Issue 283, December 8, 2000
If you thought things were confusing in the United States as we anxiously await who will assume the Presidency, Mexico is also experiencing a high degree of uncertainty with regard to imports into Mexico. Here is some of the latest information:

On December 1, 2000, Vicente Fox smoothly assumed power as Mexico?s new President. Expectations are very high and the mood in Mexico is positive.

Mexico's Ministry of Commerce and Industrial Development (SECOFI) will now be known as "Secretaria de Economia".

The Fox administration has created a new cabinet level post known as the "Border Commissioner". Ernesto Ruffo, the former governor of Baja California has been named to this new post. He will be based in Tijuana and responsible for all border related issues.

As of today, we continue to hear rumors concerning a possible delay in implementing Article 303. Sources in Mexico City are indicating that the new government is receptive to a possible delay.

Hacienda, Mexico's equivalent of the U.S. IRS and responsible for all Customs issues, released a new decree on November 30th covering the implementation of NAFTA Article 303. Some significant developments include:

1) All pedimentos (Mexican entry documents) will now be combined into one single document rather than the current five documents.
2) All non-NAFTA materials and components imported into a Maquiladora will be subject to duty (at the general rate of the duty or the reduced rates under the Sectorial Promotion Programs) and that duty will be owed within 60 days after the finished goods are exported from Mexico.
3) If duties are paid when the finished goods are imported into the U.S. or Canada, the company can request a duty credit in Mexico equal to the amount of foreign duties paid in the U.S. or Canada, by providing proof of the duties paid in the U.S. or Canada. Such proof would most likely be in the form of a Customs Entry Document such as the CF 7501.
4) All non-NAFTA machinery and equipment imported into a Maquiladora on or after January 1, 2001 will be subject to duty and that duty will be due immediately upon importation.
5) Duty exemptions for temporary imports into a Maquila will continue to apply for a) All NAFTA originating materials and components b) all non-NAFTA materials and components when finished goods are exported to countries other than the U.S. or Canada c) all items imported into Mexico for repairs, alterations or packaging and returned to the United States or Canada.
6) At this time, Mexico is not including any additional materials and components into one of the 20 Primary Sectorial Program, which limits the duties from 0 to 5%. The Government is indicating that additional items will most likely be added after the first of the year.

Our contributing writer, Steven B. Zisser, is an attorney in the San Diego border community of Otay Mesa, where he specializes in the practice of U.S. Customs and International Trade Law. He can be reached via email at steve@zissergroup.com or at (619) 671-0376.

Please note that due to the complex nature of the subject matter, Danzas AEI cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with Danzas AEI.