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Exporting to Mexico

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Columbus, Ohio                                   May, 2006
                                                                  Mexico’s Market

Mexico is an attractive market of over 105 million consumers with annual
foreign purchases that exceed 231 billion dollars, making it the 8th* largest
importer globally. Mexico’s consumers spend more than five out of every
ten dollars on U.S. goods.
            Share in Mexico’s Imports by Selected Countries
                                                           2005

                             Rest of the
                               World                                 U.S.
                               29%                                   53%




                                      Germany
                                        4%    Japan
                                                     6%   China
                                                           8%
Source: Banxico
*Source: WTO 2006, excluding intra-EU (25) imports
                                                                        U.S. Exports to Mexico

             Mexico has become the U.S.’ second largest export market
             buying more products from the U.S. than countries such as:
                                                     US Exports
                                             1993                   2005

                        Canada                                                  211.3
                                                            100.4
                       *Mexico                                  118.4
                                              45.3

                           Japan
                                               55.4
                                             47.9
                           China            41.8
                                      8.8
            Hong Kong, Singapore,                           101.8
            South Korea & Taiwan
                                              52.5
            Belgium, France, Italy,                             117
                Netherlands & UK
                                                     67.6

                                              Billion of US dollars

Source: USDOC *Source: Banxico
                                                                                        U.S. Exports to Mexico

                Mexico’s market share of total U.S. exports increased
                more than any other country’s in the last twelve years
                         Share in U.S. Exports by Selected Countries
                                                            Percentage
                   25                                                                                                      5
                                            23.4
                               4.4
                                     21.6


                                                                                     2.7

                                             1.8

                              13.3
                                                                                                                           0
                                                          10.3                                                      -0.3
                        8.9
                                                                                                         -1.4
                                                                 6.1                              5.7
                                                                                     4.6                4.3     4.1 3.8

                                                                               1.9
                                                                 -4.2

                    0                                                                                                      -5
                        Mexico       Canada                Japan                China               UK          Germany

                                                   1993                 2005               Increase '05-'93


Source: USDOC
                                                                                                                          U.S. Exports to Mexico
Export opportunities have grown across the United States. Between 1994
and 2005, 49 of the 50 U.S. states and the District of Columbia experienced
growth in exports to Mexico. Among these, 44 states have at least doubled
their sales to Mexico.
               U.S. Exports to Mexico by State
                (Percentage Growth Rates 05/93 YTD)

                                   WA
                              218.3%                                                                                               IN 600.1%                    VT 65.1%    ME
                                                              MT                   ND                  MN                                                                   76.6%
                                                           193.2%                 212.7%                    126.5%
                              OR                                                                                                                                                             NH 160.4%
                                                                                                                     WI                                            NY
                              544.7%
                                                ID                                   SD                                                                            4.4%                     MA 164.6%
                                                                                                                     360.8%          MI
                                                                                                                                                                 169.0%                     RI 112.3%
                                           151.3%                   WY            3258.1%                                            223.8%
                                                                    829.4%                                IA                           20.7%                   PA            CT 76.7%
                                                                                      NE                                                 OH              117.2%
                                                                                                                                                            4.2%            NJ 136.8%
                                                                                                          585.4%
                                   NV                                                       385.9%                       -5.5%              7.7%
                                                                                                                                          218.2%                           DE 16.2%
                                                      UT                 CO                                            144.1%
                                       604.9%                                                                                                          279.9%               MD 348.6%
                         CA                                                                                               IL
                                                     149.9%              448.9%             KS                 MO                                  WV        87.4%
                           -6.7%                                                            201.2%             193.2%                   609.1%            VA                DC      66.9%
                         171.4%                                                                                                   KY
                                                                                                                                                           -17.7%NC
                                                                                                                                                         195.4%
                                                                                                  OK                          296.6% TN
                                                                                                                              -22.2%
                                                     AZ               NM                      121.4%            AR                                667.5%
                                                146.8%                140.9%                                    297.4%     MS                  17.5%SC
                                                                                                                                            243.4%
                                                                                                                         491.7%
                                                                                            TX                   -6.9%                           GA
                                                                                        146.0%                   LA
                                                                                          -12.8%
                                                                                                                 341.3%                                 FL
                                         AK                                                                                                               1.5%
                                                                                                                                                         168.2%
                                        3086.6%                                                                                   AL 341.0%

                                                                                                                        PR    126.7%
                                                                                                                        VI                                                  VI   -66.1%
                                                                                              HI
                                                                                                                                                                            VI
                                                                                                 -31.1%


                                                                                                                         Most Dynamic Exporters to Mexico
                                                                                                                         States Exporting More Than $1 Billion
Source: U.S. Census Bureau with Adjustments made by WISER
                                                                                                                    U.S. Exports to Mexico

  Today, Mexico is ranked among the top five export markets for 38 U.S.
  states
          Mexico's Share in U.S. Exports by State
            (Percentage 2005 YTD)

                                WA
                           2.5%                                                                                      IN 12.2%                    VT 0.9%    ME
                                                         MT             ND              MN                                                                  1.4%
                                                         5.3%           4.3%                 3.7%
                          OR                                                                                                                                               NH   4.1%
                                                                                                     WI                                              NY
                          6.6%               ID                           SD                                                                                              MA    3.5%
                                                                                                     8.9%             MI
                                                                        17.0%                                                                      4.6%                   RI
                                           3.1%             WY                                                        11.2%                                                     5.4%
                                                            10.7%                           IA                                                     PA        CT 5.8%
                                                                          NE                                              OH                6.4%            NJ   5.7%
                                                                           17.6%            14.0%
                                 NV                                                                         8.0%           6.9%                            DE 6.2%
                                  4.6%             UT            CO                                                                    4.5%
                                4.6%                                                                                                                        MD 4.3%
                     CA                                                                                       IL
                                                  2.1%          12.5%          KS                MO                                   WV     3.3%
                        -6.7%                                                  12.7%             11.0%                    9.4%            VA                DC     1.2%
                      15.2%                                                                                          KY
                                                                                                                                                 NC
                                                                                                                                          7.7%
                                                                                  OK                                9.7% TN
                                                  AZ            NM               9.1%              AR                                   8.0%
                                             31.8%              7.3%                             10.8%        MS                17.5%      SC
                                                                                                                               6.9%
                                                                                                            13.4%
                                                                                TX                  -6.9%                         GA
                                                                           38.9%                    LA
                                                                              -12.8%
                                                                                                    11.5%                                 FL
                                      AK                                                                                                   6.1%
                                      4.6%                                                                           AL 8.5%



                                                                                 HI                 Mexico Ranks as a export market
                                                                                     0.1%                   First                       Fourth
                                                                                                            Second                      Fifth
                                                                                                            Third

Source: U.S. Census Bureau with Adjustments made by WISER
                                                                                               U.S. Exports to Mexico

       Mexico is a large market for products from the U.S., absorbing 30% of
       U.S. textiles and apparel, 29% of plastics and rubber products, 27% of
       electrical equipment and appliances, and 28% of leather and allied
       products exported worldwide
                                                 U.S. Exports to Mexico by Selected Industries
            25
                     23.3                                                   Value in billion dollars, 2005


            20


                                     14.5
            15
                                                    12.9
                                                                 11.5

            10                                                                   8.1

                                                                                              5.8             5.6            5.1
                                                                                                                                           4.6
              5



              0
                  Computer &    Transportation   Chemicals    Machinery,      Electrical     Plastics & Food & kindred   Fabricated    Textiles &
                   electronic       equip.                   except elec.     equip &      rubber prod.     prod.        metal prod.    apparel
                     prod.                                                   appliances


Source: U.S. Census Bureau with Adjustments made by WISER
                                          U.S. Exports to Mexico
Among products exported by the U.S. worldwide, Mexico purchases:

  One out of every four feet of copper wire
  One in every two office boxes of carton or paper
  Nearly half of electric motor and generator parts, and some
    articles of iron and steel
  44% of some articles of plastics
  41% of electric capacitors
  Two of every five containers of plastic
  35% of printed circuits
  One out of every four parts for TV’s and radios
  24% of new pneumatic tires
  One out of every five parts and accessories for vehicles
  Nearly one in every five of control instrument parts
  More than one out of every ten vehicles
Mexico has been doing its homework….
We have negotiated preferential market access
throughout the world; so far with …43 countries
                            •...Mexico has free trade access
                            to Europe and North America at
                            the same time.

                            •Is the only country with free
                            trade access to 10 countries of
                            Latin America.

                            •And a free trade agreement with
                            Japan entered into effect on April
                            1st, 2005
Mexico’s network of FTAs is one of the largest in the world
                                                                                                                               Sweeden

                                Canadá
                                                           12 FTAs                                               Norway
                                                                                                                                   Finland
                                                                                                            Denmark
                                                           20 BITs                Iceland

                              United
                              States                                                  United        Netherlands
                                                            6 CEAs                   Kingdom
                                                                                                                                  Germany
                             Cuba                                            Ireland
                                                                                                                               Liechtenstein
                           Honduras                                          Belgium                                              Czech Rep.

                            Nicaragua                                     Luxembourg                                               Austria
                                                                                                                              Switzerland
Guatemala                                                              Portugal
                                      Costa Rica

             El Salvador                                                                                France
                                                                                        Spain
                                                                                                                      Italy
                                      Venezuela                                                                                     Greece
    Colombia
                                                   Mercosur                                 Australia
                                                                                                                      South
                                                                                                                      Korea
   Peru

            Bolivia                                           Israel                                                                Japan
                                                  Brazil

                Chile
                                           Uruguay



                               Argentina
Mexico’s network of FTAs is one of the largest in the world
As a result of its 12 free trade agreements
with 43 countries, Mexico is by far, the
leading exporter of the Latin American
region. The eight exporter in the world and
the second largest partner of the United
States.

Exports of Mexico account for almost twice
the total exports of Brazil and Argentina and
almost equal to all Latin America.

Mexico is the 13th economy in the world.
            In terms of Sq. Miles is the 14th (equals to France,
            Spain, Germany, Italy and UK all together)
we have diversified our inflows of FDI
                          FDI by sector 1994-2005
                             Financial Serv.
                             23.4%                  Other Serv.
                                                    8.2%

                                                             Others
                                                             8.4%
Commerce
10.9%




               Manufacture
               48.9%

           Source: Ministry of Economy
             Electronic Industry location ……(700 + companies)
          Tijuana               Mexicali                   Juárez
                                             Chihuahua                                       Reynosa
 SANYO                      SONY                      TOSHIBA
 SONY                       DAEWOO (SLRC)  MOTOROLA  PHILIPS                       DELCO (Automotriz)
 HITACHI                                    ALTEL     THOMSON                       PHILIPS
                             MITSUBISHI     KIOCERA
 MATSUSHITA                                            KENWOOD                       SONY
 JVC                        GOLDSTAR       JABIL     ELECTROLUX                    MATSUSHITA (Automotriz)
 SAMSUNG                                                              Saltillo
                                                        ACER                          VITROMATIC
 PIONNER                                               ELAMEX      MABE             NOKIA
 MITSUBISHI                                            PLEXUS      HAMILTON         LUCENT TECHNOLOGIES
 SHARP                                                               BEACH*           FUJITSU (Automotriz)
 SANYO ELECTRODOMÉSTICOS                                   Torreón                    CONDURA (Automotriz)
 PHILIPS                                                 THOMSON                     DELNOSA (Automotriz)
 CASIO
 KODAK
 CANON
 KIOCERA                                                                Monterrey
 INTERNACIONAL RECTIFIER                                                                            AUDIO & VIDEO
                                                                   PIONNER
                                                                   DANFOSS COMPRESSORS
                                                                   VITROMATIC (3)                   HOUSEHOLD APP.
        Aguascalientes      San Luis Potosí                        MABE (2)
                             MABE GE                              KODAK                            COMPUTERS
       WHITE                                                      NIPPON DENSO (Automotriz)
       WESTINGHOUSE         MABE SANYO                                                             TELECOMUNICATIONS
       MEX*                                                       AXA YAZAKI (Automotriz)
       TEXAS INTS.                                                                                  OTHERS
       XEROX                                                     Cuernavaca
       SIEMENS                  Querétaro
                                                                    NEC
                               VISTAR
                               VITROMATIC (2)
                                                                                       Estado de México
        Guadalajara
                                                                                       PANASONIC
   I.B.M                                                                              ELECTROLUX
   H.P.                             Querétaro                                         FILTER QUEEN
   NEC                           CLARION                                             HOOVER
   LUCENT TECHNOLOGIES           DAEWOO           Estado de Mexico                   IMAN
   MOTOROLA                      BLACK & DECKER  MABE                               KOBLENZ
   KODAK                         MABE (2)        BRAUN                              MABE
   CUMEX                         SINGER          ELECTROLUX             Puebla      PHILIPS
   SIEMENS                       SIEMENS         SUNBEAM             GESTAR        SUNBEAM
   SOLECTRON DE MEXICO                            KOBLENZ             SINGER        OLIVETTI
   FLEXTRONICS                                    ERICSSON            VITROMATIC    OLIMPIA
   JABIL CIRCUIT                                  ALCATEL/INDETEL
   MTI ELECTRONICS                                AMP
   SCI SANMINA
                                                           Mexico: a World of Economic
                                                                   Opportunity
               Tijuana
               Population: 750,000
                                                              Ciudad Juárez
               Key Industries: beverages, processed           Population: 800,000
               foods, metalworking, radio and television      Key Industries: electrical machinery, transport equipment, meat,
               manufacture, electrical machinery              electronics, dairy products                                                  Torreón
                                                                                      Chihuahua                                            Population: 880,000
                                                                                      Population: 650,000                                  Key Industries: automotive, bricks, clay,
Hermosillo
                                                                                      Key Industries: electrical machinery,                refractory, general machinery, cement and
Population: 600,000
                                                                                      automotive, meat, electronics, dairy products,       derivatives
Key Industries: automotive, meat,
cement and derivatives, electrical                                                    timber                                             Monterrey
machinery                                                                                                                                Population: 3 million
                                                                                                                                         Key Industries: oil refining, iron and steel,
Culiacán
                                                                                                                                         electrical machinery, glass and derivatives,
Population: 600,000
                                                                                                                                         breweries, meat products, cement,
Key Industries: food processing, cereal
                                                                                                                                         banking
milling, sugar, beverages, edible oils
and fats                                                                                                         Tampico-Madero-Altamira
                                                                                                                 Population: 340,000
                                                                                                                                                                  Veracruz
Aguascalientes                                                                                                   Key Industries: chemical, industrial             Population: 450,000
Population: 500,000                                                                                              machinery, electronic & electrical               Key Industries:
Key Industries: electronics, automotive,                                                                         equipment, oil and refinery,                     petrochemicals, refining, basic
dairy, textiles, carpets                                                                                         agriculture, cattle, fishing                     chemicals, iron and steel,
                                                                                                                                                                  sugar, beef, processed foods,
León                                                                                                                                                              tourism, transportation
Population: 1 million                                                                                                                                             services (maritime)
Key Industries: refining, footwear, leather and
tanning, bakery goods, beverages
                                                                                                                                                        Mérida
Guadalajara                                                                                                                                             Population: 600,000
Population: 4 million                                                                                                                                   Key Industries: beverages, edible oils and
Key Industries: high-technology, edible                                                                                                                 fats, processed foods, cement and
oils and fats, plastic products,                                                                                                                        derivatives, plastic products
chemicals, dairy products, processed                              Mexico City
foods, textiles, footwear                                         Population: 20 million
                                                                                                                                                San Luis Potosí
                          Toluca                                  Key Industries: retail, financial                                             Population: 670,000
                          Population: 850,000                     services, food, automotive, plastic                                           Key Industries: iron and steel,
                          Key Industries: automotive, plastics,   products, paper and cellulose,                                                non-ferrous metallurgy, tobacco
                          paper and cellulose, chemical           chemical derivatives, basic                                                   products, electrical machinery,
                          derivatives, basic chemicals            chemicals                                                                     automotive, livestock
                                                                                   Querétaro
                                                                                   Population: 460,000                       Puebla
                                                                                   Key Industries: automotive, paper         Population: 1.5 million
                                                                                   and cellulose, synthetic fibers,          Key Industries: automotive,
        Source: SE-NAFTA.                                                          general machinery, electrical             textiles, iron and steel, bottled
                                                                                   machinery, processed foods, dairy         water, chemicals, meat processing
                                                                                   products
             Ohio’s Exports to Mexico
             1993-2005*
             (Billions of US Dollars)
2.5                                                                            2.4   2.4
                                                             2.1   2.1   2.1
                                                    2.0
2.0

                                       1.5   1.5
1.5
                                 1.1
              1.0
1.0    0.8                0.8
                    0.7

0.5


0.0
      1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

             Source: US Census, WISER and SE-NAFTA Series.
             * 2000-2005, NAICS series.
Ohio’s Exports to Mexico by Sector (NAICS)
2005

       Plastics And Rubbe r
                Prod                             Othe rs
               6.6%                              24.7%

  Primary Me tal
   Manufactur
      8.2%




       Machine ry, Exce pt
            Ele ctr
            13.5%




        Che micals
         15.9%
                                                 Transportation
                                                  Equipme nt
                                                     31.1%


 Source: US Census, WISER and SE-NAFTA Series.
                           Ohio’s Exports to Mexico – 2005
                           (Millions of US Dollars)
 Pass Veh Spk-Ig Int Com Rcpr P Eng >
              3000 Cc
                                                                                       216.6
      Parts And Accessories Of Motor
              Vehicles, Nesoi
                                                                      110.9
   Pass Veh Spk-Ig Int Com Rcpr P Eng
           >1500 Nov 3M Cc
                                                                   103.8
     Pts & Access Of Bodies Of Motor
             Vehicles, Nesoi
                                                                  100.0
Aluminum Alloy Rect Plates Etc, Over .2
              Mm Thick
  New Pneumatic Tires Of Rubber, For
                                                    43.7
            Motor Cars
                                                34.9
               Polycarbonates, Pr Fms
                                               31.9
  Steering Wheels, Columns & Boxes F
            Motor Vehicles
                                              27.2
    Compressors Used In Refrigerating
              Equipment
                                               27.1
       Gear Boxes For Motor Vehicles
                                              26.4
                                          0    50           100            150   200      250
                           Source: US Census, WISER and SE-NAFTA Series.
             U.S.’ Exports to Mexico
             1993-2005*
             (Billions of US Dollars)                                              120
120                                                 112                      111
                                                             102
                                                                   98   98
100
                                              87
                                       79
 80                               71

                           57
 60            51
                    46
        42
 40


 20


  0
      1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

             Source: US Census, WISER and SE-NAFTA Series.
             * 2000-2005, NAICS series.
       U.S.’ Exports to Mexico by Sector (NAICS)
       2005

                                           Othe rs
                                           41.6%




  Ele ctrical
Equipme nt, Ap
    6.7%




                              Che micals
  Machine ry, Exce pt          10.7%
       Ele ctr
        9.6%



                                                                      Compute r And
                                                                        Ele ctronic
                                                                          19.4%
                                                     Transportation
                                                       Equipme nt
                                                         12.0%
          Source: US Census, WISER and SE-NAFTA Series.
                              U.S.’ Exports to Mexico – 2005
                              (Billions of US Dollars)
Parts & Accessories For Adp Machines
               & Units
                                                                                                        3.6
Light Oils& Prep (Not Crude) From Petrol
                 & Bitum
                                                                                                  3.2
       Pts & Access Of Bodies Of Motor
               Vehicles, Nesoi
                                                                                        2.5
     Digital Monolithic Integrated Circuits
                                                                                        2.4
        Parts And Accessories Of Motor
                Vehicles, Nesoi
  Pass Veh Spk-Ig Int Com Rcpr P Eng >
                                                                              1.9
               3000 Cc
                                                                              1.9
               Articles Of Plastics, Nesoi
                                                                        1.7
       Compression-Igntn Int Combustion
              Piston Engine Etc
                                                                      1.6
Pt F Elect Appr F Elect Circt; F Elct Contrl
                  Nesoi
                                                                       1.6
     Monolithic Integrated Circuits, Other
                  Than Digital
                                                                     1.5
                                               0   1   1        2        2          3         3   4       4
                              Source: US Census, WISER and SE-NAFTA Series.
                                             Selling in Mexico


  Directly to the Final Importer


      Negotiations take less time
      No distributor mark-up
      US firm know directly client requirements
      US firm must know Mexican trade environmental
      Several travels to Mexico



Through a Mexican Manufacturer


     Usually products of the same industrial sector
     To complement product line
     Clear contract to avoid misunderstandings
                              Selling in Mexico through a

    Wholesaler


Several lines of products
US firm take advantage of distribution infrastructure
Negotiations with only one Party



Distributor / Retailer


Distributions in several cities or States
Distributions of several products of different sectors
Easy to have products in stock
Negotiations with only one Party
                                       Selling in Mexico through a


           Sales Agent


  Develop a close working relationship with the appointed agent
  Provide appropriate training, product support, and timely supply
  for success.
  Develop a full understanding of what is expected
  Distribution agreement with scope and coverage of distribution



Representative Office of the US firm



Presence in Mexico
Direct knowledge about clients
Promotional, liaison, and branch collaboration activities
                                         Opening an Office in Mexico


       Most common initial corporate and administrative steps

                                            2. Formation of the Company
1. Acquisition of a corporate name
                                                before a Public Notary


3. Inscription on the Public Registry   4. Obtain a Tax Paying Registry Number


      5. Registration on the                  6. Local or State Licenses
   Foreign Investment Registry                     (when applicable)


         7. Labor contracts                     8. Inscription on the
     (individual, IMSS registry)              General Importers Registry


          9. Visa and immigration process for foreign employees
                             (when applicable)
                                    Opening an Office in Mexico

The General Commercial Law (Ley Federal de Sociedades Mercantiles)
allows the establishment of several kinds of companies in Mexico,
generally:
                   Sociedad Anónima (SA)
                             or
       Sociedad Anónima de Capital Variable (SA de CV)


       Sociedad de Responsabilidad Limitada (S de RL)
                 (Limited Liability Company)


                     Sociedad Civil (SC)
                      (Civil Partnership)


                       Mexican Branch
                                             Opening an Office in Mexico


                     Sociedad Anónima (SA)
                               or
          Sociedad Anónima de Capital Variable (SA de CV)


  Usually recommended to incorporate a limited liability stock corporation.
  Shareholder’s liability is limited to their stock interest in the company
  Minimum amount of paid-in capital
  One of the advantages of the latter is that the minimum fixed capital can
be changed subsequent to the initial formation.

        Sociedad de Responsabilidad Limitada (S de RL)
                  (Limited Liability Company)

 Minimum amount of paid- in capital
 Maximum of 50 partners
 Partners’ liability is limited to their partnership interest in the company
 It has the option of having a variable capital
                                            Opening an Office in Mexico

                             Sociedad Civil (SC)
                              (Civil Partnership)

  Most common professional service providers.
  Non minimum capital requirements
  Non limit in the number of partners
  Taxable in the same way as a corporation.


                             Mexican Branch



   Retain their liability characteristics from abroad
   Provide rights and responsibilities similar to a corporation, including tax
liability and access to local courts
   Requires the approval of the National Foreign Investment Commission an
the Ministry of the Foreign Affairs.
   Registration at the Public Registry of Commerce.
       Mexican importer is responsible for the import process,
                   so he must be registered in the
 General Import Registry (Padrón General de Importadores),
and for certain merchandises they also need to be incorporated in the
  Sectoral Import Registry (Padrón de Importadores Sectorial)




In accordance to the Customs Law, all export and import operations
 must be done by a Custom Broker, so importers require to use the
           Services of any authorized Customs Broker
                                          Required Documents


 1. Entry Summary (Pedimento de importación)

 2. Invoice

 3. Bill of landing

 4. NAFTA certificate of origin, or other Certificate related to
    preferential Treatment *

 5. Proof documents of non tariff measures fulfillment, such
    as licenses, authorizations, permits, technical
    regulations, bonds, weight, among others *

 6. Certificate of country of origin *

* When applicable
                                            Import Taxes




Currently, most of the NAFTA originating goods enter
                 Mexico duty – free.

 On January 2008 all products will be duty free, in
    accordance to the NAFTA tariff phase out.



 Non-NAFTA originating goods are subject to the
 General Import Rate (MFN rate), which is
 between zero and 35 per cent ad valorem for
 industrial goods
                                              Import Taxes


Mexico also has implemented Sectoral Promotion
Programs (PROSEC) and a mechanism called Rule 8th to
reduce MFN tariffs on a wide range of important inputs
needed by Mexico's manufacturing sector.


In addition, Maquiladora and Pitex programs facilitate the
import of raw materials to be used by Mexico's export
manufacturing sector.

It is important to know the tariff classification of the
exported good, in accordance to the Harmonized System
(HS code) to determine the applicable import rate
http://www.economia.gob.mx/index.jsp?P=2262
                                                                   Other Taxes

  Antidumping or Countervailing Duties. Applied on certain
products originating from some countries http://www.economia.gob.mx/index.jsp?P=392
   Value Added Tax (Impuesto al Valor Agregado / IVA)

  Tax on New Vehicles (Impuesto Sobre Automóviles
Nuevos / ISAN)

  Special Tax on Production and Services (Impuesto
Especial sobre Producción y Servicios / IEPS)

  Custom Processing Fee (Derecho de Trámite Aduanero /
DTA). Goods originating from certain free trade areas are
exempt.

    Storage Fee (Derecho de Almacenaje)
                                  Import Trade Regulations


Estimated prices. Established for certain goods (including
tools, wood materials, appliances, textiles, apparel,
footwear).

If the transaction value of the good is lower than the
estimated price, the importer may be required to guarantee
payment of the difference in duties.

Individual information of goods (Anexo 18). Import of
certain goods requires disclosing detailed specification
information for identification, analysis or control purposes,
and customs enforcement efforts. This requirement may
apply to more than 100 types of goods (wines and liquors,
textiles and apparel, footwear, etc)
                                  Import Trade Regulations



Import Licenses. Established for sensitive products,

Periodically, Mexico publishes in the Official Gazette lists
that identify the different items that have a specific import
control. Items are identified according to their Harmonized
System (HS) code number;



Import Notices. the importer requires to notify the import of
certain goods to Mexican authorities prior their arrival to
customs. (i.e. medical products and equipment, toiletries,
processed food, some chemicals, among other)
                                     Import Trade Regulations




Exclusive ports of entry. Various goods are defined to enter
into Mexico through a specific Mexican ports, in order that
customs authorities strengthen compliance in relevant
customs matters, such as tariff classification or valuation.

Some products subject to this requirement are: meat of
poultry in brine, fats and oils, beer, cigars and cigarettes,
matches, bicycles’ tires, footwear, bicycles, CD’s, and textiles.
                           Standards and Technical Regulations



Voluntary Standards                      Normas Mexicanas (NMX’s)




     Mandatory                                   Normas Oficiales
Technical Regulations                            Mexicanas (NOM’s)




    NOM’s apply to imported products as well as domestically
    produced goods. Many of these are enforced at the border.
    http://www.economia.gob.mx/index.jsp?P=144
                       Standards and Technical Regulations


NOM’s are issue by several Ministries, for example:


 Ministry of Agriculture (Sagarpa).    Plant, animal and fish
products, also to prevent the introduction of diseases

 Ministry  of Health (SSA). Processed food, beverages,
medical devices, and medicines.

 Ministry of Economy (SE).        Commercial information (i.e.
labeling), industrial safety, and consumer protection

 Ministry   of the Environment (SEMARNAT). Forestry
products, energy efficiency, emissions and pollution control
                      Standards and Technical Regulations

Labelling requirements. There are two main technical
regulations in force for labelling of consumer goods:

   NOM-050-SCFI-1994, establishing general packaging
   and labelling requirements, and

   NOM-051-SCFI-1994, establishing specific labelling
   requirements for food and non-alcoholic beverages.

In addition, specific labelling requirements apply to products
such as:

    Alcoholic beverages, (NOM-142-SSA),
    Textile and apparel (NOM-004-SCFI-1993),
    Leather products (NOM-020-SCFI-1993),
    Second-hand products (NOM-017-SCFI-1993)
    Electrical domestic appliances (NOM-024-SCFI-1994)
                      Standards and Technical Regulations


Accredited label verification units exist in Mexico, where
companies can obtain an evaluation of their labels prior to
export to Mexico


Some NOM’s required testing and Third Party certification in
accordance to NOM’s and conformity assessment procedures
of each Agency

 Lab test must be conducted in approved and accredited
laboratories

 Certification must be made by approved and accredited
Certification bodies
Noncompliance with regulatory requirements
   can result in import shipments being
        held by Mexican Customs,
   monetary penalties assessed against
    the importer and, when applicable
         loss of import privileges
                                 Government Procurement


   Market is divided into federal and subfederal levels



> The federal levels comprises government agencies and
parastatal companies

> The subfederal levels comprises state governments and
municipal authorities

> The subfederal level is autonomous            under     the
Constitution and therefore sets its own rules

> Most public procurement is carried out by the federal
government.
               Government contracting
                     procedures
 Public                                         Restricted
 Bidding                                         Bidding



                 Direct Award of Contracts
The Public Bidding is the most common procedure by which
government entities enter into contracts.

  In the case of Federal Government a notice of Public
  Bidding is published in the Official Gazette containing
  the requirements to obtain the correspondent contract.
  In order to participate in the bidding process, a
  contractor must purchase         the “guidelines and
  requirements” of a particular bid (bases de licitación).
                                       Useful Websites addresses:

 Legislation:
       http://www.sat.gob.mx/sitio_internet/informacion_fiscal/legislacion/

 Mexican Customs:
       http://www.aduanas.sat.gob.mx
 Technical Regulations Catalog
       http://www.economia.gob.mx/index.jsp?P=144
 Import tariff information
       http://www.economia.gob.mx/index.jsp?P=2262
 Antidumping duties
       http://www.economia.gob.mx/index.jsp?P=392
 Government Procurement information
       http://www.compranet.gob.mx/
                                                   Useful Websites addresses:

 U.S. Embassy in Mexico:
      http://mexico.usembassy.gov/mexico/econ.html
 Distributors / Producers
      http://www.cosmos.com.mx
      http://www.buyinmexico.com.mx/Bancomext/portal/portal.jsp?parent=141

 ITA’s Portal with useful information of Mexico & NAFTA
      http://web.ita.doc.gov/ticwebsite/naftaweb.nsf!OpenDatabase&Start=1&Count=500&Expand=2.1


 U.S. Government’s Export Portal
      http://www.export.gov
 American Chamber / Mexico
      http://www.amcham.com.mx
 Industrial Cost in Mexico 2006
      http://www.investinmexico.com.mx/pied/cds/pied_bancomext/homepied/
If you required additional information or
       further assistance, contact:



            NAFTA and Trade Office
     1911 Pennsylvania Ave. N.W. 8th. Floor
            Washington, D. C. 20006
      Phone: 202.728.17.00 / 202.728.1705
               Fax: 202.728.1712
         E-mail: nafta@naftamexico.net

				
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