""

Voluntary Report - public distribution

**Date:** 6/18/2003

**GAIN Report Number:** MX3309

MX3309

**Mexico**

**Product Brief**

**Frozen Foods Market Brief**

**2003**

**Approved by:**

![](media/image1.wmf)Bruce Zanin

#### Agricultural Trade Office

**Prepared by:**

Alfredo Gayou - Pablo Orozco

**Report Highlights:**

Mexican consumption of processed frozen products increased from \$58.5
million in 1999 to an estimatred \$649.6 million in 2001. Local
production is the main source of supply for domestic demand; however,
the Mexican market for processed frozen foods holds great potential for
US exporters. In 2001, US exports of processed frozen foods totaled
\$93.4 million, more than 80 percent of Mexico\'s total import market
for these products.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Mexico (MX)

\[MX\]

Table of Contents

# SECTION I. MARKET OVERVIEW ...................................................................... 3

# SECTION II. MARKET SECTOR OPPORTUNITIES AND CHALLENGES ............... 3

a.  

```{=html}
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```
a.  
b.  
c.  

Domestic Production
**..................................................................................
3**Imports and Foreign Competition
**................................................................
3**Domestic Consumption
**...............................................................................
5**Market Structure
**.......................................................................................
5**

**SECTION III. Entry Strategy
.......................................................................
6**

# 

a.  

Business Culture
........................................................................................
6Trade Services Available and Events
**............................................................ 6**

# SECTION IV. IMPORT REQUIREMENTS ............................................................ 8

# 

a.  
b.  
c.  

Tariffs and Taxes
.......................................................................................
8Import and Health Certificates and Non-Tariff Requirements
**......................... 8**Labeling
**...................................................................................................
9**Cargo Unloading, Transport and Storage Fees
**.............................................. 9**

**SECTION V. KEY CONTACTS AND FURTHER INFORMATION
.........................10**

# SECTION I. MARKET OVERVIEW

The Mexican import market for processed frozen foods continues to expand
in one of the fastest growing import markets in the world. The
increasing per capita income in Mexico, consumers' recognition of U.S.
products' high quality and value, and consumption trends toward more
international tastes create very good entry opportunities for U.S.
producers. The United States has an 80 percent share of the import
market for processed frozen foods in Mexico. Domestic demand continues
to grow; the market experienced an increase in average annual sales of
10 percent from 1999 to 2001. [^1]

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  Mexican consumers like American     Limited knowledge of imported
  products; they recognize most U.S.  products and poor organizational
  brands and associate U.S. made      skills among convenience and small
  products with high quality and      independent grocery stores restrict
  value.                              their market potential.

  Of the approximately 100.4 million  Importers and
  Mexicans, a significant and growing distributors/wholesalers continue
  share, approximately 22 million     to control the market, especially
  people, have the purchasing power   at the convenience and \"mom &
  and disposition to buy imported     pop\" stores level. Some large
  goods.                              retailers are importing directly.

  Mexican consumers, especially the   Mexico is traditionally a price
  younger generation, are rapidly     driven market, particularly in food
  adapting to more international      purchasing decisions.
  ways-of-life and purchasing         
  imported items.                     
  ----------------------------------- -----------------------------------

**SECTION II. MARKET SECTOR OPPORTUNITIES AND CHALLENGES**

**[a. Domestic Production]{.underline}**

The Mexican frozen food processing sector is still relatively small;
however, it is growing to meet the needs of a wealthier and larger
middle class. The growing number of new companies, an increasing
customer base and more cold storage space available for these products
in retail stores indicate that the industry will continue to expand.
Mexican production of frozen foods in dollar terms increased from an
estimated \$505.5 million in 1999 to approximately \$578.5 million in
2001.

#### 

#### Table 1: Mexican Production of Frozen Processed Foods, 1999-2001

(U.S. Million Dollars)

+--------------------+-------------+-----------------+-----------------+
|                    | **1999**    | **2000**        | **2001**        |
+--------------------+-------------+-----------------+-----------------+
| ###### Production  | **505.5**   | **551.0**       | **578.5**       |
+--------------------+-------------+-----------------+-----------------+

> Source: Instituto Nacional de Estadística, Geografía e
> Informática-INEGI (National Institute of Statistics, Geography and
> Informatics)

The four leading processed frozen food producers in Mexico in order of
importance are Grupo Ind. Bimbo, Nestle-Mexico, Sigma Alimentos and
Corporativo Unilever.

**[b. Imports and Foreign Competition]{.underline}**

Mexican consumers, especially the younger generation, are rapidly
adapting to more international ways of life and purchasing imported
items; of the approximately 100.4 million Mexicans, a significant and
growing share, approximately 22 percent, have the purchasing power and
disposition to buy imported goods. Mexican imports of processed frozen
foods increased from \$84.9 million in 1999 to \$115.7 million in 2001.

#### Table 2: Mexican Imports of Processed Frozen Foods, 1999-2001

(U.S. Million Dollars)

+-------------------------------------------+--------+--------+--------+
| ####### Import Code Numbers               | **     | **     | **     |
|                                           | 1999** | 2000** | 2001** |
+-------------------------------------------+--------+--------+--------+
| 2004-Prepared Vegetables, Frozen          | 34.3   | 45.4   | 48.9   |
+-------------------------------------------+--------+--------+--------+
| 2009-1101-Frozen Orange Juice             | 0.4    | 0.5    | 0.6    |
+-------------------------------------------+--------+--------+--------+
| 2105-Ice Cream                            | 23.4   | 19.1   | 24.2   |
+-------------------------------------------+--------+--------+--------+
| 1602-Other Prepared or Preserved Meat,    | 26.8   | 34.6   | 42.0   |
| Meat Offal or Blood                       |        |        |        |
+-------------------------------------------+--------+--------+--------+
| ## Total                                  | **     | **     | **1    |
|                                           | 84.9** | 99.6** | 15.7** |
+-------------------------------------------+--------+--------+--------+

Source: Banco Nacional de Comercio Exterior-BANCOMEXT (National Bank of
Foreign Trade)

**[U.S. Exports to Mexico]{.underline}**

The value of U.S. exports of processed frozen foods to Mexico, based on
Mexican statistical figures, increased from \$66.1 million in 1999 to
\$84.1 million in 2000 and later to \$93.4 million in 2001.

#### Table 3: U.S. Processed Frozen Food Exports to Mexico, 1999-2001

(U.S. Million Dollars)

+--------------------------------------------+-------+-------+-------+
| ## Import Code Numbers                     | **1   | **2   | **2   |
|                                            | 999** | 000** | 001** |
+--------------------------------------------+-------+-------+-------+
| 20041001-Frozen potatoes                   | 26.7  | 34.8  | 37.4  |
+--------------------------------------------+-------+-------+-------+
| 2004.9001-Antipasto                        | 0     | 0     | 0     |
+--------------------------------------------+-------+-------+-------+
| 2004.9002-Beans                            | 0     | 0     | 0     |
+--------------------------------------------+-------+-------+-------+
| 2004.9099-Other frozen vegetables          | 1.2   | 1.6   | 1.5   |
+--------------------------------------------+-------+-------+-------+
| 2009.1101-Frozen orange juice              | 0.4   | 0.5   | 0.2   |
+--------------------------------------------+-------+-------+-------+
| 2105.0001-Ice cream and other edible ice   | 12.7  | 14.2  | 15.2  |
+--------------------------------------------+-------+-------+-------+
| 1602.1001-Homogenized meat preparations    | 0     | 0.1   | 0.1   |
+--------------------------------------------+-------+-------+-------+
| 1602.1099-Other homogenized meat           | 0     | 0     | 0     |
| preparations                               |       |       |       |
+--------------------------------------------+-------+-------+-------+
| 1602.2001-Homogenized preparations of      | 0     | 0     | 0     |
| liver of chicken and turkey                |       |       |       |
+--------------------------------------------+-------+-------+-------+
| 1602.2099-Other liver meat preparations    | 0     | 0     | 0     |
+--------------------------------------------+-------+-------+-------+
| 1602.3101-Meat preparations based on       | 11.5  | 9.2   | 11.8  |
| turkey                                     |       |       |       |
+--------------------------------------------+-------+-------+-------+
| 1602.3901-Others meat preparations         | 5.7   | 12.1  | 12.5  |
+--------------------------------------------+-------+-------+-------+
| 1602.3999-Other poultry preparations       | 0     | 0     | 0.2   |
+--------------------------------------------+-------+-------+-------+
| 1602.4101-Meat preparations based on swine | 1.7   | 1.4   | 2.4   |
| ham                                        |       |       |       |
+--------------------------------------------+-------+-------+-------+
| 1602.4201-Meat preparations based on       | 0     | 0     | 0     |
| shoulder cuts from swine                   |       |       |       |
+--------------------------------------------+-------+-------+-------+
| 1602.4901-Pig skin, cooked in pellets      | 1.0   | 3.0   | 3.0   |
+--------------------------------------------+-------+-------+-------+
| 1602.4999-Other swine meat preparations    | 2.6   | 3.5   | 4.1   |
|                                            |       |       |       |
| including mixtures                         |       |       |       |
+--------------------------------------------+-------+-------+-------+
| 1602.5099-Other swine meat offal           | 2.6   | 3.7   | 5.2   |
+--------------------------------------------+-------+-------+-------+
| **Total**                                  | **6   | **8   | **9   |
|                                            | 6.1** | 4.1** | 3.4** |
+--------------------------------------------+-------+-------+-------+

Source: Banco Nacional de Comercio Exterior-BANCOMEXT (National Bank of
Foreign Trade)

Official Mexican import statistics listed 22 other countries exporting
processed frozen foods to Mexico during the 1999-2001 period. U.S.
exporters are the leaders in this market with a market share of 78.7
percent in 1999, 84.4 percent in 2000, and 80.7 percent in 2001. Export
sales, by principal countries, and their respective market shares are
listed below.

### 

### Table 4: Mexican Imports of Processed Frozen Foods by Country, 1999-2001

(Million Dollars and Percentage)

+------------------------------+------------+------------+------------+
| **COUNTRIES**                | **1999**   | **2000**   | **2001**   |
+------------------------------+------------+------------+------------+
| ## United States             | 66.1       | 84.1       | 93.4       |
+------------------------------+------------+------------+------------+
| Percentage Market Share      | 78.7       | 84.4       | 80.7       |
+------------------------------+------------+------------+------------+
| ## Canada                    | 8.6        | 10.9       | 13.0       |
+------------------------------+------------+------------+------------+
| Percentage Market Share      | 10.2       | 11.0       | 11.2       |
+------------------------------+------------+------------+------------+
| ## Spain                     | 4.1        | 0.7        | 2.9        |
+------------------------------+------------+------------+------------+
| Percentage Market Share      | 4.9        | 0.7        | 2.5        |
+------------------------------+------------+------------+------------+
| ## Chile                     | 5.1        | 2.3        | 4.4        |
+------------------------------+------------+------------+------------+
| Percentage Market Share      | 6.1        | 2.3        | 3.8        |
+------------------------------+------------+------------+------------+
| ## Other                     | 0.1        | 1.6        | 2.0        |
+------------------------------+------------+------------+------------+
| Percentage Market Share      | 0.1        | 1.6        | 1.8        |
+------------------------------+------------+------------+------------+
| ##### Total                  | **84.0**   | **99.6**   | **115.7**  |
+------------------------------+------------+------------+------------+

Source: Banco Nacional de Comercio Exterior-BANCOMEXT (National Bank of
Foreign Trade)

**[c. Domestic Consumption]{.underline}**

Mexican consumption of processed frozen food increased from \$528.5
million in 1999 to an estimated \$649.6 million in 2001.

**[d. Market Structure]{.underline}**

The principal channel for processed frozen food sales in Mexico is the
retail market, with most products being sold through supermarkets and
convenience store chains, as well as through wholesalers in central
markets (*centrales de abasto*) to mom & pop and corner grocery
stores.[^2]

Mexican consumers recognize most U.S. brands and associate U.S. made
products with high quality and value. In a random store check conducted
in the Mexico City Metropolitan Area, the following processed frozen
food brands/suppliers from the United States were identified:

> Chinese Food: Dairy Products:
>
> \- Chung\'s Gourmet Food - Fieldcrest
>
> French Fries: - Hygeia

\- Interstate Potato Packers - Dean Foods

> \- T.J. Farms - Kraft Foods Int. Inc.
>
> \- Ore-Lda Foods Inc. Kosher Products:
>
> \- La Plaza - Best Kosher Foods Corp.
>
> \- ConAgra - Sinai Kosher

Frozen Meals: - Empire Kosher

> \- ConAgra Frozen Foods Pizzas:

Frozen Pastries and Breakfast Products: - Pizza Ent. Inc.

\- Sara Lee - K.W. Foods

> \- Pillsbury Poultry and Poultry Products:
>
> \- McCain - Maple Leaf Farms Inc.
>
> \- Continental Mills - Sunday House Foods Inc.
>
> \- Kellogg\'s - Tyson
>
> \- Tofutti Brands Red Meats:
>
> \- Pepperidge Farm Inc. - Hillshire Farm
>
> \- Kahn\'s - Oscar Mayer

Seafood: Vegetables:

\- Higher Liner Foods Inc. - Green Giant

**SECTION III. Entry Strategy**

**[a. Business Culture]{.underline}**

The best way to understand the Mexican market is visiting the country
and talking to buyers, retailers, distributors and other players in
order to prepare a more effective entry strategy. U.S. exporters must do
their research not only in terms of typical market research, but also
finding appropriate business contacts and thoroughly reviewing Mexican
import regulations in order to successfully seize market opportunities
and overcome market challenges. An affordable way to investigate the
market is to participate in and/or attend Mexican trade shows,
particularly U.S. Pavilions organized by the Agricultural Trade Office
(ATO) at selected shows. A show can serve as a way to contact local
distributors/sales agents, buyers and businessmen, and to become
familiarized with local competition. In the case of new-to-market
companies, be prepared to provide support for in-store and media
promotions to familiarize consumers with your products.

Several important points should be recognized in order to have success
in the market:

-   *Business is generally conducted in Spanish.* Though many educated
    Mexicans speak English, many professional business people (potential
    key contacts) do not. Assume business and communication will be
    conducted in Spanish and have a translator, or better yet, a person
    working for you that speaks Spanish.

-   *Personal face-to-face communication is critical.* Personal contact
    with buyers is essential to initiate business relations in Mexico; a
    fax or an email is not considered reliable or appropriate for
    initial communication and will often be completely ignored. A
    business that is serious about sales will need to visit the market
    in person to explore the opportunities for their product and develop
    personal contacts. Follow-up by email or fax is appropriate, but
    having an in-country representative or making periodic personal
    visits is also important.

-   *Importers/distributors are a key component to export sales in
    Mexico.* Finding a good importer/distributor in Mexico is a critical
    part of success in exporting to Mexico. A good distributor should
    promote sales and make sure that the imported products are available
    at points of sale. Importers/distributors serve as a link to buyers
    and in-country representatives, have the expertise to handle
    complicated regulations and can trouble-shoot problems that imports
    can face at the border. Avoiding these key links in the distribution
    process to save money will almost always result in a loss of
    resources.

**[b. Trade Services Available and Events]{.underline}**

U.S. firms should consider using a variety of marketing tools to
effectively distribute their products in Mexico. These promotional
activities could include:

-   Participating in trade shows,

-   Advertising in media such as billboards, radio and TV,

-   Using in-store promotions, free samples, recipe cards and other
    forms of direct merchandising for new-to-market products

-   Preparing brochures and promotional materials in Spanish,

-   Obtaining a local sales representative, and

-   Hosting technical seminars to inform end users, distributors and
    retailers of new technologies, innovations and product advantages.

The Agricultural Trade Offices in Mexico, Mexico City and Monterrey,
provide services to help you access the market. In addition to
sponsoring U.S. Pavilions (see below) the office can provide information
about local distributors and contacts, and can arrange services from a
contractor who can set up individual in-country meetings for you for a
fee. These contractors, referred to as Ag Aides, can provide a link to
distributors and retailers of processed frozen foods in Mexico. For more
information on available services, or to connect with our Ag Aides,
please contact our office in Mexico City or Monterrey. (See contact
information in Section V.)

**[Trade Events]{.underline}**

**Abastur Rest-Hotel 2003**

**When:** October 1-3, 2003

**Where:** Banamex Convention Center**,** Mexico City

**Contact:** Vicente Verni, Remex

**Tel:** (011-5255) 5237-9939, 5237-9984, 5237-9988; **Fax**: (011-5255)
5657-5926**\
Email:** vverni@remex-cie.com, info@remex-cie.com

**Show Type:** One of the most important hotel, restaurant and
hospitality international shows Latin America with more than 18,000
participants

**ANTAD 2004**

**When:** March 12-14, 2004

**Where:** Expo Guadalajara Convention Center, Guadalajara, Mexico

**Contact:** Carlos Zertuche, U.S. Agricultural Trade Office
(ATO)-Mexico City

**Tel:** (011-5255) 5280-5291; **Fax:** (011-5255) 5281-6093

**Email:** carlos.zertuche@usda.gov

**Show Type:** Mexico's largest retail and supermarket show

#### Alimentaria 2004

**When:** June 2-4, 2004

**Where:** Banamex Convention Center**,** Mexico City

**Contact:** Rosa Maria Rivera, U.S. Agricultural Trade Office
(ATO)-Mexico City

**Tel:** (011-5255) 5280-5291; **Fax:** (011-5255) 5281-6093

**Email:** rosa.rivera@usda.gov

**Show Type:** One of the most important international food and beverage
shows in Mexico

**Exphotel 2004**

**When:** June 9-11

**Where:** Cancun Convention Center, Cancun Quintana Roo, Mexico

**Contact:** Lourdes Guzman, U.S. Agricultural Trade Office (ATO)-Mexico
City

**Tel:** (011-5255) 5280-5291; **Fax:** (011-5255) 5281-6093

**Email:** lourdes.guzman@usda.gov

**Show Type:** Largest international hotel and restaurant industry show
in Mexico's East Coast and in one of the most important tourist
destinations in Mexico

######### **[Trade Publications]{.underline}:**

Some of the leading trade magazines and general business publications in
Mexico are:

-   **\"Cadenas,\"** a monthly directed to the Managers and Directors of
    the retail trade; published by Editorial Multicolor, contact: Javier
    Ortiz Camorlinga, General Manager, Tel: (011- 5255) 5545-6960; Fax:
    (011-5255) 5250-8824

-   **\"Business Mexico,\"** published monthly in English by the
    American Chamber of Commerce of Mexico-Tel: (011-5255) 5724-3800
    ext. 3335, Fax: (011-5255) 5703-2911, contact: Diane Hemelberg de
    Hernandez, Editor or Cristina Bustos, Advertising Dept.

-   **\"MB,\"** published monthly in English by Hemisphere Publishers
    Group Inc., contact: Lorena Jimenez, Advertising Director, Tel:
    (011-5255) 5540-7977 and Fax: (011-5255) 5202-8478.

-   **"El Asesor,"** a business weekly for Mexico City and Monterrey
    published in Spanish published by Crain Communications, S. de R.L.
    de C.V., contact: Sales Dept., Tel: (011-5255) 5563-0341 X103 and
    Fax: (011-5255) 5611-3829

# SECTION IV. IMPORT REQUIREMENTS[^3] 

**[a. Tariffs and Taxes]{.underline}**

All import tariffs for the following processed frozen food products have
reached zero on January 1, 2003: [^4]

> 2004.9001-Antipasto
>
> 2004.9002-Beans
>
> 2105.0001-Ice cream and other edible ices
>
> 1602.1001-Homogenized meat preparations
>
> 1602.1099-Other homogenized meat preparations
>
> 1602.2001-Homogenized preparations of liver of chicken and turkey
>
> 1602.2099-Other liver meat preparations
>
> 1602.3101-Meat preparations based on turkey
>
> 1602.3201-Others
>
> 1602.3999-Other poultry preparations
>
> 1602.4101-Meat preparations based on swine ham
>
> 1602.4201-Meat preparations based on shoulder cuts from swine
>
> 1602.4901-Pig skin, cooked in pellets
>
> 1602.4999-Other swine meat preparations including mixtures
>
> 1602.5099-Other swine meat offal
>
> 2004.1001-Frozen potatoes
>
> 2004.9099-Other frozen vegetables

Frozen orange juice (import code number 2009.1101) is levied 6.29 U.S.
cents tax per liter, from 1999-2004; 4.71 U.S. cents, per liter, from
2004-2005; 3.14 U.S. cents, per liter, from 2005-2006; 1.57 U.S. cents,
per liter, from 2006-2008; and will reach zero duties January 1, 2008.
Frozen orange juice is subject to annual quotas with slightly lower
in-quota duties. Imports within the annual fixed quota of 734,670 liters
are levied a 10 percent duty, or 4.625 U.S. cents per liter, which ever
is lower. Imports above the quotas are levied a 20 percent duty per
liter, as described above, reaching zero duties January 1, 2008.

Mexico has a 15 percent value-added tax (VAT, or IVA in Spanish).
Mexican Customs collects the VAT on foreign transactions upon entry of
the merchandise into the country. Customs brokers use the total figure
to calculate their fees, which are usually 0.5 percent, on average, plus
any storage and handling fees.

**[b. Import and Health Certificates and Non-Tariff
Requirements]{.underline}**

Under NAFTA, Mexican imports of frozen processed foods do not require
special import permits. However, processed frozen food imports require a
written sanitary import notice (Aviso Sanitario de Importación). This is
a free-style letter, written in Spanish, which must include:

> \- Name of product - Name and address of importer
>
> \- Trade brand - Port of entry
>
> \- Specific quantity - Import tariff numbers
>
> \- Name and address of producer

This document, written in the company\'s letterhead, must be addressed
to the Secretaria de Salud; Dirección General de Calidad Sanitaria de
Bienes y Servicios (Ministry of Health; General Directorate of Quality
Health of Goods and Services) and presented at the port of entry. Also
required are the invoice, airway bill and a Sanitary Statement
(Constancia Sanitaria). The sanitary statement must come from the
exporting country\'s respective sanitary authorities, or an
FDA-certified laboratory, declaring that the products are safe and fit
for human consumption; the statement must indicate products'
physical-chemical analysis, microbiological analysis, country of origin
and expiration date.

The basic Mexican import document is the Pedimento de Importación
(customs entry document), which should be presented to Mexican Customs
together with the commercial invoice in Spanish, a bill of lading and
the Sanitary Import Notice. Products qualifying as \"North American\"
must use the NAFTA certificate of origin to receive preferential
treatment. This form is available from the U.S. Customs Service, freight
forwarders, local U.S. Chambers or State Departments of Agriculture, and
does not have to be validated or formalized. Mexican Customs Law is very
strict regarding proper submission and preparation of customs
documentation. Errors in paperwork can result in fines and even
confiscation of merchandise as contraband. Exporters are advised to
employ competent, reputable Mexican importers or custom brokers.

######### **[c. Labeling]{.underline}**

Imported products to be sold at retail must be labeled according to
Mexican government specifications. Labeling is subject to a national
regulatory requirement termed a "NOM." The principal NOM for processed
frozen food labeling, both from local production and foreign sources, is
NOM-051-SCFI-1994 . Some U.S. suppliers choose to develop special
packaging for the Mexican market. At a minimum, a label must be affixed
to each package of the imported product prior to entering the country.
All the information on the label must be in Spanish and must include the
following data: [^5]

> -Country of origin -Ingredients
>
> (i.e., Producto de EE.UU.) -Producer\'s name and address
>
> -Importer\'s name, address -Product description in Spanish
>
> and RFC number (taxation number) -Preparation and handling
> instructions
>
> -Commercial/brand name -Date of expiration
>
> -Exporter\'s name and address -Special warnings
>
> -Product description in English -Net weight in metric units

**[d. Cargo Unloading, Transport and Storage Fees]{.underline}**

Cargo unloading fees vary depending on the weight, number of pieces,
type of merchandise and location. These fees are usually charged
according to pre-established tables. However, whenever possible,
shippers should compare prices between service providers. In general,
cargo-unloading fees in Mexico are slightly higher than those in the
United States for comparable services.

Trucks are the most reliable method of delivery within Mexico,
accounting for approximately 60 percent of cargo volume. Trucking
companies cannot bring merchandise directly from the United States to
Mexico. A U.S. trucking company drives the shipment to the border and
transfers its trailer to a Mexican rig. The best way to ship by truck is
to use an internationally bonded carrier that has relationships with
Mexican carriers. Mexican trucking companies generally determine their
fees by mileage or distance, weight and type of merchandise. Practically
all transport companies/freight forwarders offer a basic insurance plan
which covers transport and handling of cargo. When selecting a
transporter it is recommended to check their claim history and
complaints they might have received. While shippers will find that truck
transportation is more expensive than \"Container in Flat Car\" (COFC)
or \"Trailer Flat Car\" (TOFC), in general, transport fees are lower in
Mexico by as much as 10 percent.

Warehousing costs vary depending on the space required and any specific
product needs. Warehousing fees follow general market trends of supply
and demand; however, it is advisable to compare prices, facilities and
reputation, and negotiate before contracting. Average warehouse rental
fees in Mexico City are around \$3.60 m2, per month; \$3.00 in the
Guadalajara area and approximately \$3.20 per m2 in Monterrey and
surrounding areas. In bond storage facilities are a popular storage
method used by exporters by which duties are paid on the items stored
until they are released from the facility for distribution in the
market. Any merchandise placed in a warehouse should be insured. A basic
insurance policy can be secured from the warehouse administrator or a
more comprehensive policy from a private insurance company.

**SECTION V. KEY CONTACTS AND FURTHER INFORMATION**

**U.S. Agricultural Trade Office, México City, México**

Bruce Zanin, Director

Jaime Balmes No. 8-201

Col. Los Morales Polanco

11510 México, DF

Tel: (011-5255) 5280-5291

Fax: (011-5255)-5281-6093

E-mail: atomexico@usda.gov

http://www.fas-la.com/mexico

**U.S. Agricultural Trade Office, Monterrey, México**

Jeanne Bailey, Director

Oficinas en el Parque Torrell

Blvd. Díaz Ordaz No. 140, Piso 7

Col. Santa María

64650 Monterrey, Nuevo León

Tel: (011-5281) 8333-5289

Fax: (011-5281) 8333-1248

E-mail: atomonterrey@usda.gov

**Asociación Nacional de Tiendas de Autoservicio y
Departamentales-ANTAD** (National Association of Retail and Department
Stores)

Horacio 1855-6; Col. Polanco

11560 México, D.F.

Tel: (011-5255) 5580-1772, 5580-0641

Fax (011-5255) 5395-2610

Contact: Rogelio Rodríguez Morales

E-mail: rrodriguez@antad.org.mx

www.antad.org.mx

[^1]: All dollar values used in reporting Mexican data were calculated
    according to the average exchange rate of the peso against the
    dollar for each year: 9.7, 9.6 and 9.2 pesos per one U.S. dollar for
    1999, 2000 and 2001, respectively.

[^2]: For a detailed study of the Mexican retail market see report
    MX1080 on FAS-USDA site:
    http://www.fas.usda.gov/scriptsw/attacherep/default.asp

[^3]: For a detailed study of Mexican Regulations for Exporting/Border
    Crossing, the Mexico Exporter Guide and Guide to Service Providers
    in Mexico see reports MX1205, MX2137 and MX2121 on FAS-USDA site:
    http://www.fas.usda.gov/scriptsw/attacherep/default.asp.

[^4]: For a full report see Mexico\'s NAFTA Tariff Schedule for
    2003, MX3011.

[^5]: For additional information on labeling NOMS, interested exporters
    can see Labeling Regulations report MX1223 on FAS-USDA site:
    http://www.fas.usda.gov/scriptsw/attacherep/default.asp; or they can
    directly review NOMS: 002-SCFI (Prepackaged products; net content;
    tolerances and verification methods), 008-SCFI (General system of
    measurement units) and 030-SCFI (Commercial information-quantity
    statements and specifications in labels) in the Ministry of
    Economy's Internet site: http://www.economia-noms.gob.mx.