Voluntary Report - public distribution

**Date:** 03/05/2004

**GAIN Report Number:** MX4034

000

**Mexico**

Grain and Feed

**Mexico\'s First 2004 Auction of U.S. Dry Edible Beans**

2004

**Approved by:**

![](media/image1.wmf)David Williams

#### U.S. Embassy Mexico City

**Prepared by:**

Benjamin Juarez

**Report Highlights:**

On March 5, 2004, the Secretariat of Economy (SE) published two
announcements on the auction of dry bean import permits (cupos) and the
2004 NAFTA tariff rate quota (TRQ) for dry beans from the United States
and Canada. SE will conduct the first auction of permits to import
22,398.746 MT of U.S. dry edible beans on April 2, 2004; this quantity
represents one-third of the total NAFTA tariff-rate quota (TRQ) for CY
2004. The auction for the last two-thirds will be held on June 1st (or
the next business day). The 2004 NAFTA TRQ, which is available to United
States and Canada, is set at a minimum access of 67,196.239 MT for the
United States and 2,015.710 MT for Canada, with a zero duty. Dry beans
imported above this TRQ are subject to the 2004 NAFTA duty of 46.9
percent.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Mexico \[MX1\]

\[MX\]

On March 5, 2004, the Mexican government published in the *Diario
Oficial* (Federal Register) the Secretariat of Economy's (SE)
announcement that on April 2, 2004, it will conduct the first auction of
the NAFTA Tariff Rate Quota (TRQ) imports permits for 22,398.746 MT of
U.S. dry edible beans (except for planting), in lots of no more than
4,479.749 MT. Participation in the auction is limited to traders and
packers in operation for at least one year as well as dry bean producer
organizations. The auction itself will be conducted in two sessions at
SE in Mexico City at 10:30 and 17:00.

Following are the auction details as contained in the *Diario Oficial*
announcement:

+--------+---------+-------+-------+----+---------+---------+------+
| A      | Tariff  | Pr    | Co    | Un | Auction | Maximum | Auc  |
| uction |         | oduct | untry | it | Q       | auction | tion |
|        | Number  |       |       |    | uantity | amount  |      |
| Number |         |       |       |    |         | per     | D    |
|        |         |       |       |    | (Kil    | part    | ate/ |
|        |         |       |       |    | ograms) | icipant |      |
|        |         |       |       |    |         |         | Time |
+--------+---------+-------+-------+----+---------+---------+------+
| 00     | 071     | B     | U     | K  | 22,     | 4,      | A    |
| 5/2004 | 3.33.02 | eans, | nited | g. | 398,746 | 479,749 | pril |
|        |         | e     | S     |    |         |         | 02,  |
|        | 071     | xcept | tates |    |         |         | 2004 |
|        | 3.33.03 | for   |       |    |         |         |      |
|        |         | plan  |       |    |         |         | 1    |
|        | 071     | ting. |       |    |         |         | 0:30 |
|        | 3.33.99 |       |       |    |         |         |      |
+--------+---------+-------+-------+----+---------+---------+------+
| 1      | 071     | B     | C     | K  | 671,903 | 134,380 | A    |
| 2/2003 | 3.33.02 | eans, | anada | g. |         |         | pril |
|        |         | e     |       |    |         |         | 02,  |
|        | 071     | xcept |       |    |         |         | 2004 |
|        | 3.33.03 | for   |       |    |         |         |      |
|        |         | plan  |       |    |         |         | 1    |
|        | 071     | ting. |       |    |         |         | 7:00 |
|        | 3.33.99 |       |       |    |         |         |      |
+--------+---------+-------+-------+----+---------+---------+------+

Interested parties may pick up auction information and documents
beginning on March 8, from 9:00 -- 14:00 in all SE offices throughout
the country.

Sealed bids will be accepted starting 1 ½ hours before auction time. The
auction itself will be conducted at the date and time indicated above in
the \"Exportadores\" Room of SE at the following address:

Insurgentes Sur 1940

Planta Baja

Colonia Florida

Delegacion Alvaro Obregon

C.P. 01030

Mexico, D.F.

Also on March 5, 2004, SE separately announced in the *Diario Oficial*,
the 2004 NAFTA Tariff Rate Quota (TRQ) for dry edible beans. This
announcement includes information on Mexico\'s administration of bids
for the importation of dry beans in 2004, according to the understanding
reached between the U.S. and Mexico. Consequently, Mexico is allocating
one-third of the NAFTA quota on April 2 of 2004. SE will allocate the
remaining two thirds of the NAFTA TRQ on June 1st (or the previous
business day) of 2004. Both allocations will be through public auctions.

The announcement also indicates that SE will announce in the *Diario
Oficial* the first auction a month before it takes place (20 business
days). Participation in the auction is limited to people or companies
established in Mexico.

Under NAFTA, Mexico's minimum access obligation for U.S. dry edible bean
in 2004 is a tariff rate quota of 67,196.239 MT. Dry beans imported
above this TRQ are subject to the 2004 NAFTA duty of 46.9 percent (see
MX 4003).

The following are some details as contained in the *Diario Oficial*
announcement:

+--------------------+----------------+--------------+----------------+
| Tariff Number      | Description    | Country of   | Minimum TRQ \* |
|                    |                | Origin       | (MT)           |
+--------------------+----------------+--------------+----------------+
| 0713.33.02         | Beans, except  | United       | 67,196.239     |
|                    | for planting   | States       |                |
| 0713.33.03         |                |              |                |
|                    |                |              |                |
| 0713.33.99         |                |              |                |
+--------------------+----------------+--------------+----------------+
| 0713.33.02         | Beans, except  | Canada       | 2,015.710      |
|                    | for planting   |              |                |
| 0713.33.03         |                |              |                |
|                    |                |              |                |
| 0713.33.99         |                |              |                |
+--------------------+----------------+--------------+----------------+

\*This is a minimum amount that could be increased if the Commission of
Foreign Trade decides additional low-tier tariff imports are necessary
to meet the domestic demand for this product.

Lastly, the announcement indicates that the import permits for the first
auction will be valid until May 31, 2004, while the validity for permits
from the second auction will be until September 30, 2004.