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 Suzuki will assemble pick up trucks in Nissan Cuernavaca Plant
Suzuki will produce a new pick up truck in Nissan. Mexicana- Cuernavaca Plant, announced Tina Jantzi, responsible for Investment Surveys for North America in J. D. Power. In the second day of activities of the International Automotive Industry Week, Jantzi presented an outlook of possible investments by the automotive industry for Canada, USA and Mexico area. In a press release about the activities in the event, Tina Jantzi mentioned that the growth of the Japanese industry will stay stable in the area and that by 2008 Suzuki Motors will be able to start assembling small pick up trucks in Mexico for the domestic market.
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Vitro restarts operations in Guadalajara and Querétaro
Vitro restarted activities in its facilities where glass. containers are manufactured in Queretaro and Guadalajara, after natural gas supply was reestablished in said zones. In a press release, the Company points-out that last Friday they started operating their plant in Queretaro again and on Saturday activities in Guadalajara facilities were resumed. The Company is confident they will be able to supply within the next few weeks the products that have not been manufactured since last July 11 due to the temporary suspension of gas supply due to the explosions in Petroleos Mexicanos gas pipeline.
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Industrial production grows 1.1% in May
Industrial production in Mexico grew 1,1% last May when compared to even month. in 2006, as a consequence of an advance in the four sectors that make it up, informed the Mexican Statistics Agency, Instituto Nacional de Estadística, Geografía e Informática (INEGI). Therefore, during the first five months of this year, Mexico's industrial activity showed a 0.8% increase when compared to the same term last year.
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Injecto Group wins international award
Injecto Clean, the Juarez Company member of Injecto Group., once again won the award granted by the American specialized magazine Motor, for launching to the market CJ 4, a last generation automotive diagnosis device. Hector Nuñez Polanco, the Company's General Director, said that this week they received the communication sent by the Magazine's executives informing that the award will be delivered during AAPEX (Automotive Aftermarket Products Expo), to be held in Las Vegas, Nevada, next October 31st and November 1st.
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Chrysler is planning to increase Mexican supplies by 2010
Daimler Chrysler de Mexico announced that. by 2010 they are expecting to increase Mexican auto parts supplies to US$8.5 billion. Simon Boag, Chrysler Group USA Procurement Vice-president, said that purchases by the assembler from Mexican suppliers amount to US$6.4 billion, a figure that is planned to be increased within the next three years due to more activities by the Company in Mexico. On the other hand, he ruled out that after the agreement entered with the Chinese Company Chery Automobile, there are plans to assemble the Asian models in their plant located in Toluca.
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Aerospace park created in Queretaro
The companies General Electric and Vesta will invest in equal parts more. than US$100 million in an Aerospace Industrial Park in Queretaro, with the purpose to develop the first cluster specialized in the sector in Mexico. The park will be built in a 78 hectares plot of land that the State Government will provide, and will have the capacity to receive around 30 Mexican and international companies in the sector, which will all together generate around 6 thousand 500 direct jobs.
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Mexico will be first automotive exporter to the USA
In the next 7 years Mexico will become the main vehicles exporter. to the USA, outdoing Canada, revealed a study by the consultants firm JD Power. Tina Jantzi, responsible for Investment Surveys in JD Power, explained that this will happen thanks to the fact that Nissan will start manufacturing a new pick up truck for Suzuki in Cuernavaca plant in 2009; Chrysler will start producing a new compact vehicle in Toluca plant; Ford will expand its assembly capacity in Cuautitlan complex; and General Motors could start assembling Hummer in Saltillo, also in 2009.
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ARTICLE OF THE WEEK
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U.S. Companies with Maquiladoras in Mexico & Export Controls
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 You may think that because your company is operating under Mexico's maquiladora program, and because you are only 'temporarily' exporting the items to Mexico, that you would not have to worry about U.S. government export controls.
You would be wrong.
The U.S. Department of Commerce enforces the U.S. Export Administration Regulations (EAR).
In fact they have a special bureau of enforcement. The Department of Commerce's Bureau of Industry and Security (BIS) frequently imposes civil penalties against companies that violate the Export Administration Regulations (EAR). Whether the purpose of these penalties is deterrence, retribution, or a little bit of both, the penalties sought by BIS send a clear statement to exporters: an export control violation comes with a potentially hefty price tag.
U.S. companies that export to their maquiladoras are not exempt. Even if it is their own maquiladora, and even if it is a "temporary export-import" in Mexico's maquiladora program.
 The Export Administration Regulations has a "Commerce Control List". It is a listing of materials, equipment, technology & components that are in normal commerce but are under export control.
The list is broken down into 10 different CATEGORIES. These categories are commercial articles that are controlled because of various reasons. Chief among them is potential military applications. But the commercial items can be controlled for other reasons as well, such as National Security, Regional Stability, Firearms Conventions, Crime Control and Anti-Terrorism.
Yes, exports to maquiladoras are covered by these controls as well.
 Mexico is covered by all the categories except Anti-Terrorism.
Each category of items has technical descriptions of what is under export control. Category 3, for example covers 'Electronics'. Yet not everything that can be termed "Electronic" is under export control.
The Category lists exactly which type of electronics are covered, and the technical parameters.
Category 4 covers Computers. Not all computers are covered. The category lists the performance standards of computers that are under Export Control. By and large the category for computers has export controls on computers on the basis of how fast they process data, talking about MTOPS (Million Theoretical Operations Per Second), and CTP (Composite Theoretical Performance). In addition to speed, encryption equipment and software is export controlled.
All categories have technical parameters under which articles are under the CCL.
Of particular concern to us, and you, are shipments of materials, electronics and high-tech Machinery for processing materials in Mexico, specifically high-tech lathes, grinding, milling machines.
What should you look out for in your shipments to your maquiladora?
1. Keep in mind that your exports to your maquiladora are subject to Export Controls if the items are in the Commerce Control List.
2. If your product line is in any way for military applications, you will be under Export Controls.
3. If your product, although a product for commercial use, is to mil-spec, (military-specifications), then you will be under Export Controls.
4. Examples of commercial items under control to maquiladoras in Mexico:
.jpg) A. Aluminum powders
B. Nickel powders
C. Very Fast computers
D. Numerically Controlled lathes, milling, turning, machines.
E. Machine tools which have a positioning accuracy of less than 6 microns.
F. Machine tools which operate with multiple axes.
G. Machine tools that use lasers to remove metal, ceramics or composites.
H. Machine tools that use electron beams to remove metals or ceramics.
If your article is in the Commerce Control List, and it requires an export license, you cannot export your items until the U.S. government grants you an export license. An export license can take as little as 8 weeks to as much as 3 months to receive.
An alphabetical index to the items on the Commerce Control List is here:
http://www.access.gpo.gov/bis/ear/pdf/indexccl.pdf
For CNC machines, look under 'Machine Tools'. If you think your machine is in the index, give us a call and we will send you the technical parameters of which machines are covered.
Or you can search for the technical parameters here: http://www.access.gpo.gov/bis/ear/ear_data.html#ccl
Note the 10 different categorIes, from Category 0 to Category 9.
Just remember that if your article or material is in the list, and meets the specific parameters, you cannot ship your article or material to Mexico until you obtain an Export License.
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BFor more information you can visit the Department of Commerce's Bureau of Industry and Security Web page here: http://www.bis.doc.gov/.
Alex Romero
A.F.Romero Co Inc
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MEXICO'S WEEKLY HEADLINES
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| » Nissan will resume production the next week |
| » Emporio Group invests US$16 million in Tijuana |
| » Modelo Group expects increase in exports |
| » Initiative for technological park is promoted in Juarez |
| » Toyota number one in sales in the first semester of 2007 |
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