NEWSLETTER

On Mmarch 25th, 2019, it was published in Official Federal Register (OFR), a Decree through which Mexico temporary increases tariffs by 15% for the case of 186 Mexican tariff classifications of the General Import and Export Taxes (TIGIE) for steel products of the sheet plate, roll plate, cold rolled sheet, hot rolled sheet, wire rod, welded pipe, seamless pipe, coated sheet, rod and profiles.

The aforementioned measure implemented by the Mexican government is due to the persistence of the absence of conditions for distortion-free competition between the steel industries of different countries, coupled with a fall in prices and a diversion of trade due to the increase in world supply of steel, reason why the government of Mexico determined urgent and necessary to establish a temporary increase of the general import tax mentioned, applicable as of March 26, 2019 and for 180 calendar days from the date indicated.

CLASSIFICATION DESCRIPTION UNIT TAX
IMP EXP
7208.10.01 Of thickness greater than 10 mm.
Kg 15 Ex.
7208.10.02 Thickness greater than 4.75 mm but less than or equal to 10 mm.
Kg 15 Ex.
7208.10.99 Others Kg 15 Ex.
7208.25.01 Of thickness greater than 10 mm
Kg 15 Ex.
7208.25.99 Others Kg 15 Ex.
7208.26.01 Thickness greater than or equal to 3 mm but less than 4.75 mm.
Kg 15 Ex.
7208.27.01 Of thickness less than 3 mm.
Kg 15 Ex.
7208.36.01 Of thickness greater than 10 mm.
Kg 15 Ex.
7208.37.01
Of a thickness greater than or equal to 4.75 mm but less than or equal to 10 mm. Kg 15 Ex.
7208.38.01 Thickness greater than or equal to 3 mm but less than 4.75 mm.
Kg 15 Ex.
7208.39.01 Of thickness less than 3 mm.
Kg 15 Ex.
7208.40.01 With a thickness greater than 4.75 mm.
Kg 15 Ex.
7208.40.99 Others Kg 15 Ex.
7208.51.01 Of a thickness greater than 10 mm, except for those included in sections 7208.51.02 and 7208.51.03.
Kg 15 Ex.
7208.51.02 Steel plates thicker than 10 mm, SHT-80, SHT-110, AR-400, SMM-400 or A-516.
Kg 15 Ex.
7208.51.03 Steel plates thicker than 70 mm, grade A-36.
Kg 15 Ex.
7208.52.01 Of a thickness greater than or equal to 4.75 mm but less than or equal to 10 mm.
Kg 15 Ex.
7208.53.01 Thickness greater than or equal to 3 mm but less than 4.75 mm.
Kg 15 Ex.
7208.54.01 Of thickness less than 3 mm.
Kg 15 Ex.
7208.90.99 Others Kg 15 Ex.
7209.15.01
With a carbon content greater than 0.4% by weight. Kg 15 Ex.
7209.15.02 Steels whose limit of resistance to deformation is equal to or greater than 355 MPa.
Kg 15 Ex.
7209.15.03 Steels to porcelain in exposed parts.
Kg 15 Ex.
7209.15.99 Others. Kg 15 Ex.
7209.16.01 Thickness greater than 1 mm but less than 3 mm.
Kg 15 Ex.
7209.17.01 Of a thickness greater than or equal to 0.5 mm but less than or equal to 1 mm.
Kg 15 Ex.
7209.18.01 Of thickness less than 0.5 mm.
Kg 15 Ex.
7209.25.01 Of thickness greater than or equal to 3 mm.
Kg 15 Ex.
7209.26.01 Thickness greater than 1 mm but less than 3 mm.
. Kg 15 Ex.
7209.27.01 Of a thickness greater than or equal to 0.5 mm but less than or equal to 1 mm.
Kg 15 Ex.

7209.28.01 Of thickness less than 0.5 mm.
Kg 15 Ex.
7209.90.99 Others Kg 15 Ex.
7210.30.01 Galvanized sheets on both sides.
. Kg 15 Ex.
7210.30.99 Others. Kg 15 Ex.
7210.41.01 Galvanized sheets on both sides.
. Kg 15 Ex.
7210.41.99 Others Kg 15 Ex.
7210.49.03 Of a thickness of less than 3 mm, the strength limit of which is equal to or greater than 275 MPa, or of a thickness equal to or greater than 3 mm, whose limit of resistance to deformation is equal to or greater than 355 MPa.
Kg 15 Ex.
7210.49.99 Others. Kg 15 Ex.
7210.61.01 Coated with aluminum and zinc alloys.
. Kg 15 Ex.
7210.70.01 Painted sheets, galvanized on both sides.
Kg 15 Ex.
7210.70.99 Others Kg 15 Ex.
7211.13.01
Laminates on all four sides or in closed grooves, with a width exceeding 150 mm and a thickness of 4 mm or more, unrolled and without patterns in relief. Kg 15 Ex.
7211.14.01 Straps.
Kg 15 Ex.
7211.14.02
Hot rolled (“sheets”), of a thickness greater than or equal to 4.75 mm but less than 12 mm. Kg 15 Ex.
7211.14.99 Others. Kg 15 Ex.
7211.19.01 Strapping with thickness less than 4.75 mm.
Kg 15 Ex.
7211.19.02 Hot rolled (“sheets”), with a thickness greater than or equal to 1.9 mm, but less than 4.75 mm.
Kg 15 Ex.
7211.19.03 Slabs in roll for sheets (“Coils”).
Kg 15 Ex.
7211.19.04 Hot rolled sheets, with a width of more than 500 mm. but less than 600 mm. and thickness equal to or greater than 1.9 mm but less than 4.75 mm.
Kg 15 Ex.
7211.19.99 Others. Kg 15 Ex.
7211.23.01 Strips of thickness equal to or greater than 0.05 mm.
Kg 15 Ex.
7211.23.02 Cold rolled sheets with a thickness greater than 0.46 mm without exceeding 3.4 mm.
Kg 15 Ex.
7211.23.99 Others. Kg 15 Ex.
7211.29.01 Strips of thickness equal to or greater than 0.05 mm with a carbon content of less than 0.6%.
Kg 15 Ex.
7211.29.02 Straps with a carbon content equal to or greater than 0.6%.
Kg 15 Ex.
7211.29.03 Cold rolled sheets with a thickness greater than 0.46 mm without exceeding 3.4 mm.
Kg 15 Ex.
7211.29.99 Others Kg 15 Ex.
7211.90.99 Others Kg 15 Ex.

7212.20.01 Straps.
Kg 15 Ex.
7212.20.02 Galvanised by the two faces, of width superior to 500 mm.
Kg 15 Ex.
7212.20.99 Others. Kg 15 Ex.
7212.30.01 Straps
Kg 15 Ex.
7212.30.02 Galvanised on both sides, with a width greater than 500 mm.
Kg 15 Ex.
7212.30.99 Others. Kg 15 Ex.
7212.40.01 Veneers coated with silicone varnish.
Kg 15 Ex.
7212.40.02 Of total thickness equal to or greater than 0.075 mm without exceeding 0.55 mm with plastic coating on one or both sides.
Kg 15 Ex.
7212.40.03 Galvanised on both sides, with a width greater than 500 mm.
Kg 15 Ex.
7212.40.99 Others. Kg 15 Ex.
7213.10.01 With notches, cords, grooves or reliefs, produced in the laminate.
Kg 15 Ex.
7213.20.01 The others, of easy mechanization steel.
Kg 15 Ex.
7213.91.01 With a carbon content of less than 0.4% by weight.
Kg 15 Ex.
7213.91.02
With a carbon content equal to or greater than 0.4% by weight. Kg 15 Ex.
7213.99.01 Steel wire rod with a maximum carbon content of 0.13%, 0.1% maximum silicon, and a minimum aluminum content of 0.02%, by weight.
Kg 15 Ex.
7213.99.99 Others. Kg 15 Ex.
7214.20.01 Corrugated rods or bars for armor, for cement or concrete.
Kg 15 Ex.
7214.30.01 The others, of easy mechanization steel.
Kg 15 Ex.
7214.91.01 With a carbon content of less than 0.25% by weight.
Kg 15 Ex.
7214.91.02
With a carbon content greater than or equal to 0.25% but less than 0.6% by weight. Kg 15 Ex.
7214.91.99 Others Kg 15 Ex.
7214.99.01 With a carbon content of less than 0.25% by weight.
Kg 15 Ex.
7214.99.02 With a carbon content greater than or equal to 0.25% but less than 0.6% by weight.
Kg 15 Ex.
7214.99.99 Others Kg 15 Ex.
7216.10.01 Profiles in U, in I or in H, simply laminated or extruded in hot, of height less than 80 mm.
Kg 15 Ex.
7216.21.01 Profiles in L. Kg 15 Ex.
7216.22.01 Profiles in T. Kg 15 Ex.
7216.31.01 Whose thickness does not exceed 23 cm, except that included in section 7216.31.02.
Kg 15 Ex.
7216.31.02 Whose thickness is equal to or greater than 13 cm, without exceeding 20 cm.
Kg 15 Ex.

7216.31.99 Others. Kg 15 Ex.
7216.32.01 Whose thickness does not exceed 23 cm, except what is included in section 7216.32.02.
Kg 15 Ex.
7216.32.02
Whose thickness is equal to or greater than 13 cm, without exceeding 20 cm. Kg 15 Ex.
7216.32.99 Others. Kg 15 Ex.
7216.33.01 Profiles in H, except the one included in section 7216.33.02.
Kg 15 Ex.
7216.40.01 Profiles in L or T, simply laminated or extruded in hot, with a height greater than or equal to 80 mm.
Kg 15 Ex.
7216.50.99 Others. Kg 15 Ex.
7216.61.99 Others. Kg 15 Ex.
7219.33.01 Thickness greater than 1 mm but less than 3 mm.
Kg 15 Ex.
7219.34.01 Of a thickness greater than or equal to 0.5 mm but less than or equal to 1 mm.
Kg 15 Ex.
7219.90.99 Others. Kg 15 Ex.
7225.19.99 Others. Kg 15 Ex.
7225.30.01
With a carbon content less than or equal to 0.01% by weight, and the following elements, considered individually or together: titanium between 0.02% and 0.15% by weight, niobium between 0.01% and 0.03% by weight. Kg 15 Ex.
7225.30.02 With a boron content equal to or greater than 0.0008%, thicker than 10 mm.
Kg 15 Ex.
7225.30.03
With a boron content equal to or greater than 0.0008%, of a thickness greater than or equal to 4.75 mm but less than or equal to 10 mm. Kg 15 Ex.
7225.30.04 With a boron content equal to or greater than 0.0008%, of a thickness greater than or equal to 3 mm, but less than 4.75 mm.
Kg 15 Ex.
7225.30.05 With a boron content equal to or greater than 0.0008%, thickness less than 3 mm.
Kg 15 Ex.
7225.30.06 Made of fast steel
Kg 15 Ex.
7225.30.99 Others. Kg 15 Ex.
7225.40.01 With a boron content equal to or greater than 0.0008%, thicker than 10 mm.
Kg 15 Ex.
7225.40.02 With a boron content equal to or greater than 0.0008%, of a thickness greater than or equal to 4.75 mm but less than or equal to 10 mm.
Kg 15 Ex.
7225.40.03 With a boron content equal to or greater than 0.0008%, of a thickness greater than or equal to 3 mm, but less than 4.75 mm.
Kg 15 Ex.
7225.40.04 With a boron content equal to or greater than 0.0008%, thickness less than 3 mm.
Kg 15 Ex.
7225.40.05 Made of fast steel
. Kg 15 Ex.
7225.40.99 Others Kg 15 Ex.
7225.50.01 With a boron content equal to or greater than 0.0008%, and thickness greater than or equal to 3 mm, rolled.
Kg 15 Ex.

7225.50.02 With a boron content equal to or greater than 0.0008%, and a thickness of more than 1 mm, but less than 3 mm, rolled up.
Kg 15 Ex.
7225.50.03 With a boron content equal to or greater than 0.0008%, and a thickness greater than or equal to 0.5 mm but less than or equal to 1 mm, rolled.
Kg 15 Ex.
7225.50.04 With a boron content equal to or greater than 0.0008%, and thickness less than 0.5 mm, rolled.
Kg 15 Ex.
7225.50.05 With a boron content equal to or greater than 0.0008%, without coiling.
Kg 15 Ex.
7225.50.06 Made of fast steel
Kg 15 Ex.
7225.50.99 Others. Kg 15 Ex.
7225.91.01 Galvanised electrolytically.
Kg 15 Ex.
7225.92.01 Galvanised of other form Kg 15 Ex.
7225.99.99 Others. Kg 15 Ex.
7226.19.99 Others. Kg 15 Ex.
7226.91.01 Of a width greater than 500 mm, except for those included in sections 7226.91.02, 7226.91.03, 7226.91.04, 7226.91.05 and 7226.91.06.
Kg 15 Ex.
7226.91.02 With a boron content equal to or greater than 0.0008%, and thickness greater than or equal to 3 mm, rolled.
Kg 15 Ex.
7226.91.03 With a boron content equal to or greater than 0.0008%, and a thickness of more than 1 mm, but less than 3 mm, rolled up.
Kg 15 Ex.
7226.91.04 With a boron content equal to or greater than 0.0008%, and a thickness greater than or equal to 0.5 mm but less than or equal to 1 mm, rolled.
Kg 15 Ex.
7226.91.05 With a boron content equal to or greater than 0.0008%, and thickness less than 0.5 mm, rolled.
Kg 15 Ex.
7226.91.06 With a boron content equal to or greater than 0.0008%, without coiling.
Kg 15 Ex.
7226.91.99 Others. Kg 15 Ex.
7226.92.01 With a boron content equal to or greater than 0.0008%, and thickness greater than or equal to 3 mm, rolled.
Kg 15 Ex.
7226.92.02
With a boron content equal to or greater than 0.0008%, and a thickness of more than 1 mm, but less than 3 mm, rolled up. Kg 15 Ex.
7226.92.03 With a boron content equal to or greater than 0.0008%, and a thickness greater than or equal to 0.5 mm but less than or equal to 1 mm, rolled.
Kg 15 Ex.
7226.92.04 With a boron content equal to or greater than 0.0008%, and thickness less than 0.5 mm, rolled.
Kg 15 Ex.
7226.92.05 With a boron content equal to or greater than 0.0008%, without coiling.
Kg 15 Ex.
7226.92.99 Others. Kg 15 Ex.
7226.99.01 Galvanised electrolytically
. Kg 15 Ex.
7226.99.02 Galvanised of other form. Kg 15 Ex.
7226.99.99 Others Kg 15 Ex.
7227.10.01 Made of fast steel
Kg 15 Ex.

7227.20.01 Silicomanganese steel
Kg 15 Ex.
7227.90.01 Steel grade tool.
Kg 15 Ex.
7227.90.99 Others. Kg 15 Ex.
7228.30.99 Others. Kg 15 Ex.
7228.70.01 Profiles Kg 15 Ex.
7304.19.01 Hot-rolled pipes, uncoated or other surface works, including lacquered or lacquered hot-rolled pipes: outer diameter less than or equal to 114.3 mm and wall thickness equal to or greater than 4 mm but not exceeding 19.5 mm.
Kg 15 Ex.
7304.19.02 Hot rolled pipes, uncoated or other surface works, including lacquered or lacquered hot-rolled pipes: outer diameter exceeding 114.3 mm without exceeding 406.4 mm and wall thickness equal to or greater than 6.35 mm not exceeding 38.1 mm .
Kg 15 Ex.
7304.19.03 Hot-rolled pipes, uncoated or other surface works, including lacquered or lacquered hot-rolled pipes: outer diameter exceeding 406.4 mm and wall thickness equal to or greater than 9.52 mm but not exceeding 31.75 mm.
Kg 15 Ex.
7304.19.99 Others. Kg 15 Ex.
7304.23.01
Drill pipe, hot-rolled, with outer diameter equal to or greater than 60.3 mm, not exceeding 168.3 mm, with threaded ends. Kg 15 Ex.
7304.29.01 Casing tubes, hot-rolled, with threaded ends, with an outer diameter equal to or greater than 114.3 mm but not exceeding 346.1 mm
Kg 15 Ex.
7304.29.02 Tubes of casing (“Casing”), hot rolled, with threaded ends, of external diameter equal to or greater than 460.4 mm without exceeding 508 mm
Kg 15 Ex.
7304.29.03 Tubes of casing (“Casing”), hot-rolled, unthreaded, with an outer diameter equal to or greater than 114.3 mm but not exceeding 346.1 mm.
Kg 15 Ex.
7304.29.04 Tubes of casing (“Casing”), hot-rolled, unthreaded, with an outer diameter equal to or greater than 460.4 mm but not exceeding 508 mm.
Kg 15 Ex.
7304.29.05 Tubes of production (“Tubing”), hot-rolled, threaded, with outer diameter less than or equal to 114.3 mm.
Kg 15 Ex.
7304.29.06 Tubes of production (“Tubing”), hot-rolled, unthreaded, with an external diameter less than or equal to 114.3 mm.
Kg 15 Ex.
7304.29.99 others. Kg 15 Ex.
7304.39.05 Tubos llamados “térmicos” o de “conducción”, sin recubrimiento o trabajos de superficie, incluidos los tubos llamados “térmicos” o de “conducción” laqueados o barnizados: de diámetro exterior inferior o igual a 114.3 mm y espesor de pared igual o superior a 4 mm, sin exceder 19.5 mm. Kg 15 Ex.

7304.39.06 Tubes called “thermal” or “conduction”, uncoated or surface works, including tubes called “thermal” or “conduction” lacquered or varnished: outer diameter less than or equal to 114.3 mm and wall thickness equal to or greater to 4 mm, without exceeding 19.5 mm.
Tubes called “thermal” or “conduction”, uncoated or other surface works, including so-called “thermal” or “conduction” tubes lacquered or varnished: outer diameter greater than 114.3 mm without exceeding 406.4 mm and thickness of wall equal to or greater than 6.35 mm without exceeding 38.1 mm.
Kg 15 Ex.
7304.39.07 Tubes called “thermal” or “conduction”, uncoated or other surface works, including so-called “thermal” or “conduction” tubes lacquered or varnished: outer diameter exceeding 406.4 mm and wall thickness equal to or greater than 9.52 mm without exceeding 31.75 mm.
Kg 15 Ex.
7304.39.99 Others. Kg 15 Ex.
7305.11.01 With wall thickness less than 50.8 mm Kg 15 Ex.
7305.11.99 Others. Kg 15 Ex.
7305.12.01 With wall thickness less than 50.8 mm.
Kg 15 Ex.
7305.12.99 Others. Kg 15 Ex.
7305.19.01 With wall thickness less than 50.8 mm.
Kg 15 Ex.
7305.19.99 Others. Kg 15 Ex.
7305.20.01 With wall thickness less than 50.8 mm.
Kg 15 Ex.
7305.31.99 Others. Kg 15 Ex.
7305.39.99 Others. Kg 15 Ex.
7306.19.99 Others. Kg 15 Ex.
7306.29.99 Others. Kg 15 Ex.
7306.30.01 Galvanized, except what is included in section 7306.30.02.
Kg 15 Ex.
7306.30.02 Steel tube, low carbon, dip galvanized, with external diameter equal to or greater than 3.92 mm but less than or equal to 4.08 mm, and wall thickness equal to or greater than 0.51 mm but less than or equal to 0.77 mm.
Kg 15 Ex.
7306.30.99 Others. Kg 15 Ex.
7306.40.99 Others. Kg 15 Ex.
7306.50.99 Others. Kg 15 Ex.
7306.61.01 Of square or rectangular section.
Kg 15 Ex.
7306.69.99 Others. Kg 15 Ex.
7306.90.99 Others. Kg 15 Ex.
7307.23.99 Others. Kg 15 Ex.
7308.20.01 Recognizable towers as conceived exclusively for electric power conduction.
Kg 15 Ex.
7308.20.99 Others. Kg 15 Ex.
7308.30.01 Doors, windows and their frames.
Kg 15 Ex.
7308.30.99 Others. Kg 15 Ex.
7308.90.99 Others. Kg 15 Ex.

Similarly, and in order to prevent the mentioned increase from impacting production chains and maintaining competitiveness in the most sensitive industrial sectors such as electricity, electronics, automotive and auto parts, the PROSEC Decree is also modified in order to incorporate the following Mexican tariff classifications to Article I and II, of such Decree:

I. …
Tariff Classification Import Tax
7208.39.01 Ex
7208.51.01 Ex
7211.29.02 Ex
II.
a. …
b. …

Tariff Classification Import Tax

7225.19.99 Ex

III. a XVIII. ….

XIX …

Tariff Classification Import Tax

7208.2601 Ex
7208.27.01 Ex
7209.16.01 Ex
7209.17.01 Ex
7211.29.02 Ex
7225.30.99 Ex
7225.40.01 Ex

XX. a XXIV ….”

Ciudad de México, a 18 de mayo de 2018.

TMC LEGAL®- SERVICIOS PI
NEWSLETTER

Reformas a la Ley de la Propiedad Industrial, en materia de Marcas, Diseños Industriales, Denominaciones de Origen e Indicaciones Geográficas.

En fechas 13 de marzo y 18 de mayo de 2018, se publicaron en el Diario Oficial de la Federación, disposiciones que reforman y adicionan la Ley de la Propiedad Industrial, mismas que entraron en vigor el 27 de abril de 2018 y la segunda que entrará en vigor el próximo 10 de agosto de 2018.

Respecto a las Marcas:

• Amplia el concepto de marca, para incluir los signos distintivos perceptibles por los sentidos (marcas sonoras y olfativas).
• Incorpora como no registrables las expresiones “género”, “tipo”, “imitación”, “producido en” u otras similares como signos distintivos.
• Actualiza los impedimentos de registro de marcas (por mala fe), cuando estos se soliciten de mala fe evitando el secuestro o trolls de registros marcarios.
• Incorpora la distintividad adquirida de las marcas por el uso y percepción del consumidor en el transcurso del tiempo (second meaning)
• Amplia la regulación de las marcas colectivas y otorgar registros para “Marcas de Certificación”. Incorpora las leyendas; “Marca Colectiva Registrada” o “Marca de Certificación Registrada”, bajo las siglas MR o el símbolo ®
• Incluye la obligación de declarar el uso real y efectivo de las marcas durante los 3 meses posteriores a partir de la fecha en que se cumpla el tercer aniversario de haberse otorgado el registro y, al solicitar su renovación correspondiente. Siendo que en el supuesto de que el titular no declare el uso el registro caducara de pleno derecho.
• La protección de la figura de Imagen Comercial, así como de Elementos Operativos de Imagen (conocido como trade dress).
• Regular el sistema de oposición adversarial.

Nota. – Por lo demás estaríamos a la espera de la reforma del Reglamento de la Ley de la Propiedad Industrial para adecuarlo a estas nuevas disposiciones, de cual les estaremos informando en los próximos días.

Respecto a los Diseños Industriales:

• Se reconoce el carácter de “Diseñador” al creador de un diseño industrial, antes denominado “inventor”.
• Se regulan los conceptos de: “creación independiente” y “grado significativo” relacionados con el requisito de novedad, para la protección del diseño industrial.
• Se modifica la vigencia del registro a cinco años renovables por periodos sucesivos de la misma duración y hasta un máximo de 25 años.
• Regula como supuesto de caducidad la no renovación del registro.

Respecto a las disposiciones generales de patentes de invención, modelos de utilidad y diseños industriales:

• Reconoce como derecho irrenunciable el ser mencionado con carácter de inventor o diseñador en la publicación de solicitudes y títulos.
• Publica en la Gaceta de la Propiedad Industrial las solicitudes de registro de modelo de utilidad y diseños industriales, una vez aprobado el examen de forma.

Respecto a las Denominaciones de Origen e Indicaciones Geográficas:

• Modifica la definición de Denominación de Origen.
• Introduce la protección a Indicaciones Geográficas para alinear la legislación de PI en México con la nueva versión Tratado Comercial con la Unión Europea.
• Establece un procedimiento común para el trámite de una solicitud de declaración de protección y un procedimiento para la autorización de su uso.
• Incorpora disposiciones para el reconocimiento a las denominaciones de origen e indicaciones geográficas protegidas en el extranjero.
• Incorpora infracciones administrativas y tipifica delitos relacionados con las denominaciones de origen y las indicaciones geográficas.

En relación a lo anterior estamos a su disposición para cualquier duda y comentarios -TMC® IP Services (Luis Mojica: luis@tmclegal.com, Pamela Moscosa: pamela.m@tmclegal.com)

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade

CERTIFICATES OF ORIGIN AND CERTIFICATION IN THE FRAMEWORK OF THE FTA´s AND COMMERCIAL AGREEMENTS SUBSCRIBED BY MEXICO

Due to the broad activity that Mexico had at the end of 2018 in relation to the signing of the USMCA and the entry into force of a new Free Trade Agreement, such as the CPTTP, TMC considers is important to return to the topic of how to take advantage of a wide network of Treaties and Commercial Agreements, and the proper way to apply the tariff preferences under their application.

In the framework of Free Trade Agreements and International Commercial Agreements signed by Mexico today, is established the elimination or reduction of import taxes in the countries to which goods obtained or manufactured in Mexico are exported and qualify as originating.

The process to determine that a good qualifies as originating is known as Certification of Origin, which consists, depending on the case, of one or two stages.

When in the Treaty or International Commercial Agreement it is established that the certificate of origin applicable to such Treaty or Agreement, only be completed and signed by the Exporter or by the Producer of the good, only the Validation stage must be fulfilled Certificate of origin, which is made only by the exporter.

On the other hand, if in the Treaty or Agreement, it is specifically established that the applicable certificate of origin must be completed and signed by the Exporter or the Producer of the property and additionally be stamped and signed by the competent governmental authority (Ministry of Economy), the following two stages must be managed:

1. Product registration.

2. Validation of Certificate of origin

It is important to highlight that the steps mentioned above, its processing must be done through the Single Window System (VUCEM), web portal through which the Mexican authority will be handling the respective approval of the registration of products as well as the issuance and approval of the respective certificates of origin.
With the purpose that the interested parties correctly locate the manner in which the process to apply a tariff preference should be handled under the FTAs and Trade Agreements that Mexico has to date, pursuant to the aforementioned mechanism, below A breakdown of this process is presented:

• TREATIES AND AGREEMENTS TO WHICH ONLY ONE STAGE /
WITH CERTIFICATE OF ORIGIN FORMAT IS APPLIED:

• North American Free Trade Agreement (NAFTA).
• Free Trade Agreement between Mexico and Israel.
• Free Trade Agreement between Mexico and Costa Rica, El Salvador, Guatemala,
Honduras and Nicaragua.
• Agreement of Economic Complementation N 66 celebrated between Mexico and
Bolivia.

• TREATIES AND AGREEMENTS TO WHICH ONLY ONE STAGE APPLIES / WITHOUT
PRE-ESTABLISHED CERTIFICATE OF ORIGIN FORMAT:

• Trans-Pacific Partnership Treaty (CPTTP): Certification to be handled in any
document.

• TREATIES AND AGREEMENTS TO WHICH TWO STAGES ARE APPLIED:

• Free Trade Agreement between Mexico and Colombia.
• Free Trade Agreement between Mexico and European Union.
• Free Trade Agreement between Mexico and Uruguay.
• Free Trade Agreement between Mexico and the States of the European Free
Trade Association.
• Agreement for the Strengthening of the Economic Association between
Mexico and Japan.
• Commercial Integration Agreement between Mexico and the Republic of Peru.
• Free Trade Agreement between Mexico and Panama.
• Agreement of Economic Complementation No. 6 celebrated between Argentina
and Mexico.
• Economic Complementation Agreement No. 51 between Cuba and Mexico.
• Economic Complementation Agreement No. 53 between Brazil and Mexico.
• Agreement of Economic Complementation No. 55 celebrated between Mercosur
and Mexico.
• Partial Scope Renegotiation Agreement No. 29, concluded between Ecuador and
Mexico.
• Partial Scope Renegotiation Agreement No. 38, concluded between Mexico and
Paraguay.
• Regional Tariff Preference Partial Scope Agreement No. 4.
• Countries that grant us a tariff preference under the Generalized System of
Preferences, GSP: Canada, New Zealand, Russia and Belarus.
• Treaty between the Countries of the Pacific Alliance.

• INVOICE DECLARATION:

The Declaration in invoice is an option that provides the authority so that those shipments abroad that are greater than €6,000 euros, in the body of a commercial invoice or in the delivery order or in any other commercial document, can be handled a declaration together with an authorized exporter number, through which it can be identified as a proof of origin for the application of tariff preferences.

In order to make use of this option, the interested party must obtain the approval from the respective authority (Ministry of Economy), which grants a number that exporters can use in their operations. The modalities that exist for the use of this mechanism are mentioned below:

• Exporters that operate under the IMMEX Decree.
• Exporters that send products abroad worth $ 150,000 USD.
• Exporters of perishable products.
• Exporters of artisan products.

The Treaties signed by Mexico which consider the use of an invoice declaration are the follows:

• Free Trade Agreement with the European Union.
• Free Trade Agreement between Mexico and the States of the European Free
Trade Association.

VALIDATION OF CERTIFICATES OF ORIGIN

In the case of Mexican exporters who have business relationships with companies abroad, as part of the process of interaction with these partners, there is a need for a certificate of origin to be requested as part of the required documentation. According to the client’s needs, it can be used to:

• Application of tariff preferences.

• Demonstrate that the product (s) that it protects were manufactured in Mexico
and not to obtain reductions in import taxes in the destination markets.

The certificate of origin formats are established in each of the Free Trade Agreements and International Trade Agreements signed by Mexico and there is no Single format applicable to all the International Trade Agreements or Agreements of reference.

The benefit for having a certificate of origin is to obtain a competitive advantage in international markets since the importer of products abroad can obtain a reduction of up to 100% of import taxes.

In order to obtain a certificate of origin, it is necessary that in principle the interested parties (exporters) have authorized a Product Registry, as mentioned in previous lines, with which they are able to issue such certificate guaranteed (certificate) by the Mexican authority.

It is important to mention that not all certificates of origin are freely reproduced. The following formats are made with special features and can’t be reproduced:

Treaty, Agreement or Scheme Format Name
FTA with European Union Certificate of Movement of Goods EUR-1
FTA with European Free Trade Association Certificate of Movement of Goods EUR-1
Countries that grant tariff preferences in the Generalized System of Preferences (GSP) Form “A”
Agreement for the strengthening of the Economic Association between Japan and Mexico Certificate of origin Mexico – Japan Agreement.

DOCUMENTATION / INFORMATION THAT SUPPORTS THE ISSUANCE OF CERTIFICATES OF ORIGIN:

As part of the commitments covered by all the Agreements and Commercial Agreements signed by Mexico, there is one that implies to preserve documentation and information that serves as the basis for the issuance of certificates of origin, invoice declarations or certificates of origin (evidence of origin) based on which preferences are applied by the clients.

Keeping the aforementioned information and documentation is due to the authorities in charge of monitoring the correct handling and use of the aforementioned evidence, at all times have the power to carry out reviews, so it is always recommended to have well organized, classified and available this information.

It is also necessary to mention that as part of the commitments that are held at the time of issuance of a proof of origin, it is related to keeping the material / BOM (Bill of Materials) list up-to-date at all time and area responsible for feeding such system, notify the person in charge of issuing the proofs of origin, any change in relation to the supply of inputs for the manufacture of the object of the emission of the proof of origin, since such change could alter the analysis for compliance with the rule of origin and with it the issuance of the aforementioned documents, in such case, the issuer would have the obligation to inform its clients to those who have issued a proof of origin, which from the day on the change of supply was made, the good that sells it, is no longer susceptible to receive preferential treatment under the FTA or Commercial Agreement through which it has issued the proof originally.

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade

Newsletter

NEWSLETTER

On December 30th, 2018, the Trans-Pacific Partnership Comprehensive and Progressive Treaty (CPTTP) entered into force for the following countries: Australia, Canada, Mexico, Japan, New Zealand and Singapore, also joining Vietnam on January 14th, 2019, so what until now 7 of the 11 countries that signed this Treaty, are already operating it.

With this entry into force of the CPTTP , the option is opened for importers in Mexico to apply tariff preferences under the option that best suits them, according to the previously signed FTA´s, with the following countries:

• Canada.
• Japan.

And once they are incorporated, with the following:

• Chile.
• Peru.
• Pacific Alliance (Peru, Chile and Colombia).

Therefore, it is important to review the proper way which this document must be issued in order to apply preferences under CPTTP, in accordance with the provisions of the Annex to the Resolution that establishes General Rules Relating to the Application of the Provisions in Customs Matter of this treaty, published in the Official Federal Register (OFR) on December 28th, 2018:

MINIMUM REQUIREMENTS OF INFORMATION FOR CERTIFICATION OF ORIGIN.

A certification of origin must include the following elements:

I. Certification of Origin by the Exporter or Producer. Indicate whether the certifier is the exporter or producer in accordance with Article 3.20 of the Treaty.

II. Certifier. Provide the name, address (including country), telephone number and email of the certifier.

III. Exporter. Provide the name, address (including country), email and telephone number of the exporter, if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter. The address of the exporter will be the place of export of the goods in a Treaty country.

IV. Producer. Provide the name, address (including country), email and telephone number of the producer, if different from the certifier or exporter or, if there are multiple producers, indicate “Miscellaneous” or provide a list of producers. A person who wants this information to be confidential may indicate “Available at the request of the importing authorities”. The producer’s address will be the place of production of the goods in a Treaty country.

V. Description and Tariff Classification in HS of the Merchandise.

a) Provide a description of the merchandise and the tariff classification in HS of the merchandise at the 6-digit level. The description should be sufficient to relate it to the merchandise covered by the certification, and

b) If the certification of origin covers a single shipment of a merchandise, indicate, if known, the number of the invoice related to the export.

VI. Criterion of Origin. Specify the rule of origin according to which the merchandise qualifies.

VII. Coverage Period. Include the period if the certification covers multiple shipments of identical merchandise for a specified period of up to 12 months as established in article 3.20 (4) (b) of the Treaty.

VIII. Authorized Signature and Date. The certification must be signed and dated by the certifier and accompanied by the following declaration:

“I certify that the merchandise described in this document qualifies as originating and the information contained in this document is true and accurate. I assume the responsibility to verify what has been stated here and I undertake to keep and present, if required or make available during a verification visit, the necessary documentation to support this certification. ”

In accordance with the aforementioned Customs Rules, the following provisions are established for the purposes of handling the certification of origin under CPTTP treaty:

 It may be issued by boarding or, where appropriate, by multiple shipments, which does not exceed 12 months.

 The importer must transmit and present a copy of the valid certificate of origin, in electronic or digital document as an annex to the pediment.

 In the case of the import of original textile goods or clothing, incorporating a material listed in Appendix 1 relating to the List of Low-Supply Products or of Annex 4-A in which the Specific Rules of Origin are included by Product for Textiles and Clothing, the certification of origin must contain the Product Number or the description of the material in accordance with information indicated in the Appendix or Annex above mentioned.

 The certification must be kept by the importer for a period of five years, counted from the day following the date of import operation, including the documentation related to such certification.

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade

NEWSLETTER (Northern Border Fiscal Stimuli)

On December 31st, 2018, a Decree of fiscal stimuli for the Northern Border Region of Mexico was published in Official Federal Register (OFR), which enters into force on January 1st, 2019 and will be in effect during 2019 and 2020.

The aforementioned Decree forms part of the integral strategy of the Mexican government and establishes fiscal benefits consisting in a reduction of both the rate of Value Added Tax (VAT) as well as the Income Tax (IT) to companies and individuals with business activity, with the aim of promoting the generation of greater resources for investment, generating jobs and increasing the competitiveness of the Mexico´s northern border region.

The aforementioned fiscal incentives will be applied both to individuals and companies resident in Mexico and to residents abroad with permanent establishment in Mexico, who generate and receive income in the northern border region from business activities and which consist of the following reductions:

I. Income Tax (IT): tax credit equivalent to one third of the income tax (20%) caused in the fiscal year or in the provisional payments, which will be credited against the income tax caused in the same fiscal year in the provisional payments of the same fiscal year, as applicable;

II. Value Added Tax (VAT): credit equivalent to 50% of the rate to the value added tax, to those acts or activities of alienation of goods, rendering of independent services or granting the use or temporary enjoyment of goods, in the premises or establishments located within the northern border region.

In order to have access to the aforementioned tax benefits, the Decree establishes the following requirements that must be fulfilled by the interested individuals and companies:

o Proof of having a tax address, agency or establishment in the border region, with a minimum validity of 18 months, on the date of its application for registration in the “Register of beneficiaries of the stimulus for the northern border region.”

o In the case of new companies, they must verify that they have the economic capacity, new assets and facilities to carry out their activities and business operations in the northern border area, as well as estimate that their total income for the year in that region will represent the less 90% of total income for the year.

o Not having already granted a prior fiscal stimulus within the northern border region.

o Receive income generated in the northern border region and that they represent at least 90% of their total income in the immediately preceding fiscal year.

o Request the authority and be accepted, its registration in the “Register of beneficiaries of the stimulus for the northern border region.”

o Have an advanced electronic signature.

o Access to the Tax Box.

Once the registration request has been received, the authority has a period of 30 days to answer to it and, if favourable, make the registration in the “Register of beneficiaries of the stimulus for the northern border region. ”

The authorization issued by the authority with respect to the registration in the aforementioned list, will have an annual validity and this will have to be renewed by the interested parties once they accredit the fulfilment of the requirements, having as limit to present the request the term that is established for the presentation of the annual tax return for the immediately preceding tax year (March 31 of each fiscal year).

In relation to the fiscal stimulus related to the value added tax, the authority makes the following precisions:

 Taxpayers may apply the stimulus provided they make the material delivery of the goods or the provision of services in the northern border region.

 It is not applicable to VAT paid on imports of goods and services, since importers can recover the tax burden paid on importation through the mechanism of crediting the tax paid.

 Nor is it applicable to the alienation of real estate as well as to the alienation of intangible assets or the supply of digital goods, such as audio and video.

 Similarly, it is not applicable to taxpayers who have engaged in fraudulent behaviour to evade compliance with tax obligations.

Finally, it is established that the authority will issue General Rules for the correct application of this Decree, which we will inform you once they are published.

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade

NEWSLETTER (GRCFT Ammentment)

On November 30th, 2018, was published in Official Federal Register (OFR) an Agreement that modifies the General Rules and Criteria regarding Foreign Trade issued by the Ministry of Economy (GRCFT), which entered into force on December 3rd2018.

The main changes that are considered in the above mentioned publication are described below:

• In Rule 4.1.1. The reference of the National Foreign Trade Information Service (SNCE) is included as the official foreign trade information consultation portal and are indicated the 7 modules of which it is composed.

• Likewise, the electronic address www.snice.gob.mx is included, for purposes of indicating the procedures in which it will be mandatory to present annexes in a digitalized manner, as well as to make inquiries regarding the procedures to be performed to the Ministry of Economy.

• In rule 3.3.1. the obligation to request an authorization that entails the fulfillment of specific requirements for the merchandise that is required to import temporarily through the use of prior import permits under Rule 8th, when these are classified in the list of sensitive products of the Annex II of the IMMEX Decree, or of those indicated in Annex 3.3.2. of the Agreement by which Rules and Criteria of General Character in Foreign Trade Matters are issued by the Ministry of Economy.

• sSubmit permits and/or automatic import notices in the case of temporary imports of sensitive products made by IMMEX companies.

• In Rule 5.3.1., Regarding the importation of coffee under Rule 8th, through the use of classification 9802.00.22:
o code 0901.11.99. is added.
o It is included as a requirement, that the process of solubilisation and decaffeination of coffee be indicated, within the Public Accountant Report that will have to be presented in digital form to Ministry of Economy.
o For coffee imports under code 0901.12.01, the Public Accountant report must contain the following:
 Tax domicile of the company.
 Productive process.
 Relation of pediments of the export of the green coffee in grain together with the pediments of return of the decaffeinated coffee.
 Free writing that includes the details of the decaffeination process, including percentage of waste and waste generated.
 Copies of BL’s, bill of lading or air waybills and invoices that show the export abroad.

• Annexes 2.2.1 and 2.2.2., 107 tariff codes are added to the automatic import notification of steel products, related to the temporary increase of tariffs for 186 fractions and the suspension of preferential tariff treatment and tariff increase import of various goods originating in the USA.

• In Annex 2.2.2. codes 0901.11.99 and 0901.12.02 are added, so that the Ministry of Economy authorizes their import under Rule 8th, as well as the criteria and requirements to be complied with in each case are broken down.

• In the same Annex 2.2.2, the following criteria and requirements to be met are added for the case of the export of iron ore:

 Criteria:
o Imported iron ore will be given the same treatment as domestic iron ore, so that its export will be authorized for export.

o The validity of the permit for the temporary export of iron ore will be 1 year.

 Requirements:
• Of the imported iron ore, it should be:

o Demonstrate its legal import;
o Property;
o The project for which it was imported; and,
o The reasons that give rise to his return to the foreigner.

According to the aforementioned publication, it is specified that the automatic import notices for steel products are required as of December 5th, 2018.

TMC Legal® professionals, we are at your disposal to support you with the interpretation and compliance with the aforementioned provisions.

carlos@tmclegal.com / Parner
karla.g@tmclegal.com / Associate
fernando.perez@tmclegal.com / Logistics & Foreign Trade