New General Labeling Standard (PART 2 of 2)

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General Aspects

On June 1, 2004, the Ministry of Economy published in the Federal Official Gazette the labeling Mexican Official Standard ("NOM") named NOM-050-SCFI-2004 – Commercial Information – General Labeling of Goods (hereinafter "NOM-050-2004"), providing general labeling requirements and repealing NOM-050-SCFI-1994, Commercial Information – General Provisions for Goods (hereinafter "NOM-050-1994").

NOM-050-2004 explains in detail some provisions that were not clearly described in NOM-050-1994 or that were described through "internal criteria" issued by the General Direction of Standards.

It is important to mention that NOM-050-2004 will become effective 60 calendar days after its publication in the Federal Official Gazette (i.e. July 31, 2004), except for the change regarding the obligation of expressing information in a font size that is readable at first sight", which will become effective 18 months after its publication (i.e. December 1, 2005).

Below please find a brief summary of the most relevant differences between NOM-050-2004 and NOM-050-1994:

Commercial Information

Indication of quantity in accordance with NOM-030-SCFI-1994 - Commercial information – declaration of quantity on labels – Specifications: NOM-050-2004 sets forth that if the amount or number of pieces can be identified "at first sight", it will not be necessary to include the indication of the quantity of products therein.

Indication of the country of origin of the product: NOM-050-2004 sets forth that it is mandatory to have a legend indicating the country of origin of the product, for example, "Product of..." (Producto de...), "Made in..." (Hecho en...), "Manufactured in..." (Manufacturado en...), or other similar legends.

Since NOM-050-2004 includes a definition for country of origin, the following text that appeared in NOM-050-1994 is eliminated from NOM-050-2004: "subject to the provisions of the international treaties to which Mexico is a party".

According to NOM-050-2004, when the mandatory commercial information of the goods is displayed on the container or packaging that is made available to the general public, it will not be necessary for the information to also be indicated directly on the products.

Language and terms

Regarding the language to be used on the labels, NOM-050-2004 provides that when the commercial information is stated in a language other than Spanish, it must also be declared in Spanish, in comprehensible and legible terms, so that the letter size and font allow its reading "at first sight".

According to the above, the letter size and font must comply with the requirements stated in the definition of "readable at first sight", a requirement that did not exist before.

Furthermore, NOM-050-2004 provides that the commercial information must be presented on a label affixed in such a manner that it will stay in place until the time of its sale or acquisition under normal conditions, and must be applied on each unit or multiple or collective packaging. NOM-050-2004 replaces the term "use or consumption" used in NOM-050-1994, with the term "sale or acquisition", which makes it clear that labels must be affixed until the product is purchased or acquired by the end user, and not until the product is used.

Instructions and operation manuals

While NOM-050-1994 provided that instructions and operation manuals must specify the identification of the products to which they apply, NOM-050-2004 provides that identification of the products or models may be used.

Warranties

Similar to the "instruction and operation manuals" section above, NOM-050-2004 establishes the requirement to specify the identification of the products or models to which the warranty applies.

While NOM-50-1994 established that the name and domicile of the establishments in Mexico where the warranty could be made effective, as well as those where the consumer could acquire parts and repairs, should be contained in the warranty, NOM-050-2004 additionally provides that the warranty may indicate that it may also be made effective in any of the nation-wide branch offices of the supplier offering the warranty, without the need to specify the domiciles of such offices.

Finally, NOM-050-2004 provides a more detailed explanation of the required term for warranties. NOM-050-2004 sets forth that the term of the warranty starts as of the date of acquisition of the product, date which must be indicated on the warranty or the corresponding sales receipt.

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