ANNUAL MAQUILADORA CONVENTION

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by  Alex Romero
A.F.ROMERO CO.
U.S. CUSTOMS BROKERS
477 Cesar Chavez Blvd., Calexico, California 92231Ph:760.357.1183/Fx:760.357.5918

The annual Maquiladora Convention was held last week in Cancun, Mexico. At that convention several important open issues were discussed and confirmed by Government officials;cnime.jpg (7173 bytes)

maquila_pen.jpg (2963 bytes)1. Antidumping duties determined and applied before January 1, 2001 will not be applied on maquiladoras. Antidumping duties determined and applied after January 1, 2001 will be applied on maquiladoras.

2. Non-NAFTA supplies that are consumed in the assembly or production process by a maquiladora are also subject to duty in Mexico. This counters the idea that since the supplies are not incorporated in the product that they would be exempt from duty. Remember that non-originating also means materials without a NAFTA Certificate of Origin.

3. Government officials stated that materials, components and supplies that are imported into Mexico on or after November 20, 2000 and secofi_nafta.gif (7080 bytes)are subsequently exported from Mexico to USA on or after January 1, 2001 are subject to NAFTA Article 303.

This confirms the NAFTA text that states NAFTA ARTICLE 303 applies to exports from Mexico on or after January 1, 2001. There is still a little confusion as to materials, components and supplies that are taken into Mexico before November 20th, and exported from Mexico on or after January 1, 2001. In my opinion, they should also be subject to Article 303. The reason is that the November 20th date is a date not in NAFTA, but self-imposed by Mexico. The start date of January 1, 2001 is set in NAFTA.

MORE PPSS

On Monday October 30th, Mexico published more PPSs, including the following;

  • chemical industry
  • plastic industry
  • steel mills
  • pharmaceutical, medicinal and medical equipment
  • transport
  • paper and carton
  • wood
  • leather
  • automotive and automotive parts
  • textile and garments

secofi.gif (972 bytes)I believe that the automotive has been the most anticipated.

FORMAT FOR PPS

It is our understanding that SECOFI is now offering the PPS format in diskettes. This is necessary for any company to apply for PPS. Contact your Mexican broker for more information.

 If you have any questions,
comments or disagreements
on any of the above, please
call me or email at alex@afromero.com

Source: Alex Romero