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 Koreans will install automobiles plant in Campeche
With a US$1,8 billion investment, Bering. Company a South Korea transnational, will start manufacturing Atos compact cars in a megaplant that will be located in the north zone of the State of Campeche. The Secretary of Industry and Trade, Antonio Richaud Pinto, said that the installation of this plant will generate at least 20 thousand direct jobs. He added that Korean businessmen, represented in Mexico by Julio Cesar Bherteli Noguera, chose Campeche for its privileged geographical location.
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Pentagon EMS Opens Manufacturing Facility in Mexico
The El Paso Regional Economic Development Corporation (REDCo) and Pentagon EMS Corporation (Pentagon) are pleased to announce the recent expansion of Pentagon into Ciudad Juarez, Mexico. Headquartered in Beaverton, Oregon, Pentagon has just opened the doors to a brand new manufacturing facility in Juarez. Pentagon is a value-added supplier of tooling and fixtures for the electronic assembly industry. Supported processes include Wave Solder, Surface Mount, Press-Fit, Conformal Coating, Inspection, Test, and more.
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Mexico and the USA sign customs plan
The governments of Mexico and the United States signed the Strategic. Bilateral Customs Plan in Mexico, which purpose is fighting terrorism and improving safety. The Minister of the Treasury, Agustin Carstens assured that the objectives of this plan include fighting smuggling, customs fraud and other felonies in order to provide for an efficient and safe trade. Julie Myers, assistant secretary of homeland security for U.S. Immigration and Customs Enforcement...
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Michelin planning to build second plant in Mexico
The French tires manufacturer, Michelin, said last Monday they. are considering building a second plant in Mexico, which would require a US$740 million investment, to serve the North American market. The investment would go on until 2014 and production could start in 2010, even though the green light for this project depends on local authorities, a spokesperson declared.
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O´Donnell announces lease with Possehl Inc.
O´Donnell Mexico, a leader in the development acquisition and management of institutional quality logistic and manufacturing buildings in Mexico, leased 42,593 SF (3,957 m2) to Possehl Mexico in its O´Donnell Cuautitlan Izcalli Logistic Park. Ezequiel Ruiz, Possehl Mexico CFO, commented Possehl selected O´Donnell Logistic Park - for its high quality facilities, strategic location, the opportunity to manage continuous operations for its clients, O´Donnell professional property management services, and O´Donnell flexible expansion options to su´pport the company´s growth.-
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Iberdrola will invest 69 million in two new aeolic parks in Soria
Iberdrola Renovables has started. the construction of two aeolic parks in the province of Soria with a joint power of 56 megawatts, which will mean a total investment of ¬ 69.4 million, the Company informed today. The new facilities, named Radona I and Radona II, will be located in Adradas and Alcubilla de las Peñas municipalities and will be equipped with 2 MW air-generators.
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Volkswagen de Mexico s production up in July
Volkswagen de Mexico announced today that last July production. in their Puebla Plant reached 40 thousand 049 automobiles, plus 145 trucks and chassis for buses, which is the second highest volume ever produced in one month by this assembler. The figure is very close to the 40 thousand 691 units manufactured in March 2001, the best month in the plant's production history. From this 40 thousand 194 units produced in July, 31 thousand 528 were exported and 8 thousand 666 stayed in the domestic market.
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ARTICLE OF THE WEEK
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MEXICAN HTS NOT BINDING ON USA ANALYSIS FOR NAFTA QUALIFICATION
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By Alex Romero
A.F. Romero CO INC. |
 The U.S. Court of Appeals for the Federal Circuit (CAFC) has affirmed a lower court ruling that denied NAFTA on a product imported from Mexico, on the basis that the work performed in Mexico did not suffer a tariff-shift in Mexico.
The product consisted of a crankshaft forging forged in Brazil. It was shipped to Mexico to be further worked and finished, and then shipped to the USA. When the forging entered Mexico, it was classified under heading 7224, as a “semifinished products of other alloy steel” by the Mexican parties (Broker, Maquiladora, Customs). After the further processing in Mexico, it was shipped to the USA as a crankshaft, under tariff 8483.10.30. The U.S. importer claimed that a ‘tariff-shift’ had taken place in Mexico, and thus the finished product qualified as a product of Mexico, and NAFTA.
 U.S.Customs disagreed. They decided that the forging from Brazil, as it was imported into Mexico, should have been classified under 8483.10.30, not 7224. Since the finished product that was shipped to USA from Mexico, was also 8483.10.30, there was NO tariff shift in Mexico, and the finished crankshaft product was still a product of Brazil, and thus NO NAFTA.
The importer filed a protest, and when the protest was denied, filed in the Court of International Trade (CIT). The CIT agreed with U.S. Customs. The importer appealed to the Court of Appeals (CAFC). The court of appeals agreed with the CIT and with U.S. Customs. NO NAFTA.
Both courts analyzed the tariff classifications and came down in agreement with the classification determined by U.S. Customs. Interestingly, the court stated it could not accord any deference to the classification by Mexico’s Customs authority.
 How does this affect you?
Plenty depending on how you conduct your NAFTA analysis. If you rely on the tariff classifications determined by the Mexican maquiladora or Mexican broker to check the tariff-shifts required by NAFTA, you could be exposed if U.S. Customs were not to agree with these classifications. So you should check them. There is a misperception out there that since we use a Harmonized Tariff Schedule, that the Mexican and USA classifications will always be the same, to the 6-digit level. This is far from reality. As the case described above, although we use the same Harmonized system, there are still disagreement where in the book the classification should fall.
 For example, in my experience, Mexican Brokers have a prediliction to classifying all molded components of plastic or rubber as “articles of plastic” or “articles of rubber”, under either 3926 or 4016.
Certainly, there are many products that do fall under 3926 or 4016, but not all molded components fall there. There are many molded components that fall under “parts of ………”.
For example, tariff heading 8538 calls for molded components of heading 8536. In a binding ruling CBP decided that molded components for hospital apparatus fell under 9018, not 3926. So on. Generally speaking, U.S. Customs classifies molded components as a “parts of ………………….” unless specifically directed to 3926 or 4016 by the terms of the tariff notes.
In any case, any argument for NAFTA tariff shift on the basis that it was classified that way by Mexican Customs or Mexican Broker has been rendered moot by the above-discussed case.
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By Alex Romero
A.F. Romero CO INC..
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MEXICO'S WEEKLY HEADLINES
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| » Merrill Lynch rises Mexico's recommendation |
| » Regional airlines will operate in Mexico |
| » Monterrey prepares robotics forum |
| » PEMEX reactivates plants with private investment |
| » VW ofrece aumento de 4.06% a trabajadores |
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