WT/TPR/S/195 Trade Policy Review 
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III. TRADE POLICIES BY MEASURE 
(1) OVERVIEW  
1. Since the previous Review of its trade policy in 2002, Mexico has adopted important 
measures to facilitate foreign trade transacti ons, even though some customs procedures and 
formalities remain complex.  Customs reform should therefore move ahead and, in general, foreign 
trade regulations need to be streamlined. As far as customs valuation is concerned, Mexico has a 
scheme for certain products whereby security is requir ed if the value declared is lower than the price 
estimated by the authorities. 
2. Mexico has substantially lowered the simple average MFN tariff, which fell from 16.5 per 
cent in 2001 to 11.2 per cent in June 2007.  Agricu ltural products still receive much higher average 
tariff protection (23.0 per cent) than other products (9.9 per cent).  The tariff is complex, comprising 
close to 12,000 tariff lines with 88 different ad valorem  levels;  some lines are subject to specific, 
compound or seasonal duties.  Tariff dispersion ha s increased since 2001 and there is negative 
escalation between raw materials and semi-proces sed goods.  The authorities recognize that this 
situation has led to inconsistencies in the tariff structure.  To ove rcome these, MFN tariffs should be 
lowered further and efforts made to simplify their structure. 
3. Mexico bound all its tariffs at an average rate  of 36.0 per cent.  This measure has led to 
greater predictability as far as conditions for access to Me xico's market are concerned, although this is 
attenuated somewhat by the marked difference betw een the average levels of the rates applied and 
those bound. 
4. The important role of tariff preferences became  even more evident during the period under 
review, when new preferential agreements were si gned with Uruguay and Japan.  As is the case for 
other Members of the WTO, Mexico's participation in preferential trade agreements raises concerns 
regarding their impact on the allocation of resour ces.  Mexico has preferential and non-preferential 
rules of origin;  the purpose of the latter is to prevent circumvention of anti-dumping duties and they 
vary according to the product and country of origin. 
5. A derecho de trámite aduanero  – DTA (customs processing fee) is payable on imports and is 
calculated on an ad valorem  basis;  preferential imports are exempt from this fee.  Mexico requires 
prior import licensing in order to administer tariff concessions and protect the environment in respect of products such as used vehicles and clothing. 
6. Mexican producers have actively sought protection against imports they deem unfair by 
means of anti-dumping measures.  In this wa y, between January 2002 and December 2006, the 
authorities initiated 42 anti-dumping investigations that  led to the adoption of 24 definitive duties.  In 
June 2007, 70 anti-dumping duties were in effe ct, mostly on products from China and the 
United States. 
7. Mexico has regularly submitted notifications to the WTO on the Normas Oficiales Mexicanas  
– NOMs (Mexican Official Standards) and sanitary a nd phytosanitary (SPS) measures.  In general, the 
procedures for the adoption of NOMs are clearly de fined.  A new NOM on the labelling of textiles 
and clothing was adopted in 2006.  In some instan ces, producers from countries with which Mexico 
has a free-trade agreement, but not others, are a llowed to utilize the certification obtained by other 
importers.  Products subject to SPS measures must comply with the NOMs, the phytosanitary or animal health requirement sheets and/or certain inspection requirements. Mexico WT/TPR/S/195 
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8. Some products, including petroleum products, requi re prior export licensing.  In addition, 
Mexico promotes exports through fiscal concessions  and administrative facilities as well as a number 
of financing schemes.  After incurring large losses,  the leading State-owned bank providing export 
support was reorganized in 2007. 
9. The two major export promotion instruments, the Maquila and the PITEX, were amalgamated 
into the IMMEX Programme at the end of 2006.  This programme grants fiscal and administrative 
benefits contingent, inter alia , on compliance with minimum export re quirements.  In addition to this 
scheme and drawback, Mexico has two programme s (ALTEX and ECEX) which grant administrative 
facilities and/or financial support to companies that  meet export requirements.  Since 2001, Mexico 
has not made any notifications on new or updated subsidies.  The only export programme notified to 
the WTO by Mexico was the PITEX. 
10. In 2002, Mexico introduced several sectoral promotion programmes (PROSECs) under which 
the eligible companies may import inputs used to produce specified goods at a reduced tariff.  The 
PROSECs are not an optimal solution to offset the impact of MFN tariffs on the costs of companies 
which import inputs from non-preferential sources b ecause their scope is limited and they involve 
administrative costs.  There are also a large number of other government support programmes for 
specific areas. 
11. There are no cost/benefit estimates for the expor t promotion programmes or the other support 
programmes in effect.  It would, however, be desirabl e to study to what extent the benefits given by 
such programmes offset their fiscal costs and the distortions caused in the allocation of resources 
between export activities and the rest of the economy. 
12. Mexico has reformed its competition legislation and, despite the modest budget and staffing 
resources, the competent authority is starting to gain a solid reputation.  Nevertheless, monopolies and/or insufficient levels of competition are still to be found in sectors such as electricity, 
hydrocarbons and telephony (see Chapter IV).  Mo re competition in these and other key sectors of the 
economy is one of the most important challeng es currently facing Mexico's economic policy. 
13. Mexico did not sign the WTO Agreement on Government Procurement and is not an 
observer.  The law provides for tenders open to an y person or product, even though a preferential 
margin is given to Mexicans.  In practice, govern ment procurement is mainly through tenders open 
only to Mexican persons or goods or Mexicans toge ther with foreigners from countries with which 
Mexico has signed a relevant agreement;  while this  could boost the domestic industry, it could also 
increase the cost of government procurement to the detriment of taxpayers. 
14. In 2000, the TRIPS Council examined Mexico's intellectual property legislation and Mexico 
has notified subsequent amendments.  In several ar eas, particularly copyright, Mexico's protection 
exceeds the minimum periods laid down in the TR IPS Agreement.  There should be an economic 
assessment of how the extension of exclusive right s maintains the balance between the interests of 
rightholders and of users. WT/TPR/S/195 Trade Policy Review 
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(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, documentation and customs procedures 
15. Mexico's customs regime is based on the 1995 Customs Law1 and its Implementing 
Regulations2, as well as on the General Foreign Trade Regulations3 and the annexes thereto, and the 
decisions taken annually by the Secretaría de Hacienda y Crédito Público  – SHCP (Ministry of 
Finance and Public Credit).  The customs legal frame work also includes other legislative instruments 
such as the Tax Code of the Federation and its Implementing Regulations;  the Foreign Trade Law 
(LCE) and its Implementing Regulations;  and the Law on General Import and Export Taxes (TIGIE), 
the agreement under which the Ministry of the Econo my (SE) issues general regulations and criteria 
for foreign trade, as well as the provisions on cust oms matters in the free-trade agreements (FTAs) 
signed by Mexico.  Since 1998, Mexico has been a member of the World Customs Organization. 
16. The Administración General de Aduanas  – AGA (General Customs Administration), which is 
part of the Servicio de Administración Tributaria  – SAT (Tax Administration Service) (a 
decentralized body of the SHCP), is responsible fo r inspecting, monitoring and controlling the entry 
of goods into Mexico and their exit. 
17. The majority of persons or companies wishing to import goods into Mexico must be 
registered in the Importers' Register kept by the SAT.4  This requirement does not apply to persons or 
companies importing for their own use or in the case of goods that are not to be marketed.5  I n  
addition, importers of specified products such as f oodstuffs, beverages, chemic als, textiles, footwear, 
electronic goods and iron and steel products must be listed in the Register of Importers in Specific 
Sectors.6  Importers of wines and spirits must be lis ted in the Register of Alcoholic Beverage 
Taxpayers in order to seek registration in the sect oral register.  The list of specific products is 
determined by the SHCP and is periodically amen ded.  According to the customs authorities, the 
purpose of the registers is to keep a comprehensive and reliable list of impor ters and to prevent and 
detect different types of customs fraud. 
18. As a general rule, the import of goods requires the involvement of a customs agent or customs 
broker.7  For imports of goods by passengers of a va lue not exceeding US$3,000, it is not necessary to 
use the services of a customs agent or broker.8  Customs agents are jointl y responsible for the payment 
of import taxes and for the exactitude of the information declared.  The requirements for obtaining a 
                                                      
1 Published in the Official Journal of the Federati on of 15 December 1995 and entered into effect on 
1 April 1996.  The updated text of this Law containing the latest revision (Official Journal of the Federation of 
2 February 2006) may be consulted at:  http://w ww.aduanas.sat.gob.mx/aduana_mexico/2007/A_Leyes_y-
programas.htm. 
2 Published in the Official Journal of the Federation of 6 June 1996. 
3 2007 General Foreign Trade Regulations for 2007, Official Journal of the Federation of 
27 April 2007. 
4 Article 59, Section IV, of the Customs Law. 
5 Exceptions to the requirement to be listed in the Register include the import of goods by passengers;  
diplomatic missions;  courier and ma iling companies not exceeding US$1,000 ;  and temporary imports.  General 
Foreign Trade Regulations for 2007, Official Journal of the Federation of 27 April 2007. 
6 The specific sectors are listed in Annex 10 to th e General Foreign Trade Regulations (the latest 
update was published in the Official Journal of the Federation of 12 September 2007). 
7 Article 40 of the Customs Law. 
8 Article 50 of the Customs Law and Regulation 2.7.3 of the General Foreign Trade Regulations for 
2007, published in the Official Journal of the Federation of 27 April 2007.  The involvement of a customs agent 
is not required either for imports by diplomatic missions, imports for activities by broadcasting media and those by courier and mailing companies under certain circumstances. Mexico WT/TPR/S/195 
 Page 33 
 
 
licence to act as a customs agent are, inter alia , Mexican citizenship by birth;  this requirement does 
not apply to customs brokers who are, however, only authorized to clear goods  at a specific customs 
post on behalf of a single person.9 
19. Importers must submit an import declaration or request to the customs through a customs 
agent or broker, together with the following documents :  the invoice;  the bill of lading or airway bill;  
documentation showing compliance with the non-tariff re gulations and restrictions, where applicable;  
certificates of origin, where applicable;  a documen t proving that security has been deposited in the 
customs security account when it is considered that the goods have been undervalued;  a certificate 
showing the weight or volume for bulk goods impo rted by sea;  and information to enable the 
identification, analysis and control of imported goods  (the brand, model, serial number and technical 
specifications).10 
20. Mexico has a computerized customs management system called the Sistema Automatizado 
Aduanero Integral  – SAAI (Integrated Customs Computerized System), which allows import (and 
export) declarations to be drawn up and validated electronically, as well as the electronic exchange of information between the AGA, the 49 customs pos ts in Mexico, customs agents, warehouses and 
banks.  Importers (and exporters), through their cust oms agents, must send to the SAAI in advance 
details of all the shipments imported or exported.  Cargo manifests for goods transported by sea, rail 
or land must be sent electronically in advance.  The SAT may authorize associations of customs agents and business associations using the services of customs brokers to offer advance electronic 
validation of the data contai ned in import declarations.
11 
21. After the import declaration and the other doc uments required have been submitted and the 
corresponding fees paid, the goods must go through a computerized selection mechanism in order to 
determine whether there should be a customs inspect ion consisting of verification of the documents 
and the goods themselves.  Goods  that have been inspected must go through the computerized 
selection mechanism once again in order to determin e whether they should be inspected for a second 
time.12  In some customs posts, designated by the SHCP, all shipments systematically undergo a 
second inspection irrespective of the outcome of the first selection process. 
22. According to data provided by the authorities, in 2006 85.3 per cent of import transactions 
were not inspected, while 12.9 per cent underwent a first inspection by the customs authorities and 
1.8 per cent a second inspection by a company holding a concession from the Government.  The authorities have indicated that the average time ta ken for customs clearance is four hours.  If no 
physical inspection is required, the goods are cleared immediately.
13 
23. The selection mechanism is governed by an in telligent risk assessment system based on 
criteria such as the type of importer, exporter, the cat egory of product, its value and country of origin.  
The system also assesses the risk  factors according to the nature of the operation in terms of tax 
revenue, sanitary and phytosanitary measures, national security, combating smuggling and other 
fraudulent practices.  The information provided by th e risk assessment is integrated into the SAAI 
electronically.  Independently of the results of the computerized selection process, the customs authority has the power to order verification of goods transported or to undertake an inspection a posteriori at the domicile of the importer (visit to the premises). 
                                                     
 
9 Articles 159 and 168 of the Customs Law. 
10 Article 36 of the Customs Law. 
11 Article 16-A of the Customs Law (additional article, published in the Official Journal of the 
Federation of 1 January 2002). 
12 Articles 43 and 44 of the Customs Law. 
13 Article 43 of the Customs Law. WT/TPR/S/195 Trade Policy Review 
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24. In addition to computerizing the procedures a nd flows of information, since 2002 Mexico has 
adopted a series of measures to modernize the custom s system, including investment in infrastructure, 
technology and streamlining of procedures.  A " certified enterprise" scheme has been set up under 
which companies that import goods for a specified value and prove compliance with their customs 
and tax obligations benefit from st reamlined customs procedures, ex emption from certain obligations 
(such as listing in the sectoral registers) and othe r customs facilities (for ex ample, exclusive import 
channels).14 
25. Despite the foregoing, the customs authoriti es acknowledge that the progress made in 
modernizing the customs service needs to be inte nsified, mainly as regards computerization, 
upgrading the risk assessment system and using ne w customs clearance technology.  In March 2007, a 
plan to modernize the customs wa s announced not only with a view to enhancing competitiveness but 
also with the objective, inter alia , of updating the customs infrastructure, giving customs officials 
further training, strengthening cooperation with the private sector and other Mexican and foreign 
authorities, helping to improve national security and combating smuggling, as well as reforming and streamlining the legal framework in or der to adapt it to the new processes.
15 
26. Improving security at the customs is one of Mexico's priorities in this sector.  It has thus 
adopted measures which include, in addition to adva nce electronic transmission of data on passengers 
and cargo, the exchange of information with other customs services, certification schemes for security 
of the logistic chain of foreign trade agents, and the use of X-ray equipment to inspect containers 
without having to open them. 
27. In June 2007, Mexico signed a declaration of  principles for customs cooperation with the 
United States, with the objective, inter alia , of reinforcing security in North America by cooperating 
in the prevention and dissuasion of terrorism and the coordination of security mechanisms and programmes.  Other objectives are to expand the rese rved channels in both directions for companies 
participating in the Free and Secure Trade (FAS T) and Exprés programmes, the coordination of 
border infrastructure projects and programmes for the resumption of activities in cases of 
emergency.
16  In August 2007, the two countries signed a bilateral strategic customs plan to 
implement these measures. 
28. The fight against smuggling and piracy is also c ontinuing.  According to unofficial estimates, 
smuggled and pirated goods supply a large part of th e domestic market in certain branches of industry, 
including products such as clothing, music record ings, software programs, sports footwear and 
beans.17  The authorities have questioned these estimat es because the illegal nature of smuggling 
makes it difficult to provide a reliable estimate of th e extent of the problem and there are no official 
figures on the amount and frequency with which it occu rs in particular branches of industry.  In 
addition to goods entering Mexico without going through the customs, there are also cases of "documented smuggling", in other words, the entry of goods under a false declaration of origin in 
order to benefit from preferential tariffs, under-invoi cing or incorrect tariff classification so as to 
evade payment of tariffs or anti-dumping or countervailing duties. 
                                                     
 
14 Companies which may be given "certified enterprise" status include companies engaged in 
manufacturing, in-bond assembly activities and export serv ices (IMMEX) authorized by the SE and mailing and 
courier companies.  In July 2006, 712 certified enterprises had been authorized, accounting for over 60 per cent 
of Mexico's foreign trade.  See:  Aduana México (2006). 
15 See:  http://www.comfin.com.mx/comunicados/ otros/07/mar/planmodernizaciónaduanera.htm. 
16 The declaration may be consulted at:  http://www.milenio.com/index.php/2007/06/08/78323. 
17 IPS (2007), Centro de Estudios Sociales y de Opinión Pública  (Centre for Social Studies and Public 
Opinion) (2005), Fortuna (2005). Mexico WT/TPR/S/195 
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29. Action taken by the General Customs Administration to combat smuggling includes a number 
of high-impact operations in coordination with other competent authorities in order to seize goods 
entering Mexico unlawfully.  In March 2006, an In terministerial Commission to Prevent and Combat 
the Illegal Economy was also set up and is responsible  for proposing policies, strategies and action to 
allow effective prevention and to combat unlawful acts affecting the import, distribution and 
marketing of foreign goods.  It is also hoped that the Bilateral Strategic Customs Plan signed with the 
United States will help in taking more effective action to combat smuggling. 
30. Pursuant to the Customs Law, an appeal for revocation may be made to the same 
administrative authority against all definitive decisi ons taken by the customs authorities.  Such an 
appeal is optional for the interested party before  bringing administrative proceedings before the 
Federal Tribunal of Fiscal and Administrative Justice.18  According to the information provided by the 
authorities, in 2006 12 appeals for revocation of decisions by the customs authorities were lodged with the International Central Legal Administration,  none of which had been resolved by mid-2007.  
The decisions most frequently contested by importers  concern tariff classification, the origin of the 
goods, preferential tariff treatment and tax credit decisions. 
(ii) Customs valuation  
31. Mexico has applied the WTO Customs Valua tion Agreement (Agreement on Implementation 
of Article VII of the General Agreement on Tari ffs and Trade 1994) since 1995.  It has utilized 
several provisions available to developing countries to defer application of the Agreement and has 
made reservations in relation to it, but the authoriti es have stated that in practice Mexico applies the 
Agreement without reservations.  Mexico's most recen t communication in reply to the list of questions 
on customs valuation was distributed to Members of the WTO in July 2004.
19 
32. The Customs Law states that the customs value of goods is the transaction value and defines 
this as the price paid or payable for goods, provided that, inter alia , these goods are sold to the 
importer.20  The importer is deemed to be the buy er of the imported goods, thus excluding 
intermediaries.  The transaction va lue is applied on a c.i.f. basis ex cept when preferential treatment is 
requested under the FTAs to which Mexico is part y, in which case the basis is the f.o.b. value. 
33. When the customs value cannot be determined on the basis of the transaction value, the 
following methods are used in sequence and by elimin ation:  the transaction value of identical goods;  
the transaction value of similar goods;  the unit selli ng price;  the computed value or the previous 
methods with added flexibility.  The order of app lication of the third and fourth methods may be 
reversed at the importer's choice.21  According to the Mexican authorities, in over 90 per cent of 
import transactions the value is determin ed according to the transaction value.22 
34. When irregularities are detected or there are reas ons to doubt the accuracy or exactitude of the 
value declared by the importer, the customs author ities review the value of the goods a posteriori, in 
other words, after the goods have cleared the cust oms, and for this purpose they use the services of 
private companies.  Based on this information, the customs authorities decide whether or not to pursue 
the investigation into the importers.  The authoriti es have indicated that in 2006 11 investigations for 
irregularities relating to under-invoicing were carri ed out, representing an amount of Mex$6 million 
(some US$552,000). 
                                                      
18 Article 203 of the Customs Law. 
19 WTO document G/VAL/N/2/MEX/1 of 2 July 2004. 
20 Article 64 of the Customs Law. 
21 Articles 77 and 71 of the Customs Law. 
22 WTO document G/VAL/N/2/MEX/1 of 2 July 2004. WT/TPR/S/195 Trade Policy Review 
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35. Mexico has an estimated price mechanism created in 1994 to co unteract the undervaluation of 
certain goods.23  Under this mechanism, the importer is re quired to deposit security when the declared 
value is lower than the price estim ated by the SHCP.  The security must cover the difference between 
the duty paid and the duty payable if the value of the imported goods corresponded to the estimated 
price (including anti-dumping or countervailing duti es, when applicable) and may be deposited in 
cash or by a backup credit facility, collateral, secu rities or letter of credit.  The SHCP regularly 
publishes the list of tariff headings subject to th e estimated price mechanism.  At mid-2007, over 
300 tariff headings were subject to the mechanism, including products such as foodstuffs, beverages, 
clothing, textiles, footwear, chemicals, wood a nd paper products, tools, electronic appliances and 
vehicles.24 
36. During the period under review, some Member s expressed concern in the WTO Customs 
Valuation Committee regarding Mexico's practices in respect of the estimated price mechanism and a 
posteriori verification.  As far as estimated prices  are concerned, doubts were expressed regarding its 
consistency with the provisions in the Custom s Valuation Agreement (including those on minimum 
values) and clarification was sought as to how the pr ices were calculated, their role in the definitive 
determination of customs value and deposit of secu rity, including the way in which it was refunded 
and the time this took.  Moreover, in July 2003, the estimated price mechanism was the subject of a 
request by Guatemala for consultations under the WTO dispute settlement mechanism.25  This case 
did not result in the establishment of a panel and,  in August 2005, Guatemala informed the Dispute 
Settlement Body that both countries had reached a satisfactory solution. 
37. Regarding the practice of a posteriori verification,  the concerns mainly related to the role of 
private bodies in verification, the type of inform ation requested from expor ters and the measures 
taken to protect the confidentiality of the info rmation given to these bodies and presented to the 
customs authorities.  Mexico responded to the questions raised on these issues in a number of 
communications that were circulated to Members of the Customs Valuation Committee.26  A t  i t s  
meeting on 25 April 2006, the Committee concluded its  examination of Mexico's relevant rules and 
legislation.27 
38. In November 2005, Mexico abolished the pr ior inspection mechanism called "automatic 
notification of import", which had been establishe d in 1998 as part of the import licensing regime 
(section (vi) below). 
(iii) Rules of origin 
39. Mexico applies preferential and non-preferential rules.  The former are those provided under 
the FTAs to which Mexico is party (see Chapter II,  section (5)(ii)).  Non-preferential origin criteria 
                                                      
23 Decision establishing the mechanism to guarantee the payment of taxes on goods subject to prices 
estimated by the SHCP, published in the Official Journal of the Federation of 28 February 1994. 
24 The Resolution containing the Annex to the Resolution establishing the mechanism to guarantee the 
payment of taxes on goods subject to prices estimated by the SHCP, published in the Official Journal of the 
Federation of 29 March 2002;  and the Resolution amending Annex 2 to the Resolution establishing the 
mechanism to guarantee the payment of taxes on goods subject to prices estimated by the SHCP, published in 
the Official Journal of the Federation of 6 July 2006. 
25 Mexico – Certain Pricing Measures for Customs Valuation and Other Purposes  (WT/DS298). 
26 WTO documents G/VAL/W/121 of 10 June 2003;  G/VAL/W/132 of 10 March 2004;  and 
G/VAL/W/153 of 27 October 2005. 
27 WTO document G/VAL/W/156 of 27 September 2006. Mexico WT/TPR/S/195 
 Page 37 
 
 
apply to goods that are the subject of anti-dumping or countervailing duties.  The latter, like the rules 
of origin in five of the preferential agreements  signed by Mexico, have been notified to the WTO.28 
40. The rules of origin in the North American  Free Trade Agreement (NAFTA) and in the 
majority of Mexico's preferential agreements classi fy goods as "originating" if they meet one of the 
following criteria:  they have been wholly obtained or produced in countries in the region;  they have 
been entirely produced in one of these countries usi ng only originating materials;  they have been 
produced in the region using non-originating materials th at have been the subject of a change in tariff 
classification and meet other requirements, or co mply with a regional content requirement.  
"De minimis " provisions also apply under which the goods are considered to be originating if the total 
value of the non-originating inputs does not exceed a specified percentage of the total value.  For 
those products in Chapters 50 to 63 of the Harmoni zed System (textiles and clothing), the majority of 
the FTAs signed by Mexico include " de minimis " provisions based on the product's weight. 
41. Under the agreements concluded with the Eu ropean Union and the European Free Trade 
Association, rules of origin are based on the prin ciple of "sufficient processing or transformation".  
The criteria used to determine whether a product has been sufficiently transformed or processed vary 
from one product to another and may include a change  in tariff classification;  a requirement on the 
regional content value;  and rules on the production process. 
42. Mexico's preferential agreements contain pr ovisions on "cumulation" which allow producers 
to decide to accumulate their production with that of suppliers in countries members of the agreement 
in question in order to comply w ith the rules of origin.  Neverthe less, the aggregate values laid down 
in the rules of origin in various agreements ca nnot be accumulated for the purposes of determining 
origin. 
43. During the period under review, Mexico worked  with its trade partners to facilitate 
compliance with the rules of origin laid down in th e agreements, including use of cumulation of origin 
schemes.  For example, in January 2007, Mexico  and the United States signed a customs cooperation 
agreement that will allow the textile industries in both countries to take advantage of the cumulation 
of origin provisions in the FTA among the Un ited States, the Dominican Republic and Central 
America.29 
44. Goods imported under a preferential regime must be accompanied by a cer tificate of origin.  
The certification procedure differs according to the agreement.  The NAFTA and the agreements with 
Bolivia, Chile, Costa Rica, Israel, Nicaragua and the Northern Triangle (El Salvador, Guatemala and 
Honduras) provide for auto-certification under which the exporter completes the certificate of origin 
without the involvement of the authorities.  Other agreements require the certificate of origin to be 
issued by the competent authority in the exporting co untry and this is the case for the agreements with 
the European Free Trade Association, the European  Union and Japan.  In the case of the agreements 
with Colombia and Uruguay, the certificate of orig in is completed and signed by the exporter, but 
must be validated by the competent authority in the exporting country. 
                                                      
28 WTO document G/RO/N/12 of 1 October 1996.  The preferential agreements whose rules of origin 
have been notified by Mexico are:  the NAFTA;  the FTA with Bolivia;  the FTA with Costa Rica;  the FTA 
with Colombia and Venezuela;  and the Economic Complementarity Agreement with Chile. 
29 Decree approving the Agreement between the Government of the United Mexican States and the 
Government of the United States of America on customs cooperation regarding declarations of origin made 
under the provisions on cumulation in certain free trade agreements, published in th e Official Journal of the 
Federation of 6 June 2007.  See also USTR (2007). WT/TPR/S/195 Trade Policy Review 
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45. The large number of systems for rules of orig in in the FTAs signed by Mexico, each with its 
own criteria, certificates and verification mechanis ms, adds to the complexity of Mexico's import 
regime.  At the same time, the difference between the preferential rates and the MFN tariffs could encourage fraud regarding rules of origin.  Concerns have also b een raised regarding the possible 
increase in transaction costs for Mexican companies
30, including those caused by the need to adapt 
their production structure in order to comply with various rules of origin. 
46. As regards non-preferential rules of origin , Mexico applies the 1994 agreement, which 
contains special provisions on certification of origin for products identical or similar to those subject 
to anti-dumping or countervailing duties.31  These provisions, which are applied by means of 
certificates and declarations by the country of orig in, are intended to prevent the circumvention of 
duty that might occur if the goods are reshipped th rough third countries.  Consequently, certificates 
and declarations from the country of origin must be obtained so that the imports which they cover 
may enter Mexico without payment of anti-dumping or countervailing duties. 
47. Although non-preferential rules of origin are generally applied, certification requirements 
differ according to the product and the source.  In the case of imports of textiles, clothing and 
footwear, special certificates from the country of origin are required whose form, content and 
procedures are specifically la id down in the agreement.32  If such imports come from specified 
countries33, the country of origin certificate must be endorsed by the competent authority of the 
country in which the last production process occurred.  Imports of other products must be accompanied by a declaration from the country of origin pursuant to the relevant agreement. 
48. Goods benefiting from a preferential regime are not subject to these special certification 
requirements and may be imported without paymen t of countervailing duties provided that they 
comply with the preferential rules of origin and have the corresponding certificate of origin.  During 
the previous Review of Mexico's trade policy, concern was expressed at the burdensome and potentially discriminatory nature of the special requirements on certificates of origin.
34 
(iv) Tariffs 
49. Pursuant to the 1993 LCE, the President of the Republic is empowered to modify the general 
taxes on imports and exports.  The Law also provid es that the SE may propose tariff modifications to 
the President and it is the responsibility of the Fore ign Trade Commission to give an opinion on such 
modifications.35  Mexico grants MFN treatment as a minimum to all countries, whether or not they are 
Members of the WTO. 
                                                      
30 Ministry of the Economy (2004), pages 106 and 107;  IDB (2006), page 5;  and CIDE (2005), 
pages 10-12 and 17. 
31 Agreement establishing rules for determining the co untry of origin of imported goods and provisions 
on their certification with regard to countervailing duties,  published in the Official Journal of the Federation of 
30 August 1994 and amended 13 times.  The most r ecent amendment was publis hed on 12 October 2007. 
32 These special certificates are known as "h ard" certificates of  country of origin. 
33 Namely:  Bangladesh;  Cyprus;  Hong Kong, China;   India;  Indonesia;  Macau, China;  Malaysia; 
Pakistan;  People's Republic of China and Chinese Taipei;  Philippines;  Republic of Korea;  Singapore;  Sri Lanka;  Thailand;  and countries that are not members of the WTO. 
34 See the minutes of the Meeting of the Trade Po licy Review Body for the previous Review of 
Mexico, WTO document WT/TPR/M/97 of 11 June 2002. 
35 Articles 4, 5 and 6 of the Foreign Trade Law. Mexico WT/TPR/S/195 
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(a) Tariff structure 
50. This analysis is based on Mexico's tariff to be  found in the TIGIE, which was in effect up to 
30 June 2007 and corresponded to the Harmonized Commodity Description and Coding System (HS) 
version 2002 (HS 2002).  On 1 July 2007, a new tari ff came into effect based on the HS 2007.  The 
authorities have indicated that this does not change tariff policy although some goods have been 
reclassified and others given new codes. 
51. Until June 2007, the tariff comprised 11,948 eight-d igit tariff lines (compared with 11,387 in 
2001).36  Imports were subject to ad valorem  duties, with the exception of 0.7 per cent of tariff lines 
subject to specific duties (15 lines) or compound duties (45 lines) (Table III.1).37  Non- ad valorem  
duties were concentrated in the agricultural sector  and mainly applied to pr oducts containing sugar, 
powdered milk, chocolate and malt extracts and some  prepared foodstuffs and fruit, as well as used 
tyres and certain vehicles. 
52. Since 1993, Mexico has had seasonal tariffs on sorghum, soya beans and sunflower seeds.  
These products may be imported duty free during a certain period of the year when there is less domestic production;  outside this period, the rat es specified in the tariff in the TIGIE apply. 
53. In 2007, the simple average MFN tariff was 11. 2 per cent, lower than the 16.5 per cent in 
effect in May 2001.  This average does not include tariffs applied under quotas but does include headings subject to specific or compound duties, whose ad valorem  equivalents range from 9 to 
208 per cent (Table III.2).
38  In general, the largest reductions  apply to non-agricultural products, 
whose simple average fell from 15.6 per cent in 2001 to  9.9 per cent in 2007.  In  HS terms, there were 
significant reductions in almost all sections, particularly in respect of minerals, chemicals, base metals 
and manufactures thereof, machinery and equipment.  The reductions for agricultural products were 
less important, involving a drop in the tariff averag e from 24.9 per cent in 2001 to 23.0 per cent in 
2007. 
Table III.1  
MFN tariff structure, 2007  
(Percentage) 
  2007 
1. Total number of lines 11,948 
2. Tariffs other than ad valorem  (as a percentage of all tariff lines)a 0.7 
3. Tariffs other than ad valorem without any ad valorem  equivalents (as a percentage of all tariff 
lines) 0.2 
4. Tariff quotas (as a percentage of all tariff lines) 0.8 
5. Duty-free tariff lines (as a pe rcentage of all tariff lines) 18.6 
6. Average of lines exceeding zero (%) 13.7 
7. National tariff "peaks" (as a percentage of all tariff lines)b 5.4 
8. International tariff "peaks" (as a percentage of all tariff lines)c 20.5 
9. Tariff lines bound (as a percentage of all tariff lines)) 100.0 
a Includes 22 banned lines. 
b National tariff peaks are duties that are higher than thre e times the simple overall average of the rates applied. 
c International tariff peaks are duties that exceed 15 per cent. 
Source:  WTO Secretariat estimates, based on da ta provided by the Mexican authorities. 
                                                      
36 This figure does not include headings in Chapter 98 of the HS corresponding to products imported 
under special programmes as well as lines indi cating the rates applied under tariff quotas. 
37 This figure includes banned headings (22 lines). 
38 Ad valorem  equivalents were calculated for all specific and compound rates taking into account the 
unit values of imports for 2006, provided by the Mexican authorities. WT/TPR/S/195 Trade Policy Review 
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Table III.2  
Summary of MFN tariffs, 2007  
MFN 
Description of the product (HS) Number of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Average 
bound tariff 
(%) 
Total 11,948 11.2 0 - 254 1.4 36.0 
HS 01-24 1,198 24.1 0 - 254 1.6 45.9 
HS 25-97 10,750 9.7 0 - 50 0.9 34.9 
By WTO category      
Agricultural products 1,192 23.0 0 - 254 1.7 45.0 
 -  Animals and animal products 152 47.7 0 - 254 1.7 67.2 
 -  Dairy products 37 43.3 0 - 125.1 1.0 63.8 
 -  Coffee and tea, cocoa, sugar, etc. 186 31.1 0 - 210 1.3 64.6 
 -  Cut flowers and plants 118 9.8 0 - 20 0.6 27.4 
 -  Fruit, vegetables and garden produce 228 19.9 0 - 245 1.0 39.6 
 -  Cereals 26 48.9 0 - 194 1.3 65.5 
 -  Oilseeds, fats and oils and their products 116 15.2 0 - 254 2.2 42.2 
 -  Alcoholic beverages and liquids 74 21.7 10 - 92.6 0.6 40.3 
 -  Tobacco 14 47.9 20 - 67 0.3 49.8 
 -  Other agricultural products n.e.s. 241 7.0 0 - 36 0.8 27.3 
Non-agricultural products (including petroleum) 10,756 9.9 0 - 50 0.9 35.0 
 -  Non-agricultural products (excluding petroleum) 10,735 9.9 0 - 50 0.9 35.0 
 -  Fish and fish products 144 16.7 0 - 20 0.4 35.0 
 -  Minerals, precious stones and metals 526 9.7 0 - 20 0.7 34.6 
 -  Metals 1,267 9.2 0 - 20 0.5 34.6 
 -  Chemicals and photographic products 3,064 6.3 0 - 43.9 0.8 35.3 
 -  Leather, rubber, footwear and travel articles 351 15.0 0 - 35 0.8 34.9 
 -  Wood, wood pulp, paper and furniture 470 10.4 0 - 28.5 0.6 34.0 
 -  Textiles and clothi ng 1,275 18.1 0 - 35 0.7 35.0 
 -  Transport equipment 366 14.7 0 - 50 0.9 37.0 
 -  Non-electrical machinery 1,458 7.9 0 - 20 0.9 35.2 
 -  Electrical machinery 967 8.5 0 - 20 0.7 34.3 
 -  Non-agricultural products n.e.s. 847 10.7 0 - 20 0.7 34.6 
 -  Petroleum 21 5.3 0 - 10 0.6 36.4 
By ISIC sectora      
Agriculture and fishing 521 13.9 0 - 245 1.5 33.1 
Mining 125 6.1 0 - 20 0.5 35.0 
Manufacturing 11,301 11.1 0 - 254 1.4 36.1 
By HS Chapter      
01 Live animals and animal products 323 33.8 0 - 254 1.7 52.5 
02 Plant products 468 16.4 0 - 245 1.6 35.7 
03 Fats and oils 69 20.6 0 - 254 2.0 47.6 
04 Food preparations, etc. 338 26.2 0 - 210 1.2 53.3 
05 Mineral products 210 6.0 0 - 20 0.5 34.5 
06 Products of the chemical and relate d industries 2,832 5.9 0 - 43.9 0.8 35.2 
07 Plastics and rubber 566 9.9 0 - 20 0.5 34.8 
08 Hides and skins 122 13.1 0 - 35 1.0 29.7 
09 Wood and articles of wood 137 14.0 0 - 28.5 0.5 34.8 
10 Wood pulp, paper, etc. 299 8.1 0 - 20 0.6 33.5 
11 Textiles and textile artic les 1,245 17.6 0 - 35 0.7 34.8 
12 Footwear, hats and other h eadgear 103 28.4 7 - 35 0.3 35.0 
13 Articles of stone 292 12.6 0 - 20 0.5 35.2 
14 Precious stones, etc. 65 8.3 0 - 20 0.9 35.0 
15 Base metals and articles of ba se metal 1,256 9.5 0 - 20 0.5 34.6 
16 Machinery and mechanical appliances 2,479 8.1 0 - 20 0.9 34.8 
17 Transport material 383 14.5 0 - 50 0.9 37.0 
18 Precision instruments 464 9.1 0 - 20 0.7 34.3 
19 Arms and ammunition 34 15.7 0 - 20 0.4 35.0 
Table III.2 (cont'd  Mexico WT/TPR/S/195 
 Page 41 
 
 
MFN 
Description of the product (HS) Number of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Average 
bound tariff 
(%) 
20 Miscellaneous manufactured articles 249 14.3 0 – 20 0.4 35.0 
21 Works of art, etc. 14 0.0 0 – 0 .. 35.0 
By stage of processing      
First stage of processing 988 11.9 0 – 245 1.5 33.5 
Semi-processed products 4,198 7.4 0 – 210 1.2 35.6 
Fully processed products 6,762 13.4 0 – 254 1.3 36.6 
.. Not available. 
a ISIC (Rev.2), excluding electricity (one line). Source:  WTO Secretariat estimates, based on da ta provided by the Mexican authorities. 
54. The tariff had 88 levels ranging from 0 to 254 per cent.  The most common rate was 7 per 
cent, which applied to 29 per cent of tariff lines, followed by 10 per cent (27 per cent of tariff lines), 
0 per cent (18 per cent of tariff lines) and 20 per cen t (15 per cent of tariff lines).  Around 75 per cent 
of tariffs were below 10 per cent and some 95 per cent were less than 25 per cent.  There were, however, MFN tariffs exceeding 15 per cent (internati onal tariff peaks) for 2,447 tariff lines (20.5 per 
cent of the total) and in the case of 56 agricultural products the tariffs applied exceeded 100 per cent. 
55. The simple average of MFN tariffs for ag ricultural products (according to the WTO 
definition) was still considerably higher than that  for non-agricultural products:  23 per cent and 
9.9 per cent, respectively.  The highest levels co rresponded to certain agricultural products, including:  
animal or vegetable fats and oils (254 per cent);  potatoes (245 per cent);  meat and edible offal of 
poultry (234 per cent);  several types of sugar-fructo se (210 per cent);  and maize (194 per cent).  In 
the non-agricultural sector, the highest tariff applied to textiles and clothing (an average of 18 per cent). 
56. Tariff dispersion, measured by the coefficient of variation, rose from 0.9 in 2001 to 1.4 in 
2007, increasing the standard deviation and decr easing the average tariff during the period under 
review. 
57. There is still tariff escalation to the extent that the average tariff appli cable to fully processed 
goods (13.4 per cent) was higher than that for semi -processed goods (7.4 per cent).  At the same time, 
however, there was negative escalation between se mi-processed goods and raw materials inasmuch as 
the average tariff for the latter (11.9 per cent) exc eeded that for semi-processed goods.  This situation 
seems to have led to certain inconsis tencies in Mexico's tariff structure. 
58. A study by the SE highlights the inconsistencies existing in Mexico's tariff structure and their 
impact on the competitiveness of Mexican compan ies.  According to this document, these 
inconsistencies arise because higher tariffs are appl ied to imports than to final products (negative 
effective protection), particularly when producers in countries with which Mexico has preferential 
agreements may import these inputs at lower ra tes and use them to produce goods that are 
subsequently exported to Mexico.  This situation does not only hinder the competitiveness of Mexican 
industry on the domestic market but also on the market s of its trade partners.  The study adds that 
tariff reductions for the import of inputs and machinery allowed under the PROSECs are not an 
optimal solution because of their administrative cost s and their limited scope .  Consideration should WT/TPR/S/195 Trade Policy Review 
Page 42 
 
 
therefore be given to lowering MFN tariffs, particularly on raw materials, as they represent a cost 
disadvantage for Mexican companies.39 
59. In the context of the present Review, the authoriti es have pointed out that two paths have been 
followed in order to overcome the tariff inconsiste ncies:  the PROSECs and unilateral reductions in 
MFN tariffs;  one example of the latter is the re duction of tariffs for over 6,000 headings, mostly 
inputs, which occurred in November 2006. 
(b) Tariff bindings 
60. When it acceded to the GATT in 1986, Mexi co bound all its tariffs at a maximum ad valorem  
rate of 50 per cent.40  In the Uruguay Round, Mexico agreed to lower the bound rate to 35 per cent 
ad valorem  for non-agricultural products, with a few ex ceptions.  These concern a relatively broad 
group of manufactures, whose bound rates generally remain at 50 per cent. 
61. In the Uruguay Round, Mexico bound the tariff on newsprint at 15 per cent, but only for a 
minimum volume of 40,000 tonnes, without determining any bound rate for imports above this figure.  
For the present Review, the authorities confirmed th at it could be assumed that, when there was no 
special bound rate the general bound rate  would apply to industrial products. 
62. As a result of the tarification process, agricultu ral products are subject to much higher bound 
rates than other products, with ad valorem  tariffs that can be up to 254 per cent for certain products.  
In some cases, the bindings are in the form of compound rates, which may be either ad valorem  or 
specific.  In general, the average final bound ta riff is 36.0 per cent (45.0 per cent for agricultural 
products and 35 per cent for non-agricultural products).   The average bound rate continues to be much 
higher than the rate applied with a differen ce of 14.8 percentage points between the two. 
63. Following the changes to the 2002 Harmonized Sy stem, Mexico submitted information to the 
WTO on the modified lines in its Schedule LXXVII.   It also utilized the collective exemption 
approved by the WTO Members for implemen ting these changes, which was extended until 
31 December 2006.41  The consolidated schedule used fo r this report is based on the HS 1996 
nomenclature42, together with the 2002 changes submitted by Mexico. 
64. For certain products with a high sugar content bound at ad valorem  rates, Mexico applies 
compound tariffs, whose specific element applies accord ing to the sugar content of the product.  The 
authorities have indicated that, in order to a void the possibility of compound tariffs exceeding bound 
rates, a decree has determined that the compoun d rate must not exceed the maximum tariff rate 
authorized in international agreements signed by Mexico.43 
(c) Tariff quotas 
65. In its Uruguay Round Schedule of Concessions, Mexico included tariff quotas for several 
agricultural products (see section (2)(ii), Chapter IV(2)(ii)). 
                                                      
39 Ministry of the Economy (2004), pages 108-115 and 200.  See also CIDE (2005), pages 7-12 and 
IDB (2006), pages 5 and 13. 
40 Mexico's Schedule of Commitments (LXXVII). 
41 WTO document WT/L/638 of 6 December 2005. 
42 Available in the WTO Consolidated Tariff Schedules Database. 
43 Article 19 of the Decree published in the Offici al Journal of the Federation of 30 June 2007. Mexico WT/TPR/S/195 
 Page 43 
 
 
(d) Tariff concessions 
66. Pursuant to the Customs Law, temporary impor ts are exempt from import duty and from anti-
dumping or countervailing duty provided that th ey comply with other obligations concerning 
regulations and non-tariff restrictions.44  There are two main categories of temporary imports:  those 
which enter Mexico for a limited time and for a special purpose, subsequently returning abroad 
without any transformation;  an d goods imported for the purpose of processing, transformation or 
repair by companies with export programmes author ized by the SE.  The export-oriented programmes 
are described in section (3)(iv) below. 
67. Mexico also has PROSECs under which authori zed companies may import certain inputs and 
machinery at lower tariffs (see section (4)(iii) below). 
(e) Preferential tariffs 
68. The importance of tariff preferences in Mexico 's foreign trade became even more marked 
during the period under review.  After Mexico had signed new preferential agreements with Japan and 
Uruguay, by July 2007 it was giving tariff preferences to imports from over 40 countries (see Chapter II(5)(ii)).  In addition, Mexico grants tari ff preferences to several countries within the LAIA 
framework. 
69. Preferential tariffs vary according to the agreements and sectors, but the differences have 
significantly shrunk in comparison with the situatio n in 2001 as the tariff reductions covered by the 
agreements came into effect.  In 2007, the average pr eferential tariff ranged from 0 to 1 per cent in the 
majority of agreements, with the exception of tho se with Israel and Japan, under which the average 
tariff was 1.9 and 7.6 per cent, respectively (Table AIII.1).  In general, the rates applicable to 
agricultural products are much higher than those on other products. 
70. The gradual lowering of tariffs on sensitive pr oducts, which are mostly agricultural products, 
was completed in 2006 for products from Israel a nd in 2007 for those from Colombia, and should be 
completed in 2008 for products from the United St ates and Canada;  in 2009 for those from Bolivia 
and Costa Rica;  and in 2012 for products from Ni caragua and 2010 for th ose from the EFTA and the 
European Union. 
71. The gradual lowering of tariffs under preferentia l agreements compared with the MFN tariffs 
applied by Mexico, which, although th ey have fallen in recent years, s till remain fairly high, has led to 
a significant imbalance between the MFN rates and the preferential tariffs.  This imbalance raises concerns as to the possible deviation of trade and the distortions that it may cause in Mexico's tariff 
structure.
45 
(v) Other charges affecting imports 
72. In addition to tariffs, imports of goods  may be subject to the DTA and the Derecho de 
Almacenaje  (storage charge).  Both imports and domestic products are subject to VAT, the Impuesto 
Especial sobre Producción y Servicios  – IEPS (special tax on pr oduction and services), and the 
Impuesto sobre Automóviles Nuevos  – ISAN (tax on new automobiles). 
                                                      
44 Article 104 of the Customs Law. 
45 Ministry of the Economy (2004), pages 108-115 and 200.  See also CIDE (2005), pages 7-12 and 
IDB (2006), pages 5 and 13. WT/TPR/S/195 Trade Policy Review 
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73. The DTA is payable on customs operations th at involve use of the corresponding customs 
declaration or document.  In most cases, the rate is  eight per thousand of the declared customs value;  
temporary imports of machinery and equipment fo r companies with authorized export programmes 
are at a rate of 1.76 per thousa nd and, in other cases, a special ra te of Mex$202 (US$18) is payable 
per operation.  Definitive imports of goods subject to a preferential regime under an FTA signed by 
Mexico are exempt from this fee provided that they meet the applicable origin requirements.46 
74. The storage charge is payable for depositing goo ds to be imported in the customs in-bond 
warehouses.  Storage is free for the first two calendar days for goods stored in the air and land traffic 
customs posts, and for five days in the case of goods stored in maritime traffic customs posts.  At the 
end of these periods, the rates laid down in the Fe deral Law on Duty apply and these depend on the 
period of storage and the nature of the goods (for ex ample:  volume;  special storage requirements;  
explosive, inflammable or contaminating goods, inter alia ).47 
75. VAT is payable on domestic and imported produc ts at a general rate of 15 per cent of the 
price of the goods (including other applicable ta xes or duties).  For imported products, VAT is 
calculated on the customs value, to which is a dded the amount of import duty and any other duties 
payable upon importation, including, where app licable, anti-dumping or countervailing duties.  
Imports entering the border area are subject to a ta x of 10 per cent.  The sale of certain products for 
basic consumption such as foodstuffs and some beverages (water, milk, juices and syrups), 
pharmaceuticals, unprocessed products of plant or  animal origin and goods for export, inter alia , are 
exempt from VAT. 
76. The IEPS is applicable to both domestic and im ported products at rates that range from 20 to 
110 per cent of the product's value.  In 2007, it applied to the following goods (the rates are shown in brackets):  alcoholic beverages (25 to 50 per cent) ;  alcohol, denatured alc ohol and non-crystallized 
honey (50 per cent);  tobacco products (20.9 to 110 per cent);  and petroleum spirit and diesel fuel, 
whose rates are adjusted monthly. 
77. In January 2002, Mexico started to impose the I EPS at a rate of 20 per cent on soft drinks and 
other beverages not sweetened with sugar cane;  th e IEPS was also imposed at a rate of 20 per cent on 
the distribution of these beverages.  No IEPS was imposed on beverages sweete ned with sugar cane.  
As these measures violated Article III (nationa l treatment) of the GATT 1994, the United States 
requested consultations in this regard in Marc h 2004.  In October 2005, the Panel found that these 
taxes, as applied to imported sweeteners and soft dr inks, were inconsistent with Article III and were 
not specified among the exceptions provided in Article XX of the GATT
48;  the Appellate Body 
confirmed these findings.49  At the end of 2006, Mexico abolished the aforementioned taxes through 
the Law on the Federation's Revenue for the Fiscal Year 2007, by which the provisions corresponding to the Law on the IEPS were repealed. 
78. The ISAN is payable on the selling price of ve hicles to the final consumer, including any 
optional equipment and before a pplying any reduction or discount under special offers.  The ISAN 
applies to both Mexican and imported vehicles.  Its amount is determined according to five price 
ranges for automobiles and comprises a sp ecific amount that varies from Mex$0 to 
                                                     
 
46 Article 49 of the Federal Law on Duty, published in the Official Journal of the Federation of 
27 December 2006. 
47 The rates can be consulted in the Décima Primera Resolución de Modificaciones a la Resolución 
Miscelánea Fiscal  for 2006 and its annexes 7, 8, 9, 15 and 19, published in the Official Journal of the Federation 
of 27 December 2006. 
48 WTO document WT/DS308/R of 7 October 2005. 
49 WTO document WT/DS308/AB/R of 6 March 2006. Mexico WT/TPR/S/195 
 Page 45 
 
 
18,500 (US$1,700) and an ad valorem  rate (from 2 to 17 per cent) on the difference between the value 
of the vehicle and the lower limit of the price ra nge within which the vehicle falls.  In the case of 
imports of new vehicles, the ISAN is determined  by applying the rate provided in the Law on the 
ISAN to the declared customs valu e, plus the amount of the import duty and any other duties payable 
upon importation, with the exception of VAT.  Automobiles whose value does not exceed 
Mex$156,135 (US$14,350) are exempt from this tax. 
79. In December 2005, Mexico abolished the requirement that "compact automobiles for popular 
consumption" must have a domestically manufactur ed motor in order to be exempt from the ISAN.50 
(vi) Prohibitions, restrictions and import licensing 
80. Pursuant to the LCE, the SE and other co mpetent authorities may determine regulatory 
measures and non-tariff restrictions  on imports in certain circumstances, including the following:  for 
balance-of-payments reasons;  to regulate the entry of used goods and goods that lack a substantial 
market in their country of origin;  in response to restrictions applied unilate rally to Mexican exports 
by other countries;  in accordance w ith the provisions in international tr eaties;  to prevent unfair trade 
practices;  for reasons of national security, public h ealth, animal and plant health, or environmental 
protection not covered by NOMs.  With reference to the aforementioned circumstances, the 
authorities have indicated that, no measures have been  adopted for balance-of-payments reasons or in 
response to restrictions applied unilaterally  to Mexican exports by other countries. 
81. Regulatory measures and non-tariff restrictions for adoption must go before the Foreign Trade 
Commission for its opinion, except in cases of emer gency, and must be published in the Official 
Journal of the Federation identifying the tariff head ings for the products subject to regulations or non-
tariff restrictions.51 
82. Goods that are prohibited are listed in the tariff in the TIGIE, published in the Official Journal 
of the Federation.52  Mexico imposes import prohibitions on a small number of tariff headings for 
reasons of public safety, health or public morals and child protection.53 
83. Mexico has a prior import (and export) licensing re gime for sensitive products with the aim of 
protecting national security, public health and the expl oitation of natural resources.  Its objectives also 
include regulating trade in goods in accordance with  the provisions in international treaties and 
providing programmes to support the domestic industry's competitiveness ( Regla Octava  (Eighth 
Rule)).  The agreement published in November 2005 and its subsequent amendments considerably 
restricted the number of products subject to prior import licences issued by the SE.54  Some products 
require import licences issued by other ministries , including the Ministries of the Environment and 
Natural Resources;  Public Health;  and Defence. 
                                                      
50 Law establishing and amending various fiscal laws, published in the Official Journal of the 
Federation of 26 December 2005. 
51 Articles 16 to 20 of the Foreign Trade Law (1993). 
52 Consulted at:  http://www.siicex.gob.mx. 
53 The following are the HS tariff headings concerned:  0301.9901, 1208.9003, 1209.9907, 1211.9002, 
1302.1102, 1302.1902, 1302.3904, 283 3.2903, 2903.5903, 2903.5905, 2910.9001, 2931.0005, 293.91101, 
3003.4001, 3003.4002, 3003.9005, 3004.4001, 3004.4002 , 3004.9033, 4103.2002, 4908.9005 and 4911.9105. 
54 Agreement establishing the classification and codification of merchandise whose importation and 
exportation are subject to the requirement of a prior licence from the SE, published in the Official Journal of the 
Federation of 9 November 2005, and amendments  thereto of 20 December 2005, 2 October and 
26 December 2006, and 29 March 2007.  With the exception of the latter two,  these instruments were notified to 
the WTO in document G/LIC/N/1/MEX/2 of 18 October 2006. WT/TPR/S/195 Trade Policy Review 
Page 46 
 
 
84. In June 2007, 160 tariff headings were subject to prior import licensing by the SE, including 
petroleum products, used tyres, used clothing and used vehicles (Table III.3).  A prior import licence 
is also required for some imports covered by preferential agreements55 and for inputs and machinery 
imported by companies with PROSECs (see section (4)(iii)). 
Table III.3  
Products subject to the requirement of a prior import licence from the Ministry of the Economy, June 2007 
Product Number of tariff 
headings Reason/purpose 
Petroleum products 13 headings Pursuant to Article 27 of the Constitution, which 
gives the Mexican State the exclusive right to exploit 
and market non-renewable sources in the subsoil 
Used tyres 2 headings Environmental protection 
Used clothing 1 heading For reasons of public health 
Fructose 4 headings In order to comply with international trade 
agreements 
Used vehicles 49 headings Environmental protection 
Anti-contamination equipment 1 h eading Environmental protection 
Research equipment 1 heading In order to support scientific and technological 
research activities 
Goods for sectoral programmes ( Regla Octava ) 24 headings In order to boost the compe titiveness of the domestic 
industry by allowing manufacturers to import inputs, 
materials, parts and components for transformation at 
a zero tariff 
Source:  WTO Secretariat, based on the Agreement establishing the cl assification and codification of merchandise whose importation and 
exportation are subject to the requirement of a prior licence from  the SE, published in the Official Journal of the Federation of 
9 November 2005 and annex 2.2.1 to the Agreement by which the SE  issues general rules and criteria on foreign trade (Official 
Journal of the Federation of 6 July 2007). 
85. Prior import licences for used vehicles are governed by special criteria and are only issued to 
particular beneficiaries and for specialized vehicl es with features that are deemed necessary to allow 
certain sectors of the population to carry on their production activities.56 
86. In compliance with the reduction timetable in  the NAFTA, Mexico undertook to allow the 
import of used vehicles at least ten years old from the United States and Canada as of January 2009.  
The restriction on the age of the vehicles will gradua lly be made more flexible and ultimately imports 
of used vehicles from these countries will be fully liberalized in January 2019.  Since August 2005, 
the import of certain used vehicles ten to 15 y ears old from the United States and Canada has been 
allowed without any prior licence from the SE.57  Import from the NAFTA countries without a prior 
licence is also permitted for certain used vehicles five to 15 years old and intended to remain 
permanently in the northern border zone of Mexico.58 
                                                      
55 Namely, imports covered by the Economic Comple mentarity Agreements with Argentina, Brazil, 
Cuba, Ecuador, Panama, Paraguay and Peru (32 agricultural headings);  the FTA with Chile (eight agricultural 
headings);  and the FTA with Uruguay (25 agricultural headings). 
56 Annex 2.2.2, section IV, of the Agreement by which the SE issues general rules and criteria on 
foreign trade, published in the Official Journal of the Federation of 6 July 2007. 
57 Decree establishing the requirements for the defin itive import of used automobiles, published in the 
Official Journal of the Federation of 22 August 2005. 
58 Decree establishing the criteria for the definitiv e import of used vehicles intended to remain 
permanently in the northern border zone of Mexico, in the states of Baja California and Baja California Sur, in 
the partial region of the state of Sonora and in the municipalities of Cananea and Caborca, state of Sonora, 
published in the Official Journal of the Federation of 26 April 2006. Mexico WT/TPR/S/195 
 Page 47 
 
 
87. The prior licences issued by the SE are given to a designated person, may not be transferred, 
and are valid for one year.  The SE must decide  on applications within a period not exceeding 
15 working days;  after expiry of this period, the li cence is deemed to have been granted.  According 
to the data provided by the authorities, 3,399 prio r licences for used goods were issued in 2006. 
88. In the aforementioned agreement of 9 Novemb er 2005, Mexico abolished the so-called 
"automatic notification of import" licensing mechanis m.  This had been established in 1998 to collect 
information on the price of specified products from cer tain countries prior to their entry into Mexico, 
using the services of preshipment inspection companies.59  When notifying the abolition of this 
requirement, the Mexican authorities stated that it had fulfilled its objective of limiting under-
invoicing of goods and had been superseded by other electronic systems for monitoring the value of 
goods.  The automatic notification of export, ho wever, remains in effect (section (3)(iii)). 
(vii) Contingency measures 
(a) Legal and institutional framework 
89. Mexico's principal legal instruments on an ti-dumping, countervailing duties and safeguards 
are the LCE of 1993 and its Implementing Regulations60;  the Agreement on Implementation of 
Article VI of GATT 1994 (Anti-Dumping Agr eement);  the Agreement on Subsidies and 
Countervailing Measures (SCM Agreement);  and th e Agreement on Safeguards, of the WTO.  In 
addition, several FTAs signed by Mexico contain relevant provisions. 
90. The LCE has been the subject of  several amendments published in the Official Journal of the 
Federation of 13 March 2003, 24 January 2006 and 21 December 2006.  The 2003 amendments 
covered a large number of provisions on an ti-dumping measures, countervailing duties and 
safeguards;  the purpose of the majority of these was to adapt certain concepts and terms in the Law to 
the WTO Agreements.61  Several provisions were also added on special procedures such as 
applicability, circumvention of anti-dumping or co untervailing duties, the new exporter procedure and 
the termination of duties after five years.  The December 2006 amendments stemmed from the 
recommendations of the WTO Panel in the Mexico – Definitive Anti-Dumping Measures on Bovine 
Meat and Rice  dispute.  The Appellate Body confirmed th e majority of the Panel's conclusions and 
found that several provisions in the LCE were inconsistent with the rules of the WTO.62 
91. The LCE and its amendments were notified to the WTO by Mexico63 and were discussed in 
the Committee on Anti-Dumping Practices, th e Committee on Subsidies and Countervailing 
Measures, and the Committee on Safeguards.64  Among the main issues discussed were those relating 
                                                      
59 For a description of this mechanism, see WTO (2003), Chapter III(viii)(b).   
60 Published in the Official Journal of the Federation of 30 December 1993 (latest revision published on 
29 December 2000). 
61 Some of the major reforms related to calculation of  dumping are commented on  in Reyes de la Torre 
(2006b), pages 53-58.  For an analysis of the origin and trends in Mexico's system of trade remedies, see Reyes 
de la Torre and J. G. González (2006a), pages 205-246. 
62 WTO documents WT/DS295/R of 6 June 2005 and WT/DS295/AB/R of 29 November 2005. 
63 WTO documents in the series G/ADP/N/1/MEX;   G/SCM/N/1/MEX;  and G/SG/N/1/MEX, and 
their respective supplements (Suppl.). 
64 Since 2002, questions regarding Mexico's legislation have been posed in these Committees by the 
following WTO Members:  Argentina, Chile, China, the European Communities and the United States.  Mexico's replies appear in WTO documents G/ADP/Q1/MEX/5 (18 February 2004);  G/ADP/Q1/MEX/8 
(22 March 2004);  G/ADP/Q/1/MEX/9 (22 March 2004);  G/ADP/Q1/MEX/10 (22 March 2004); 
G/ADP/Q1/MEX/11 (20 April 2004);  G/ADP/MEX/13 (1 November 2004);  G/ADP/MEX/13/Corr.1 (11 November 2004);  G/ADP/Q1/MEX/15 (11 April 2005);  G/ADP/Q1/19 (5 June 2007);  G/ADP/Q1/20 WT/TPR/S/195 Trade Policy Review 
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to the definition of the domestic industry and thr eat of injury, cumulation, legal representation of 
interested parties, time limits for issuing prelim inary and definitive resolutions, use of the highest 
dumping margin when, because there is no informa tion from exporters, the facts available are used. 
92. Mexico has notified the WTO that the competen t authority for anti-dumping and anti-subsidy 
investigations is the Unidad de Prácticas Comerciales Internacionales  – UPCI (International Trade 
Practices Unit) of the SE.65  The UPCI is competent to determine the existence of dumping, 
subsidization, material injury or threat of injury, and the corresponding anti-dumping and 
countervailing duties.  It is also responsible for conducting and completing investigations into 
safeguards and for imposing the measures resulting from such investigations.  The UPCI's other 
responsibilities include assisting Mexican exporters affected by contingency measures adopted by 
other countries and participating in  the legal defence of the resolutions issued by the SE at the 
international level. 
(b) Anti-dumping and countervailing measures 
93. During the period under review, Mexico regular ly submitted its half-yearly reports on the 
measures adopted under the respective Agreements  to the Committee on Anti-Dumping Practices and 
the Committee on Subsidies.66 
94. Mexico continues to make extensive use of  the anti-dumping mechanism:  in March 2007, 
70 anti-dumping measures were in effect, compared  with 90 in March 2001.  At 31 December 2006, 
definitive anti-dumping measures were mainly impo sed on products from the following countries (the 
number of measures is shown in brackets):  Chin a (27);  the United States (12);  Russia (5);  
Brazil (4);  and Ukraine (4).  These measures affect ed the following products in particular:  base 
metals and their by products;  textiles;  chemical s;  agricultural products;  ceramic ware;  machinery 
and equipment (including electronic goods);  tools;   leather and footwear;  and paper products. 
95. Between January 2002 and Dece mber 2006, 42 anti-dumping in vestigations were initiated 
(the same number as between 1996 and 2000), of wh ich 36 were concluded within the same period 
(Table AIII.2).  Of the 42 investigations initiated, 25 resulted in the application of provisional duties, 
the majority of which were confirmed in the de finitive decision (20 cases), while another five cases 
terminated without the application of anti-dum ping measures, and the remainder had not been 
concluded by the end of 2006.  Where no provisional duties had been imposed, the final determination 
resulted in the application of definitiv e duties in four cases (Table AIII.2). 
96. In total, the investigations initiated and conc luded during the period under review led to the 
application of definitive duties in 24 cases, while no final measure was applied in 12 cases 
(Table III.4).  The ratio of cases in which de finitive duties were imposed to the number of 
investigations completed was 66.6 per cent.  As a result of sunset reviews and for other reasons, 
14 definitive duties were annulled during the period. 
                                                                                                                                                                     
(4 June 2007);  G/ADP/Q1/MEX/21 (4 June 2007), and in documents bearing the symbol G/SCM/Q1/MEX/5;  
8 to 11, 13, 15 and 19 to 21 of the same dates. 
65 WTO documents G/ADP/N/14/Add.22 and G/SCM/N/18/Add.22, both of 10 October 2006. 
66 WTO documents in the series G/ ADP/N/*/MEX and G/SCM/N/*/MEX. Mexico WT/TPR/S/195 
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Table III.4  
Anti-dumping duties and countervailing measures, 1 January 2002 – 31 December 2006  
 2002 2003 2004 2005 2006 Total 
Anti-dumping        
Initiation of original investiga tions  10  14  6  6  6  42 
Provisional duties imposeda  3  6  10  3  3  25 
Definitive anti-dumping duties imposeda  0  5  7  8  4  24 
No definitive duties imposeda b  0  3  1  6  2  12 
Annulment  3  3  5  2  1  14 
Countervailing measures        
Initiation of initial investigations  0  1  0  0  0  1 
Provisional duties imposed  0  0  1  0  0  1 
Definitive countervailing duties im posed  0  0  0  1  0  1 
Annulment   0  0  0  0  0  0 
a Only refers to original inves tigations notified during the period. 
b Because the final determination was negative. 
c The annulment notified during the period under review may refe r to investigations carried out prior to this period. 
Source: WTO Secretariat, based on data provided by the UPCI of the SE. 
97. Between January 2002 and Decemb er 2006, 79 per cent of the definitive anti-dumping duties 
imposed consisted of ad valorem  duties and 21 per cent of specific duties.  Forty-one anti-dumping 
measures still applied five years after they had come  into effect;  in all instances, the SE reviewed 
these measures or undertook a five-yearly examination of their application. 
98. All the anti-dumping investigations conducte d during the period 2002-200 6 were initiated at 
the request of the domestic industry, with the excep tion of one which was initiated ex officio.  The SE 
paid 42 visits to companies in order to verify in formation.  A price undertaking was reached with the 
exporters in order to eliminate the dumping.  In addition, 43 public hearin gs were held at which 
interested parties had the opportunity to rebut and contest the arguments of their counterparts. 
99. The countries that were the subject of the largest number of anti-dumping investigations 
initiated were (the number of investig ations is shown in brackets):  China (15);  the United States (9);  
Ukraine (3);  Russia (2);  Romania (2);  and Br azil (2).  The anti-dumping investigations mainly 
concerned the following products:  base metals;  ch emicals;  cement and ceramic ware;  machinery 
and equipment (including electronic goods a nd parts thereof);  and paper products. 
100. As a result of the negotiations on China's acces sion to the WTO, Mexico agreed with China 
that the anti-dumping measures it imposed on impor ts from China would not be subject to the 
application of the WTO Agreement or any anti-dump ing provision contained in China's Protocol of 
Accession for a period of six years after th e accession of China to the WTO, i.e., until 
11 December 2007.67  In practice, this provision ensured th at the measures applied by Mexico were 
not the subject of contestation in the WTO dispute settlement system.  Prior to expiry of this period, the Mexican authorities ex officio initiated the re view of some of the measures in question. 
101. Moreover, the use of countervailing measures ha s been very limited.  According to the 
notifications made by Mexico to the Committee on Subsidies and Countervailing Measures, between 
January 2002 and December 2006 there was only one i nvestigation into subsidization (Table III.4).  
This led to a provisional measure and subsequently  the application of a definitive countervailing duty 
on imports of olive oil from the European Communities. 
                                                     
 
67 Annex 7 to the Protocol of Accession of the People's Republic of China, WTO document WT/L/432 
of 23 November 2001. WT/TPR/S/195 Trade Policy Review 
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102. During the period under review, the WTO disput e settlement mechanis m was used in two 
instances to contest anti-dumping duties and on anot her two occasions agai nst countervailing duties 
imposed by Mexico.  In 2003, the United States requested consultations on the definitive anti-
dumping duties applied by Mexico to bovine meat and rice.  In June 2005, the Panel found that 
Mexico had not acted consistently with the pr ovisions of the Anti-Dumping Agreement when 
determining the existence of inju ry and the margin of dumping in the investigation and accepted the 
majority of the claims made by the United States;  the Appellate Body confirmed most of the Panel's 
findings.  In December 2005, the reports of the Ap pellate Body and the Panel (with the amendments 
made by the Appellate Body) were adopted.68  Mexico eliminated these measures in September 2006. 
103. In June 2005, Guatemala requested consultati ons in relation to the definitive anti-dumping 
duties applied by Mexico on imports of certain steel pipes and tubes.  In June 2007, the Panel which 
examined the case concluded that Mexico had acted inconsistently with its obligations at various 
stages of the anti-dumping investigation, including du ring the initiation of the investigation itself and, 
consequently, recommended that the anti-dumping me asures applied to imports of steel pipes and 
tubes from Guatemala be revoked.69 
104. In August 2004, the European Communities requ ested consultations re garding the provisional 
countervailing measures applied by Mexico to oliv e oil;  no panel was established and no solution to 
this matter has been notified.  Nevertheless, in March 2006, the European Communities requested 
further consultations, this time in relation to the definitive countervailing measures imposed by 
Mexico on olive oil;  the corresponding Panel was set up in  February 2007. 
(c) Safeguard measures 
105. In 2003, some amendments to the safeguar ds provisions in the LCE were introduced.70  These 
include the requirement that a safeguard measure be applied only to the extent  necessary to prevent or 
remedy serious injury;  adaptation of the concep t of domestic industry when determining serious 
injury or threat of injury;  the introduction of the concept of significant overall impairment in the 
definition of serious injury;  the impossibility of c onsidering factors other than the increase in imports 
as factors causing injury;  the requirement that the fa ctors evaluated by the investigating authorities be 
"objective and quantifiable";  and elimination of th e factor concerning the capacity of companies to 
generate capital. 
106. In April 2005, an agreement was published c ontaining the transitional safeguard mechanism 
to be found in the Protocol of Accession of the People's Republic of China to the WTO71, and in 
August that year the administrative provisions required to implement the said mechanism were 
issued.72  In January 2006, the LCE was amended to allow the SE to impose safeguard measures as a 
result of investigations carried out in that regard  in the past, the Ministry only had the authority to 
recommend the corresponding measures to the President of the Republic.  By 31 July 2007, Mexico had not made use of the transitional safeguard mech anism provided in China's Protocol of Accession 
to the WTO. 
107. Mexico reserved the possibility of utilizing the special safeguard provided in the Agreement 
on Agriculture in respect of 294 tariff headings, but  has notified the Committ ee on Agriculture that 
                                                     
 
68 WTO documents WT/DS295/R of 6 June 2005 and WT/DS295/AB/R of 29 November 2005. 
69 WTO document WT/DS331/R of 8 June 2007. 
70 Amendments to the LCE published in the Offici al Journal of the Federation of 13 March 2003. 
71 Agreement published in the Official Journal of the Federation of 21 April 2005. 
72 Agreement published in the Official Journal of the Federation of 23 August 2005;  revision published 
on 7 April 2006. Mexico WT/TPR/S/195 
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between 2000 and 2005 it had not utilized this provision.73  In connection with this Review, Mexico 
indicated that it had not used this safeguard mechan ism.  Mexico also reserved the right to apply the 
transitional safeguard provided by Article 6 of th e Agreement on Textiles and Clothing, but has not 
utilized this provision.74 
108. During the period under review, Mexico notifie d the WTO of the initiation of a safeguards 
investigation.  The notification was submitted in August 2002 and refers to imports of plywood 
panels, plywood or triplay.75  The investigation concluded without any measures being imposed 
because the complainant withdrew.76 
(viii) Technical regulations and standards 
(a) Legal and institutional framework 
109. The Agreement on Technical Barriers to Trade (T BT Agreement) came into effect in Mexico 
on 1 January 1995.  In addition to this Agreement, the basic legal framework for standardization and 
conformity assessment is to be found in the Fede ral Law on Metrology and Standardization (LFMN) 
of 199277 and its Implementing Regulations of 1999.78  The Dirección General de Normas  – DGN 
(Directorate-General of Standards) of the SE acts as the enquiry point for the purposes of 
paragraphs 1 and 3 of Artic le 10 of the TBT Agreement.79  The DGN is also the administrative unit 
responsible for the notification procedures laid down in the Agreement.  Mexico's most recent 
declaration on the implementation and administ ration of the TBT Agreement was notified in 
July 1996.80 
110. The Comisión Nacional de Normalización  (National Standardization Commission), created 
pursuant to the LFMN, is responsible for coordina ting standardization policy and for the activities of 
the Federal Public Administration's agencies and bodies competent in this sphere81, as well as for 
approving the national standardization programme pub lished annually in the Official Journal of the 
Federation and notified to the WTO by Mexico each year.82  The Commission is composed of the 
public authorities responsible for issuing technical re gulations and standards, private standardization 
bodies and representatives of academia, industr ial, commercial and consumer groups.83 
111. Mexico's standardization system comprises th ree categories of instrument:  technical 
regulations (NOMs);  standards ( Normas Mexicanas  – NMXs (Mexican standards);  and normas de 
                                                      
73 WTO document G/AG/N/MEX/12 of 25 April 2006. 
74 Mexico submitted its lists of textile products and clothing included in the first and second stages of 
integration into the GATT 1994 and to which it was not possible to apply special safeguard measures.  WTO documents G/TMB/N/249 of 27 May 1997 and G/TMB/N/401 of 21 May 2001. 
75 WTO document G/SG/N/6/MEX./1 of 29 August 2002. 
76 The final resolution was published in the Official Journal of the Federation of 2 July 2005. 
77 Published in the Official Journal of the Federation of 1 July 1992; amended in 1997, 1999 and 2006 
(the latest amendment was published in the Official Journal of the Federation of 28 July 2006). 
78 Published in the Official Journal of the Federation of 14 January 1999. 
79 WTO document G/TBT/2/Add.14 of 19 July 1996. 
80 Ibid. 
81 These are the Ministries of:  the Economy; So cial Development; the Environment and Natural 
Resources; Energy; Agriculture, Livestock, Rural Development, Fisheries and Food;  Communications and 
Transport;  Health;  Labour and Social Welfare;  a nd Tourism;  as well as the PEMEX and the Federal 
Electricity Commission. 
82 The most recent notification is containe d in WTO document G/ TBT/GEN/7/Add.5 of 
20 October 2006. 
83 Articles 59 and 60 of the LFMN. WT/TPR/S/195 Trade Policy Review 
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referencia  – NRs (reference standards).  The NOMs are binding and are intended to establish 
specifications for goods, services or production processes  in order to guarantee the safety of persons, 
protect human, animal and plant health, as well as na tural resources and the environment.  The NMXs 
are intended to guide producers and consumers and promote quality;  they are voluntary, except when 
their application is required by a NOM if the producers, on their own initiative, declare that their 
products or services comply with a specific standard or when public bodies purchase goods or services.  The NRs are drawn up by decentralized bodies of the Federal Public Administration in order to establish specifications for goods and services th at are the subject of government procurement, 
when there is no NMX or any international standa rd or when these cannot be applied.  The bodies 
which issue NRs are Petróleos Mexicanos (PEMEX) and the Federal Electricity Commission (CFE). 
112. The DGN keeps a catalogue of standards that includes all the NOMs, the NMXs and the NRs 
in force, as well as drafts of new measures and the corresponding comments.
84 
(b) Technical regulations 
113. Pursuant to the LFMN, the development and re vision of NOMs are subject to the following 
procedure: the agencies belonging to the Federal Pu blic Administration, according to their respective 
competence, draw up draft NOMs, together with a regulatory impact assessment (MIR), and transmit 
these to the corresponding advisory committee on standa rdization, in which all interested parties from 
the public and private sectors may take part.  In  accordance with the Federal Law on Administrative 
Procedures, the MIRs must be put before the Comisión Federal de Mejora Regulatoria  – COFEMER 
(Federal Regulatory Improvement Commission), w hose decision is an essential requirement before 
the NOMs can be published in the Official Journal of the Federation.85 
114. Pursuant to the legislation, when it is for eseen that the proposed NOM will have a significant 
impact on the domestic economy or on a specific sector, the declaration must include a monetary cost/benefit analysis as well as a comp arison with international standards.
86  The authorities have 
indicated that, in practice, all draft NOMs require a cost/benefit analysis th rough the MIR.  Once the 
draft NOM has been approved by the respective advi sory committee, it is published in the Official 
Journal of the Federation for public consultation for a period of 60 days  and is notified to the WTO.  
The replies to comments received as well as any amen dments to the draft are published in the same 
way.  The competent agency then publishes the final version of the NOM in the Official Journal of the Federation.  In general, a period of no less than 60 days is allowed for the entry in force of the NOM 
after it has been published.
87 
115. The competent agencies are authorized to i ssue emergency NOMs when unexpected events 
occur that jeopardize the achievement of the LFMN' s objectives.  Emergency NOMs remain in effect 
for a maximum of six months and may be extended for a further six months.  If the agency issuing an emergency NOM decides to extend its application or make it permanent, it must submit it as a draft according to the normal approval procedure. 
                                                     
 
84 The catalogue of standards may be consulted at:  http://www.economia_noms-gob.mx and at:  
http://www.economia-nmx.gob.mx/. 
85 Information on the MIRs can be cons ulted at:  http://www.cofemer.gob.mx. 
86 Article 45 of the Federal Law on Metrology and Standardization. 
87 See Mexico's communication to the TBT Committ ee on Good Regulatory Practice, WTO document 
G/TBT/W/248 of 3 November 2004. Mexico WT/TPR/S/195 
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116. The LFMN provides that NOMs should be revised ever y five years after their entry into force.  
The outcome of the revision must be notified to the technical secretariat of the National Standardization Commission.  If no such notification is made, the technical secretariat must order annulment of the NOM and the agency which drew it  up must publish the annulment in the Official 
Journal of the Federation. 
117. Since the previous Review of Mexico, the num ber of NOMs adopted has increased slightly.  
By June 2007, 795 NOMs were in force, compared  with 717 in August 2001.  Of the total NOMs, 
only two were emergency standards;  there were  also 201 draft NOMs going through the approval 
process.
88  According to the DGN's catalogue, the NOMs mainly apply to the following sectors:  
waste management;  services related to agriculture and forestry;  computer, communication and other 
equipment;  electronic components and accessories;  air transport;  medical services;  fishing; 
activities by the Government;  and hospitals. 
118. From January 2002 to the end of April 2007, Mexico submitted 132 notifications on technical 
regulations and conformity assessment procedures to  the TBT Committee (Table III.5).  The majority 
of these related to draft NOMs, followed by draft co nformity assessment procedures;  in both cases, a 
period for public consultation was allowed.  In addition, some emergency NOMs were notified, as 
were the amendment or annulment of NOMs and draft NOMs.  Seven agencies were involved in 
drawing up the NOMs notified, particularly the Ministries of the Economy and Energy. 
Table III.5 
Notifications of technical regulations and conformity assessment procedures to  the TBT Committee, January 2002 – April 2007 
 2002 2003 2004 2005 2006 2007 
Total notificationsa 34 53 24 8 10 3 
Including:       
 Draft NOMs 21 35 11 5 7 3 
 Draft conformity assessment procedures 3 4 1 3 0 0 
 Emergency standards 6 2 2 0 1 0 
 Amendmentb 2 6 2 0 2 0 
 Annulmentc 0 1 3e 0 0 0 
 Otherd 2 5 5 0 0 0 
Bodies responsible:       
 Ministry of Agriculture (SAGARPA) 1 3 0 0 1 0 
 Ministry of Communications and Transport (SCT) 9 5 4 1 3 0 
 Ministry of the Economy (SE) 8 12 14 4 3 2 
 Ministry of Energy (SENER) 7 14 1 0 0 1 
 Ministry of the Environment and Natural Resources 
(SEMARNAT) 5 0 2 2 2 0 
 Ministry of Health (SSA) 4 19 3 0 1 0 
 Ministry of Labour and Social Welfare (STPS) 0 0 0 1 0 0 
a Including notifications in documents bearing the symbol  "Add", but excluding those with the symbol "Corr". 
b Amendments or draft amendments to NOMs. 
c Annulment of NOMs, emergency NOMs, or draft NOMs. 
d Notice of extension of emergency NOMs ;  extension of the period for public  consultation;  or clarifications. 
e Three notices communicating the annulment of five draft NOMs. 
Source:  WTO Secretariat, based on notifications submitted by Mexico. 
119. During the period under review, comments were made in the TBT Committee on two draft 
technical regulations notified by Mexico.  In one instance, the European Communities expressed 
concern at the lead and cadmium limits laid dow n in the draft NOM for glazed pottery ware, glazed 
ceramic ware and porcelain ware (G/TBT/N/MEX/69), stating that these were stricter than the limits 
                                                      
88 Catalogue of Mexican Standards, consu lted at:  http://www.economia-noms.gob.mx. WT/TPR/S/195 Trade Policy Review 
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set in the ISO's international standards.89  In the second instance, concerning the draft NOM for pre-
packaged products (G/TBT/N/MEX/95), the European  Communities noted that the draft differed from 
the revised version of the international standard OIML R 87.90  At the Committee's meeting in 
March 2005, Mexico stated that consultations ha d been held with the European Communities and 
agreement had been reached on how to deal with their comments.91 
120. In Mexico, the import of medicines re quires sanitary authorization by the Comisión Federal 
para la Protección contra Riesgos Sanitarios  – COFEPRIS (Federal Commission for Protection 
against Health Risks) of the Ministry of Health a nd importers of such products  must be domiciled in 
Mexico.92  Moreover, establishments wishing to import or market medicines and other health-related 
inputs must have a "sanitary registration".93  In order to obtain such registration from the COFEPRIS, 
the requirements in the General Law on Health must  be met, as well as those in the Regulations on 
Health-Related Inputs, various NOMs and the so-called "Farmacopea" regulations. 
121. One of the requirements for obtaining sanitary registration is to be in possession of a sanitary 
licence for plants or laboratories producing medicines or biological products for human use.94  I n  
other words, obtaining sanitary registration means establishing a plant or laboratory to produce 
medicines in Mexico, so in practice only manufact urers with an establishment in Mexico can be 
authorized to import or market medicines. 
122. The requirement to be in possession of a licence for a plant or laboratory came into effect 
over three decades ago and seems to have contributed to the expansion and cons olidation of Mexico's 
pharmaceutical industry, which had over 200 plants  or laboratories in mid-2007 and supplied 86 per 
cent of the medicines consumed in Mexico;  accordi ng to the authorities, it has also helped to ensure 
the sanitary responsibility of applicants for registra tion.  In 2007, the Government started work on 
modifying this requirement and setting up an alte rnative scheme that would guarantee the safety and 
efficacy of medicines;  in October 2007, it was thought that the amendments to the Regulations on 
Health-Related Inputs would be  published and come into effect at the end of this year. 
(c) Accreditation and conformity assessment 
123. All domestic and imported pr oducts must comply with the corresponding technical 
regulations.  For domestic products, compliance with  the NOMs is verified both at the production and 
distribution sites;  for imported products, verificati on usually takes place at the border.  Pursuant to 
the LCE, the SE is responsible for publishing in the Official Journal of the Federation those NOMs compliance with which must be verified by the cust oms authorities at the point of entry into Mexico;  
only imported products identified by their HS code ca n be verified.  Independently of the verification 
carried out at the point of entry, compliance with  the NOMs can also be verified once the products 
                                                     
 
89 WTO documents G/TBT/M/33 of 31 August 2004 and G/TBT/M/34 of 5 January 2005. 
90 WTO document G/TBT/M/34 of 5 January 2005. 
91 WTO document G/TBT/M/35 of 24 May 2005. 
92 Articles 295 and 285 of the General Law on Health. 
93 Article 258 of the General Law on Health.  In addition to medicines, inputs for health include 
psychotropic substances, narcotics, and raw materials and additives for preparing medicines, as well as medical 
appliances, prostheses, diagnostic agents, surgical and th erapeutic material (Article 194 bis of the General Law 
on Health). 
94 Article 168 of the Regulations on Health-Related Inputs. Mexico WT/TPR/S/195 
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have entered Mexico.  A list of NOMs to be verifi ed by the customs authorities was published in the 
Official Journal of the Federation of 27 March 2002.95 
124. With the exception of certain products to wh ich labelling requirements apply, the import of 
goods subject to NOMs verifiable at the border must be  accompanied by the original or a copy of the 
corresponding NOM certificate.  In order to obtain  a NOM certificate, the importer must send samples 
to a laboratory accredited by the competent Mexican authority.  After it has been ensured that the 
product complies with the NOM, the competent agency  or the accredited private certification entity 
issues the certificate in the name of the importer.  Some imports are exempt from compliance with NOMs, for example, samples and goods not intended for sale and those coming under special customs 
regimes (such as temporary import and bonded warehouses). 
125. Conformity of products with the NOMs is asses sed by the competent agencies, certification 
entities, testing or calibration laboratories, or veri fication units authorized by an accreditation entity, 
and, where applicable, approved by the corresponding agencies.  The Entidad Mexicana de 
Acreditación  – EMA (Mexican Accreditation Entity) is the only private entity authorized to accredit 
conformity assessment bodies.  In line with its policy to promote participation by the private sector in 
standardization and conformity assessment activiti es, Mexico has a large number of private bodies 
and laboratories carrying out these tasks.
96  Nevertheless, by mid-2007, these did not include any 
foreign certification bodies or testing laboratories. 
126. Procedures for assessing conformity have to be developed by the competent agencies after 
consultation with interested parties and in accord ance with the LFMN, its Implementing Regulations 
and international guidelines.  The procedures must  be published in the Official Journal of the 
Federation for public consultation (unless they are c ontained in the corresponding NOM) and, if they 
involve additional formalities, they have to be tr ansmitted to the SE for its opinion before they are 
issued.  Conformity assessment procedures issued by  the SE were published in the Official Journal of 
the Federation of 24 October 1997 and have been am ended on several occasions ;  the most recent 
amendment being in July 2004.97  Other Federal Government agen cies have only partly published 
their respective procedures. 
127. The SE's procedures require that the importer obt ain a separate certificate for each product he 
wishes to import.  The SE, however, allows producer s in countries with which Mexico has FTAs to 
submit their products for testing and the certificate t hus obtained may be used by other importers.  
This procedure, known as extension of certification, is undertaken at the request of the manufacturer 
and has mainly been used for electrical and electr onic goods.  In the case of NOMs issued by other 
agencies, importers must obtain a certificate for each product they wish to import, whether or not it 
comes from countries with which Mexico has an FTA. 
128. In Mexico, conformity assessment is generally un dertaken by a third party, in other words, 
through an accredited body independent of the supp lier or buyer in order to obtain impartial and 
                                                      
95 The list has been amended and supplemented on  several occasions by means of agreements 
published in the Official Journal of the Federation on the following dates:  8 November 2002, 11 July 2003, 5 January and 15 April 2004, 3 February, 17 May and 26 October 2005, 2 February and 3 May 2006, and 
6 July 2007. 
96 In October 2007, there were 47 certification bodies, 890 testing laboratories, 344 calibration 
laboratories and 947 verification units.  The lists of these bodies and laboratories can be consulted at:  
http://www.economia-normas.gob.mx  y en http://www.ema.org.mx. 
97 The amendments were published in the Official Journals of the Federation of:  20 February and 
24 May 2000, 10 December 2001, 5 July 2002, 4 March 2003 (com pilation) and 27 July 2004. WT/TPR/S/195 Trade Policy Review 
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reliable decisions.  The assessment procedure based on  the supplier's declaration of conformity (DCP) 
only applies to a few cases of low-risk products. 
129. Mexico has signed various mutual recognition agre ements (MRAs) with its trade partners.  It 
has agreements on recognition of laboratory t esting for specific electrical products, household 
appliances and tyres with the United States and Cana da.  In addition, several Mexican private entities 
have signed mutual recognition agreements with certif ication bodies or testing laboratories in Canada, 
Colombia, France, Hong Kong, China, the Neth erlands, Norway, Sweden, the United Kingdom, the 
United States, and the Asia-Pacific Economic C ooperation Forum (APEC);  the majority of these 
relate to electrical equipment.98 
130. Under the Inter-American Telecommunicati on Commission (CITEL) framework, Mexico 
hoped to implement the first phase of the r ecognition agreement on laboratory testing for 
telecommunications equipment during 2007.  Mexico also participates in other international and 
regional bodies such as the Quality Assessment  Recognition System (QSRA);  InterAmerican 
Accreditation Cooperation (IAAC);  and Internati onal Laboratory Accreditation Cooperation (ILAC).  
In October 2006, an agreement was signed with  the latter under which the EMA recognized the 
accreditation of testing and calibration laboratories granted by members of the ILAC. 
131. The network of testing and calibration laborat ories is supervised by the DGN, with the 
participation of the EMA, the Centro Nacional de Metrología  – CENAM (National Metrology 
Centre) and the Procuraduría Federal del Consumidor  – PROFECO (Federal Consumer Protection 
Agency).  The CENAM is the national reference la boratory and is responsible for maintaining and 
developing national measurement standards, as well as for supplying calibration, assessment and 
advisory services to secondary laboratories and compan ies.  The DGN is preparing a project for the 
formal introduction of the Sistema Nacional de Calibración  – SNC (National Calibration System), 
with the objective of ensuring the uniformity and re liability of measurements effected in Mexico in 
relation to commercial transactions of goods and se rvices, as well as of industrial processes and the 
corresponding scientific and technological developmen t work.  The SNC is composed of the SE, the 
CENAM, the EMA and accredited calibration laboratories,  together with other experts in the field.  
The draft SNC project was submitted to the aut horities for approval in 2006 and in October 2007 the 
process was continuing. 
(d) Marking, labelling and packaging 
132. Pursuant to the provisions in the LFMN and ot her instruments such as the Federal Consumer 
Protection Law and the General Law on Health, the requirements concerning commercial information, 
including labelling and marking, must be set out in a NOM.  Domestic a nd imported products are 
subject to the same marking and labelling requirements. 
133. In April 2007, 16 NOMs referring expressly to commercial information and labelling 
requirements were in effect.  In addition, there ma y be special labelling requirements in other NOMs.  
The three most important technical regula tions in this respect are NOM-050-SCFI-200499, which lays 
down general requirements for packagi ng and labelling;  NOM-051-SCFI-1994100, which contains 
labelling requirements for pre-packaged food stuffs and non-alcoholic beverages;  and 
NOM-004-SCFI-2006101, covering the labelling of textile produc ts and clothing.  The draft for the 
                                                      
98 The most up-to-date information on the mutual  recognition agreements signed by Mexico was 
published in the Official Journals of the Federation of 5 April and 24 October 2000, and 29 March 2006. 
99 Published in the Official Journal of the Federation of 1 June 2004. 
100 Published in the Official Journal of the Federation of 24 January 1996. 
101 Published in the Official Journal of the Federation of 21 June 2006. Mexico WT/TPR/S/195 
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latter NOM was notified to the WTO in October 2003, allowing the regulatory time for receiving 
written comments from other Members.  The definitive NOM came into force on 21 August 2006 and was the subject of an amendment notified to the WTO in September 2006.
102 
134. There are also labelling or pack aging requirements for products such as hides and skins;  
electronic and electrical goods and household appliances;   paints and dyes;  flame retardants;  canned 
tuna;  certain fruits;  alcoholic beverages;  toys,  perfumery and cosmetic products;  and lubricant oils 
for petrol or diesel engines. 
(e) Standards 
135. The national standardization bodies, which ar e non-profit-making private entities, develop 
and issue voluntary standards (NMXs).  These bodies must be registered with the SE and prove that 
their standardization work is c onducted through committees that represent all interested sectors and 
have national coverage.  Acceptanc e of the TBT Agreement's Code of Good Practice is a requirement 
for the registration of national standardization bodies.103  In 2006, there were nine standardization 
bodies. 
136. Pursuant to the LFMN, the NMXs must be  included in the National Standardization 
Programme;  accordingly, the work programmes of t hose institutions that have adopted the Code of 
Good Practice are incorporated into the National Standardization Programme which Mexico notifies 
annually to the WTO.  The NMXs must be based on international standards, except where these are 
not suitable.  The NMXs must also be put up for public consultation for a minimum period of 60 days prior to being issued, in the form of a notice publ ished in the Official Journal of the Federation 
containing an extract of the NMX;  the full text may be obtained or requested from the body 
responsible for drafting it.  The same procedure as that applicable to developing an NMX applies to 
its revision or annulment, but in some cases they mu st be revised or updated within five years of the 
declaration of their entry into force. 
137. In those areas not covered by national standard ization bodies or when the standards they issue 
do not reflect the interests of the sectors involved, the SE may on its own initiative or at the request of 
any other competent agency or interested party i ssue an NMX.  In June 2007, there were 5,738 NMXs 
(compared with 5,900 in August 2001) and 170 draft standards.
104  The standards apply above all to 
the chemical, food, electricity, electronics, agri cultural, iron and steel and building materials 
industries. 
(ix) Sanitary and phytosanitary measures 
(a) Legal and institutional framework 
138. In addition to the WTO's Agreement on the A pplication of Sanitary and Phytosanitary 
Measures (SPS Agreement), some of the other main lega l instruments applicable in this area are:  the 
LFMN;  the Federal Animal Health Law (2007)105;  the Federal Plant Health Law (1994)106;  the 
                                                      
102 WTO documents G/TBT/N/MEX/84 of 8 October 2003 and G/TBT/N/MEX/84/Add.1 of 
13 September 2006. 
103 The most recent list of Mexican standardization institutions that have accepted the Code of Good 
Practice for the Preparation, Adoptio n and Application of Standards may be consulted in WTO document 
G/TBT/CS/2/Rev.13 of 2 March 2007. 
104 Catalogue of Mexican Standards, consu lted at:  http://www.economia-noms.gob.mx. 
105 Published in the Official Journal of the Federation of 25 July 2007. WT/TPR/S/195 Trade Policy Review 
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Internal Regulations of the Ministry of Agricultu re, Livestock, Rural Development, Fisheries and 
Food (SAGARPA) of 2001;  the General Law on Health107, the Regulations on Sanitary Control of 
Products and Services of 1999108, the Regulations of the Federal Commission for Protection against 
Sanitary Risks109, and the General Law on Sustainable De velopment (2003).  Pursuant to the 
SPS Agreement, Mexico notified that its nationa l enquiry/notification point was the SE's DGN.110 
139. The Servicio Nacional de Sanidad, Inocuidad y Calidad Agroalimentaria  – SENASICA 
(National Health, Food Safety and Agri-Food Qua lity Service), a decentralized agency of the 
SAGARPA, is responsible for Mexico's animal and pl ant health policy.  Its tasks include control and 
monitoring to ensure that animals and plants , their products and by-products, imported into, 
transported through or exported from Mexico do not endanger the health of agriculture and livestock, 
aquaculture and fisheries.  The SAGARPA's Direct orates-General of Animal Health, Plant Health, 
Food Safety and Animal and Plant Health Inspection act as the SENASICA's administrative and technical units.  The COFEPRIS, which is a decentra lized agency of the Ministry of Health, is 
responsible for the health regulation, control, monitoring and promotion of products that might 
present risks for human health, including foodstuffs , beverages, nutrients and pesticides.  The 
Directorate-General of Forest and Soil Manageme nt, belonging to the SEMARNAT, is responsible for 
national policy on the health of forests. 
140. Mexico is a member of the three international organizations referred to in the SPS Agreement, 
namely, the Codex Alimentarius Commission (FAO/W HO), the International Office of Epizootics 
(OIE) and the International Plant Protection Conventi on (IPPC).  Mexico also participates in regional 
bodies such as the North American Plant Protectio n Organization (NAPPO) and the International 
Regional Organization for Plant and Animal Health (OIRSA). 
141. In order to lessen the potential risk of intr oducing quarantine diseases into Mexico, by mid 
2007 Mexico had signed phytosanitary c ooperation agreements with 15 countries.
111  A g r e e m e n t s  
were also being drawn up with five other countries.112  It has agreed to protocols and "work 
programmes" on imports (and exports) with the phy tosanitary authorities of a number of countries in 
which the phytosanitary requirements and procedures to be fulfilled for the import (and export) of 
certain plant products and their by-products are set out.  All the FTAs signed by Mexico contain 
provisions on sanitary and phytosanitary measures. 
142. As regards animal health, Mexico has signed agreements with Chile, the United States and 
Japan under which these countries recognize zones free of Newcastle disease in Mexico.  In the case 
of classical swine fever, Mexico has obtained recognition of free zones from Chile, Canada, the 
United States and Japan.  For its part, Mexico h as recognized Chile as being free of avian influenza 
(sub-type H7N3).  By October 2007, Mexico ha d not signed any mutual recognition agreements on 
animal health with other countries. 
                                                                                                                                                                     
106 Published in the Official Journal of the Federation of 5 January 1994 (latest revision published on 
26 July 2007). 
107 Published in the Official Journal of the Federation of 7 May 1997 (latest amendment published on 
6 June 2006). 
108 Published in the Official Journal of the Federation of 9 August 1999 (not revised). 
109 Published in the Official Journal of the Federation of 13 April 2004 (not revised). 
110 WTO documents G/SPS/ENQ/19 /Add.2 and G/SPS/NNA/9/Add.2,  both of 26 June 2006. 
111 Algeria, Argentina, Bulgaria, Canada, Chile, China, Cuba, Ecuador, Guatemala, India, the 
Netherlands, New Zealand, Peru, the United States and Uruguay. 
112 Brazil, Lebanon, Poland, Romania and Turkey. Mexico WT/TPR/S/195 
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(b) Drafting and implementation 
143. Measures intended to prevent the introduction of  pests and diseases into Mexico are in the 
form of NOMs, animal and plant health requireme nt sheets or phytosanitary import certificates in the 
case of forestry.  NOMs are drafted and implemented according to the same procedures and periods as 
those mentioned in section (viii) above. 
144. The National Advisory Committees on Standardization of Animal Health Protection 
(CONAPROZ), Phytosanitary Protection (CONAPROF)  and the Environment and Natural Resources 
(COMARNAT) are responsible for drafting NOMs concerning animal health, phytosanitary and 
forestry matters, respectively.  These Committees are composed of associations of industrialists, 
service providers, traders, producers, academic ins titutions and representatives of the SAGARPA, the 
SEMARNAT, the SE and the PROFECO.  The Committees examine the draft NOMs and their regulatory impact assessments, approve them and tran smit them for publication in the Official Journal 
of the Federation;  a period of 60 days for p ublic consultation then starts and the corresponding 
notification is made to the WTO. 
145. In accordance with the laws on animal hea lth, plant health and sustainable forest 
development, the NOMs must be based on scientific principles and a cost/benefit analysis, including a 
risk assessment, and must also take into account inte rnational standards.  If contingencies arise, the 
SENASICA and the SEMARNAT have the power to publish emergency NOMs, following the 
procedures defined in the LFMN. 
146. In August 2007, 60 NOMs on animal health were in effect, 41 on plant health, six on food 
safety and six on forest protection.  The authorities have indicated that all the plant health NOMs are 
based on the guidelines and the International Standa rds for Phytosanitary Measures (ISPMs) of the 
IPPC, those on animal health are based on the OI E regulations, while food safety NOMs are based on 
the standards of the Codex Alimentarius.  The NOM s on animal and plant health and food safety can 
be consulted on the Internet in the r espective databases kept by the SENASICA.
113  The standards on 
health control and food safety issued by the COF EPRIS can be found on the Internet site of the 
Ministry of Health.114 
147. From January 2002 to August 2007, Mexico submitted 51 notif ications on sanitary and 
phytosanitary regulations to the SPS Committee;  of these, 13 corresponded to draft NOMs, two to 
conformity assessment procedures and 11 to emergenc y NOMs.  Amendments were also notified (12) 
as was annulment (seven) of various sanitary and phytosanitary regulations, and the adoption of the 
new Animal Health Law (Table III.6).  The objectives pursu ed in the notifications related, in order, to:  
food safety, animal health, protection of plants and others, while several notifi cations cited more than 
one objective. 
Table III.6 
Notification of sanitary and phyto sanitary regulations to the SPS Committee, January 2002 – August 2007  
 2002 2003 2004 2005 2006 2007 
Total notificationsa 16 17 10 5 0 3 
Including:       
Draft NOMs 4 8 1 0 0 0 
Draft conformity assessment procedures 0 0 0 2 0 0 
Table III.6 (cont'd) 
 
                                                      
113 See:  http://senasicaw.senas ica.SAGARPA.gob.mx/p ortal/html/senasica_principal/normalización. 
114 See:  http://www.salud.gob.mx and http://www.cofepris.gob.mx. WT/TPR/S/195 Trade Policy Review 
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 2002 2003 2004 2005 2006 2007 
Emergency standards 5 4 1 0 0 1 
Amendmentb 4 3 1 3 0 1 
Annulmentc 0 2 5 0 0 0 
Otherd 3 0 2 0 0 1 
Authority responsible:        
Ministry of Agriculture (SAGARPA) 10 6 2 1 0 2 
Ministry of the Environment and Natural Resources (SEMARNAT) 5 2 3 4 0 1 
Ministry of Health (SS) 1 9 5 0 0 0 
Objective:       
Food safety 2 8 5 1 0 0 
Animal health 4 2 2 1 0 2 
Plant protection 4 5 3 3 0 1 
Other 6 2 0 0 0 0 
a Including notifications in documents bearing the symbol  "Add", but excluding those with the symbol "Corr". 
b Amendment of NOMs or draft amendments of NOMs. 
c Annulment of NOMs, emergency NOMs, or draft NOMs. d Includes notice of extension of emer gency NOMs and adoption of a law. 
Source:  WTO Secretariat based on the notifications submitted by Mexico. 
148. During the period under review, some Members of the WTO cited five of the sanitary or 
phytosanitary measures adopted by Mexico  as trade concerns in the SPS Committee.115  Two of these 
were resolved in 2006.116  Over the same period, Mexico participated in one instance as a defendant in 
an SPS-related dispute;  the case related to Mexican measures on the import of dried beans, raised by 
Nicaragua.  In March 2004, Nicaragua withdrew its request for consultations after reaching a 
settlement in its negotiations with Mexico.117 
149. The Agreement on the Classification and Codifi cation of Imported Goods (hereinafter the 
SAGARPA Agreement)118 determines the list of products who se import is subject to sanitary or 
phytosanitary regulations by the SAGARPA.  The produc ts listed therein must meet the criteria in the 
corresponding NOMs119, or the phytosanitary requirement sheets (HRFs)120 or animal health 
requirement sheets (HRZs)121, as well as inspection requirements. 
150. Persons wishing to import plants, their produc ts and by-products listed in the SAGARPA 
Agreement and for which there is no special NOM mu st request an HRF from the Directorate-General 
of Plant Health or the offices designated by the SAGARPA, which must reply within a period of ten 
working days.  An HRF can only be issued when th ere are already phytosanitary import requirements 
for the products or origins requested.  If this is not the case, the importer must request a pest risk 
analysis (ARP) pursuant to NOM-006-FITO-1996. 
                                                      
115 These were the following measures:  ban on the import of milled rice (raised by Thailand);  
restrictions on imports of bovine meat (Argentina);  restrictions on Austrian products (European Communities);  
restrictions on poultry (United States); and restrictions on the import of dried beans (United States). 
116 These were the ban on the import of milled rice and the restrictions on the import of dried beans.  
WTO document G/SPS/GEN/204/Rev.7/Add.3 of 7 February 2007. 
117 WTO documents in the WT/DS284 series. 
118 Agreement on the classification and codification of goods whose import is regulated by the 
SAGARPA, published in the Official Journal of the Federation of 30 June2007. 
119 The phytosanitary and animal health NOMs for imports may be consulted on the Internet at:  
http://senasicaw.senasica.SAGAR PA.gob.mx/portal/html/senasica_principal/normalizacion. 
120 The HRF may be consulted at:  http://senasicaw.s enasica.sagarpa.gob.mx/req uisitosfito/Inicio.aspx. 
121 The HRZ are available at:  http://148.245.191.4/zooweb/Funcion.aspx. Mexico WT/TPR/S/195 
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151. The import of animals, their products and by -products listed in the SAGARPA Agreement 
require an HRZ from the Directorate-General of Animal Health or the offices designated by the 
SAGARPA.  If an HRZ for the product requested alr eady exists in the SAGARPA's public catalogue, 
it is issued immediately.  If this is not the case, a decision is taken within five working days and the 
applicant is informed whether or no t a technical analysis is required .  In some cases, the establishment 
of the animal health requirements has to be agreed with the authorities of the exporting country, so the 
time limit for the final reply will depend on the out come of the consultations with these countries. 
152. The HRFs and HRZs apply according to the pr oduct and its origin and are governed by the 
respective manuals of procedure for compliance with the phytosanitary and animal health 
requirements.122  The authorities have indicated that the requirements laid down in the HRF are based 
on the pest risk analysis principles of the IPPC and that those laid down in the HRZ are based on 
national standards and the international refe rence standards determined by the OIE. 
153. In addition to the list of importers kept by th e SHCP, there is no special register in which 
importers of plants, their products  and by-products or the importers  of animals and animal products 
must be registered.  The import of plants, their pr oducts and by-products is subject to certificates 
issued by the national plant protection organization in the exporting country;  products that require 
such a certificate are those which represent a threat of disease, determined through a risk analysis and 
referred to in ISPM 12 of the IPPC.  The animal health requirements laid down in the HRZ, which 
must be complied with in the country of origin of the goods, must be officially certified by the 
competent authority. 
154. The majority of products listed in the SA GARPA Agreement are subject to physical 
inspection when entering Mexico and to obtaining an animal health or phytosanitary import certificate.  These certificates are issu ed at the point of entry by the Oficina de Inspección de Sanidad 
Agropecuaria  – OISA (Agricultural Health Inspection Office) of the SAGARPA.  Compliance with 
the animal and plant health requirements does no t exempt the importer from the licences required by 
the SE (section (2)(vi) above), the Ministry of Health or other authorities. 
155. Forestry products and by-products which require  phytosanitary certificates are listed in the 
Agreement, which establishes the classification and codification of goods whose import and export 
are regulated by the SEMARNAT.
123  The corresponding phytosanitary certificates must be requested 
from the Directorate-General of Forest and Soil Management or the state delegations of the SEMARNAT, which must reply within a period of si x working days.  In addition, all the products 
listed in the SEMARNAT Agreement are subject to physical inspection when entering Mexico. 
156. Mexico has 87 plant and animal health inspecti on centres at the entry points into Mexico and 
43 internal verification points in five quarantine z ones.  There are 74 forest ry phytosanitary inspection 
centres.  Some products may only enter through specified points.  For example, animals and their products, as well as products for veterinary use that imply an animal health risk, may only be 
imported through the customs posts jointly determined by the SAGARPA and the SHCP.
124  
Likewise, meat products must come through customs posts where there is the necessary infrastructure 
for verification or through internal verification point s.  Mexico has also established inspection in the 
country of origin, in which Mexican technicians cooperate with the competent authorities of the 
                                                      
122 Manual of procedure for compliance with phytosanitary requirements, published in the Official 
Journal of the Federation of 21 September 1999;  and manual of procedure for obtaining an animal health 
requirement sheet, published on 24 September 1999. 
123 Published in the Official Journal of the Federation of 30 June 2007. 
124 Article 28 of the Federal Law on Animal Health. WT/TPR/S/195 Trade Policy Review 
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exporting country.  In the case of live animals, insp ection may be either abroad or at the entry points 
into Mexico. 
157. In assessing conformity and carrying out inspections, the authorities are supported by a 
number of private certification bodies, inspection units and testing laboratories approved by the 
SAGARPA in accordance with the laws on animal and plant health, the LFMN and the NOMs issued 
for this purpose.  In the forestry sector, the SEMARNAT has a reference laboratory for forest 
parasitology analysis. 
158. The SENASICA has authority and responsibility for international trade-related risk analysis, 
in cooperation with other competent authorities.  This is carried out by the Epidemiological 
Monitoring Directorate of the Directorate-General of  Animal Health in the case of imports of animals, 
their products and by products, and by the Nati onal Phytosanitary Reference Centre of the 
Directorate-General of Plant Health in the case of products and by-products of plant origin.  In the 
case of forestry products, the Directorate-General of Forest and Soil Management of the SEMARNAT is responsible.  According to the Mexican author ities, risk analysis is based on the relevant 
international guidelines. 
159. In the case of plant health, the risk analysis methodology comprises three stages:  (i) initiation 
of the analysis (identification of the potential pests or quarantine diseases);  (ii) assessment of the risk 
(in terms of the potential for its establishment, disper sion, economic damage and entry);  and (iii) risk 
management (development, evaluation, comparison and selection of measures to combat it).  As regards animal health, the process includes the identification of risks, risk assessment, management 
and communication of the risk.  There is no predetermined time for the conclusion of risk analyses 
and this depends on the complexity of the case and th e availability of information and resources.  The 
State assumes the cost of risk assessment. 
160. Imports of foodstuffs, alcoholic and non-al coholic beverages, food supplements and 
pesticides are subject to sanitary c ontrol by the Ministry of Health.
125  The Agreement establishing the 
classification and codification of goods and products whose import, export, admission and exit are 
subject to sanitary regulations by the Ministry of Health determines those products which require 
prior import authorization.126  Importers of these products must be domiciled in Mexico127 and comply 
with the applicable provisions.  In addition, im ports of foodstuffs, food s upplements, beverages and 
raw materials must be accompanied by the fo llowing documents, as applicable, issued by the 
competent authority in the country of origin:  sanitary certificate or free sale certificate and laboratory 
analysis, as well as the original label and the la bel under which the product is to be marketed in 
Mexico.  For those products that do not require  a prior import licence under the General Law on 
Health, a certificate issued by the health authority in the country of origin must be submitted and the 
Ministry of Health must be informed of  the arrival and destination of the goods.128 
161. Mexico signed the Cartagena Protocol on Biosafety, which came into force on 
11 September 2003.  The Comisión Intersecretarial de Biose guridad y Organismos Genéticamente 
Modificados  – CIBIOGEM (Interministerial Commission on Biosafety and Genetically Modified 
Organisms)129 is responsible for coordinating government  policy on the production, consumption, 
                                                      
125 Articles 284 and 298 of the General Law on Health. 
126 Published in the Official Journal of the Federation of 1 November 2004. 
127 Article 285 of the General Law on Health. 
128 Article 286 bis of the General Law on Health. 
129 The CIBIOGEM is composed of those in charge  of the Ministry of Health, the SAGAR, the 
SEMARNAT, the SE, the SHCP, the Ministry of Pu blic Education and the National Scientific and 
Technological Council;  it has specialized committees to follow up specific matters. Mexico WT/TPR/S/195 
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import, export and transport of genetically modifi ed organisms (GMOs).  In accordance with the Law 
on the Biosafety of Genetically Modified Organi sms, published in the Official Journal of the 
Federation of 18 March 2005, liberalization of trade and import of any GMO is subject to the relevant 
licence issued by the competent authority (eith er the SAGARPA or the SEMARNAT depending on 
the circumstances) after a risk analysis has been  carried out on a case-by-case basis.  Licences are 
issued within a period of four months.  Subseque nt imports do not require new licences provided that 
they concern the same GMO to be used in the same area. 
162. The marketing or import of GMOs for human us e or consumption (including grains) and for 
the processing of food for human consumption requires authorization by the Ministry of Health.  After 
evaluating the technical studies submitted by the interested parties on a case-by-case basis, the 
Ministry determines whether a "letter of no objectio n to marketing" can be issued for the product in 
question.  The following are some of the biotechnological products for human consumption approved for sale in Mexico:  tomatoes, potatoes, cotton, canola and maize.
130 
163. In principle, Mexico does not impose restricti ons on imports of animals and animal products 
treated with hormones.  Nevertheless, in meat pr ocessing only the hormones listed in the agreement 
establishing the classification and requirements for ve terinary pharmaceuticals by the risk level of 
their active ingredients may be used.131  This agreement also indicates the active ingredients that are 
restricted or banned for use in animals. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
164. All exporters must submit an export declarati on to the customs, through a customs agent or 
broker, accompanied by a commercial invoice and, where applicable, documents proving compliance 
with the regulations and non-tariff restrictions on ex ports.  All exporters must be listed in the Federal 
Register of Taxpayers. 
165. In addition, pursuant to the Law on the IEPS, e xporters of beverages with an alcoholic content 
and beer, alcohol, denatured alcohol, non-crystallized  honey and processed tobacco must be listed in 
the Register of Sectoral Exporters kept by the General Customs Administration.132  This Register was 
established in 1998 in order to avoid fictitious expor ts intended to evade payment of internal taxes. 
(ii) Export taxes and duties 
166. Exports are subject to the DTA unless they are goi ng to a country that is party to a free-trade 
agreement signed with Mexico.133  The general rate is Mex$202 (a round US$18) per transaction. 
167. The products subject to the IEPS (beverages with  an alcoholic content and beer, alcohol, non-
denatured alcohol, non-crystallized honey and processed t obacco) are not subject to this tax if they are 
                                                      
130 The list of biotechnological products approved for sale may be consulted at:  
http://www.salud.gob.mx. 
131 Published in the Official Journal of the Federation of 12 July 2004. 
132 Article 19, section XI, of the Law on the IEPS, pub lished in the Official Journal of the Federation of 
30 December 1980;  the latest revisi on was published on  27 December 2006. 
133 Article 29 of the Federal Law on Duty;  latest amendment was published in the Official Journal of 
the Federation on 27 December 2006. WT/TPR/S/195 Trade Policy Review 
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exported, provided that the exporters are lis ted in the Register of Sectoral Exporters.134  The IEPS 
applies if the goods are disposed of in Mexico. 
168. Table III.7 lists the products subject to e xport taxes and the corresponding rates.  No 
minimum prices are used when applying them. 
169. In the context of the present Review, the Mexican authorities indicated that, even though the 
revenue from export taxes was insignificant, they had mainly been kept for reasons of supply in the 
domestic market. 
Table III.7 
Goods subject to export taxes 
HS heading Description Ad valorem  duty (%) 
0507.90.01 Shells and claws of tur tles and parts or waste thereof 50 
1211.90.05 Rauwolfia heterophila root 50 
1506.00.02 Turtle fat or oil 50 
2715.00.99 Other 25 
3001.90.01 Human organs or tissue for ther apeutic purposes, teaching or research 50 
3001.90.02 Biological cardiac valve prostheses 50 
3001.90.03 Bone substances 50 
3001.90.04 Phospholipids of cerebral grey matter in powder form 50 
3001.90.06 Heparionoid 50 
3001.90.99 Other 50 
3002.10.14 Human globular packages 50 
3002.90.01 Bacteriological cultures for hy podermic or intravenous injections;  
lyophilized lactic bacillus 50 
3002.90.02 Diphtheria antitoxin 50 
3002.90.03 Human blood 50 
3002.90.99 Other 50 
3301.90.05 Alcoholate, extracts or tinctures derived from Rauwolfia heterophila root 
containing the alkaloid called reserpine 50 
4301.80.03 [Skins] of wildcats, tiger ocelots and ocelots 50 
9705.00.06 Articles of historic, palaeontological  or ethnographic interest that have not 
been declared archaeological or historic monuments by the SEP 50 
9706.00.01 Antiques of an age exceeding 100 years 50 
Source : WTO Secretariat, based on the Decree cont aining the TIGIE, published in the Official  Journal of the Federation of 18 June 200 7. 
(iii) Export prohibitions and restrictions and licensing regime 
170. The export of some goods is prohibited, includi ng certain products of animal origin, plants, 
narcotics and archaeological goods.  This prohibition  is based on the commitments in international 
agreements signed by Mexico (for example, CITES),  the control of dangerous  substances (such as 
narcotics), sanitary, phytosanitary  and health reasons, and protecti on of the cultural and historical 
heritage.135 
171. A prior export licence issued by the SE is required for the export of 16 tariff headings 
(Table III.8);  the grounds for these  licences are the Mexi can State's exclusive right to exploit and 
                                                      
134 Articles 8 and 9 (section XI) of the Law on the IEPS, published in the Official Journal of the 
Federation of 30 December 1980;  the most recen t revision was published on 27 December 2006. 
135 The HS tariff headings concer ned are:  0301.9901, 0302.6902, 0303.7901, 0410.0001, 1207.9101, 
1208.9003, 1209.9907, 1211.9002, 130 2.1102, 1302.1902, 1302.3904, 2833.2903, 2903.5202, 2903.5905, 
2910.9001, 2931.0005, 2939.1101, 300 3.4001, 3003.4002, 3003.9005, 3004.4001, 3004.4002, 3004.9033, 
4103.2002, 4908.9005, 4911.9105, 9705.0005.  See the Decree containing the TIGIE, published in the Official Journal of the Federation of 18 June 2007. Mexico WT/TPR/S/195 
 Page 65 
 
 
market non-renewable natural resources, provide d by Article 27 of the Constitution. Since the 
previous Review of Mexico, the number of HS head ings subject to a prior export licence has almost 
been halved (the previous report mentioned 28 headi ngs subject to this requirement).  The procedure 
for obtaining a prior export licence (like an import lic ence) is completed with the SE;  the licence is 
free of charge and the time for a reply is 15 working days. 
Table III.8 
Goods subject to a prior export licence or no tification to the Ministry of the Economy 
HS heading  Description  
Goods subject to a prior export licence 
2709.00.99 Other (other oils obtained from petroleum or bituminous minerals, crude) 
2710.11.04 Petroleum spirit, except that included in heading 2710.11.03 
27.10.19.04 Gas oil or diesel oil and mixtures thereof 
2710.19.05 Fuel oil 
2710.19.07 Paraffin oil 
2710.19.08 Jet fuel (kerosene) and mixtures thereof 
2710.19.99 Other (petroleum oils) 
2711.12.01 Propane 
2711.13.01 Butane 
2711.19.01 Butane and propane, mi xed together, in liquid state 
2711.19.99 Other (petroleum gas and other gaseous hydrocarbons, in liquid state)  
2711.29.99 Other (in gaseous state) 
2712.20.01 Paraffin wax containing by we ight less than 0.75 per cent of oil 
2712.90.02 Micro-crystalline wax 
2712.90.04 Waxes, except those included in headings 2712.90.01 and 2712.90.02 
2712.90.99 Other (petroleum jelly, paraffin wax, petroleum wax) 
Goods subject to automatic notification of export  
0702.00.01 "Cherry" tomatoes 
0702.00.99 Other.  Except: husk tomatoes or green tomatoes 
Source: WTO Secretariat, based on the Agreement establishing the classi fication and codification of go ods whose import or export is 
subject to a prior licence from the SE, published in the Official  Journal of the Federation of 9 November 2005 and amendments 
thereto, including the most recent amendment published on 29 March 2007.  
172. In addition, two tariff headings for tomatoes are subject to an automatic notification of export 
to the SE (Table III.8).  Once this notification has be en received, an automatic export licence is issued 
and is valid for four months. 
173. Pursuant to an agreement on trade in cement between Mexico and the United States 
(March 2006), which ended the dispute at the WTO136 as well as several disputes under Chapter 19 of 
the NAFTA, exports of Mexican cement to th e United States are regulated through quotas 
administered by the SE by means of prior export licences.137 
174. Under the LCE, other Ministries belonging to the Federal Public Administration may impose 
restrictions, including prior import licensing, provid ed that these measures are submitted in advance to 
the Foreign Trade Commission for its opinion.138 
                                                      
136 United States – Anti-Dumping Measures on Cement .  Request for consultations submitted by 
Mexico:  WTO document WT/DS281/1 of February 20 03.  The Panel's work was suspended because of 
negotiations on reaching a mu tually acceptable solution. 
137 The corresponding headings are:  2523.1001, 2523.2999 and 2523.9099. 
138 Article 27 of the 1993 LCE;  th e most recent amendment was publis hed in the Official Journal of 
the Federation of 21 December 2006.  Th e products whose export is subject to  regulation by other agencies may 
be consulted at:  http://w ww.siicex.gob.mx/portalSii cex/SICETECA/SICETECA.html. WT/TPR/S/195 Trade Policy Review 
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(iv) Tariff and tax concessions 
175. Mexico promotes exports by means of tariff a nd tax concessions and administrative facilities.  
During the period under review, the main expor t support programmes were still the Maquila 
programme and the PITEX, which were amalgamate d into a single instrument in November 2006.  
The High-Volume Exporting Companies (ALTEX) programme, the Foreign Trading Companies 
(ECEX) programme and import duty drawback are still in effect. 
176. In July 2006, 3,179 companies had Maquila pr ogrammes and 3,339 had PITEX programmes.  
According to the authorities, the companies be nefiting from these two programmes accounted for 
65 per cent of Mexico's total exports and 82 per cent  of its exports of manufactures, in addition to 
employing 54 per cent of the workers in the manufacturing industry.139 
177. The authorities have indicated that at the end of 2006 there were 2,644 companies in the 
ALTEX programme, 340 in the ECEX programme and that requests for the refund of duty approved 
under the drawback programme between 2002 and 2006 amounted to 46,989. 
178. The only export programme notified to the WTO by Mexico pursuant to Article 25 of the 
SCM Agreement is the PITEX.140  Prior to the previous Review of Mexico, some WTO Members 
posed questions regarding this notification a nd expressed concern that other export promotion 
programmes such as the Maquila, ALTEX, ECEX  and drawback had not been notified.141  I n  
Mexico's view, these programmes do not comply fully with the notification requirements in Article 25 of the SCM Agreement.  During the period un der review, only one Member has commented on 
certain export promotion programmes not notified by Mexico, inter alia , some export credit and 
sectoral promotion programmes.
142  Mexico has replied to these comments.143 
179. In accordance with the SCM Agreement, Mexi co had to abolish the export-performance-
related subsidies at the latest by 31 December 2002.   Since 2001, no notifications of new or updated 
subsidies have been received from Mexico. 
(a) The Maquila and PITEX programmes and the new IMMEX programme 
180. Until November 2006, the Maquila144 and PITEX145 programmes remained in effect;  even 
though, over the period 2000 to 2003, both th ese programmes were the subject of several 
amendments146 in order to adapt them to the comm itments undertaken under the NAFTA and the 
                                                      
139 Decree amending the provisions on the promotion and operation of  the in-bond assembly industry 
for export, published in the Official Journal of the Federation of 1 November 2006. 
140 WTO documents G/SCM/N/3/MEX of 21 November 1996, G/SCM/N/38/MEX of 
17 November 1998 and G/SCM/N/60/MEX of 15 November 2000. 
141 Questions were posed by Argentina, Canada, Chile, the European Union, Poland, the Republic of 
Korea, Turkey and, the United States.  Mexico's re plies are contained in WTO documents G/SCM/Q2/MEX/11 
of 20 June 1997, G/SCM/Q2/MEX/15 of 11 February 2000, and G/SCM/Q2/MEX/17 of 25 September 2001. 
142 WTO document G/SCM/Q2/MEX/16 of 8 June 2001. 
143 Mexico's replies are contained in WTO document G/SCM/Q2/MEX/17 of 25 September 2001. 
144 Decree on the promotion and operation of the in-bond assembly industry for export, published in the 
Official Journal of the Federation of 1 June 1998 and amendments thereto of 13 November 1998, 
30 October and 31 December 2000, and 12 May and 13 October 2003. 
145 Decree establishing temporary import programmes for the production of articles for export, 
published in the Official Journal of the Federation of 3 May 1990 and amendments thereto of 11 May 1995, 
13 November 1998, 30 October and 31 December 2000, 12 May and 13 October 2003. 
146 The amendments to the Decrees on the Maquila and PITEX programmes were published in the 
Official Journal of the Federation of 31 December 2000, 12 May and 13 October 2003. Mexico WT/TPR/S/195 
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agreements with the EU and EFTA regarding rest rictions on drawback, customs duty deferral and 
waivers for non-originating products.147  As a result of these amendments, the requirements and 
benefits under the Maquila and PI TEX programmes were gradually ha rmonized.  In general terms, 
both these schemes allow companies that meet cert ain minimum export requirements temporarily to 
import raw materials, spare parts and components free of duty, except as otherwise provided in the 
FTAs signed by Mexico, and at a VAT rate of 0 pe r cent.  From 2001 onwards, temporary import of 
machinery and equipment under these programmes w as subject to payment of the corresponding 
tariffs.  Annual sales abroad exceeding US$500,000 or  exports amounting to at least 10 per cent of 
total sales are required for the temporary import of ra w materials, trailers and containers.  Exports 
accounting for at least 30 per cent of annual sales are required for the temporary import of machinery, 
equipment and various instruments.148 
181. In order to streamline procedures and lower ad ministrative costs both for companies and for 
the Federal Government, on 1 November 2006 the Decree on the Promotion of the Manufacturing and 
In-Bond Assembly ( Maquiladora ) Industry and Export Services (IMMEX) was published, 
amalgamating the Maquila and PITEX programmes into a single instrument that gradually came into 
force as of 13 November 2006.149  As a result of this amalgamation, the name of the Maquila 
programme was changed and the PITEX programme wa s terminated, even though the benefits of both 
programmes remained in effect until the IMMEX Programme entered into force fully, which was 
planned for 1 July 2007.  In October 2007, however , it was decided to defer its full application until 
January 2008.  The IMMEX Programme is for an indefinite period. 
182. The IMMEX Decree redefines the Maquila concept to include not only the industrial process 
or services for the processing, transformation or re pair of goods imported tem porarily before returning 
abroad, but also the supply of export services.  Sub-manufacturing operations are defined as industrial 
processes or services directly related to manufact uring in a company with an IMMEX Programme, 
carried out by a person other than the latter compan y's owner.  Consequen tly, sub-manufacturing does 
not only include processes that complement manuf acturing for export but also complete processes 
provided that they are related to th e operations of an IMMEX company. 
183. The IMMEX Programme can be authorized in sev eral forms;  in addition to those included 
under the former Maquila scheme (industrial, ser vices, accommodation and holding companies), a 
new form has been introduced called "tertiarization" (s hift towards the tertiary sector), which allows a 
company that does not have its own production faci lities to engage in manufacturing through third 
parties registered in the programme.  The purpo se is to respond to new business needs such as 
outsourcing and to encourage the integration of small and medium-sized enterprises into the export 
market. 
184. Under the IMEX programme, the temporary import of raw materials, parts and components is 
subject to a regime called "deferred payment of ta riffs", under which the tariff is not paid as long as 
the inputs are incorporated into a product for export;  the tariff on the temporary import of machinery 
and equipment still has to be paid.150  The provisions on the application of MFN or preferential tariffs 
on inputs contained in FTAs signed by Mexico, where applicable, still apply. 
                                                      
147 The corresponding revisions can be found in Articles 303 and 304 of the NAFTA;  Article 14 of 
Title IV of the EU FTA;  and Article 15  of Title IV of the EFTA Agreement. 
148 For further details, see:  WTO (2002), Chapter III(3)(vii). 
149 Decree amending the provisions on the promotion and operation of  the in-bond assembly industry 
for export, published in the Official Journal of the Federation of 1 November 2006. 
150 Articles 104 and 110 of the Customs Law.  See also information from the SE online.  Consulted at:  
http://www.economia.gob.m x/?P=asp_gen_immex. WT/TPR/S/195 Trade Policy Review 
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185. The VAT rate on temporary imports of raw mate rials, parts and components, and machinery 
and equipment, is 0 per cent151, whereas the general rate payable on definitive imports is 15 per cent 
(section (2)(v)).  The supply of export services under the IMMEX programme is also at a VAT rate of 
0 per cent. 
186. The IMMEX Programme also retains the stream lined administrative scheme for payment of 
income tax (ISR) and other benefits concerning the fixed assets tax (IMPAC) available to enterprises 
under the Maquila programme.  Essentially, these bene fits consist of giving Maquila companies a 
special fiscal regime by considering them to be  non-permanent establishments, thereby allowing them 
to opt for a streamlined payment scheme that may r esult in a partial reduction of the ISR and to be 
exempt from the IMPAC on inventories owned by residents abroad.152 
187. Under the fiscal legislation, in order to be eligible for the ISR benefits provided under the 
IMMEX Programme, companies must have a Maquila  contract with a foreign taxpayer in a 
jurisdiction with which Mexico has signed a doubl e taxation agreement or meet the agreement's 
requirements regarding non-permanent residence.153 
188. Companies in the IMMEX Programme that are al so registered with the SHCP as a "certified 
company" have additional benefits such as being ex empt from listing in the register of importers in 
specific sectors and they may obtain refunds of VAT payments on exports within a maximum period 
of five working days;  in general, the time lim it is 20 working days for companies in the IMMEX 
Programme alone. 
189. The minimum export requirements are more flexible under the IMMEX Programme.  For 
example, in order to import raw materials, part s, components, containers, machinery and equipment 
temporarily with the benefits of the Progra mme, a company's annual sales abroad must exceed 
US$500,000 or the company must invoice exports of at least 10 per cent of their total invoices (previously exports had to account fo r at least 30 per cent of total sales in order to import machinery 
and equipment).
154 
190. According to the authorities, the benefits of the IMMEX programme are not subject to 
minimum export requirements, although the legisla tion lays down parameters that are merely 
indicative and failure to respect them does not result in a fine or sanction. 
191. The same time limits apply fo r the return abroad of goods imported temporarily, namely, 
18 months for raw materials, parts and components;   two years for containers and trailers;  and 
throughout the life of the Programme for machiner y and equipment.  Temporary import of sensitive 
goods (some agricultural and livestock products) and te xtile products and clothing listed in Annexes II 
and III to the IMMEX Decree are subject to a time- limit of 12 months in gene ral and six months in 
certain cases.155 
                                                      
151 Article 25 of the Law on the Value-Added Tax. 
152 Article 33 of the IMMEX Decree;  Articles 2 and 216B of the Income Tax Law, published in the 
Official Journal of the Federation of 1 January 2002 and amendments thereto;  and the Tenth and Eleventh 
Articles of the Decree granting various benefits to taxp ayers as indicated therein,  published in the Official 
Journal of the Federation of 30 October 2003. 
153 Article 2 of the Income Tax Law. 
154 Article 24 of the IMMEX Decree. 
155 The SE laid down the specific requirements for the temporary import of the goods listed in 
Annexes II and III to the IMMEX Decree.  See the Third Amendment to the Agreement by which the SE issued Mexico WT/TPR/S/195 
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192. Other requirements to be met by companies in order to be eligible for the IMMEX 
Programme are to keep a computerized inventory a nd to submit an annual repor t on their operations to 
the SE. 
193. At mid-July 2007, IMMEX Programmes had been authorized for around 6,064 companies.  
There are no economic analyses of the costs and benefits expected under the IMMEX Programme or 
those under the Maquila and PITEX programmes which preceded it. 
(b) Other fiscal and administrative facilities 
194. The Import Duty Drawback Programme for Exporters156 allows beneficiaries to obtain refund 
of duty paid on raw materials, parts and components, spare parts, containers and packaging, fuel and 
other materials incorporated into goods for e xport or goods that are re -exported without being 
transformed.  The Programme has been amended twice to bring it into line with the restrictions under 
the NAFTA (as of 2001) and in agreements with  the EU and the EFTA (as of 2003) concerning 
drawback of import duty on non-originating inputs.  The drawback request must be submitted within 
12 months following the date of the import declarati on and export must take place within this period, 
and within 90 working days as of the date of the export declaration. 
195. The ALTEX Programme157 is intended to provide e xporters with support through 
administrative facilities.  Non-petroleum exporters  of goods exporting directly for an amount of 
US$2 million or the equivalent of 40 per cent of their annual sales are eligib le for the Programme;  
producers with indirect exports corresponding to 50 per cent of their annual sales and foreign trading 
companies are also eligible. 
196. Benefits under the ALTEX include the refund of VAT within five working days;  free access 
to the trade information system of the SE;  ex emption from the requirement to carry out a second 
inspection of goods for export at the customs point of exit when the goods have been cleared at an 
internal customs post;  and the possibility of ap pointing a customs broker to operate at several 
customs posts for different products.  In addition to the minimum export requirement, an annual report 
on foreign trade operations has to be submitted to the SE. 
197. The objective of the ECEX Programme158 is to promote exports by small and medium-sized 
enterprises through administrative facilities and fina ncial support from the development banks.  It is 
intended for two types of enterprise: "export cons olidators", which must have minimum capital of 
Mex$2 million and export the products of at least five  producers;  and "export promoting" companies, 
which must have minimum capital of Mex$200,000 and export goods of at least three producers. 
198. Benefits under the ECEX include immediate rece ipt of a declaration as an ALTEX company;  
a discount of 50 per cent on the cost of non-financial services determined by the Foreign Trade Bank;  
and financial support, training and technical assist ance services from the National Finance Company.  
ECEX enterprises undertake to export goods for a minimum value of US$250,000 in the case of 
promoting companies andUS$3 million for consolidat ors during the first fiscal year following their 
                                                                                                                                                                     
General Rules and Criteria for Foreign Trade, publis hed in the Official Journal of the Federation of 
8 March 2007. 
156 Decree establishing the drawback of import duty for exporters, published in the Official Journal of 
the Federation of 11 May 1995 and its latest amendment of 29 December 2000. 
157 Decree on the promotion and operation of high-volume exporting companies and revisions thereof, 
published in the Official Journal of the Federation of 3 May 1990, 17 May 1991 and 11 May 1995. 
158 Decree regulating the establishment of foreign trading companies, published in the Official Journal 
of the Federation of 11 April 1997. WT/TPR/S/195 Trade Policy Review 
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registration;  in addition they must keep comput erized inventories and submit an annual report on 
their foreign trade operations to the SE. 
(v) Export financing, insurance and guarantees 
199. Financial support for the export sect or is still mainly through the Banco Nacional de 
Comercio Exterior  – BANCOMEXT (National Foreign Trade Bank), which acts as the Federal 
Government's development bank specializing in fi nancing and promoting e xports and has its own 
legal status and assets. 
200. BANCOMEXT gives short, medium and long-te rm loans, and guarantees and insurance to 
direct or indirect exporters, particularly small a nd medium-sized enterprises.  The main instruments 
used by the Bank to provide financial support are:   loans to exporting companies to finance their 
working capital, export sales and export-related invest ment projects;  lines of credit for importers of 
Mexican goods and services;  insurance, colla teral and pre- and post-export guarantees for 
commercial financing;  as well as other financial se rvices to facilitate export transactions such as 
letters of credit and trust fund services (Table III.9). 
201. In addition to acting as a first-tier bank, BANCOMEXT operates through banking and non-
banking financial intermediaries in  order to expand the scope of its services and access to credit by 
companies.  During the first half of 2007, BANCOMEXT distributed US$2,017 million in support of foreign trade activities, of which US$106 million (5.2 per cent) were channelled through the 
commercial banks and other financial intermediaries. 
202. Of the US$2,017 million distributed by B ANCOMEXT between Janua ry and June 2007, 
94.8 per cent was channelled directly as follows:  87 .5 per cent to the private sector, 6.8 per cent to 
the public sector and 0.5 per cent in guarantees.  This distribution reflects the Bank's strategy of 
focusing its efforts on the private sector, whose fina ncing increased by 46 per cent in comparison with 
the same period the previous year.  Of the total fi nancing, 87 per cent was granted through short-term 
instruments intended to finance needs related to  the production cycle and sales, and the remainder 
through long-term instruments to finance investment  projects and strengthen the financial structure of 
exporting companies. 
Table III.9 
Credits and financial services from the National Foreign Trade Bank (BANCOMEXT)  
Loans 
Credits for export sales To facilita te foreign trade transactions 
Credits for the production cycle To ensure c ontinuity of exporters' production processes 
Credits for buyers of Mexican exports  To facilitate export transactions 
Credits for purchasing equipment To guarantee the continuity of exporters' production processes 
Credits for investment projects To guarantee the continuity of exporters' production processes 
Simplified scheme for small and 
medium-sized enterprises  Credits for working capital or for buying machinery and equipment for a maximum of 
US$250,000 
Financial services 
Trust fund services To support comp anies' financial management  
Letters of credit To  facilitate foreign trade transactions 
Guarantee programme To facilitate  foreign trade transactions 
Investment bank To support compan ies' financial management  
Cash flow services Technical and financ ial advice in support of exporting companies 
 Tale III.9 (cont'd)
 Mexico WT/TPR/S/195 
 Page 71 
 
 
 
Risk capital 
Risk capital Risk capital to incr ease companies' capitalization  
 Other support schemes:  BANCOMEXT 
Development of suppliers Credits and financia l services to facilitate import substitution 
Young business creativity Temporary capital for projects and compan ies of young professionals to allow them to set up or 
consolidate small enterprises 
Source:  WTO Secretariat, based on information on line published by the CIPI.  Consulted at:  h ttp://www.cipi.gob.mx/ desc_prog_ 
apoyo.pdf [31 May 2007]. 
203. The sectors with the major share of BANCOMEXT financing from January to June 2007 
were (their percentage of the total is shown in brackets):  the agricultural sector (30.2), services 
(24.1), electrical-electronics sector (10.9), and building materials (8.5).159 
204. Through its subsidiary Bancomext Insura nce, BANCOMEXT provides export credit 
insurance and guarantees to support exports and fac ilitate access to credit.  The guarantees protect 
exporters and commercial banks from the risk of default on the credit granted from the start of 
production until the goods or services for export are marketed. 
205. Bancomext Insurance provides two types of guarantee:  financial guarantees and guarantees 
against political risk.  Financial guarantees are ch annelled through the commercial banks and are 
intended to facilitate the financing of working capita l, export sales and investment projects for direct 
or indirect exporters;  they cove r between 50 to 70 per cent of the cr edit granted to the companies.  
Political risk guarantees (or post-export guarantees) are given to direct exporters in order to protect 
them against the possibility of non-payment by a buyer abroad for political reasons;  the guarantee 
covers up to 90 per cent of the value of the export invoice.  Between January and June 2007, 
BANCOMEXT insured and guaranteed operations amounting to US$134 million.160 
206. During the period under review, BANCOMEXT experienced financial problems and has 
become less competitive than major international ba nks.  According to stud ies by the World Bank and 
the International Monetary Fund, BANCOMEXT has been the only Mexican development bank 
whose financial accounts have not shown positive resu lts or a solid capitalization position in recent 
years.  According to both studies, this situation is caused, inter alia , by the continual losses incurred 
by BANCOMEXT as a result of its export promotion activities.161  Until recently, this function was 
financed through BANCOMEXT's other activities (cross subsidization) instead of through financial 
contributions from the Federal Government's budget,  as is the case for trade promotion activities in 
other countries. 
207. In addition, BANCOMEXT's problems have b een exacerbated by its large amount of non-
performing assets and by the impossibility of recove ring some large debts that have resulted in 
proceedings before the courts.  For example, acco rding to the review of public accounts in 2003, 
prepared by the Federation's Principal Audit Offi ce, at that date the am ount of BANCUBA's debts 
accounted for 61 per cent of BANCOMEXT's portfolio at dispute and amounted to Mex$5,982 
million (some US$533 million), increasing the need to create contingency reserves for credit risks, a situation that affected BANC OMEXT's financial situation.
162  In December 2005, the Federal 
                                                      
159 Data provided by BANCOMEXT. 
160 Ibid. 
161 World Bank (2006), pages 28-31;  IMF (2006a), pages 16-18. 
162 Principal Audit Office of the Federation, report on  the results of the review and principal audit of 
the public accounts of 2003, page 583. WT/TPR/S/195 Trade Policy Review 
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Government provided Mex$1, 500 million (some US$140 m illion) for BANCOMEXT's 
capitalization.163 
208. At the end of 2007, BANCOMEXT was in the pr ocess of institutional reorganization with the 
aim of making it into a financially solid organization on a world scale with processes that clearly 
focused on the client and in particular SMEs belo nging to the export chain.  For this purpose, a 
strategy based on new credit policies is being implemen ted, together with the extension of guarantees 
and new financial alternatives in or der to operate through intermediari es and thus provide financing to 
companies that have so far been underserved. 
209. The National Finance Company, another Mexi can development bank, also provides support 
for exports through several foreign trade fina ncing programmes (see section (4)(iii) below). 
210. Mexico does not take part in the OECD's Arrangement on Officially Supported Export 
Credits. 
(vi) Export promotion 
211. During the period under review, export promotion activities continued to be the responsibility 
of private organizations and the government sector, the latter mainly through the SE and 
BANCOMEXT.  It should be noted that, as of mid-2007, the BANCOMEXT's export promotion tasks 
became the responsibility of a new semi-State body called ProMexico. 
212. The Comisión Mixta para la Promoción de las Exportaciones  – COMPEX (Joint Export 
Promotion Commission) is responsible for promoti ng exports by agreeing on action to streamline 
administrative procedures and overcome the technical  barriers faced by exporters.  The Commission 
is chaired by the SE and is composed of representatives of other Ministries164, the BANCOMEXT and 
the private sector.  The COMPEX acts as a mechan ism for consultation and coordination to enable 
dialogue between the exporting sector and government officials and operates at the national, regional 
and state levels.  Support from the COMPEX is main ly aimed at small and medium-sized enterprises 
to bolster their foreign trade projects and promote an "export-oriented outlook". 
213. During the period 2001-2006, the main problems raised by exporters in the COMPEX context 
concerned customs operations, non-tariff regulations , certificates of origin, promotion programmes 
and completing import/export declarations.165 
214. The SE also implements the Export Offer Pr ogramme with the aim of encouraging the 
permanent incorporation of micro, small and medi um-sized enterprises into export activities.  
Promotion is through a network of 56 business suppor t centres located in Mexico and other countries 
which provide training, technical assistance and identification of business opportunities for small 
exporting companies or those with export potentia l.  The Programme is financed by SME Fund 
resources.  According to the SE's estimates, at th e end of 2006 there were 5,958 companies involved 
in exporting with support from the SME Fund (arou nd 10 per cent of the total number of exporting 
SMEs).166 
215. The Sistema Nacional de Orientación al Exportador  – SONE (National Scheme for Guidance 
                                                      
163 Idem , page 255. 
164 These are the Ministries of:  Foreign Relations;  Finance and Public Credit;  Agriculture, Livestock, 
Rural Development, Fisheries and Food;  Communication and Transport;  and Labour and Social Welfare. 
165 Ministry of the Economy (2006c), page 105. 
166 Ibid. Mexico WT/TPR/S/195 
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to Exporters) is another promotion instrument th at provides information on export opportunities, as 
well as free guidance and advice to companies on export-related issues through 62 advisory units 
throughout Mexico. 
216. Up to mid-2007, BANCOMEXT offered various export promotion services.  In particular, it 
gave small and medium-sized enterprises techni cal assistance to identify business opportunities in 
foreign markets and to support their production, ex port and marketing efforts.  BANCOMEXT also 
supported participation by Mexican companies in in ternational fairs and provi ded training, technical 
assistance and specialized advice on trade regulations in various export markets.  According to data 
provided by BANCOMEXT, as a result of the promo tion services given to exporters, from January to 
June 2007 sales abroad generated US$1,058 million. 
217. On 13 June 2007, a decree creating a governme nt body called ProMexico was published in 
the Official Journal of the Federation.167  It will act as a specialized body of the Federal Public 
Administration with the aim of promoting exports an d foreign investment.  The trust fund will have a 
Technical Committee chaired by a representative of  the SE and composed of representatives of 
various government agencies168 and the private sector.  Its principal responsibilities will be to advise 
Mexican companies, particularly small and medi um-sized companies, on their export activities, 
promoting the sale of their products and services on the international market.  ProMexico will initially 
have a budget of Mex$800 million (arou nd US$72 million) for this purpose. 
218. In the preamble to the aforementioned Decree, it is explained that coordination and 
concentration of activities to promote trade and attr act foreign investment will prevent duplication of 
functions and structures and will orient governme nt resources to measures that have the greatest 
impact on export promotion.  Following the crea tion of this trust fund, the BANCOMEXT's export 
promotion activities will come under the scope of ProMexico. 
219. Some states in the Mexican Republic also have  programmes specifically designed to promote 
exports by providing technical assistance, advice and help in identifying sales opportunities abroad;  
these include the states of Baja California, Durango,  Guanajuato, Jalisco, Morelos, Puebla, Querétaro 
and Veracruz. 
(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Establishment and taxation of companies 
220. The establishment, operation and liquidation of commercial corporations are governed by the 
1934 General Law on Commercial Corporations  and the 1993 Foreign Investment Law.169  The SE is 
responsible for the National Register of Foreign I nvestment and for the Public Commercial Register, 
the latter in coordination with the governments of the Federation's 32 states. 
221. Commercial corporations may be set up as gene ral partnerships, lim ited partnerships or 
partnerships limited by share capital, public lim ited companies, limited liability companies or 
cooperatives; any of these types of company, with the exception of cooperatives, may be established 
                                                      
167 Decree establishing the public trust fund deem ed to be a Government-controlled entity called 
ProMexico, published in the Official Journal of the Federation of 13 June 2007. 
168 Namely, the Ministries of:  Foreign Relations;  Finance and Public Credit;  the Environment and 
Natural Resources;  the Economy;  Agriculture, Livestock, Rural Development, Fisheries and Food;  and 
Tourism;  together with a repr esentative of BANCOMEXT, S.N.C. 
169 The latest revisions of the General Law on Commercial Corporations and the Foreign Investment 
Law were published in the Official Journals of the Federation of 28 July 2006 and 18 July 2006, respectively. WT/TPR/S/195 Trade Policy Review 
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as an open capital company.  The most common types of company in Mexico are public limited 
companies and limited liability companies. 
222. Public limited companies must have a minimum of two shareholders, registered capital of not 
less than Mex$50,000 (approximately US$4,500) and th eir shares may be held by private shareholders 
or be offered to the public.  A public limited comp any is owned by its shareholders and the latters' 
liability is limited to the capital paid up.  They may be managed by a single director or by a board of 
directors, which may include foreigners provide d that the articles of association do not provide 
otherwise or such participation is not contrary to special legal provisions.  Limited liability companies 
must not have more than 50 partners and their registered capital must not be less than Mex$3,000 
(around US$271).  The partners' liability is limited to  the capital paid up and any change in the 
company's structure must be approved by shareholde rs owning the majority of the capital, unless the 
articles of association state otherwise.170 
223. Foreign companies may act through an agency, branch, subsidiary, joint enterprise or by 
purchasing shares or assets in companies already existing in Mexico.  In order to set up a new 
company, a national or foreign enterprise must obtain a non-automatic permit from the Ministry of 
External Relations (SRE), so as to avoid duplication of  trade names; the Ministry must grant or reject 
the request for such a permit within a maximum peri od of five working days, after which the request 
is deemed to have been approved.  Within 90 working days of the date on which the permit was 
obtained, the company must be registered in th e Public Commercial Register in the area of the 
Federation where the company is domiciled.  Also w ithin 40 calendar days of the date of registration 
in the Public Commercial Register, the company mu st be registered in the National Register of 
Foreign Investment.171  It must also be registered in the Federal Register of Taxpayers in order to 
obtain a tax number, without which it cannot start to operate.172 
224. The number of procedures, the time taken a nd the cost involved in establishing a company 
vary considerably in the Federation's 32 states.   A World Bank study indicates that, to set up a 
company in the State of Nuevo León (which o ccupies first place as far as the ease with which a 
company can be set up is concerned), eight procedur es have to be completed, which last on average 
24 days and cost an average of US$1,092 (corresponding to 9.7 per cent of per capita GDP in Nuevo León), whereas in the State of Veracruz (in last place) ten procedures are necessary, lasting an average of 46 days and at an average cost of US$995 (corresponding to 27.6 per cent of per capita 
GDP in Veracruz);  in the Federal District (DF) ei ght procedures are required, lasting an average of 
27 days at an average cost of US$2,217 (corr esponding to 14.2 per cent of per capita GDP in the 
DF).
173  Also according to this study, Mexico is one of the ten economies surveyed that made the most 
positive reforms in its business re gulations between 2005 and 2006. 
225. In January 2002, the Sistema de Apertura Rápida de Empresas – SARE (Rapid Business 
Start-Up System) was introduced in order to stre amline the administrative procedures required for the 
creation of new companies.  The SARE reduces the time taken to open a company to 72 hours or less 
                                                      
170 General Law on Commercial Corporations of 4 August 1934. 
171 Articles 15-16 of the Foreign Investment Law published in the Official Journal of the Federation of 
27 December 1993 and Articles 13-18 of the Implemen ting Regulations for the Foreign Investment Law, 
published in the Official Journal of the Federation of 8 September 1998. 
172 Article No. 27 of the Federation's Tax Code, whose most recent revision was published in the 
Official Journal of the Federation of 27 December 2006. 
173 World Bank (2007). Mexico WT/TPR/S/195 
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and is in effect in 125 of the 2,454 municipalities in  Mexico.  According to official data, between 
May 2002 and June 2007, around 115,000 ne w companies were set up under the SARE.174 
226. In addition to VAT and the IEPS (described in  section (2)(v)), the principal federal taxes 
applicable to companies in Mexico are income tax (ISR), the assets tax and the flat rate business tax 
(IETU), as well as certain social contributions (T able III.10).  The distribution and remittance of 
dividends abroad is exempt from income tax. 
Table III.10 
Principal taxes applicable to companies and natural persons engaged in business activities 
Tax  Legal framework/scope Rate (%) 
Income tax  Income Tax Law of 1 January 2002.  Tax on profit-making activities by companies 
resident in Mexico.  The income of companie s established in Mexico by non-residents or 
the income received by non-residents from Mexican  sources are also subject to this tax.  
Dividends paid to resident companies are ex empt from the tax if they are distributed 
according to the Law.  Activities relating to agriculture, fishing and publishing receive a 
discount of up to 50% of the tax. 28% of 
companies' net 
income and 3-28% of the net 
income of natural 
persons.  
Assets tax  Assets Tax Law of 31 December 1988.  Th is tax applies to the assets of natural persons 
engaged in business activities, of companie s resident in Mexico and companies not 
resident in Mexico but with assets in Mexi co.  During the first three years of operation, 
companies do not have to pay this tax. 1.8% on assets 
Flat rate business tax Law on the Flat Rate Business Ta x of 1 October 2007.  This tax applies to natural and 
legal persons resident in Mexico or resident  abroad but with a pe rmanent establishment 
in Mexico.  The taxable base is the income  received for disposing of goods, supplying 
services or allowing the use of goods, irre spective of the place wher e these occur.  The 
tax should come into effect in January 2008. 16.5% in 2008; 
17.0% in 2009; 
17.5% in 2010 and beyond. 
Contribution to the 
IMSS  Social Welfare Law of 21 December 1995.  The employer must retain and pay to the 
Instituto Mexicano del Seguro Social  – IMSS (Mexican Soci al Welfare Institute) 
contributions relating to:  (a) sickness and maternity;  (b) disability;  (c) retirement and 
pensions;  and (d) risks at work. (a) 8.75%;  (b) 
2.8%;  (c) 5.15%;  
(d) 5.4 – 7.5% of 
employees' wages 
Contribution to the INFONAVIT  Law on the Instituto del Fondo Nacional del Vivienda para los Trabajadores  – 
INFONAVIT (Workers' National Housing Fund Authority) of 24 April 1972.  The 
employer must contribute to the INFONAVIT, which is used to finance the purchase and 
building of housing. 5% of employees' 
wages  
Source:  Ministry of Finance and Public Credit 
227. The states and the DF apply the real estate tr ansfer tax and the municipalities apply the land 
tax; the rates vary according to the value of the r eal estate and are determined by the states, the DF 
and the municipalities.  In 2005, one state (Guanajuato)  also imposed a schedular tax on the income of 
natural persons earned from their business activities or  the supply of professional services.  This tax 
may be credited against the ISR and is at a rate of 2 per cent.  It should be noted that all the other 
states are legally authorized to introd uce such a tax if they so decide.175 
228. In order to avoid double taxation, Mexico h as signed tax agreements with 34 countries, 
including its principal trade partners.176  Since 2002, agreements have been signed with the following 
countries (the dates of publication in the Official J ournal of the Federation are shown in brackets):  the 
Czech Republic (13 November 2002), Indonesia (26 June 2003), Australia (30 December 2003), 
                                                      
174 COFEMER (2007). 
175 Article 43 of the Value Added Tax Law, whose most recent revision was published in the Official 
Journal of the Federation of 18 July 2006. 
176 Mexico has signed such agreements with:  Argen tina, Australia, Austria, Belgium, Brazil, Canada, 
Chile, China, the Czech Republic, De nmark, Ecuador, Finland, France, Germany, Greece, Indonesia, Ireland, 
Israel, Italy, Japan, Luxembourg, the Netherlands, Ne w Zealand, Norway, Poland, Portugal, the Republic of 
Korea, Romania, Singapore, Spai n, Sweden, Switzerland,  the United Kingdom and the United States,  WT/TPR/S/195 Trade Policy Review 
Page 76 
 
 
Brazil (28 May 2004), Austria (28 October 2004), Greece (3 March 2005), and the People's Republic 
of China (26 January 2006). 
(ii) Competition policy and price controls 
(a) Competition policy 
229. The main general provisions on competition polic y are to be found in the Federal Law on 
Economic Competition (LFCE) of 1993, which was revised by a Decree published in the Official 
Journal of the Federation of 28 June 2006.  Th e Implementing Regulations for the LFCE were 
published in the Official Journal of the Federa tion of 12 October 2006 and repealed those of 
4 March 1998.  They establish definitions, inter alia , for substantial market power, monopolistic 
practices and the relevant market.  Pursuant to  the LFCE, the following economic agents are not 
deemed to be monopolies:  legally-constituted wo rkers' associations; privileges conferred by 
copyright and patents; cooperative export associations  that do not sell or distribute their products in 
Mexico; and activities to which the State has an exclus ive right in strategic sectors which, by law, are 
reserved to the State (see Chapter II(4)(ii)).  Ne vertheless, the LFCE determines that even these 
economic agents are subject to the rules govern ing anti-competitive conduct in their respective 
markets, unless they are expressly protected under the Constitution. 
230. The Comisión Federal de Competencia – CFC (Federal Competition Commission) is 
responsible for implementing the LFCE and is  empowered to conduct investigations, issue 
administrative resolutions and impose conditions a nd sanctions for anti-competitive practices.  The 
CFC is a decentralized body of the SE with techni cal and operational autonomy, although it does not 
have financial autonomy.  The CFC has power to  impose financial sanctions;  the resources are 
transferred directly to the SE.  The CFC is composed of five commissioners (one of whom chairs the Commission), appointed by the President of the Mexico for a period of ten years in interims between presidential elections.
177 
231. Commissions which regulate specific sectors such as telecommunications and energy do not 
have any direct involvement in implementing the LFCE.  The latter, however, empowers the 
Comisión Federal de Telecomunicaciones – COFETEL (Federal Telecommunications Commission) 
to issue specific regulations (for example, fixi ng tariffs or minimum quality requirements) for 
concessionaires of public networks declared by the CF C to be agents with substantial market power.  
Likewise, the Comisión Reguladora de Energía – CRE (Regulatory Commission for Energy) may 
issue specific regulations in cases where the CFC d eclares that there are no effective competition 
conditions.  The CFC may also issue binding or non-binding opinions on acts by any regulatory 
authority that may restrict competition. 
232. The CFC has developed programmes to encourag e competition and has played a more active 
role in discussion of sectoral regulatory issues, gi ving 11 opinions on legislative initiatives in 2006.178  
By mid-2007, however, the CFC had not issued any binding opinion. 
233. The CFC has sought to protect competition in Mexico by analysing cases and applying 
remedial measures.  During the period 2001-2006, it dealt with a total of 5,986 cases, compared to 
2,628 during the period 19 94-2000.  Of these, 1,431 (24 per cent) concerned mergers, 313 (5 per cent) 
monopolistic practices and other restrictions on co mpetition, 3,521 (59 per cent) tenders, concessions 
and licences, 224 related to enquiries (4 per cent) a nd 491 (8 per cent) to requests for review.  During 
the period 2001-2005, the CFC authorized an averag e of 91 per cent of the mergers examined without 
                                                      
177 Information from the CFC online.  Consulted at:  http://www.cfc.gob.mx. 
178 CFC (2006). Mexico WT/TPR/S/195 
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imposing conditions; it approved virtually all requests for participation in tenders, concessions and 
licences; and issued sanctions and/or recommenda tions in 15 per cent of the total cases of 
monopolistic practices or other competition-restric ting conduct investigated.  In the case of requests 
for review, 59 per cent of the decisions examined  were confirmed, 23 per cent rejected and the 
remaining 17 per cent were modified or annulled. 
234. In 2004, a peer review of Mexico's compe tition legislation and policy took place in the 
OECD's Competition Committee based on a report on competition in Mexico.179  The report 
underscored the highly analytic quality of the LFC E and its Implementing Regulations, as well as 
consolidation in the LFCE of authority to make the market power determinations that not only apply 
to cases involving mergers and monopolistic conduct but also the granting of concessions and sectoral 
licences.  The OECD emphasized that the CFC had b ecome a credible organization that applied best 
principles of management and the highest standards of public service. 
235. On the other hand, the OECD report stated th at the degree of general support for competition 
policy remained an open question in Mexico a nd a possible source of vulnerability.  The report 
indicated that the weakness of certain statut es and judicial processes (including especially the amparo 
process180), added to the decline in the CFC's budget a nd staffing levels, constrained its ability to 
remedy anti-competitive conduct.181  Other issues considered problematic by the OECD have been 
overcome by reforming the LFCE. 
236. In 2006, Congress approved a series of reforms of the LFCE.182  These introduced three main 
changes:  (i) they clarified the procedures adopted by  the CFC;  (ii) they reinforced the CFC's powers, 
for example, by increasing the amount of sanctions;  and (iii) the binding nature of the CFC's opinions 
on government programmes and policies in regulated  sectors was strengthened.  In addition, the 
reforms to the LFCE expressly determined that five  additional monopolistic practices were illegal and 
introduced an immunity programme, giving the CFC greater powers to combat monopolistic practices. 
237. The CFC may initiate investigations into monopolistic conduct, prohibited mergers or 
restrictions on inter-state trade either ex officio  or at the request of a party.  Pursuant to the LFCE, an 
investigation lasts 30 to 120 days, which may be extended by a maximum of 480 days when there are 
duly justified reasons.  At the conclusion of the i nvestigation, a resolution is issued under which the 
CFC may close the case or impose sanctions and/or cond itions.  The parties involved have 30 days in 
which to lodge an appeal for revi ew of the resolution with the CFC and the latter has five days to 
communicate its decision on the appeal to the parties. 
238. Once an investigation has been initiated, th e CFC may send official letters requesting 
information from the parties involved and the latter may request amparo proceedings against the said 
decision before a district court.  The judge in th e district court may nullify the official letters and 
accordingly oblige the CFC not to take into account th e information contained therein.  Likewise, if 
the parties do not agree with the final resolution, they may bring an amparo suit before a district court 
or administrative litigation before the Federal Tri bunal for Fiscal and Administrative Justice.  These 
actions are mutually exclusive and can only be initia ted against resolutions issued by the CFC during 
the review process because this is when a CF C resolution is deemed to be definitive. 
                                                     
 
179 OECD (2004). 
180 In an amparo process, it is decided whether an unconstitutional statute has been applied or the 
regulatory procedure has not been followed. 
181 OECD (2004). 
182 Decree published in the Official Journal of the Federation of 28 June 2006. WT/TPR/S/195 Trade Policy Review 
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239. District courts have frequently granted motions  to stay the CFC resolutions (including fines) 
during the review of the sentence's legality.183  The CFC has also pointed out that these cases may 
take several years to resolve.  Nevertheless, since 2004, the number of amparo suits has shown a 
marked decline and in 2007 the CFC won the majority of cases. 
240. Despite the CFC's increased activity and the refo rms introduced in recent years, there are still 
large monopolies or limited levels of competition in several key sectors of the economy such as 
electricity, hydrocarbons extraction and refining, te lephony, television, some  financial services, 
railways, and in the maize-tortilla chain (see (ii) below). 
241. The free trade agreements with the United Stat es and Canada, Chile, Colombia, the European 
Communities, Israel and Uruguay, as well as th e Economic Association Agreement with Japan, 
contain special provisions on competition policy.  Me xico has also signed bilateral agreements on 
competition with the United States, Canada, Chile and the Republic of Korea.184 
(b) Price controls 
242. The LFCE governs price controls, giving the SE th e power to determine the price of products 
and services, but only in those markets where the CF C declares that there are no effective competition 
conditions.  This is intended to ensure that pri ce controls are not used for political purposes or in 
response to pressure by economic groups.  The SE is  also empowered to coordinate the necessary 
measures with producers or distributors in an e ffort to minimize the effects on competition and free 
price comparison.  The PROFECO, coordinated by th e SE, is responsible for inspection, monitoring 
and sanctions relating to controlled prices. 
243. All petroleum-based fuels, as well as petrochemicals, are subject to official prices 
administered by the SHCP; the price of natural gas and liquefied petroleum gas is also administered 
by the Regulatory Commission for Energy.185  Electricity rates are set by the Federal Electricity 
Commission (see Chapter IV(4)).  Tariffs for public se rvices, including public transport, the supply of 
water and professional services and the services of public notaries, are determined at the state or local level. 
244. Medicines are still subject to an official price regime.  Pursuant to the agreement between the 
SE and the pharmaceutical industry, pharmaceutical la boratories determine the formulas used to 
establish maximum selling prices to the public, as we ll as the dates for their revision and the amount 
of the adjustment.  The price of generic medi cines is freely determined by the manufacturers.
186 
245. In January 2007, the Government signed an agreement with companies involved in the 
production and marketing chain for tortillas, whic h terminated in August 2007, under which the 
companies undertook not to raise the price of their products.187  At the same time, in order to ensure 
supplies for manufacturing tortillas, changes were ma de to the allocation of import quotas for white 
maize (see Chapter IV(2)).  The CFC also initiated an investigation ex officio in order to detect 
                                                      
183 OECD (2004). 
184 CFC information online.  Consulted at:  h ttp://www.cfc.gob.mx/index.php?option=com_content& 
task=view&id=1063&Itemid=138. 
185 Basic Law on the Public Admi nistration of 29 Decembe r 1976, Planning Law of 5 January 1983, 
and Law on the Regulatory Commission for Energy of 31 October 1995. 
186 PROFECO information online.  Consulted at:  http://www.profeco.gob.mx/encuesta/brujula/ 
bruj_2006/ bol08_preciomax1.asp. 
187 Information from the SE online.  Consulted at:  http://www.economia.gob.mx/. Mexico WT/TPR/S/195 
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possible monopolistic practices in the maize-tortilla chain and, if necessary, to adopt public policy 
measures to boost competition in this chain. 
(iii) Incentives 
(a) Overview 
246. Mexico has a large number of sectoral promotion programmes (section (b) below) and 
business support programmes.  The latter are mainly  intended for micro, small and medium-sized 
enterprises and basically consist of financial assist ance, tax concessions and administrative facilities; 
other measures include technical assistance, tr aining and business advice.  The 2007-2012 National 
Development Plan establishes a strategy for comp rehensive assistance to SMEs through financing, 
training, management, technological and marketi ng innovation.  The support measures for export are 
described in section (3)(iv) above, while those for th e agricultural sector are set out in Chapter IV(2)). 
247. The objective of the Comisión Intersecretarial de Política Industrial – CIPI (Interministerial 
Industrial Policy Commission) of the SE is to c oordinate and evaluate business support programmes 
and action by Federal Government agencies and entiti es.  The CIPI is chaired by the SE and also 
includes those in charge of several ot her Ministries and government agencies.188 
248. The CIPI keeps an inventory of the Mexican Government's industria l promotion programmes 
and instruments and this may be consulted on the Internet.189  At the end of October 2007, the CIPI 
inventory included 154 support programmes, with  the SE and the SHCP being the Federal 
Government entities that had the largest number of instruments (Table III.11). 
249. One of the CIPI's other tasks is to evaluate the impact of business support programmes.  
According to a survey of the situation in small and medium-sized enterprises, in 2002, only 9 per cent 
of Mexican SMEs were involved in export (21 pe r cent in the case of manufacturing SMEs) and the 
destination of their exports was highly c oncentrated (North and Central America).190  The reasons 
given by the enterprises surveyed for their low level of export ma inly concerned factors in their 
environment:  the scarcity and high cost of trans port, the slow pace and excessive number of customs 
formalities, the high cost of information on export ma rkets, and the unsatisfactory rates and terms of 
financing.  The endogenous factors that limited e xport capacity mainly concerned the organizational 
and production capacity inadequacies of the enterprises.191 
Table III.11 
Federal programmes in support of indus trial activity by entity, October 2007 
Programme Number 
Total 154 
Federal Government agency or body  
 Ministry of the Economy (SE) 56 
 Ministry of Finance and Public Credit (SHCP) 23 
 Ministry of Agriculture, Livestock, Rura l Development, Fisheries and Food (SAGARPA) 15 
 Ministry of Labour and Social Welfare (STPS) 8 
Table III.11 (cont'd)  
                                                      
188 The Ministries of Agriculture, Livestock, Rural Development, Fisheries and Food;  Social 
Development;  Public Education;  Public Administrati on;  Finance and Public Credit;  the Environment and 
Natural Resources;  Labour and Social Welfare;  and To urism;  as well as representatives of BANCOMEXT, 
NAFIN and the National Science and Technology Council.  The Ministry of Agrarian Reform is also invited. 
189 The inventory appears on http://www.cipi.gob.mx. 
190 CIPI (2003).  Survey conducted  by the SE and the Inter-Ameri can Development Bank in 2002 and 
published by the CIPI. 
191 CIPI (2003), pages 55-57. WT/TPR/S/195 Trade Policy Review 
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Programme Number 
 Ministry of Tourism  8 
 National Foreign Trade Bank (BANCOMEXT) 8 
 National Finance Company, S.N.C. (NAFIN)  8 
 Ministry of the Environment and Natural Resources (SEMARNAT) 7 
 Ministry of Social Development (SEDESOL) 6 
 National Science and Technology Council (CONACYT) 6 
 Ministry of Public Administration  4 
 Ministry of Agrarian Reform 3 
 Ministry of Public Education (SEP) 2 
Source: CIPI, Description of the Federal Government's business support pr ogrammes included in the CIPI inventory [on line].  Consulted 
at:  http://www.cipi.gob.mx/html/body_pr ogramas_de_apoyo.htm [31 October 2007]. 
250. In addition to the promotion programmes implem ented at the Federal level, the states also 
have mechanisms to promote economic activities.  In  general terms, the suppor t consists of financial 
assistance channelled to specific economic agents, main ly micro, small and medium-sized enterprises 
through trust funds.  In some cases, the assistance ma y also include tax concessions.  In October 2007, 
the CIPI's inventory contained information on around 531 programmes in 31 states.192 
(b) Tax incentives 
251. In August 2002, the Decree establishing Various Sectoral Promotion Programmes 
(PROSECs) was issued193 with the aim of establishing competitive conditions for the supply of inputs 
and machinery to the production sector.  The programme  responded to the need to offset the effects of 
the amendments made to the PITEX and Maquila  programmes pursuant to Mexico's commitments 
under the NAFTA and other in ternational agreements. 
252. Companies with PROSECs that manufacture par ticular goods may import various inputs to be 
used to produce those goods at a reduced tariff, irr espective of whether the goods are to be exported or 
are for the domestic market.  The tariffs applied ra nge from 0 to 5 per cent.  The goods to be imported 
and the articles to be produced are grouped by sector .  The benefits of the programme only apply to 
those inputs included in the sector in question and may not be used for other purposes. 
253. In October 2007, there were 22 sectoral program mes in the following industries:  electricity;  
electronics;  furniture;  toys, games and sports articles;  footwear;  mining and metallurgy;  capital goods;  photography;  agricultural machinery;  chem icals;  articles of rubber and plastic;  iron and 
steel;  medical equipment, medici nes and pharmaceutical products;  tr ansport (except the automobile 
industry);  paper and paper board;  wood;  hides an d skins;  the automobile industry and automobile 
parts;  textiles and clothing;  chocolates, confecti onery and the like;  coffee and various industries. 
254. According to the directory kept by the SE, in October 2007, 4,142 companies had an 
authorized PROSEC.
194  The duration of the programmes is one year and they are automatically 
renewed once the beneficiary has submitted its an nual report on operations carried out under the 
programme to the SE.  Beneficiary companies must al so have a system for the control of inventories 
using magnetic media. 
                                                      
192 These programmes may be consulted on the Internet at the site:  
www.cipi.gob.mx/marco_inst_edos.pdf 
193 Published in the Official Journal of the Federation of 2 August 2002; revised on 4 September and 
31 December 2002;  10 July and 31 October 2003;  23 Ma rch, 2 and 28 December 2004;  3 January, 17 March, 
7 September and 7 December 2005;  20 January , 5 September, 27 and 28 November 2006. 
194 The directory may be consulted at:  http://www.economia.gob.mx/?P=760. Mexico WT/TPR/S/195 
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255. Tariff concessions are also available for othe r products not covered by the PROSECs and 
these are administered through import licences under heading 98.02 of the tariff in the TIGIE, 
provided that the beneficiaries have a programme au thorized by the SE and meet the criteria in the 
Regla Octava (Eighth Rule) of the Complementary Rules for the interpretation and application of this 
Law.  These criteria are the following:  non-exis tence or insufficiency of domestic production;  
diversification of sources of supply; the goods imported are required at a stage prior to the 
commencement of production under new projects;  a nd the commercial obligations in international 
markets are respected.195 
256. Other programmes give tax concessions for speci fied activities such as agriculture, breeding 
livestock, forestry and fishing, air and maritime tr ansport, and the cinematographic industry.  Fiscal 
assistance is also given for acquiring equipment to combat contamination and for technological 
research and development activities (Table III.12). 
Table III.12 
Tax incentives for the promotion of economic activities 
Institution Name of the programme Description 
Tax incentives in th e agricultural and 
forestry sector Incentives for investment in fixed assets. 
Fiscal consolidation of income tax Controlling compan ies resident in Mexico and owning over 50% of the 
shares with voting rights in another controlled company or companies 
may fiscally consolidate income tax. Ministry of Finance and 
Public Credit (SHCP) 
Reduced rate of income tax 
applicable to the primary sector Legal persons exclusively engaged in agriculture, br eeding livestock, 
fishing or forestry are eligible for a reduced rate of income tax. 
 Tax incentives for taxpayers entering 
into contracts with decentralized 
public bodies Incentives for holding receivable account s relating to contracts between 
the taxpayers and decentralized  public bodies of the Federal 
Government. 
 Tax incentives for investment Option of applyi ng an immediate deduction from income tax for 
investment made outside the metr opolitan areas of Guadalajara, the 
Federal District and Monterrey. 
 Tax incentives for adaptations to 
facilitate the use of facilities by 
persons with disabilities 100% depreciation allowed in income tax for adaptations made to 
facilities that involve additions or im provements to fixed assets in order 
to facilitate access and use of the ta xpayer's facilities by persons with 
disabilities 
Tax incentives for employers 
recruiting persons with motor, mental, hearing or language 
disabilities or blind persons Employers recruiting persons with mo tor, mental, hearing or language 
disabilities or blind persons may de duct from their income an amount 
corresponding to 100% of these employees' income tax. 
Tax incentives for generating energy from renewable sources 100% depreciation allowed for machinery and equipment used to 
generate energy from renewable sources.  
Tax incentives for real estate 
development Tax incentive for taxpayers engaged in  building and disposing of real 
estate developments. 
 Tax incentives for persons whose 
total income does not exceed 
Mex$4 million  Incentives for the assets tax on natu ral and legal persons whose total 
income does not exceed Mex$4 million. 
 Tax incentives for fuel (diesel fuel ) Tax incentive for taxpayers using diesel fuel for final consumption. 
 Technological development Deduction from income tax of the contributions made to technological 
research and development funds. 
  Table III.12 (cont'd)
                                                      
195 Agreement establishing the criteria for granting prior import licences under tariff lines in the 
heading 98.02 of the TIGIE, published in the Official Journal of the Federation of 31 March 2006. WT/TPR/S/195 Trade Policy Review 
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Institution Name of the programme Description 
Exemption from the Tax on New 
Automobiles (ISAN) Described in section (2)(v). 
Tax incentives for the 
cinematographic industry Tax incentive for companies investing in national cinematographic 
production.  
Incentives for public transport of 
passengers or freight Tax incentive for persons purchasing diesel fuel for their final 
consumption to be used in vehicles exclusively intended for the public or 
private transport of passengers or freight. 
 Incentives for land transport of 
freight or passengers  Tax incentive for persons exclusively engaged in land transport of 
freight or passengers and in private transport of freight or passengers. 
 Incentives for the merchant marine Tax incentive for persons purchasing sp ecial marine diesel fuel to be 
used in vessels for merchant marine activities. 
 Incentives for commercial 
corporations building or buying real 
estate Tax incentive for companies building or buying real estate. 
 Incentives for investment in risk 
capital Incentive for persons investing in sh ares issued by Mexican companies 
resident in Mexico. 
Export promotion programmes:  
IMMEX,  ALTEX, ECEX and 
drawback  The programmes are described in section (3)(iv). Ministry of the 
Economy (SE) 
Sectoral promotion programmes 
(PROSECs) Total or partial exemption from im port duty for imports of specified 
inputs in certain industries.  These programmes are described in part (b) 
of this section. 
Duty-free import of anti-contamination equipment The exemption only applies if the e quipment to be imported cannot be 
substituted by equipment produced or th at could be produced in Mexico.  
Subject to prior authorization by the SE. Ministry of the 
Environment and 
Natural Resources 
(SEMARNAT) Accelerated depreciation of 
equipment to be used to prevent or 
control contamination Incentive for companies purchasing equi pment to be used to prevent or 
control contamination of the enviro nment; 95.7 to 100% of the value of 
the purchase of the asset can be depreciated.  
Source : Information provided by the Me xican authorities (October 2007). 
257. According to data from the SHCP, fiscal costs, i.e. the amount which the Federal Government 
does not collect because of the various special fis cal treatment programmes, authorized deductions, 
tax exemptions and fiscal incentives, both fo r natural and legal persons, amounted to 
Mex$502,225 million (US$46,160 milli on) in 2006, representing 5.6 per cent of the GDP 
(Table III.13).  It should be noted that the concept of fiscal costs is considerably broader than the tax 
incentives programmes mentioned in this report so  the amount attributed to these programmes is 
much lower. 
Table III.13 
Fiscal costs budget, 2006 
Itema Mex$ millions Percentage of GDPb 
Total (A+B+C+D) 502,225 5.59 
A.  Income tax (ISR) 295,667 3.29 
 ISR on companies 177,340 1.97 
 Special treatment for taxpayers in the motor transport sector  4,604 0.05 
 Special treatment for taxpayers enga ged in agriculture, breeding livestock, 
 fishing or forestry 16,770 0.19 
 Tax regime for the in-bond assembly industry c n.a. n.a. 
 ISR on natural persons 118,327 1.32 
B.  Value added tax (IVA) 174,765 1.94 
C.  Special taxesd 16,849 0.19 
 Special tax on production and services (IEPS) 15,483 0.17 
  Exemption for soft drinks 15,086 0.16 
 Tax on new automobiles (ISAN) 1,363 0.01 
Table III.13 (cont'd)  Mexico WT/TPR/S/195 
 Page 83 
 
 
Itema Mex$ millions Percentage of GDPb 
D.  Tax incentives 14,945 0.17 
 Air and maritime transport n.a. n.a. 
 Crediting the IEPS on diesel fuel for the agri cultural, livestock and fishing sector 0 0.00 
 In-bond warehouses 27 0.00 
n.a. Not available. 
a There is no complete breakdown within each of the four major headings and only those tax incentive programmes that were the 
most relevant to this report were selected. 
b The GDP for 2006 amounting to Mex$8,991,800 million was used. c Permanent establishments have  not been taken into account.  
d Including the special tax on production and services (IEPS), th e tax on new automobiles (ISAN) and the tax on ownership 
and use of vehicles (ISTUV). 
Source:  WTO Secretariat, based on data in the 2006 Fiscal Costs Budget, SHCP;  consulted at:  
http://www.apartados.hacienda.gob.mx/po litica_economica/contenido/documento/s ubtema14/documento_presupuesto_gastos
_fiscales_2006.pdf. 
258. Pursuant to the Law on the Federation's Inco me, the SHCP must submit a "Fiscal Costs 
Budget" annually to the competent commissions in  the Chambers of Deputies and Senators of the 
Congress of the Union.  The information provided by the SHCP helps to promote greater transparency 
of fiscal costs.  Furthermore, the Federa l Law on the Budget and Financial Liability (2006)196 
introduces fiscal liability principles a nd increases transparency in the spending and administration of 
public resources.  The Law requires the SHCP to send detailed information on public revenue and 
spending and indebtedness to the Congress of the Uni on and to make it available to the general public 
on the Internet. 
(c) Financial support a nd other programmes 
259. In addition to the export financing, in surance and guarantee schemes described in 
section (3)(vi) above, Mexico has other financial s upport mechanisms at the Federal level.  These 
include, in particular, various credit and fina ncial services schemes provided by the NAFIN 
(Table III.14). 
Table III.14 
Credits and financial services of the Na tional Finance Company, S.N.C. (NAFIN) 
Credits 
Electronic factoring Provides liquidity to micro, small and me dium-sized enterprises that supply large companies or public 
sector entities, giving financ ing on the receivable accounts. 
Forward financing Credit for working capital of up to 50% of the final orders held by suppliers of large purchasing 
companies. 
Financing of clients and 
distributors Financing of accounts payable for clients that buy from large companies. 
Modernization and equipping of 
businesses Medium and long-term resources in Mexican pesos a nd United States dollars for companies in order to 
purchase machinery and equipment. 
Ex Im Bank Support for SMEs to purchase new or used goods or services from the United States. 
Financing of small-scale transporters Support for transporters for the purchase of new frei ght or passenger vehicles to modernize their fleet 
of vehicles. 
Electronic liquidity Provides liquidity to developers in the INFONAVIT by financing receivable accounts for housing built.
SME credit Financial support for companies wishing to set up or expand their businesses.  
Foreign trade Foreign currency financing for companies with the aim of supporting their fo reign trade transactions.  
 Table III.14 (cont'd)
                                                      
196 Federal Law on the Budget and Financial Liability, published in the Official Journal of the 
Federation of 30 March 2006. WT/TPR/S/195 Trade Policy Review 
Page 84 
 
 
 
Credin@fin Financing of working capital and of  new machinery and equipment for companies. 
Credicadenas Credit for working capital. 
Financial services 
Guarantee of prompt payment Financing of compan ies that grant and administer mortgage loans. 
Guarantees Complements the amount of the guarantees required by banks in order to finance new projects. 
Indirect share investment Support for privat e investment in projects that have a sign ificant economic and social impact in thei r 
sphere of influence. 
Financial markets Promotes development of the stock market. 
Trust fund services Makes trust fund servi ces available to the business community. 
Administrator of funds  Gives small inve stors and SMEs tools for easily accessible i nvestment with a series of investment 
companies. 
Other support schemes 
Programme for integral support 
of micro-enterprises Financing, training and technical assistance for micro-enterprises. 
Selling to the Government Training, advi ce, information and credit for companies taking part in government procurement. 
Technical assistance programme Technical assist ance activities to promote a new business culture. 
Nafin-Mexico Eurocentre for 
Business Cooperation Advisory services for implementing pr ojects with counterparts in Europe. 
Entrepreneurs support 
programme Identification of entrepreneurs' projects, assessme nt of their viability and search for the necessary 
financial support to guara ntee their implementation. 
Invest in Mexico Gives immigrants the opportunity to se t up their own businesses in their communities of origin. 
Source:  WTO Secretariat, based on data provided  by the Mexican authorities (October 2007). 
260. From 2001 to 2005, the NAFIN channelled cred its (first and second tier) and guarantees to 
companies in the private sector amounting to Mex$412,816 million (US$39,3 16 million).  Micro, 
small and medium-sized enterprises received an av erage of 78.5 per cent of the resources channelled 
annually;  the average allocation to industrial activities was 52.8 per cent.197  In December 2006, the 
NAFIN's total portfolio was just over Me x$117,000 million (around US$10,754 million) and 
accounted for 38 per cent of the credit granted by development banks.198 
261. Both the NAFIN and BANCOMEXT have their ow n legal status and financial autonomy and 
as development banks are entities of the Federal pub lic administration under the terms of the Law on 
Credit Institutions (Article 30).  C onsequently, both institutions have  the guarantee of the State and a 
sovereign credit rating. 
262. In recent years, the NAFIN has undergone large-scale reorganization, improving the 
efficiency of its operations and achieving a solid financial position.  According to a joint evaluation 
carried out by the World Bank and the IMF, the NAFIN and other Mexican development banks199 
have made noteworthy progress in reorganizing their finances and in the gradual adoption of market 
interest rate instruments (not subsidized).  For ex ample, interest rate subsidies in loans granted by 
these institutions have been signifi cantly reduced while an increasing sh are of subsidies is financed 
through the Government's budget.  Moreover, these banks have tended to ch annel more resources 
through commercial banks rather than acting main ly as first-tier banks.  At the same time, the 
development banks have improved their management mechanisms, their disclosure standards and 
their transparency and are superv ised with the same rigour as commercial banks.  Both the World 
                                                      
197 Office of the President of the Republic, Sixth Report of the Government, 2006. 
198 National Banking and Securities Commission (2006a). 
199 The development banks and institutions covered by this study are: Financiera Rural  – FIRA (Rural 
Financing Company), NAFIN, BANOGRAS, BANSEFI, SHF and BANCOMEXT.  With the exception of the latter, the others all reported a positive performance in their financial situation during the period 2001-2006. Mexico WT/TPR/S/195 
 Page 85 
 
 
Bank and the IMF recommend that, in future, reform  should preserve the achievements already made 
and should continue to rationalize the numerous fi nancial subsidies and guarantee programmes so as 
to avoid duplication of functions and infrastructur es and the process of separating subsidies from 
financing should continue.200 
263. Apart from the credit granted by development ba nks, financial support is also given through 
credits, payments and, in some instances, risk capital for social, technological development and 
environmental protection projects and is channelled through special funds and trust funds managed by 
various Federal Government agencies and organizations.201 
264. Other support schemes offered by Federal Govern ment agencies and organizations include 
several training, technical assistance and adviso ry programmes intended for specific sectors or 
economic agents.  These cover a wide range of activities, inter alia, training of managerial staff, 
technical assistance for technological developmen t and quality promotion, as well as orientation or 
advisory services, particularly to promote exports.202  In addition, the SE has several programmes 
aimed at micro, small and medium-sized enterprises with the aim of developing production chains, industrial links and suppliers  and creating strategic alliances with foreign companies.
203 
(d) Trade-related investment measures 
265. Pursuant to the Agreement on Trade-Related Investment Measures (TRIMS Agreement), on 
31 March 1995, Mexico notified several legal inst ruments relating to the automobile industry and 
transport vehicles (trucks and buses).204  In general, these require companies to comply with national 
content and level of trade requirements.  As a developing country, Mexico had to eliminate 
requirements inconsistent with the TRIMS Agre ement by 1 January 2000.  Pursuant to the 
Agreement, Mexico requested the WTO Council for Trade in Goods to grant an extension of the 
transition period in order to maintain the measu res notified for a further period of four years.205  The 
extension was granted until 31 December 2003.206  In January 2004, Mexico notified the WTO that it 
had eliminated the measures in question.207 
(iv) State-trading enterprises and privatization 
266. Mexico has notified the WTO that it does not have  any State-trading enterprise that meets the 
definition in Article XVII of the GATT 1994.208 
267. The Constitution provides that the State has exclus ive rights in areas deemed to be strategic, 
for example, hydrocarbons and electricity (see Chapter (II(ii)). 
268. State involvement in the economy diminished  substantially between 1982 and 2000 when a 
wide-ranging privatization programme was implemen ted, including liquidation, merger of State-
                                                      
200 World Bank (2006), pages 28-31;  IMF (2006a), pages 16-18. 
201 The CIPI publishes information about these programmes online.  Consulted at: http://www.cipi.gob. 
mx/html/body_programas_de_apoyo.htm. 
202 CIPI, Description of the Federal Government's business support programmes [online].  Consulted at: 
http://www.cipi.gob.mx/ desc_prog_apoyo.pdf. 
203 Ibid.  
204 WTO document G/TRIMS/N/1/MEX/1 of 12 April 1995. 
205 WTO documents G/C/W/171 of 23 December 1999 and G/C/W/293 of 31 August 2001. 
206 WTO documents G/L/463 of 31 July 2001 and G/L/500 of 9 November 2001. 
207 WTO document G/C/42 of 16 January 2004. 
208 The most recent notification is contained in WTO document G/STR/N/6/MEX of 31 July 2004. WT/TPR/S/195 Trade Policy Review 
Page 86 
 
 
owned companies and regulatory reforms.209  On the other hand, during the period 2001-2006, with 
the exception of the privatization of two airlines,  an insurance company and a company marketing 
marine products, there were virtually no privatizati ons.  This is partly because the number of entities 
that could potentially be privatized has diminished  as the law provides that the State must play a 
predominant role in supplying goods and services in strategic or priority areas. 
269. The State, particularly the Federal Government , nevertheless still has a majority shareholding, 
inter alia , in certain banks and credit institutions an d in some airport management companies. 
(v) Government procurement 
270. Mexico has not signed the WTO Agreement on Government Procurement and does not 
participate as an observer in the WTO Committee on Government Procurement.  The authorities have 
stated that the chapters on government procurement in the preferential agreements Mexico has signed 
guarantee national treatment to contractors in the respective countries and promote transparency in 
Mexican government procurement in general. 
271. It is estimated that total government procurement in Mexico's public sector was around 
Mex$515,322 million (US$46,847 million) in 2007, corresponding to some 5.6 per cent of the GDP.  
Of this amount, 36 per cent corres ponded to goods, 25 per cent to services, and 36 per cent to public 
works.210 
272. The Ministries of State which award the most procurement contracts in terms of number and 
value are those of Communication and Transport; Public Education; Health; the SHCP; and the 
SAGARPA.  The leading entities according to the same criteria are PEMEX, the CFE, the IMSS and 
the Instituto de Seguridad y Servicios Sociales para los Trabajadores del Estado – ISSSTE (Social 
Welfare and Services Institute for State Employees).211 
273. Mexico has no central procurement office and the Federal entities, companies with a majority 
government shareholding and state entities have autonomy to plan and purchase.  The Secretaría de la 
Función Pública - (Ministry of Public Administration), preceded by the Secretaría de la Contraloría y 
Desarrollo Administrativo – SEDOCAM (Ministry of the Comptroller General and Administrative 
Development), is responsible for determining a nd promoting the necessary measures to ensure the 
impartiality and transparency of procedures for government procurement of goods and services.  The 
SFP is the only government body responsible for re gularly monitoring and investigating unlawful acts 
in relation to purchases and public works. 
274. The SHCP is responsible for authorizing the budget for the Programas Anuales de 
Adquisiciones, Arrendamientos y Servicios – PAAAS (Annual Purchasing, Leasing and Services 
Programmes) and the Programas Anuales de Obras Públicas - PAOP (Annual Public Works 
Programmes), presented annually by the various en tities in order to determine their procurement 
needs.  The SE receives the PAAAS and the PAOP , compiles them and publishes the compilation on 
the Internet.212 
275. Article 134 of the Constitution provides that purch ases and procurement of works by the State 
must be through public tenders involving a public i nvitation to tender so that bids may be freely 
submitted.  The Constitution neither guarantees nor limits  participation by foreigners in such tenders.  
                                                      
209 IDB (2004). 
210 Information from the SE online.  Consulted at: http://www.economia-paasop.gob.mx/comonew. shtml. 
211 Ibid. 
212 The PAAAS and the PAOP may be consulted at: http://www.economia-paasop.gob.mx/. Mexico WT/TPR/S/195 
 Page 87 
 
 
Other regulations affecting govern ment procurement include the Ley de Adquisiciones, 
Arrendamientos y Servicios  del Sector Público – LAASSP (Law on Purchasing, Leasing and Services 
by the Public Sector), the Ley de Obras Públicas y Servicios Relacionadas con las Mismas – 
LOPSRM (Law on Public Works and Related Se rvices), and their respective Implementing 
Regulations.213 
276. Since the previous Review of Mexico, some cha nges have been introduced into the legislation 
with the aim of streamlining and improving the tran sparency of the government procurement process.  
For example, the procedure for opening bids has be en simplified so that technical and commercial 
proposals from bidders are opened simultaneously;  and government bodies must make available to 
the public on the Internet, at the latest by 30 November each year, their estimated annual procurement 
programme for the following year. 
277. The LAASSP states that public tenders may be of three types:  (i) national, in which only 
persons of Mexican nationality may participate and the goods to be purchased must be produced in 
Mexico with a minimum national content of 50 per cen t;  (ii) international covered by agreements, in 
which only Mexican and foreign bidders from countries that have signed the agreement may take part 
and the goods to be purchased must comply with the rules of origin in the agreement;  and (iii) open 
international, in which any Mexican  or foreign bidder can participate and the goods to be purchased 
may be of any origin. 
278. In the course of the two previous Reviews of Me xico, the lack of statistics did not allow an 
evaluation of the relative importance of these three types of tender provided in the LAASSP.  This 
lacuna has been overcome with the compilation of  data from 2006 onwards, which show that, as a 
percentage of the total value of public tenders  during 2006, the most common type was national 
tenders (45.8 per cent), followed by international te nders covered by agreements (30.3 per cent), and 
open international tenders (23.9 per cent).214 
279. Open international public tenders only apply wh en:  (i) this is specified for procurement 
financed through external credits; (ii) it is appropria te in price terms;  (iii) as a result of a market 
survey which concludes that Mexican suppliers or  suppliers in countries with which Mexico has a 
preferential agreement containing a chapter on government procurement are unable to supply the 
goods or service;  or (iv) when a national or inte rnational tender covered by  an agreement failed to 
result in any bid or none of the bids met the re quirements specified for the procurement.  The 
LAASSP provides that when determining price adva ntage the calculation must include a preferential 
margin of up to 10 per cent of the price in favour of the Mexican supplier in open international public 
tenders.  The states are not covered by these rules on international tenders, but they do apply to semi-
State-owned companies such as PEMEX and CFL. 
280. The LAASSP provides that public tenders shoul d be the general procedure for government 
procurement.  It does allow exceptions, however, in th e form of an invitation to tender addressed to at 
least three people or direct award of a contr act.  For exceptions to public tender, the LAASP 
determines that the total operations under these fo rms must not exceed 20 per cent of the authorized 
budget for the contracting entity in each financia l year.  In terms of numbers of procurement 
procedures, tenders account for approximately 60 per cent of the total and exceptions 40 per cent, 
                                                      
213 The latest revision of the LAASP was published in the Official Journal of the Federation of 
20 February 2007;  the latest revision of the LOPSRM was published in the Official Journal of the Federation of 7 July 2005;  the latest revision of the Implementing Regulations for the LAAASP was published in the Official 
Journal of the Federation of 30 November 2006;  and the latest revision of the Implementing Regulations for the 
LOPSRM was published in the Official Journal of the Federation of 29 November 2006. 
214 Information provided by the authorities for the purpose of this Review. WT/TPR/S/195 Trade Policy Review 
Page 88 
 
 
while in terms of the amounts of contracts, te nders account for 90 per cent and exceptions for the 
remaining 10 per cent.215 
281. The LAASSP requires that notices to participate in public tenders be published in the Official 
Journal of the Federation.  The SFP must also  provide detailed information on the Internet 
(Compranet) so as to enhance the efficiency and tr ansparency of government procurement procedures 
and to prevent the possibility of corruption.216  The publication of invitation and direct award 
procedures is not compulsory. 
282. The LAASSP provides that the period for opening and submitting bids for international 
tenders may not be less than 20 consecutive days from the date on which the notice was published.  
Bids must be submitted in a sealed envelope or th rough electronic media certified by the SFP (24 per 
cent of bids are received electronically).  If two or more bids meet all the technical and legal requirements imposed by the contractor, the contract is awarded to the bidder offering the lowest price 
or best cost/benefit ratio, as determined in the corresponding bases for the tender. 
283. The LAASSP also requires that the decision on th e tender be made public at a meeting of the 
public board, which may be attended by all the bidde rs that took part in the tender.  Bidders also 
receive in writing an explanation of why their bid was not accepted. 
284. The SFP may initiate investigations ex officio  or following a claim of non-compliance by any 
person or company that considers that its rights ha ve been affected, either by a decision awarding a 
contract or at any stage of the tender procedure.  W ithin the time limits prescribed in the LAASSP, the 
SFP must take a decision on the alleged irregularities and, where appropriate, decide to suspend the 
procurement procedure.  An appeal may be lodg ed against these decisions in accordance with the 
Federal Law on Administrative Procedures.
217 
285. The principles governing procurement of public works, laid down in the LOPSRM, are 
similar to those in the LAASSP. 
286. Procurement by bodies in the states and munici palities that do not involve Federal funds, as 
well as contracts between entities or agencies of the Federal public administration are not governed by 
the LAASSP or the LOPSRM.218 
287. Government procurement in the state sphere is subject to special state provisions.  
Nevertheless, very few of these differ significantl y from the LAASP.  For example, legislation on 
government procurement in the Federal District provides for a public bidding procedure that mainly differs from the LAASSP in respect of the requirement that there must be 35 per cent regional content 
in products procured thr ough international tenders.
219  In the case of the state of Mexico, cooperatives 
and companies established in the state are give n preference in bidding procedures over foreign 
companies and nationals from other St ates, all other things being equal.220 
                                                      
215 Information provided by the authorities. 
216 Consulted at:  http://www.compranet.gob.mx/. 
217 The most recent revision of the Federal Law on Administrative Procedures was published in the 
Official Journal of the Federation of 30 May 2000. 
218 Article 1 of the LAASSP and Article 1 of the LOPSRM of 2005. 
219 Law on Procurement by the Federal District, publishe d in the Official Gazette of the Federal District 
of 28 September 1998. 
220 Article 18 of the Law on Procurement by the state of Mexico, published in the Official Gazette of 
the state of Mexico of 2 February 1982. Mexico WT/TPR/S/195 
 Page 89 
 
 
288. Mexico has signed free trade agreements th at include special chapters on government 
procurement;  procurement by State government s or municipalities is not covered in these 
agreements.221 
(vi) Protection of intellectual property  
289. The WTO Agreement on Trade-related Aspect s of Intellectual Property Rights (TRIPS 
Agreement) has applied in full in Mexico since 1 January 2000.  Mexico has notified its laws and 
regulations on the protection of intellectual prope rty rights (IP) to the WTO and the TRIPS Council 
examined the legislation in 2000.222  Mexico has notified several legal provisions that subsequently 
amended its legislation on in tellectual property rights.223  It has also provided information on its 
national enforcement system.224 
290. Mexico is a member of the World Intellectual Property Organization (WIPO) and has signed 
the majority of the international agreements on in tellectual property rights (Table III.15).  Since the 
previous Review, Mexico has put into force th e WIPO Performances and Phonograms Treaty and the 
WIPO Copyright Treaty.  Mexico has also signed the Singapore Treaty on the Law of Trademarks, which had not yet entered into force by mid-2007.  Me xico is not a member of the Madrid System for 
the International Registration of Marks.  The au thorities have indicated, however, that they are 
examining the advantages and disadvantages of accedi ng to this System and that Mexico participates 
as an observer in the WIPO working groups on the subject. 
Table III.15  
Mexican participation in international ag reements on intellectual property rights 
Agreement, convention or treaty (the most recent act in whic h Mexico participated) Date of entry into force in Mexico 
Paris Convention for the Protection of Indus trial Property (Stockholm) September 1903  
Berne Convention for the Protection of Litera ry and Artistic Works (Paris)  June 1967 
Rome Convention for the Protection of Performers, Producers of Phonograms and 
Broadcasting Organizations  May 1964 
Lisbon Agreement on the Protection of Appella tions of Origin and their International 
Registration (Stockholm)  September 1966  
Geneva Convention for the Protection of Pr oducers of Phonograms against Unauthorized 
Duplication of their Phonograms  December 1973 
Convention Establishing the World Intell ectual Property Organization June 1975 
Brussels Convention Relating to Programme-Carrying Signals Transmitted by Satellite  August 1979 
Nairobi Treaty on Protection of the Olympic Symbol May 1985 
Treaty on the International Registrati on of Audiovisual Works February 1991 
Patent Cooperation Treaty January 1995 
International Convention for the Protection of Ne w Varieties of Plants (1978 Act) August 1997  
WIPO Performances and Phonograms Treaty May 2002  
WIPO Copyright Treaty  March 2002 
Locarno Agreement Establishing an International Cl assification for Industria l Designs  January 2001 
Table III.15 (cont'd) 
 
                                                      
221 The FTAs which include special chapters on gov ernment procurement are:  the North American 
Free Trade Agreement (with the United States and Canada);   the FTA with Bolivia; the FTA with Costa Rica;  
the FTA with Nicaragua; the FTA with Colombia;  the FTA with Israel; the FTA with the European Union;  and 
the FTA with the European Free Trade Association (Iceland, Norway, Liechten stein and Switzerland). 
222 The questions posed to Mexico and the corresponding replies in the context of the examination are 
contained in WTO document IP/Q/MEX/1 of 14 November 2000 
223 WTO documents IP/N/1/MEX/I/Add.1, IP/N/1 /MEX/I/2/Add.1, IP/N/1/MEX/I/2/Add.2 of 
26 August 2004, and IP/N/1/MEX/2 of 5 March 2007. 
224 WTO document IP/N/6/MEX/1 of 30 March 2000. WT/TPR/S/195 Trade Policy Review 
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Agreement, convention or treaty (the most recent act in whic h Mexico participated) Date of entry into force in Mexico 
Vienna Agreement Establishing an Internationa l Classification of the Figurative Elements 
of Marks  January 2001 
Budapest Treaty on the International Recogn ition of the Deposit of Microorganisms for 
the Purposes of Patent Procedure  March 2001 
Nice Agreement Concerning the International Classification of Goods and Services for 
the Purposes of the Registration of Marks (Geneva) March 2001  
Strasbourg Agreement Concerning the Interna tional Patent Classi fication  October 2001 
Treaty on the Law of Trademarks (not yet in force) Signed in October 1994 
Singapore Agreement on the Law on Trademark Registra tion (not yet in force)  Signed in March 2006 
The Hague Agreement Concerning the International Registration of Industrial Designs Not a member 
Geneva Act of The Hague Agreement Con cerning the International Registration of 
Industrial Designs (not yet in force)  Not a member 
Madrid Agreement for the Repression of Fa lse or Deceptive Indications of Source on 
Goods  Not a member 
Madrid System for the International Registration of Marks  Not a member 
Patent Law Treaty  Not a member 
Source:  WTO Secretariat, on the basis of information provided by  the WIPO.  Available at:  http://www.wipo.int/treaties/ 
general/parties.html#1. 
291. Mexico has also undertaken commitments on in tellectual property rights under the various 
free-trade agreements it has signed (see Chapter II(4)(iii)).  The overall objectives on intellectual 
property rights in these agreements are similar although some specific provisions differ. 
292. On 27 May 1997, Mexico and the European Co mmunities signed an agreement on the mutual 
recognition and protection of designations for spirit drinks.  The Agreement in cludes the obligation to 
recognize as originating in the Parties the designations used to protect the spirits indicated in two lists, 
one Mexican and the other European; as well as the commitment to prevent the marketing of spirits 
covered by the protected designations if they do not originate in the parties. 
293. Mexico notified the WTO that the Instituto Mexicano de la Propiedad Industrial  – IMPI 
(Mexican Industrial Property Institute) and the Di rectorate-General of Copyright are the contact 
points pursuant to Article 69 of the TRIPS Agreement.225  In 1997, the Directorate-General of 
Copyright was replaced by the Instituto Nacional de Derecho de Autor  – INDAUTOR (National 
Copyright Institute). 
294. The IMPI is a decentralized body coor dinated by the SE and is responsible, inter alia , for 
granting protection through patents, registration of utility models and industrial designs, registration 
of marks and trade notices and publication of trade nam es:  it also authorizes the use of appellations of 
origin and regulates industrial secrets; prevents and combats acts that infringe intellectual property; and applies the corresponding sanctions.
226  The INDAUTOR is a decentralized body of the Ministry 
of Public Education and is the administrative entity  mainly responsible for promoting and protecting 
copyright and related rights, and for keeping the Public Copyright Register.227  The SAGARPA, 
through the Servicio Nacional de Inspección y Certificación de Semillas – SNICS (National Seed 
Inspection and Certification Service) is responsible, inter alia, for the registration of new plant 
varieties. 
295. Mexico's legislation covers all the majo r aspects mentioned in the TRIPS Agreement 
                                                      
225 WTO document IP/N/3/Rev.9 of 8 November 2005. 
226 Information from the IMPI online.  Consulted at:  http://www.impi.gob.mx. 
227 Information from the INDAUTOR online.  C onsulted at:  http://www.sep.gob.mx/wb2/sep/sep_ 
459_indautor. Mexico WT/TPR/S/195 
 Page 91 
 
 
(Table III.16).  In some of these, including industrial designs, trademarks and copyright, Mexico 
grants rights that exceed the minimum terms laid down in the Agreement. 
Table III.16 
Summary of the protection of intellect ual property rights in Mexico, 2006 
Area Scope Term Selected limitations and exclusions 
Copyright 
and related 
rights Original works susceptib le of disclosure or 
reproduction by any medium related, among 
other spheres of activity, to literature, music, drama, dance, photography, architecture, 
audiovisual arts, radio and television, computer 
programs and compilations, including databases.  Both moral and economic rights are recognized.  Related rights include moral rights as well as the 
rights of performers and of broadcasting 
organizations.  No registration is necessary for 
protection.  Economic rights 
are protected for 
the life of the author and 
100 years after his 
death.  Unless otherwise specified, 
economic rights are 
transferred for five years and only for 
over 15 years in 
exceptional 
circumstances.  It is not considered that there has been 
infringement if the works are not used to obtain 
direct financial benefit or are used for educational or research purposes.  No authorization is required, 
inter alia,  for the reproduction of articles on 
current affairs, unless the owner of the rights has expressly prohibited it; partial reproduction for 
research purposes; reproduction by individuals or 
teaching or research institutes of a single copy of a 
work without gainful intent. 
  Moral rights are 
imprescriptible. 
 The owner of the right retains the inalienable 
moral right to withdraw publication rights. 
Patentsa Any invention that is new and involves an 
inventive step and is su sceptible of industrial 
application. 20 years from the 
date of filing, not 
renewable. The following may not be patented:  biological 
processes for the reproduc tion and propagation of 
plants and animals; biologi cal and genetic material 
present in nature; breeds of animals, the human 
body and its living parts; new plant varieties; 
computer programs; schemes for presenting 
information. 
Compulsory licences may be granted if a patent is 
not worked within the thr ee years after it has been 
granted, or four years after filing of the 
application, unless it has been worked, including 
by means of imports. 
Public interest licences ma y be granted for use of a 
patent in cases of emergency or national security. 
    
    
Industrial 
designsa Subject to registration, designs that are new and susceptible of industria l application. Including 
industrial designs for ornamentation purposes. 15 years from the 
date of filing, not 
renewable.   
Utility 
modelsa Subject to registration, objects, utensils, 
appliances or tools which offer a different 
function with respect to their component parts. Ten years from the 
date of filing, not 
renewable.   
Layout 
designs of 
integrated circuits
a Subject to registration, the layout designs and 
circuits defined. Ten years from the 
date of filing, not 
renewable.  Layout designs that have been used commercially 
for over two years. 
Trademarksa Subject to registration, any visible sign that 
distinguishes products or services from others of 
the same type or category on the market.  
Includes appellations and trade names 
 10 years from the 
date of filing, not renewable.  
In general, the registration of a 
trademark lapses if 
it ceases to be used during three 
consecutive years. Geographical appellations, names that may 
mislead with regard to their origin, appellations 
similar to trademarks well known in Mexico. 
The use of trademarks may be regulated by the authorities, inter alia, for reasons of competition 
policy or in cases of national emergency.  
Table III.16 (cont'd)WT/TPR/S/195 Trade Policy Review 
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Area Scope Term Selected limitations and exclusions 
Geographical 
indicationsa Subject to a declaration by the authorities, 
appellations of origin are defined as the name of a region used to designate a product originating 
therein whose characteristics are due exclusively to the geographical environment. 
 As long as the 
grounds which led to its protection 
persist. The State owns the appellation of origin, which 
may only be used by virtue of the authorization issued by the IMPI. 
Undisclosed information
a Information whose industrial or commercial application would confer a comparative advantage, deemed to be confidential and 
protected as such in documents and other media. Indefinitely.  
New plant 
varieties Plant varieties that are new, distinct, stable and 
uniform.  A year of priority rights is given for 
foreign applications of members of UPOV. 18 years for 
perennials 
(including forest and fruit trees and 
vines);  15 years 
for others. The consent of the rightholder is not required, inter 
alia, for research or consumption by the breeder. 
a Protection is not granted when it could be contra ry to public order or morals or legal provisions. 
Source: WTO Secretariat. 
296. The reform of the Federal Copyright Law, publis hed in the Official Journal of the Federation 
of 23 July 2003, extended economic rights from 75 to 100 years; this protection had already been 
extended from 50 to 75 years in 1993.  The authorities have indicated that it was decided to extend the 
period of protection in order to prevent unfair compe tition, including piracy.  It would be useful to 
conduct an economic analysis comparing these and ot her benefits with the costs resulting from the 
royalties which Mexican users have to pay during th e additional years in order to have access to 
cultural goods and services; the diminution of the public domain element and the ensuing impact on 
the creation of ideas could create additional costs. 
297. As far as trademarks are concerned, Mexico h as decided not to limit imports by an unofficial 
distributor of goods placed on the market in anot her country with the consent of the rightholder 
(parallel import).  In the case of patents, parallel imports are not allowed.  Concerning copyright, the holder of rights in an artistic or literary work, as well as the producer of pho nograms and the publisher 
of books, has the possibility of authorizing or pr ohibiting the import of the work concerned into 
Mexico without his consent. 
298. Mexico has not granted any compulsory li cences or public utility licences pursuant to 
Articles 70 and 77 of the Industrial Property Law. 
299. Between 2000 and 2006, Mexico recorded an increa se in the filing of applications and in the 
issue of patents, utility models, industrial designs and trademarks.
228  Trademarks are a particularly 
active and rapidly growing sector of intellectual property rights in Mexico;  during the period 
2000-2006, the number of applications for registrati on of a trademark increased by 15 per cent and the 
number of trademarks granted rose by 21 per cent.  The effects of this increase can be seen, for example, in the Mexican alcoholic beverages industry,  which is an intensive user of trademarks and 
geographical indications and has become one of Mexico's most dynamic export industries.
229 
300. Between 2002 and 2006, the IMPI received a to tal of 322,967 applications for protection of 
distinctive signs (trademarks, trade notices and trade names) and decided on 78 per cent of the applications.  In the case of patents, the IMPI re ceived a total of 68,399 applications and granted 
                                                     
 
228 The data on industrial property can be consulted in the IMPI Report in Figures 2007, consulted at:  
http://www.impi.gob.mx/impi/docs/bienvenida/ImpiCifrasenero-junio2006.pdf. 
229 For more details on this aspect, see WTO (2002). Mexico WT/TPR/S/195 
 Page 93 
 
 
54 per cent of these over this period;  the chem icals and metallurgy branches received the most 
patents.  Concerning utility models and industr ial designs, 2,053 and 12,218 applications were 
received, of which 33 per cent and 71 per cent, respectively, were granted.230 
301. The IMPI and the INDAUTOR together are re sponsible for enforcement of intellectual 
property rights, the former as regards industrial propert y and the latter for copyright and related rights.  
Competence for copyright is shared by these two bodies in the case of trade-related infringement.  
Infringers of industrial property rights may be punish ed by terms of imprisonment of up to ten years, 
as well as fines of up to 20,000 times the daily minimum wage in Mexico City (US$4.56 in 
early 2007).  Infringement of copyright for commercial purposes may be punished by a term of 
imprisonment of up to six years and fines of  up to 15,000 times the daily minimum wage. 
302. In 2006, the Dirección Divisional de Protección a la Propiedad Intelectual – DDPPI 
(Divisional Directorate of Intellectual Property Prot ection) of the IMPI carried out 2,445 inspections, 
of which 1,507 were ex officio  and 938 at the request of a party, relating to just over five million 
products, including in particular clothing, footwear , signs and computers; the approximate value of 
the products inspected was US$13 million, of whic h 95 per cent corresponded to industrial property 
and 5 per cent to copyright.231 
                                                      
230 Information provided by the authorities (IMPI). 
231 Ibid.