Compiled June 1998
by Foreign Tax Law, Inc.
PO Box 2189
Ormond Beach, Florida 32175-2189 USA
tel. (904) 253-5785
fax (904) 257-3003
e-mail: ftlp@foreignlaw.com
Website: http://www.foreignlaw.com

DISCLAIMER: Though every effort has been made to present the legal texts and information accurately, due to the nature and scope of the material, we cannot be liable for errors, omissions or other problems in the texts. The material offered herein is not a substitute for competent legal assistance by a licensed attorney of the jurisdiction in question.

FOREIGN TRADE REGULATION

Title I. Preliminary Provisions.

Sole Chapter

Title II. Foreign Trade Commission.

Chapter I. Structure.

Chapter II. Meetings

Chapter III. Functions

Chapter IV. Agreements of the Commission

Title III. Prior Permits and Export and Import Quotas.

Chapter I. General Provisions. (Title III)

Chapter II. Prior Permits.

Chapter III. Quotas

Title IV. Unfair International Trade Practices

Chapter I. Definitions

Chapter II. Imports Under Conditions Of Discriminatory Pricing

Chapter III. Injury and Threat of Injury to National Production

Title V. Precautionary Measures

Sole Chapter.

Title VI. Procedure Regarding Unfair International Trade Practices

Chapter I. General Provisions. (Title VI)

Chapter II. Decision to Initiate the Investigation

Chapter III. Preliminary Decision

Chapter IV. Final Decision

Chapter V. Technical Information Meetings

Chapter VI. Conciliation Hearing

Chapter VII. Countervailing Duties

Chapter VIII. Review of Final Countervailing Duties

Chapter IX. Commitments of Exporters and Governments

Chapter X. Alternative Mechanisms of Solution of Controversies

Title VII. Procedure Regarding Precautionary Measures

Chapter I. General Provisions (Title VII)

Chapter II. Decision of initiation

Chapter III. Final decision

Chapter IV. Provisional Precautionary Measures for Critical Circumstances

Chapter V. Other Provisions

Title VIII. Provisions Common to Procedures in Unfair International Trade Practices and Precautionary Measures

Chapter I. Official Investigation, Legally Formed Organizations, Release, Administrative File and Remittance of Copies to the Interested Parties

Chapter II. Notices

Chapter III. Public Information, Confidential Information, Trade Secrets and Confidential Governmental Information

Chapter IV. Petition for Confidentiality of Information.

Chapter V. Evidence, Public Hearing and Pleadings.

Chapter VI. Inspection Visits.

Title IX. Mixed Commission for the Promotion of Exports

Chapter I. General Provisions. (Title IX)

Chapter II. Structure.

Chapter III. Functions of the Mixed Commission.

Chapter IV. Levels and Modes.

Chapter V. Procedures of the Mixed Commission.

Chapter VI. Functions of Presidents of the Mixed Commission.

Chapter VII. Functions of the Technical Secretaries.

Title X. The National System of Foreign Promotion

Sole Chapter

Title XI. National Export Prize

Sole Chapter.

Transitory Articles

First Transitory Article

Second Transitory Article

Third Transitory Article

Fourth Transitory Article

Fifth Transitory Article

Sixth Transitory Article

Title I. Preliminary Provisions.
Sole Chapter
Article 1.
For the purposes of this Regulation, the following definitions shall be understood:

I. The Law is the Foreign Trade Law;

II. The Department is the Department of Commerce and Industrial Development;

III. The Commission is the Foreign Trade Commission, and

IV. The Mixed Commission is the Mixed Commission on Export Promotion.

When this Regulation refers to periods of time in days, such days shall be understood as working days, and when months or years are referred to, they shall be understood as calendar months or years.

Title II. Foreign Trade Commission.
Chapter I. Structure.
Article 2.
The Commission shall be composed of representatives of each of the following agencies or organizations:

I. Department of Foreign Relations;

II. Department of Finance and Public Credit;

III. Department of Social Development;

IV. Department of Commerce and Industrial Development;

V. Department of Agriculture and Hydraulic Resources;

VI. Department of Health;

VII. Bank of Mexico, and

VIII. Federal Commission on Competition.

When the Commission must deal with matters of foreign trade involving a specific sector, representatives of other agencies or entities of the State or Federal Public Administration.

Article 3.
The Commission shall operate on two hierarchic levels, that of undersecretaries or equivalent and that of general directors or equivalent.

In meetings of undersecretaries general limits and specific measures in matters of foreign trade shall be analyzed, defined and proposed. Furthermore, those matters which are submitted by an agreement made by the Commission at the level of the general directors shall be resolved.

The specific measures corresponding to the limits established at the level of the undersecretaries, as well as the proposals from the level of the undersecretaries that are considered pertinent to raise before the Commission, shall be analyzed at the level of the general directors.

Article 4.
The following shall participate on the Commission at the level of undersecretaries:

I. For the Department, the Undersecretary of International Trade Negotiations, who shall preside, the Undersecretary of Foreign Trade and Foreign Investment, the Industrial and Domestic Trade Undersecretary. The other undersecretaries of the Department, in the order indicated in this item, shall substitute for the President of the Commission at this level, and

II. For the other Departments and entities to which Article 2 of this Regulation refers, the undersecretary or equivalent appointed by the corresponding agency or organization.

On this level, the General Director of International Trade Negotiations Policy of the Department shall function as Technical Secretary.

Article 5.
The following shall participate on the Commission at the level of general directors:

I. For the Department, the General Director of International Trade Negotiations Policy, who shall preside, and representatives appointed as general directors of the Sub-department of Foreign Trade and Foreign Investment, the Sub-department of Industry and of the Sub-Department of Domestic Trade. The other general directors of the Department, in the order indicated in this item, shall substitute for the President of the Commission at this level, and

II. For the other Departments and organizations to which Article 2 of this Regulation refers, a representative with the position of general director or equivalent designated by the corresponding agency or organization.

Similarly, the assistance of a public servant commissioned by the director of the General Customs Administration of the Department of Finance and Public Credit may be requested to function as advisor to the Commission in matters related to customs classification and nomenclature. The General Director of International Trade Negotiations Policy of the Department shall be designated as the Technical Secretary of the Commission at this level.

Chapter II. Meetings
Article 6.
The assistance of at least one representative of the Department and of the majority of the agencies and organizations to which article 2 of this Regulation refers shall be required for the Commission to hold a meeting.

Article 7.
Meetings of the Commission can be ordinary or extraordinary. Ordinary sessions shall be summoned every 6 months at the level of undersecretaries, and every three months at the level of general directors. Extraordinary meetings shall be summoned at any time by the Technical Secretary of the Commission to deal with high-priority or urgent matters.

Article 8.
Only the representatives of the agencies and organizations referred to by article 2 of this Regulation that are accredited before the Commission may attend these sessions. For this purpose, the heads of those agencies and organizations must officially communicate the names and positions of their representatives, heads and deputies for the two levels referred to by Article 3 of this Regulation to the head of the Department.

Chapter III. Functions
Article 9.
For the purposes of Article 6 of the Law, the Commission shall have the duty to issue an opinion on the convenience of adopting the following measures, prior to their issue and during the time they are in force:

I. The establishment, increase, decrease or elimination of duties or preferential tariffs for exports or imports of merchandise;

II. The establishment, modification or elimination of prohibitions on the export or import of goods;

III. The establishment, modification or elimination of non-tariff measures of regulation and restriction on the export or import of merchandise, as well as of the procedures for their issue;

IV. The establishment, modification or elimination of measures to regulate or restrict the circulation or transit of foreign goods proceeding from and destined to foreign territories;

V. The procedures of assignment of export or import quotas;

VI. The establishment, modification or elimination of rules of origin;

VII. The demand for compliance with the official Mexican procedures by the customs authorities at the point of entry of the merchandise into the country;

VIII. The establishment of non-tariff emergency measures of regulation and restriction, established in accordance with that which is provided by Article 19 of the Law;

IX. The establishment of safety measures;

X. The establishment of measures related to customs matters that affect foreign trade;

XI. The establishment of measures of administrative simplification and efficiency in foreign trade matters;

XII. The establishment of other administrative measures of the agencies or entities of the Federal Public Administration whose intent is to regulate or restrict foreign trade of the country and the circulation or transit of foreign merchandise;

XIII. Projects of final resolution in investigations of unfair practices in international trade and of determination of countervailing duties, and

XIV. Projects of resolution in which the Department, accepting the promise of exporters or foreign governments, suspends or ends an investigation into unfair international trade practices.

The Commission shall revise periodically the measures of regulation or restriction of foreign trade that are in force, such as prior permits, maximum quotas, country of origin marking, certificates of origin and countervailing duties, in order to recommend amendments which may be suitable. Similarly, it shall carry out the other functions that the Law, this Regulation and other applicable legal and regulatory provisions confer on it.

Article 10.
At both levels, the President of the Commission shall have the following functions:

I. To preside and coordinate the extraordinary and ordinary meetings of the Commission, and

II. To delegate the drawing up of studies to the Technical Secretary on the matters presented to the Commission.

Article 11.
At both levels, the functions of the Technical Secretary of the Commission shall be the following:

I. To call the meetings and send the agenda with the corresponding documentation;

II. To submit the studies and proposals drawn up by the Department to the consideration of the members of the Commission;

III. To receive and present the studies and proposals to the Commission that other competent agencies and entities draw up, and

IV. To draw up the minutes of the meetings and obtain the signatures.

Article 12.
The agencies and entities of the Federal Public Administration may present proposals to the Commission in the area of their competence. These proposals must be presented through the Technical Secretary at least three days before the Commission meeting in which they are intended to be discussed, unless an extraordinary session is summoned.

Chapter IV. Agreements of the Commission
Article 13.
At both levels the Commission shall issue its agreements in accordance with the following procedure:

I. It shall reach each agreement by a majority of votes, once all the representatives and guests who are present have expressed their opinions. A vote shall be issued by each one of the agencies and organizations to which items I through VIII of article 2 of this Regulation refer. In the event of a tie, the President of the Commission shall have the decisive vote;

II. The Technical Secretary shall record all of the opinions, the results of the vote and the content of the agreement in the minutes of the meeting. The minutes shall