices for beer sales between competitors. Diario Oficial, 10/29/99.
Mexico
Standards for Elevators Take Effect
SECOFI announced the effectiveness of a standard related to elevators. NOM-053-SCFI-1994 was published on February 20, 1998, but its application was delayed until a testing lab with the adequate infrastructure was established. SECOFI now considers that such a lab is operating in Mexico, and has decided the technical standard will enter into force 60 days after this notice’s date of publication. Diario Oficial, 11/2/99.
CUSTOMS
Mexico
Import Duties Imposed upon U.S. Coffee
SECOFI has announced it will impose import duties to U.S. coffee as per the NAFTA, which allows for such duties to be imposed after pre-established import quotas have been met. As such, Mexico will apply import duties for the reminder of this year to coffee and other related products originating from the U.S. Diario Oficial, 11/5/99.
Regulations of Customs Law Amended
The SHCP has published a decree amending the Customs Law Regulations. These amendments basically introduce several new articles to the Regulations, related to special authorizations that the Tax Administration Service may give to individuals or corporations to electronically process information required by the Service. Diario Oficial, 10/18/99.
ENVIRONMENT
Mexico
Organic Compost Standards Clarified
The Department of the Environment, Natural Resources and Fisheries (SEMARNAP) has published a clarification to technical standards related to volatile organic composts. NOM-123-ECOL-1998 establishes the limits of such composts in the manufacture of certain types of paints. The technical standard was first published on June 14. Diario Oficial, 9/29/99.
Program to Grant Subsidies for Commercial Forestry
SEMARNAP has announced the rules for procurement and assignment of subsidies under the Program for the Development of Commercial Forestry Plantations. The program seeks to temporarily grant subsidies to compensate for certain costs to establish and maintain commercial forestry plantations for a period of up to seven years, in efforts to develop a sustainable model for such type of plantations and to decrease the degradation of the ground in Mexico. Total subsidies in the amount of $185,000,000 pesos will be granted through the program. Diario Oficial, 10/12/99; 10/29/99.
Temporary Ban on Tuna Fishing Imposed
A temporary ban on the fishing of yellow fin tuna has been established by the SEMARNAP. The ban applies to all federal jurisdiction waters of Mexico in the Pacific Ocean. The ban also applies to boats fishing under the Mexican Flag in foreign jurisdiction waters of the oriental Pacific Ocean. Diario Oficial, 11/3/99.
Mexico
Standards Applicable to Certain Plants Issued
The Department of Environment, Natural Resources and Fisheries (SEMARNAP) published a technical standard related to the use and transportation of two kinds of vegetation. NOM-018-RECNAT-1999 establishes the procedures, criteria and technical specifications to use a herb known as “candelilla” as well as for the transportation and storage of a plant known as “cerote.” Diario Oficial, 10/27/99.
INSURANCE
Mexico
List of Rating Agencies Published
The SHCP published a list of the different international rating agencies that evaluate Mexico’s insurance companies. Also published were the different rates the agencies use to rate risks from insurance companies. Diario Oficial, 10/25/99.
MEDICINE & HEALTH
Mexico
Epidemics Vigilance System in Force
A standard has been published by the Department of Health (SSA) related to the installation of a national system to overview epidemic illnesses in the country. NOM-017-SSA2-1994 establishes the guidelines and operation procedures for the National System of Epidemic Vigilance, and sets the criteria for the system’s application in the events or emergency situations that could affect or risk the public health. Diario Oficial, 10/11/99.
Standards for Outpatient Centers Established
The Department of Health (SSA) has published technical standards that apply to outpatient centers. NOM-178-SSA1-1998 establishes minimum equipment and infrastructure requirements of outpatient centers that offer services of promotion, prevention, diagnosis, rehab, and emergency among others. Diario Oficial, 10/29/99.
SECURITIES
Argentina
Norms for Mutual Funds Modified
Argentina’s National Securities Commission (Comision Nacional de Valores- – CNV) has issued General Resolution 341/99 which modifies Chapter X, Articles 28 & 38 of the CNV Norms (1997), relating to disclosure and publicity requirements for mutual funds divided into greater than 1,000 shares. Specifically, the changes are aimed at improving transparency in mutual fund investments, through the formulation of uniform naming and identification standards in conformance with Law No. 24.083, which will take full effect on December 1. Boletín Oficial, Resolución General 341/99, 9/27/99
Brazil
Rules Set Payment of Debentures Issued in Domestic Markets
On September 23, 1999, the Central Bank of Brazil (Banco Central do Brasil – BACEN) and the Securities Commission (Comissão de Valores Mobiliários – CVM) issued Joint Decision No. 7, laying down the rules for remuneration of debentures issued in the local market (DOU-I of September 24, 1999). Pinheiro Neto Advogados, www.pinheironeto.com.br
TAXES
Mexico
Further Annexes to Tax Rules Published
Several annexes to the tax rules for 1999 have been published by the SHCP. Foremost among the published tax annexes are 2, 5 and 7, which list the establishments authorized by the SHCP to print invoices as well as those companies that may print their own invoices, and also lists stocks, bonds and other securities considered by the SHCP as publicly traded. The SHCP subsequently published Annexes 8, 14, 15, 17 and 18 a few days later. Diario Oficial, 10/11/99; 10/12/99; 10/15/99; 10/18/99.
Tax Rules on Foreign Trade Amended
A seventh set of amendments to the tax rules related to foreign trade was further amended by SECOFI. The original set of rules was published on March 31, 1999. Diario Oficial, 10/29/99.
TRANSPORTATION
Mexico
Standards for Public Transportation Set
The Department of Communications and Transportation (SCT) has published technical standards related to public transportation. NOM-067-SCT-2/SECOFI-1999 establishes the technical requirements and security standards for buses with capacity of 16-30 passengers offering public transportation in Mexico. Diario Oficial, 11/1/99.
