Elimination of the SICEX intelligent card / Overtime

Elimination of the SICEX intelligent card / Overtime

Baker & McKenzie

Elimination of the SICEX intelligent card and the creation of the import and export permit application form.

On May 14, 2004, the Ministry of Economy (“SECON”) published in the Federal

Official Gazette the Accord eliminating the SICEX intelligent card (“SICEX Card”) and informing of the application form for requesting an import or export permit and for modifying said permit (the “Accord”). The Accord will become effective as of July 1, 2004.

Previously, when granting an import or export permit, SECON issued a SICEX Card allowing an importer or exporter to discharge the amount spent (imported or exported) from the amount authorized in the permit. Once the authorized amount was fully imported or exported, the SICEX Card ceased to have a use.

Now, pursuant to the Accord, when granting an import or export permit SECON will inform of its issuance to the Ministry of Finance and Public Credit (“SHCP”) on an automated way through the Integral Customs Automated System (SAAI). The SHCP will keep an automated control over the imported or exported amounts from the authorized ones, relieving the importer or exporter from the obligation of presenting the SICEX Card.

The holder of import or export permits authorized prior to the Accord becoming effective, may do the following: (i) use (import or export) the whole authorized amount no later than October 1, 2004; (ii) substitute the permit no later than September 20, 2004 with a new one issued pursuant to the Accord.

If the permits (and SICEX Cards) are not used or substituted prior to October 1, 2004, they will be void.

Overtime

Should it be taken into account when calculating the employee-employer social security quotas In certain occasions, for extraordinary circumstances, your company is in the need to request the employees to work overtime. The foregoing may create questions as to whether salaries paid for overtime should be taken into consideration for the payment of the contributions to the Mexican Social Security Institute (“IMSS”).

The Social Security Law establishes that overtime should be excluded of the salary base within the limits referred in the Federal Labor Law (“FLL”).

The IMSS has established in this case that the overtime that exceeds three hours, three times per week, should be considered when calculating the salary base. In our opinion, the criteria of the IMSS exceeds what the FLL determines, resulting said criteria illegal.

We, at Backer & McKenzie, have developed a legal strategy that gives your company the opportunity of not taking into account the overtime paid to your employees, as long as it does not exceed nine hours per week.

By Baker & McKenzie

For further information, please contact us at info.mexico@bakernet.com All Rights Reserved © Baker & McKenzie Abogados, S.C. Mexico 2003