NOVEMBER 2007 EDITION ARCHIVE

• • Legal Updates

    New Regulations Governing Lending with Interest Secured by Pledge Guaranties

    On November 1 a new Official Mexican Norm (Norma Oficial Mexicana or NOM), NOM-179-SCFI-2007, was published in the DOF. Such NOM will regulate those individuals or entities not regulated by Mexican financial laws (banks, single purpose lenders/SOFOLES, etc.) which regularly or professionally carry out lending transactions secured by pledge guaranties (in which personal property is provided through a pledge guaranty), with the purpose of providing increased certainty and security to consumers or clients... [Read More]

  • Amendments to Penalties contained in Mexico’s Fiscal Code of the Federation

    The fiscal reform package published on October 1, 2007 includes an amendment to Article 89 of the Fiscal Code of the Federation (Código Fiscal de la Federación or CFF), that establishes penalties for advising, counseling or providing services to completely or partially avoid the payment of any tax or contribution in contravention of applicable Mexican tax laws and regulations. The CFF provides that an infraction occurs in the following specific instances: when a person advises, counsels... [Read More]

  • Proposed Official Mexican Norm Regulating Labeling, Containers and Packing of Hazardous Materials

    A draft NOM was recently published in the DOF which would cancel NOM-003-SCT/2000. The purpose of such NOM is to establish the characteristics, dimensions, symbols and colors of labels that must appear on all containers and packing which identify the class of risk represented during the transport and handling of hazardous substances, materials and waste. This proposal is mandatory on those shippers, carriers and recipients of hazardous materials and waste that travel by road, sea, and air. The proposal... [Read More]

  • Amendment of General Rules and Standards Applicable to Mexican Foreign Trade Matters

    On October 12, 2007 the Mexican Department of the Economy (Secretaría de Economía or SE) published in the DOF amendments to the general rules and standards applicable to Mexican foreign trade. Such amendments provide public notice of various dates originally established for complying with obligations related to the conversion of previously existing Maquila programs to the new export program established in the IMMEX Decree. The deadlines for complying with obligations were modified to... [Read More]

  • Business & Politics Outlook

    President Calderon Publishes Tax Incentive Decree for Maquiladoras

    On November 5, 2007 Mexican President Felipe Calderon published in the Official Journal of the Federation (Diario Oficial de la Federación) a “Decree granting various tax benefits relating to income tax and flat rate business tax”. Such decree provides tax incentives in the form of credits against the flat rate business tax (Impuesto Empresarial a Tasa Única or IETU) that will enter into force in January, 2008 and run through the end of 2011. The decree specifically benefits... [Read More]

  • Merida Initiative - Mexico and the United States in Bi-national Effort to Combat Organized Crime

    After intense negotiations, the Mexican and the United States governments announced the implementation of the “Merida Initiative” policy, which is a plan for the countries to fight organized crime on a joint basis. The plan contemplates the United States providing approximately $1.4 billion dollars in aid to combat organized crime, including trafficking in drugs, humans and arms along the Mexico/United States border. According to information issued by the Mexican Embassy in the United... [Read More]

  • Flooding in Tabasco

     The State of Tabasco has suffered the worst flooding in its history. Intense rain over several days affected at least 17 municipalities in the State of Tabasco and approximately 66,000 families living there. Some calculate that Tabasco has lost 90% of its crops and a large part of its cattle. According to the Mexican Department of Agriculture, Ranching, Rural Development, Fisheries and Foodstuffs (Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación... [Read More]

  • PEMEX and Energy Reform

    With the recent increase in world petroleum prices, and the establishment of a record price for mixed Mexican crude above $80 per barrel, Petróleos Mexicanos (PEMEX) and Mexico’s Department of Finance and Public Credit (Secretaría de Hacienda y Crédito Público or SHCP) have caused concern regarding the decrease in excess revenue received from the sale of oil. The decrease in revenue is based on growing internal demand, which is exceeding increases in production.... [Read More]

  • Economic Indicators

    Pesos/Dollar Exchange Rate

    The quoted exchange rate as of November 8, 2007 was $10.74 pesos per dollar.

  • Mexican Stock Exchange

    The Mexican Stock Exchange (BMV) closed on November 8, 2007 at 29,289.72 points.

  • Interest Rates

    On November 8, 2007, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.93%.

  • Mexico IP Info

    Protection for Foreign Trademark Owners against Unauthorized Registrations in Mexico

    It is always possible that distributors, representatives or agents (or any other type of commercial relation) of foreign individuals or companies could attempt to register in Mexico trademarks owned by third parties and protected by registrations outside of Mexico. Mexican law establishes certain parameters protecting such marks when such have been duly registered in their country of origin. Accordingly, Article 151, Section V of Mexico’s Industrial Property Law (Ley de Propiedad Industrial... [Read More]

  • Feature Website

    http://portal.sre.gob.mx/eua

    This month we recommend our readers visit the webpage of the Mexican Embassy in the United States,http://portal.sre.gob.mx/eua, where they may obtain information concerning bank accounts established to receive donations benefiting the victims of the Tabasco flood.