RECENT DEVELOPMENTS
ANTITRUST/ANTIDUMPING
Mexico
Dutch Starch Duties Continued
The Department of Commerce and Industrial Development (SECOFI) has published a final decision on eliminating antidumping duties for certain kinds of starch products from the Netherlands. On May 25, 1992, SECOFI imposed antidumping duties of 16 percent to the above-mentioned product. On June 19, 1998 SECOFI announced the possible elimination of the antidumping duties, requesting that local manufacturers provide any objections. After reviewing the case and hearing allegations from all parties, SECOFI has extended the application of the antidumping duties for another five years. Diario Oficial, 12/15/99.
Footwear Appeal Resolved
An appeal to a decision imposing antidumping duties to certain kinds of footwear from China was resolved by SECOFI. On 1993, different antidumping duties were assessed to the footwear, ranging from a few dollars per pair of shoes to a value-added-tax of 1,105 percent. Last year Importadora y Exportadora Indemar, S.A. de C.V. appealed SECOFI’s decision, which SECOFI later dismissed. In a different case, SECOFI reversed its previous decision, which had imposed antidumping duties on a chemical product from China, following an appeal of the case. Diario Oficial, 12/17/99.
Polyester from Korea, Taiwan under Investigation
SECOFI has announced it will undergo an antidumping investigation on specified types of polyester imported from Korea and Taiwan. Two Mexican companies requested that SECOFI investigate alleged dumping practices related to the above mentioned products. After review, Department has decided to initiate an investigation. Diario Oficial, 12/22/99
BANKING & CREDIT
Ecuador
Dollarization Delayed by Congressional Vote on Central Bank Directors
Ecuador’s January 12 Congressional session failed to select two new members to the Central Bank’s Board of Directors, as part of the restructuring process of the Issuing Agency (Instituto Emisor - IE). Only 55 of Ecuador’s 87 legislators approved the selection, with one legislator voting against the restructuring and 27 legislators abstaining. The incident worried several congressmen, as the lack of support for the proposed changes in the Central Bank will delay the dollarization of Ecuador’s economy, as well as adversely affecting dollarization regulations, which may further destabilize the struggling democratic regime. La Hora
Mexico
Bonds in Foreign Currencies Authorized
The Department of the Treasury (SHCP) has announced it will authorize Mexican bond institutions to issue bonds in foreign currencies. Previously, in 1995, an authorization to issue bonds in foreign currencies wee limited to cases in which Pemex or the CFE (both state-owned companies) were the beneficiaries. Bond institutions may now issue bonds related to all international procurements. Diario Oficial, 12/14/99.
CONSUMER LAW
Mexico
Product Labeling Scrutinized
SECOFI has published a resolution, establishing an obligation to verify information presented on the labels of milk containers. Labeling requirements for such products are set by NOM-051-SCFI-1994, which establishes general specifications for the labeling of foods and bottled non-alcoholic beverages. All manufacturers, bottling companies, importers and vendors are required to verify such information. Diario Oficial, 12/20/99.
CUSTOMS
Bolivia
Bolivia Threatens to Restrict Imports from Chile
In efforts to equalize bilateral trade with Chile, Bolivia’s Ministry of Economic Relations and Integration warned that they will not accept Chile’s temporary restrictions of domestic products, threatening to place commensurate restrictions on Chilean imports should Chile permanently establish the safeguards which currently apply to Bolivian exports. The Ministry announced that elaboration of such measures is underway, in the event Chile permanently enforces the safeguards. In addition, Bolivia will present its complaint to the World Trade Organization (WTO), effectively supporting a similar claim by Argentina before the WTO against Chile for preserving safeguard measures against 31 previously protected Argentine exports. La Razón, 1/14/2000
Honduras
Colombia to Extend Tariff Privileges
Colombia’s Ministry of Foreign Commerce announced on January 12, 2000 that tariff privileges for Honduras would be extended further, upon meeting in Bogota with Honduras’ Ministry of Industrial Development and Commerce. Although a list of affected products has yet not been presented, the new items will be included in the general framework established by both countries in upcoming negotiations. Colombia and Honduras have written up a partial agreement, which shall be modified to include the list of privileged goods in the hope of increasing trade between the two countries. Completion of the agreement is expected in February of 2000. La Prensa
Mexico
Rules of Origin Waived
SECOFI has announced that rules of origin for certain products under the Mexico-Colombia-Venezuela free trade agreement have been waived. According to SECOFI, Mexico will waive, under certain conditions, rules of origin, by establishing the duties of originating goods to certain kinds of textiles and clothing manufactured in Colombia. Diario Oficial, 12/27/99.
Permit List Amended
Changes to the list of products requiring a permit previous to importation have been published by SECOFI. Among the changes are the inclusions of certain kinds of chemical and meet products entering Mexico under tariff categories 0207.13.02; 0207.14.03; 0207.26.02 and 0207.27.03. Also amended were the rules establishing the import quotas for used vehicles imported by commercial entities. Diario Oficial, 12/31/99.
Import Tax Law Modified
SECOFI announced changes to various duties established in the Import Tax Law. Several new items were introduced, some tariffs changed and others eliminated. Diario Oficial, 12/31/99.
Year 2000 FTA Duties Published
The year 2000 import duties for goods entering Mexico under various free trade agreements have been published. Currently, Mexico has free trade agreements with the US, Canada, Colombia, Venezuela, Costa Rica, Bolivia, Chile and Nicaragua. It is also expected that this year Mexico will enter into a free trade agreement with the European Union, as the negotiations have been completed. Diario Oficial, 12/31/99.
ENERGY
Mexico
Compliance Procedures Issued
The Department of Energy (SE) has issued the compliance procedures to verify the application of two different technical standards. On a first notice, the compliance procedure for NOM-001-SEDE-1999 was published. The standard establishes technical requirements for installations using electricity. A second notice published compliance procedures for technical standard NOM-002-SEDE-1999, which establishes safety and energy efficiency requirements for electrical distribution transformers. Diario Oficial, 12/14/99.
Contracts Amended
The Energy Regulating Commission (CRE) has amended approved contract models to be used when selling excess energy. Amendments to the contracts and the contract itself may be obtained at the CRE web site, www.cre.gob.mx Diario Oficial, 12/23/99.
Workers Handling Radioactive Materials Subject to Standards
The SE has published technical standards related to workers that may be exposed to ionizing radiation. NOM-031-NUCL-1999 establishes requirements to train personnel that may be exposed to ionizing radiation. Diario Oficial, 12/28/99.
Uruguay
Electricity Import from Argentina to Commence in February
Argentina’s Department of Energy has informed Uruguay’s Department of Industrial Development that decrees permitting energy transfers between the two countries are approved and will be effective as of February 1, 2000. The importation of electricity from Argentina, under the terms agreed upon by both countries last November, will lower the rates charged by Uruguay’s Electrical Power Plants & Transmitters Administration (Administración Nacional de Usinas y Transmisiones Eléctricas – UTE), reducing UTE´s current thermal generation costs by two-thirds. In addition, these decrees will allow Uruguay´s major energy consumers to negotiate their own supply contracts directly with Argentine private sector generators. El Observador
ENVIRONMENT
Mexico
Tuna Fishing Subject to Standards
The Department of the Environment, Natural Resources and Fisheries (SEMARNAP) has published technical standards related to the fishing and sale of tuna. NOM-EM-002-PESC-1999 establishes the conditions to fish tuna with boats that have special nets to reduce the incidental death of dolphins. The standard not only applies to the owners of fishing boats, but also to all the persons that process and distribute tuna products. Diario Oficial, 12/29/99.
GOVERNMENT ADMINISTRATION
Mexico
Constitution Amendment Regarding Municipalities Passed
The Mexican Constitution has been amended, according to a decree published by the Department of the Interior. Amended was Article 115, which deals with the basic structure of municipalities. Diario Oficial, 12/23/99.
INSURANCE
Mexico
Institution Law Amended
The SHCP has announced amendments to the General Law of Insurance Institutions. The amendments cover changes to several articles as well as the incorporation of new articles of the law. At the same time, but in different publications, the SHCP announced changes and published new rules related to foreign reinsurance companies and also regarding risk reserves by insurance institutions. Diario Oficial, 12/31/99.
INTELLECTUAL PROPERTY
Mexico
Regulations for IMPI Published
The regulations for the Mexican Institute of Industrial Property (IMPI) have been published by SECOFI. The regulations establish the organization and characteristics of the different IMPI authorities, as established by the Industrial Property Law and the Copyrights Federal Law. The bylaws of the same Institute were published soon thereafter. Diario Oficial, 12/14/99 and 12/27/99.
LABOR LAW
Mexico
Labor Protection Agency Regulations Published
The Department of Labor and Social Services (STyPS) has issued regulations for the General Attorneys Office for the Defense of Labor. Among other things, the agency guides and advises workers and labor unions concerning their rights and also present complaints to labor authorities regarding non-compliance or violation of labor regulations. Diario Oficial, 12/14/99.
Working Conditions Published
Technical standards on working conditions of places where radiation is handled have been published by the STyPS. NOM-012-STPS-1999 establishes safety conditions for work places to evaluate and control the workers that are exposed to certain types of radiation. The STyPS also published a clarification to standard NOM-113-STPS-1994, related to requirements for safety footwear. Diario Oficial, 12/20/99.
Standards on Illumination Published
Technical standards related to the illumination of workplaces have been published by the STyPS. NOM-025-STPS-1999 establishes the characteristics of illumination for workplaces to avoid work hazards. Technical standards NOM-003-STPS-1999 were also published, establishing safety conditions for agricultural workers in the industry who store or handle pesticides, fertilizers and other products. Diario Oficial, 12/23/99 and 12/28/99.
Minimum Wages Increased
The National Commission of Minimum Wages has announced new minimum wages effective immediately. The minimum wages are grouped in three different regions. Region “A”, which covers areas such as the states of Baja California, Mexico City and other municipalities like Nogales, Nuevo Laredo and Reynosa, Tamaulipas, will now have a daily minimum wage of $37.90 pesos. Region “B” including the municipalities of Monterrey and Guadalajara will now have a minimum wage of $35.10 pesos. Other municipalities in Sonora and Nuevo Leon and other states now have a minimum wage of $32.70 pesos, for Region “C”. Minimum wages were also published for professions such as welders, nurses and drivers. Diario Oficial, 12/31/99.
MEDICINE & HEALTH
Mexico
Substances Prohibited, Restricted
The Department of Health (SSA) has prohibited or restricted numerous ingredients for use in perfumes, beauty products, teas, and other products. Via three separate notices, the SSA listed prohibited and restricted substances. Diario Oficial, 12/15/99.
TAXES
Mexico
Tax Rules Amended
At the end of the year, the tax rules for 1999 were subject to several amendments by the SHCP. The eight sets of amendments to the tax rules change certain parts of several tax annexes including Number 1, which lists the official tax forms approved by the SHCP. The SHCP also published the ninth set of amendments to the tax rules. The amendments cover issues such as audited statements by accountants, and the consideration of condoned loans with regards to income tax. Annex 16 has been published, as well as guidelines regarding several documents such as financial statements. Diario Oficial, 12/16/99, 12/17/99, 12/20/99, 12/22/99, 12/23/99, 12/24/99, 12/27/99, 12/28/99 and 12/29/99.
Tax Laws Amended
The SHCP has announced a set of changes to several tax laws, to comply with the fiscal budget for the fiscal year. Amended were the Fiscal Code, Income Tax Law, Value Added Tax Law, Law of the Special Tax on Production and Services, Law of Tax Coordination and the Law on the Tax of Use of Vehicles, among others.
The SHCP has also published amendments to the Law of Imposts and Fees. Diario Oficial, 12/31/99.
TRANSPORTATION
Mexico
Standards Published
Two technical standards were published by the Department of Communications and Transportation (SCT) relating to maritime operations. NOM-024-SCT4-1995 establishes the requirements for grounding the electrical connections of maritime fire fighting systems that must be maintained aboard commercial vessels. NOM-032-SCT4-1996 establishes requirements for information that must be included in maritime logbooks. Diario Oficial, 12/20/99.
