Voluntary Report - public distribution

**Date:** 03/05/2004

**GAIN Report Number:** MX4032

MX4032

**Mexico**

Dairy and Products

**Auction of Permits to Import Milk Powder Set for March 15**

2004

**Approved by:**

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

#### U.S. Embassy Mexico City

**Prepared by:**

Sal Trejo

**Report Highlights:**

On March 15, 2004, Mexico's Secretariat of Economy will conduct an
auction for permits (cupos) to the Mexican private sector to import
2,000,000 Kg. of milk powder duty-free from MFN trading partners. This
is the first auction of this year. It partially fulfills Mexico's
commitments under the Uruguay Round trade negotiations.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Mexico \[MX1\]

\[MX\]

The following announcement was published in Mexico's *"Diario Oficial"*
(Federal Register) on

February 13, 2004.

On March 15, 2004 at 10:00 am, Mexico's Secretariat of Economy (SE),
will conduct an auction for permits (*cupos*) to the Mexican private
sector to import 2,000,000 Kgs. of milk powder duty-free. This auction
is in keeping with Mexico's commitments under the Uruguay Round. SE's
Directorate of Foreign Trade Services (DGSCE) will conduct the auction,
which it lists as auction number 001/2004. The details of the auction
are as follows:

+-----------+-------------------------------+------------+------------+
| **HTS#**  | **Description**               | **Total**  | **Maximum  |
|           |                               |            | Quantity   |
|           |                               | **Quantity | per        |
|           |                               | for        | Importer** |
|           |                               | Auction**  |            |
+===========+===============================+============+============+
| 0         | Milk in powder or tablets,    | 2,000,000  | 400,000    |
| 402.10.01 | containing not over 1.5       | Kg.        | Kg.        |
|           | percent by weight of          |            |            |
|           | butterfat.                    |            |            |
+-----------+-------------------------------+------------+------------+
| 0         | Milk in powder or tablets,    |            |            |
| 402.21.01 | containing over 1.5 percent   |            |            |
|           | by weight of butterfat        |            |            |
+-----------+-------------------------------+------------+------------+

The documents required to participate in this auction can be obtained by
interested parties as of February 20, 2004, at the following address, as
well as at SE state offices throughout Mexico.

\"Ventanilla de Cupos TLC\"

Secretaria de Economia

Insurgentes Sur 1940, Planta Baja

Colonia Florida

Delegacion Alvaro Obregon

01030, Mexico, D.F.

**FAS/Mexico Note:** This is NOT an invitation for bids to purchase dry
milk products. Rather, it is an auction for the right to import the
listed products duty free. Thus, the auction is limited to Mexican
companies within the dairy products industry who use milk powder in
their production process. That fact notwithstanding, it affects U.S.
dairy exporters in that those Mexican importers who are granted the
*cupos* will be looking for product to fill the permit shortly after the
auction, if not earlier.

**For More Information:**

AgMexico@usda.gov

*Fax:* 011-52-55-5080-2776

*FAS Mexico Web Site:* We are available at http://www.fas-la.com/mexico
or visit our headquarter\'s home page at http://www.fas.usda.gov for a
complete selection of FAS\' worldwide agricultural reporting.

Mexico\'s equivalent of the Department of Agriculture (SAGARPA) can be
found at www.sagarpa.gob.mx and Mexico\'s equivalent of the Department
of Commerce (SE) can be found at www.economia.gob.mx These web sites are
mentioned for the readers\' convenience but USDA does NOT in any way
endorse, guarantee the accuracy of, or necessarily concur with the
information contained on the mentioned sites.