Modifications to Foreign Trade Rules
Business Law Articles
Written By: Iker Dieguez
Cacheaux Cavazos & Newton
Mexico City, Mexico
On June 6, 2013, the Mexican Department of the Economy published in the Official Journal of the Federation the "Agreement modifying the prior agreement by means of which the Mexican Department of the Economy ("SECON") issued general rules and criteria on Foreign Trade" (the "Agreement"). The Agreement constitutes the first modification to the rules published by SECON on December 31, 2012 and contains the following modifications:
1. The "recovery of materials" concept is specified for purposes of permitted activities that are considered industrial processes for preparation and transformation under IMMEX and PROSEC programs (Rules 3.2.1 and 3.4.4);
2. Origin criteria is standardized in accordance with that under the North American Free Trade Agreement as to goods originating from the disassembly, recovery of materials and remanufacturing (Rule 3.2.26);
3. Requirements for the processing of new IMMEX programs through the Mexican Digital Window on Foreign Trade (Rule 5.3.1, Section E, Numeral 1);
4. A reciprocal quota on powdered milk is implemented substituting preferential tariff treatment subject to obtaining a prior permit established in the Mexico - Uruguay Free Trade Agreement (Exhibit 2.2.1, numeral 4, section II and Exhibit 2.2.2, numeral 4, section II);
5. Adjustments are made given changes in the names of administrative units of the Mexican Department of Finance and Public Credit from which the Mexican Department of the Economy requests information for prior permits for importation and exportation of petroleum. (Tax Revenue Policy Unit and General Department of Industrial Transformation of Hydrocarbons; Exhibit 2.2.2, numeral I of Table 1 and numeral 1 of Table 6);
6. Measures are adopted to assure adherence of gross diamond shipments to the Kimberly Process Certification System as a result of the admission of Cambodia, Panama and Kazakhstan as new participants to such system (Exhibit 2.2.13);
7. The inclusion of new tariff classification for mezcal subject to compliance with NOM-070-SCFI-1994 for its production and domestic origin (Prior section 2208.90.99, new section 2208.90.05, in relation to Exhibit 2.4.1 numerals 1 and 4);
8. Procedures for compliance with NOM-151-SCT1-1999 and NOM-121-SCT1-2009 for commercial companies on the northern border (Exhibit 2.4.1, numeral 5) are simplified; and
9. Nomenclature is updated in accordance with the update of the Official Mexican Norms (Numerals 1, 3, 4 and 10 of Exhibit 2.4.1).
For more information about Mr. Dieguez, a partner at the Mexico City office of Cacheaux, Cavazos & Newton, please visit www.ccn-law.com or the International Society of Primerus Law Firms.