By Baker & McKenzie

On January 18, 2005, the Ministry of Environment and Natural Resources ("SEMARNAT"), published in the Official Federal Gazette (the "Gazette") Official Mexican Standard NOM-144-SEMARNAT-2004 ("NOM-144"), that establishes internationally accepted phytosanitary measures for wood packing, as used in the international trade of goods.

NOM-144 supersedes Emergency Standard NOM-EM-144-SEMARNAT ("NOM-EM-144") that established the technical specifications for phytosanitary measures (treatment) and mark use certifying its application regarding wood packaging material used in foreign trade. NOM-EM-144 was published in the Gazette on November 26, 2004 and became effective one day afterwards.

NOM-144 is based on the requirements provided by International Standard for Phytosanitary Measures No. 15 (ISPM-15), published on March of 2002, that establishes guidelines regulating wood packaging material used in foreign trade and the procedure to apply an internationally-accepted Mark to combat plant and vegetable product plagues, as well as to prevent them from spreading throughout the world. NOM-144 provides the legal reference to enforce the international standard in Mexico, allowing the country to be in compliance with its international obligations acquired under the International Plant Protection Convention (IPPC) of the Food and Agriculture Organization (FAO)

As of January 19, 2005, guidelines and procedures for obtaining an authorization from SEMARNAT to place the Mark in wood packaging to be used in exports are in force. As of September 16, 2005, all imported cargo that is transported on platforms or wood packaging materials, will be subject to a visual inspection by the Federal Bureau of Environmental Protection ("PROFEPA"). The application of said Mark will be harmoniously performed by Canada and United States as agreed under the North American Plant Protection Organization, and it will be introduced in the legislation of other countries, based in the agreements negotiated in the framework of FAO.

Under such scheme, importing countries shall be solely responsible for demanding that wood packaging display the Mark. In Mexico, the Direction General of Forest and Soil Management of SEMARNAT will be the competent authority to authorize the placement of Marks to evidence that wood packaging has been subject to the appropriate sanitary treatment. According to SEMARNAT, at this time there are more than 100 companies in Mexico that have been authorized by said authority to treat and place the Mark in wood packaging.

Materials that must comply with NOM-144, are: wood or wood products (excluding paper products), used to support, contain, protect or transport packages, such as pallets, boxes, crates, cages, platforms and coils among others, including wood that is expected to be used as frame or reinforcement, whether internal or external, provided it is solid and not manufactured wood.

Pursuant to NOM-144, exempt from complying with this Standard are the following wood packagings for import: a) those that have been entirely made of manufactured wood, such as plywood, chip boards, oriented flakeboards, sheet metals, for which heat, pressure or glue has been used in their production; b) metal centers, sawdust, shaving, and gross wood cut in pieces, with a thickness of less than 6 mm, and c) barrels for transportation of alcoholic beverages.

The wood packaging displaying the internationally accepted Mark, and containing no evidence of live plague, may enter to Mexico in accordance with the provisions of NOM-144; however, should the wood packaging be repaired or recycled, it must be treated and marked again, and any previous marks must be removed and display the Mark granted by an authorized or certified company.

Furthermore, should the authority determine that the wood packaging does not display the Mark in accordance with the provisions of NOM-144, the importer, prior to continuing with the import, must at its sole expense, adopt any of the following procedures: a) apply to the wood packaging any of the phytosanitary treatments provided by NOM-144; b) remove the wood packaging and replace it with national pallets, free from any evidence of live plague or materials different than wood, for which an inspection officer must be present; or c) return the wood packaging to the export country.

Finally, it is important to note that NOM-144 does not admit alternate phytosanitary treatments other than Heat Treatment and MB fumigation, even if ISPM-15 establishes the possibility of negotiating other methods. Please note that practical considerations that companies will have to confront during the transportation of their international loads, will lead these to take into account these new requirements, to avoid unnecessary delays during cross-border transportation of their goods.

We will be more than happy to assist you regarding any procedure or information with respect to this matter.