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Investment Environment

(Economic trend)
The Mexican economy continues to expand at a moderate annual growth rate of 2.4% due to the economic recovery lost momentum in the first half of 2015. The moderate growth in the first half of 2015 in Mexico has been attributed to the weakness of production industry in the United States, a further drop in the volume of oil production to reduce annual GDP growth by about 0.4 percentage points, and financial market volatility. It is expected that the gradual recovery in economic activity will continue, with stronger economic growth of 2.3% in 2015 and 3.0% in 2017.
The expansion of economic activity will be based on the growth of investment and private consumption, an increase in manufacturing exports will continue the significant adjustment of real exchange rate and robust growth in the United States, which will eventually provide additional support.
Mexico had a reputation as a difficult place to start a new business, due in part to the complexity of the process. Thanks to effective action from the country’s political and business leaders that perception has been changed. Mexico now ranks a very competitive 36th in the world for ease of starting a business.

2-1 Changes of growth rate of economic and GDP
2-1-1 Government financial
The Business Coordinating Council estimates that the Mexican economy to grow 2.3% in 2015 and reach 3 to 3.5% in 2016, along with “inflation under control, at historically low levels, which are already bearing for a recovery in purchasing power is given in important sectors of our population. ”
The Mexican economy will grow less this year and in 2016 due to weak external market and the global economy, while the dollar will be more expensive at the end of 2015, according to experts consulted by the Bank of Mexico (Banxico).
Gross (GDP) of Mexico domestic product will grow 2.31% in 2015, a figure lower than the 2.34% forecast in August, according to the latest survey of 36 focus groups and economic consulting domestic and foreign private sector. According to experts from 38 focus groups and economic consulting the national and foreign private sector consulted by Banxico, reduced their expectations of growth of real gross domestic product (GDP) for this year and the following two years, in relation to its estimate July survey.
Thus, the GDP forecast for 2015 increased from 2.55 to 2.34%.
Banamex has indicated that economic weakness and episodes of high volatility for 2016 outlook for economic growth in Mexico has been lowered from 3.2 to 2.8%.
The favorable tax impact has been limited and slower growth in global demand and especially from the United States are important factors in the decision of the new estimate.

2-1-2 Inflation Rate
According to INEGI inflation from December 2014 to September 2015 it is 0.65%, the average monthly inflation rate in the same period is 0.07%.

2-1-3 Trading
On international trade, Mexico has been focused on diversifying its markets, for its products and services, through the signing of many trade agreements with European, Asian and American economies. In this way, the country positions itself as an entrance door to a market that represents around 60% of world’s GDP, with over a billion of potential consumers.

2-1-4 Trading Agreements
(NAFTA, EFTA, EPA, TPP)
TLCAN in Spanish, NAFTA is a trilateral free-trade deal that came into force in January 1994, signed by U.S. president Bill Clinton, Mexican president Carlos Salinas, and Canadian Prime Minister Jean Chrétien. The central thrust of the agreement is to eliminate most tariffs on products traded among the United States, Mexico, and Canada. The terms of the agreement called for these tariffs to be phased out gradually, and the final aspects of the deal weren’t fully implemented until January 1, 2008. Has helped boost intraregional trade between Canada, Mexico, and the United States, but has fallen short of generating the jobs and the deeper regional economic integration its advocates promised decades ago.
The EFTA States Iceland, Liechtenstein, Norway and Switzerland signed a free trade agreement with Mexico in Mexico City on 27 November 2000.
The Free Trade Agreement covers trade in industrial products as well as fish and marine products. The transitional period ends on 1 January 2007. In addition, bilateral agricultural agreements between the individual EFTA countries and Mexico have been concluded which form part of the instruments creating the free trade area.
Mexico has signed Free Trade Agreements (FTA) and an Economic Partnership Agreement (EPA), gaining preferential access to the markets of 46 countries that include the largest economies of the world, such as the United States, Canada, the 28 members of the European Union and Japan. Mexico also has 6 Economic Complementation Agreements (ECA), as well as 2 Partial Scope Agreements.
TPP: It is an initiative promoted by the United States, in Los Cabos, in 2002 to promote trade liberalization and investment. It covers a market of 800 million people and account for 40% of world GDP. Net earnings are estimated at 295 billion dollars a year. The removal of barriers in areas such as procurement, setting standards for labor rights, intellectual property and environmental protection. Besides opening in regulations, SMEs, digital technologies, supply chain and integration areas. The countries involved are Japan, Brunei, Chile, New Zealand, Singapore, United States, Australia, Peru, Vietnam, Malaysia, Canada and Mexico. The Chinese government said in 2013 that it would consider joining, but now promotes the Free Trade Area of the Asia Pacific (FTAAP, for its acronym in English), a plan that rivals the TPP.

2-1-5 Relationship of trading and investment
Mexico represents a range of options for foreign companies interested in investing, we can say that the main feature to note in terms of trade in Mexico is the extensive network of treaties and trade agreements, covering 43 countries and preferential access to more than billion potential consumers, efforts have focused on the diversification of markets for products and services; and through free trade agreements and complementation agreements and economic partnership, it has established fruitful links with economies of Europe, Asia and Latin America, which has greatly boosted trade in Mexico.

2-1-6 Auto pact with Mercosur
The Economic Complementation Agreement (ACE) No. 55 on the automotive sector between Mexico and the MERCOSUR countries (Argentina, Brazil, Paraguay and Uruguay) was signed in July 2002 as part of ongoing negotiations under the Supplemental Agreement economic (ACE) No 54.
According to the Agreement on the Automotive Sector, countries negotiate bilaterally annual import quotas for the entry of duty free cars. This type of annual quotas have been established between Mexico and Argentina; Mexico and Brazil; and Mexico and Uruguay. Negotiations for an agreement on the automotive sector concluded on July 5, 2002 at the XXII Summit of Presidents of MERCOSUR. The agreement, signed on 27 September 2002, anticipates free trade in cars in July 2001.

2-1-7 Principal contents of Mercosur
Since its inception had as main objective to foster a common space that generate trade and investment through the competitive integration of national economies into the international market opportunities. As a result it has established numerous agreements with countries or groups of countries, giving them, in some cases, character Associated States -is the situation of South America-countries. They participate in activities and meetings of the bloc and have preferential trade with States Parties. MERCOSUR has also signed agreements such commercial, political or cooperation with a different number of nations and organizations on five continents.

2-1-8 Import and export, countries and regions
Principal Imports in Mexico:
•Mineral fuels and products-3507098
•Plastics and articles thereof-1869173
•Instruments and optical and medical-1170800
•Organic chemicals-847.866
•Articles of cast iron or steel-817.781
•Iron and steel-790.860
•Rubber and articles thereof-592.907
•Seeds and oleaginous fruits; various fruits-534.809
•Aluminum and articles thereof -523.120
•Paper, paperboard and articles thereof -480.466
•Pharmaceutical products-470.113
•Cereals -442,500

Country Percentage
United States- 50.2%
China- 17.4%
Japan- 4.7%
Other Countries-30.4%

2-1-9 Import and export each items

United States:
•Electrical machinery
•Non-electrical machinery.
•Oil
•Plastic
•Grains to feed cattle
•Red meat
•Soy
•Dairy products
•Wheat.

China:
•Electronic equipment
•Electronic equipment
•Computers
•Audio and video accessories
•Mechanical equipment and accessories
•Toys
•Video games
•Optical and photographic products
•Medical equipment
•Various plastic products.

Japan:
Capital goods:
•Hydraulic turbines
•Certain compressors
•Cranes (with arm or pen)
•Hoist
•Shovels
•Excavators
Electrical manufacturing:
•Wind Turbines
•Certain transformers
•Power sources
•Light Indicators
•Conference audio generators
•Microwave Amplifiers
Electronics:
•Computers
•Printers
•Monitors
•Network apparatus
•Telephone sets
•Audio and video switches
•Telephone exchanges for operators
•Acoustic centers
•Handsets
•Sound systems
•Optical readers
•High technology

2-1-10 Trend of each industry
2-1-11 Car industry
Globally, Mexico is ranked as the eighth largest producer of light vehicles. In two years, Mexico climbed two positions, leaving the production of France and Spain.
Currently, the automotive sector accounts for 6% of GDP and 18% of manufacturing output. It is estimated that the Mexican automotive industry will continue to grow in the future. The forecasts indicate that production will reach 4 million units in 2018 and 5 million in 2020.
80% of cars produced in Mexico are exported to other countries, about two thirds of the United States. You can export duty free to North America, South America, Europe and Japan. No other country in the world where you can do that.
For Japanese manufacturers such as Mazda, Nissan and Honda, the yen’s rise against the dollar it has made Japan more expensive than Mexico to produce vehicles.

2-1-12 Electric industry
The production of electricity in Mexico is mainly through hydrocarbons.
More than 28 million customers buy electricity to CFE. About 88% of these customers are residential sector.
The CFE situation is very complicated from various angles. Leaks in the network almost double the average of the OECD countries for lack of maintenance. Over 40% of the transmission lines are over 20 years. There soaring energy theft through devils, amounting to nearly 30,000 million pesos. The company lost some 37,000 million pesos in 2013. The pipeline infrastructure is insufficient.
The main changes mandated by secondary legislation, as well as some of its effects are a priori:
CFE will no longer have a monopoly on energy production except for nuclear energy, so a generation and trading market will be created, and will have to compete with private at this stage.
Industrial consumers also will be able to buy power from independent producers. This market will be ready in about two years, and its opening means having access to 90% of consumers, and a third of the profits, so we anticipate that the cash flow of the company will decrease. In this competition, the players who produce the cheapest energy will have priority to purchase.
CFE retain monopolies of power distribution and transmission, but may sign contracts with private to transmit and distribute power. To this end the transmission system opens to allow access. Private may also participate in tenders, so that contractual barriers of entry were eliminated.
CFE may contract private providers to introduce technology.
The government will absorb about 507,000 million pesos of pensions and retirement CFE, as long as the terms of the contracts are renegotiated.
35% of electricity will be generated by clean and renewable energy by 2025. The load centers should receive certificates cleaner emissions, whose guidelines will be published in October.

2-1-13 Aircraft industry
The aerospace industry in Mexico comprises companies that manufacture, maintain, repair, customize, engineer, design and provide auxiliary services (airlines, test laboratories, training centers, etc.) for commercial and military aircraft.
Mexico has consolidated its position as a global leader in the aerospace sector. The country’s exports amounted 5 billion dollars in 2012, and recorded an annual average growth between 2006 and 2012 that exceeded 16%. Imports, meanwhile, topped 4.35 billion dollars, a positive trade balance for Mexico throughout 2012.

2-1-14 Energy industry
Mexico is ranked 14th in the world economy. It has abundant oil, natural gas and renewable resources.
Mexico has oil reserves in deep water equivalent to 27 billion barrels. Since 2000 the demand for natural gas has grown at an annual rate of 5.6%.
Commercial power sector will grow at rates of 6% per year with investments of $ 57 billion dollars. Growth and opening up the energy sector to generate new needs in the market which must be covered by private or state companies.

2-2Investment Environment
2-2-1-Review of investment environment of Mexico by the result of questioner

Behavior of FDI in January-June 2015
The amount of registered FDI amounted to 13,749.7 million dollars (mdd) amount 41.3% higher than the preliminary figure for the same period of 2014 (9732.5 million dollars). The 13749.7 million dollars were reported by 2,233 Mexican companies with FDI its capital, in addition to trusts and foreign legal entities usually they perform business activities in the country. Of these totals, 7246.2 million dollars (52.7%) originated through reinvestment Utilities, 5350.1 million dollars (38.9%) for new investments and 1153.4 (8.4%) MDD concept of intercompany accounts. These concepts only concern the sources of funding and not to the application of resource

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2-2-2 Financial market
The Financial Market is the place, not necessarily physical place where purchases and sales of securities (monetary value) are made. Its object is to get the best conditions for both the bidder and the applicant for financial instruments:
-The saver or investor groups: those people or organizations who make transactions through the system, and who have available cash and liquid assets (money) on seeking attractive yields.
-Issuers: those companies seeking funds to cover needs or project financing through debt placement or direct lending institutions involved in the sector.
-Financial and regulatory institutions: Main and auxiliary, are major banking institutions include parallel and ancillary services (exchange, credit unions) or complementary (insurance, bonds, pensions, etc.). Regulatory institutions are responsible for establishing and supervising the legislation under which the entire sector activity is performed.
In Mexico it is formed by:
Secretariat of Finance and Public Credit
The Secretariat of Finance and Public Credit (SHCP) is an agency of the Federal Executive. The Ministry of Finance is responsible for planning and outline the Mexican financial system by granting and revocation of licenses for the establishment of various financial intermediaries.
Banco de Mexico
The Bank of Mexico is the central bank of the Mexican State; constitutionally autonomous, its main purpose is to provide the economy rife, and its main objective is to maintain the purchasing power of the peso. Additionally, it is responsible for promoting the healthy development of the financial system and the smooth operation of payment systems.
National Banking and Securities Commission
The National Banking and Securities Commission (CNBV) is a decentralized body of the Secretariat of Finance and Public Credit (SHCP) with technical autonomy and executive powers within the meaning of the Law of the National Banking and Securities Commission. The CNBV supervises and regulates, within its competence, to financial institutions, to ensure stability and proper operation, and maintains and promotes the healthy development of the financial system as a whole, always seeking the protection of the public interest. Its goal is also to monitor and regulate other people’s physical and moral persons when carrying out activities under the laws relating to the financial system.
National Commission for the Protection and Defense of Users of Financial Services
The National Commission for Defense of Users of Financial Services (CONDUSEF) is a public agency whose purpose is to promote advice, protect and defend the rights and interests of people who use financial services offered by financial institutions operating within the National territory. Additionally, they have fostered among users as an appropriate culture concerning the operations and financial services purpose. CONDUSEF is governed by the provisions of the Law of Protection and Defense of Financial Service Users.
Institute for the Protection of Bank Savings
The Institute for the Protection of Bank Savings (IPAB) is a decentralized body of the Federal Government, with legal personality and its own, created on the basis of the Law on Protection of Bank Savings. According to this Act, published in the Official Gazette on January 19, 1999, whose main objective is to establish a system of protection of bank savings, the IPAB must conclude sanitation processes banking institutions as well as manage and sell goods responsible for the greatest possible recovery value (loan portfolios recovered for sanitation).
National Insurance and Bonding Commission
The National Insurance and Bonding Commission (CNSF) is a decentralized agency of the Secretariat of Finance and Public Credit (SHCP) body whose function is to monitor the operation of the insurance and surety sectors adheres to the regulatory framework, preserving the solvency and financial stability institutions to ensure the interests of the public user. The CNSF is governed by the provisions of the Organic Law of the Federal Public Administration, the General Law of Insurance Institutions and Mutual Societies, the Federal Bonding Institutions Act and its rules of procedure.
National Commission on Insurance System of Saving for Retirement
The National Insurance Commission for Retirement Savings (CONSAR) is an administrative agency of the Secretariat of Finance and Public Credit, which aims to protect the retirement savings of workers.

2-2-3 Exchange rate
The exchange rate (FIX) is determined by Banco de Mexico as an average of quotes in the wholesale foreign exchange market for operations payable in 48 hours. Banco de México informs the FIX from 12 o’clock onwards each banking day. It is published in the Official Gazette (Diario Oficial de la Federación) one banking business day after its determination date, and is used to settle liabilities denominated in U.S. dollars payable in Mexico on the day after its publication in the Official Gazette.

2-2-4 FDI
The aim of Foreign Direct Investment (FDI) is to create lasting and long-term interests of foreign entrepreneurs in the recipient country, for economic purposes. The importance of FDI resides in the fact that it functions as an important catalyst for development. In this sense, FDI produces important beneficial effects in the productivity and competitiveness of a country by creating jobs, increasing savings and foreign currency reserves, fostering competition and boosting transfer of new technologies and exports.
The Directorate General for Foreign Investment (DGIE, in Spanish) is the administrative unit of the Secretariat of Economy responsible for the application of the Foreign Investment Law and, particularly, for managing and operating the National Registry for Foreign Investment (RNIE, in Spanish), preparing and publishing statistics on FDI inflows, and serving as the Technical Secretariat of the National Commission for Foreign Investment (CNIE, in Spanish). The DGIE also represents Mexico in international foreign investment fora, contributes to the promotion of investment, disseminates information and studies on the investment climate in the country, and promotes the adoption of public policies, when convenient.
In 2012, the FDI received in Mexico totaled $12.66 billion, 34.9% less than what was originally reported in the same period of 2011 ($19.43 billion). Of this total, 55.7% was channeled to the manufacturing industry, 20% to retail, 12.9% to the construction sector and the rest to other sectors. The FDI came mainly from the United States (58.5%), Japan (13.1%), Canada (8.2%), Germany (5.9%), Netherlands (5.7%) and France (2.6%).

2-2-5 Inflation
2-2-6 National development plan
The National Development Plan (NDP) is the formal and legal instrument through which the Government’s objectives are plotted allowing the subsequent evaluation of their management. According to the Constitution of Colombia of 1991 in article 339 of Title XII, “the economic system and of public finances”, Chapter II “development plans”, the NDP is composed of a general part and investment plan public national entities.
In the general part of the purposes and long-term national goals, targets and priorities of state action in the medium-term strategies and general guidelines of the economic, social and environmental policy to be adopted by the government are marked.
On the other hand, public investment plan contains the multi-annual budgets of major programs and projects of national public investment and specify the financial resources required for implementation and funding sources
The legal framework governing the NDP is recorded within the Law 152 of 1994, by which the Organic Law of the Development Plan was established. This includes, among others, the general principles of planning, defining national authorities and planning bodies and the procedure for the preparation, approval, execution and evaluation of the National Development Plan.

2-2-7 Harbors
•Altamira, Tamaulipas
•Tampico, Tamaulipas
•Río Largartos, Yucatán
•Progreso, Yucatán
•Alvarado, Veracruz
•Tamiahua, Veracruz
•Barra de Tuxpan, Veracruz
•Tecolutla, Veracruz
•Tuxpan, Veracruz
•Anton Lizardo, Veracruz
•Veracruz, Veracruz
•Coatzacoalcos, Veracruz
•Celestún, Yucatán
•Sisal, Yucatán
•Dzilam de Bravo, Yucatán
•Las Coloradas, Yucatán
•Isla Mujeres, Quintana Roo
•Cozumel, Quintana Roo
•Chetumal, Quintana Roo
•Progreso, Yucatán
•Cancún, Quintana Roo
•Sánchez Magallanes, Tabasco
•Puerto dos Bocas, Tabasco
•Barra Chiltepec, Tabasco
•La Barra, Tabasco
•Ciudad del Carmen, Campeche
•Isla Aguada, Campeche
•Champotón, Campeche
•Campeche, Ca

This is a list of Mexico’s 10 busiest freight ports by total cargo tonnage.

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2-2-8 Train
Mexico has a rail network of cargo handled by private concessionaires that extends across most of the country, connecting the main industrial centers with ports and border grid connections of American railroads. Between 1997, when the National Railways of Mexico suspended the service, and 2008, when the first line of Suburban Railway in the Valley of Mexico was opened, the passenger rail network in Mexico was limited to a couple of lines of tourist trains.
Currently the private railways, especially Ferromex and KCSM have managed to increase the participation of nearly 27% of the tons of cargo in the country. The sectors that benefited most was: automotive, agriculture (grains) and inter-port (containers) in charge who have seen the railroad more timely, better security against attacks on new units and environments with fewer accidents

2-2-9 Streets
In Mexico there is a difficult and growing mobility associated with an increasingly dispersed, with little mixing of land uses, little diverse activities and favors a territorial disorder that threatens the territorial reserves of soil conservation urban pattern. But also, this increasingly slower mobility is increasingly affecting the air quality, health and the use of time for all inhabitants. The trend of increased travel throughout the metropolitan area faces deficits however, inadequacies and distortions of the road network and the transport network, which may be accentuated a difference between the major corridors of origin destination travel, especially the North – South and the East-West, and the layout, design, organization and increase the capabilities of both networks, road and transport.
Some roads are the responsibility of the federal government and are the federal highway corridors that provide access and communicate with the main cities, borders and seaports of the country and, therefore, recorded most of transporting passengers and cargo. Some sections are free, to move in them has no cost, others are fee, which must be paid a toll to use them.
In addition to federal highways, state roads are, as the name implies, are the responsibility of the governments of each state and include paved and lined roads; rural roads and trails.
Coated roads are not paved, but serve in any season. Rural roads ensure the passage of vehicles to rural communities (less than 2500 inhabitants) and gaps are improved roads with little technical work. Together, these pathways strengthen regional communication and linking areas of agricultural and livestock production; likewise ensure integration of the areas,

2-2-10 Airports
Mexico is a country with more airports, airfields and runways in the world, with a total of 76 airports in 2015, 58 categorized as international, while the remaining 16 are nationals 1. There are 4 private airport groups, which added to airports and axillary Services (ASA), an agency of the federal government and partnerships between ASA and state governments administer all airports in Mexico. In the list are displayed in airports operations with more passenger traffic between 2010 and 2014.

2-2-11 Electricity
In Mexico there are 65 economic units where 124,782 people engaged in the generation, transmission, distribution and marketing of electricity working.
However, the technical nature of the activity, there is little economic units when compared to the national total, representing only 0.001%, a figure that cannot be graphed, thus omitted. The average price per kilowatt-hour (kWh) from 1999 to 2012 nationally registered an increase of 260%, against 82% increase in the National Consumer Price Index (CPI) during the same period.
Rates for midsize businesses, in that period, went from 52.28 cents to 164.66 cents kWh. That is, an increase of 214 percent, 2.6 times the general price level of the Mexican economy. In domestic service, the increase in the electricity tariff was 1.7 times inflation. The situation does not change when compared to the rates charged in other countries. In the last 10 years the industrial rates went from $ 0.06 per kilowatt hour in 2003 to $ 0.12 kilowatt-hours in 2013, 86% more expensive than in the US or Asia. With respect to the countries of the OECD which Mexico is a member, residential and industrial rates in Mexico they are above those nations.
That is, if 10% more expensive in 1998, prices rose 44% last year compared to those countries.

2-2-12 Correspondence
Correos de México, formerly known as Mexican Postal Service (Sepomex) is the national postal service México. The company has sales of more than 2 million stamps, handling an estimated 436 million pieces, 10.7 million products and 1.4 million packets.
The correspondence is distributed through 2,659 routes and 10,000 postmen, 10,489 motorcycles, 5,304 bicycles and 1,485 vehicles; in addition to 52 sorting centers. This service is carried out since 1580.

2-2-13 How many Japanese companies are in Mexico?
There are 800 Japanese companies in Mexico.

2-2-14 Investment by Japanese company
As for the consequences of the arrival of this investment to Mexico, we note:
a) First, the obvious, which it is the arrival of new capital into the country to complement domestic investment. And secondly, direct job creation. Japanese investment in Mexico has distinguished itself by being concentrated in manufacturing and generate more employment per dollar invested.
b) Secondly, the Japanese investment has come has focused on the automotive sector. This is one of the most dynamic sectors in the Mexican economy. Mexico has become the eighth largest producer of cars and the fourth largest exporter in the world.
c) Third, the Japanese automakers operating in Mexico have a high share of domestic production in the domestic market and exports of Mexico, contributing to the surplus that Mexico has with the United States. The three Japanese automakers, Honda, Nissan, Toyota participating with 27.8% of automobile production in Mexico; 24% of exports to other countries. And those same distributors and other Japanese automakers participate with 40% of the domestic market.
d) Another consequence of Japanese FDI in Mexico is that the country has been linked with other Asian countries, to make imports of parts and components not only Japan, but other Asian countries. Thus Japanese companies established in Mexico are helping to form larger networks regarding providing production and thereby boost the competitiveness of the sectors involved.
e) Investment by large companies is attracting Japanese suppliers of parts and components. This is contributing to the creation of clusters or industrial clusters. The benefit of this is that these companies develop relationships with local businesses, helping to increase the competitiveness of the latter. The central-western Mexico is becoming an area of concentration in the automotive and aerospace production. In Aguascalientes, attracted by Nissan, 27 Japanese companies have announced investments. 24 followed Guanajuato, Queretaro and Jalisco 6 to 5. In the north, Nuevo Leon with 18 and California with 13.
f) Another aspect to highlight is the development of local supply. The Japan External Trade Organization (JETRO) has worked with the Ministry of Economy for the development of local supply since 2001 and has been diagnosed 150 Mexican companies that are potential suppliers of Japanese subsidiaries. Progress has been slow; however, this experience can be used by government agencies to develop local suppliers and replicate the best practices promoted by Jetro reach a larger number of companies. Once the beneficiaries become aware of the benefit of joining the global production chains, the demonstration effect will have a greater impact on other companies.

2-3 Investment incentive
2-3-1 Law of car
Vehicles with capacity of up to fifteen passengers, the sale price of the car in question, will be applied as follows:
A. Rate to determine the tax on new cars by 2015

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Federal Tax on New Cars (ISAN)
•Article 10. For cars imported definitively by persons other than the manufacturer, the assembler, its dealers or traders in the field of vehicles, the tax referred to in this Act, shall be paid at customs by declaration, together with the general import tax, even when the second payment is deferred under cars found in bonded warehouse in bonded warehouses. No cars will be withdrawn from customs, tax or controlled enclosure, without previously you have made the relevant payment under this Act.
•Article 13. manufacturers, assemblers or new car dealers, as well as those who import cars to remain permanently in the northern border of the country and in the states of Baja California, Baja California Sur and the partial region of the State of Sonora, be included in the document under which the corresponding alienation, vehicular key that corresponds to the version alienated. The Secretariat of Finance and Public Credit will establish how the above key should be integrated by general rules. The value of alienated vehicle shall be stated on the voucher in local currency.

2-3-2 Preferential treatment
Mexico achieved a gradual opening to its most sensitive productive sectors:
In immediate access (“A”), Mexico eliminated the tariff for 40% of the tariff on imports, which mainly include which it produces products and supplies for the national industry, such as high-tech products (precision equipment, heavy machinery and capital goods, certain chemical supplies, computer equipment, electronics consumption, etc.) Japan was granted immediate access to only a number equivalent to 5% of the domestic car market (to be implemented by quota).
For steel industry, specialized steels not produced in Mexico, and they used in the manufacture of automotive products, from auto parts, electronics, appliances, and machinery and equipment heavy, were released immediately after the entry into force of the Agreement so.
– In contrast, Japan’s ordinary steel, which competes with production national, maintain the current tariff for the first 5 years force of the Agreement

2-3-3 Requirement of registration(for immex)
Apply at the IMMEX.EXE program file on magnetic disk or CD with two copies print properly completed. The applicant must have the following:
-Certificate of advanced electronic signature of the SAT.
-Federal Register of active contributors.
-Your offices and homes in which to conduct its operations under the Program are registered and active in the Federal Register of Taxpayers. Also, the presentation of application of the procedure must be attached the following documents:
1. A certified copy of the charter of the company and, where appropriate, of changes to it.
2. Copy of the document certifying the legal possession of the property in which carried out the intended operation of IMMEX Program, in which the location of the property indicated, enclosing photographs of the same. In the case of lease or loan, it must prove that the contract sets a minimum compulsory period of one year and subtracts a period of at least eleven months of the date of submission of the application.
3. Maquila contract of sale, purchase orders or firm orders, proving the existence of the export project.
4. Appropriate Power of Attorney (original or certified copy and a simple copy); display or copy the Register of Accredited Persons (RUPA).
5. Free Written by which the production process or services covered by the application program detailing.
6. In the case of goods Article 4, Section I of the Decree for the Promotion of the Manufacturing, Maquiladora and Export Services ** (IMMEX), written in the detailed description of the process is provided means production or service that includes the installed capacity of the plant to process imported goods or perform the service in the program and the amount of capacity actually used that ability.
7. Letter of Conformity (s) firm (s) that made the sub-manufacturing process where state under oath that joint and several liabilities on the temporary (original) imported goods.
8. In addition to the type of program IMMEX Companies Controller, provide:
Minutes of shareholders, in stating the shareholding of the controlling company and the controlled (original and copy). Certificates seats shareholders registration book (copy).
The documents referred to in paragraphs 1, 2 and 5 of this section, besides presenting the copy of the tax identification card this documentation must be submitted to the controller and each of the subsidiaries.
Contracts maquila each subsidiary has concluded with the holding company or subcontracting agreement where the obligations should be established, both the holding company and by the subsidiaries in relation to the objectives sought, duly notarized before notary (original and copy).
Authorization as a certified company (copy), issued by the Secretariat of Finance and Public Credit.
9. In addition to the outsourcing mode IMMEX Program, provide:
Letter of Conformity (s) firm (s) that perform (n) the process of outsourcing, which revealed (n) under oath joint liability on the temporary (original) imported goods.
The (s) firm (s) request (s) the program in the form of outsourcing must (n) be authorized as certified company granted by the Secretariat of Finance and Public Credit.
10. The companies in the textile and clothing sector applying IMMEX authorization for temporary import of goods included in the tariff of the Tariff Act of the General Import and Export, which are listed in Annex III Decree IMMEX, exclusively for the production of goods classified in Chapters 50 to 63 and subheading 9404.90 of that rate (Manufacture of textile inputs, production of textiles and clothing), they must attach to their application the following documentation:
I. Report registered public accountant, certifying:
The location of the offices and the homes in which conducts its operations under the IMMEX program. Machinery and equipment for the industrial process. The installed production capacity to make the monthly industrial process for 8-hour shift. The products they manufacture. The number of employees of the company holding the IMMEX program and, where appropriate, that of each of the companies that perform sub-manufacturing activities.
Free II Written legal representative of the company which declares the projection of exports in dollars for six months after the start of operations.
The IMMEX.EXE program can be obtained in the next-IMMEX downloads directly over the counter or customer service of the Ministry of Economy, presenting four high density magnetic disks or CD.

2-4 Incentive to import
2-4-1 Change of preferential treatment

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2-4-2 IMMEX
Maquiladora Manufacturing Industry and Export Services (IMMEX)
The IMMEX Program is an instrument through which allowed the temporary importation of goods to be used in an industrial process or service for the production, processing or repair of goods of foreign origin temporarily imported for export or the provision of services export without payment of general import duty, value added tax and, where appropriate, of antidumping duties.
The IMMEX Program provides its holders the ability to import temporarily free of import taxes and VAT, the goods needed to be used in an industrial process or service for the production, processing or repair of goods of foreign origin temporarily imported for export or the provision of export services.

These goods are grouped under the following categories:
-Raw materials, parts and components to be fully integrated to allocate export goods; fuels, lubricants and other materials that are consumed during the production process of export goods; containers and packaging; labels and booklets.
-Containers and boxes trailers.
-Machinery, equipment, tools, instruments, molds and parts intended for production process; equipment and apparatus for controlling pollution; for research and training, industrial safety, telecommunications and computer, laboratory, measurement, product testing and quality control; as well as those involved in handling materials directly related to export goods and others linked to the production process; equipment for the administrative development.

2-4-3 Necessary document for continuance
Fill the application and submit the program IMMEX.EXE magnetic disk or CD with two copies print properly completed.

1. Extension of IMMEX not sensitive product. Companies in the textile and clothing sector applying for an extension of a IMMEX Program for first temporary importation of goods included in the tariff of the Tariff Act of the General Import and Export, indicated the Annex III of the IMMEX Decree, exclusively for the production of goods classified in Chapters 50 to 63 and subheading 9404.90 of that rate (Manufacture of textile inputs, production of textiles and clothing), must attach the following documents.
I. Report registered public accountant, certifying:
The location of the offices and the homes in which conducts its operations under the IMMEX program.
-Machinery and equipment for the industrial process.
-The installed production capacity to make the monthly industrial process for 8-hour shift.
-The products they manufacture.
-The number of employees of the company holding the IMMEX program and, where appropriate, that of each of the companies that perform sub-manufacturing activities.
Free II Written legal representative of the company which declares the projection of exports in dollars for six months after the start of operations.
2. Expansion of IMMEX for sensitive products. Companies applying for an extension to import goods under the tariff rate of the Tax Act General Import and Export, listed in Annex II of the IMMEX Decree, shall submit an annex to its request, the following documentation.
I. Written in free format in which specify:
Data imported goods:
Tariff and unit of measure, in accordance with the rate.
Maximum volume imported in the year and their dollar value.
Details of the final product to be exported, to be drawn up with the goods that paragraph 1 above, provided for this purpose with the following information:
Description: In the terms on which it should be noted in the export declaration. The description must relate enable the commercial description of the bill.
Tariff and unit of measure, in accordance with the rate.
II. Report of a registered public accountant certifying:
The location of the offices and the homes in which conducts its operations under the IMMEX program.
The existence of machinery and equipment for industrial processes.
The monthly production capacity installed to make industrial processes, for 8-hour shift.
The products they manufacture.
III. In the case of the goods listed in Annex II, Section I, of the IMMEX Decree, additionally you must present documentation that the petitioner is within the System Type Federal Inspection (TIF), its cooling capacity and, If, freezing, and the document showing that has the import authorization issued by the country to which to export the processed product.
3. Extension of subsequent IMMEX Program sensitive products. In the case of a subsequent extension request for the temporary importation of goods covered by the tariff of the Tariff Act of the General Import and Export (TIGIE) listed in Annex II of the Decree for the Promotion of the Manufacturing, Maquiladora and Export Services, file attachment to your request:
I. Written in free format you specified, data import goods:
Tariff and unit of measure, in accordance with the rate.
Maximum volume imported in the year and their dollar value.
II. Report signed by the legal representative of the company, where indicated:
The volume imported under the previous authorization of goods included in Annex II of the IMMEX goods.
Volume of products made with imported terms in the preceding paragraph, mentioning the number and date of return to motions goods.

Volume of scrap and waste related to industrial processes.
Amount of each material in terms of the unit of measurement in accordance with the rate used in the production processes, indicating the percentage of losses.
4. Extension of IMMEX for recording service activities. No documentation accompanying its application is required.
5. Expansion of IMMEX given to companies in the textile and clothing industry amount. Companies in the textile and apparel importing goods covered by the tariff of the Tariff Act of the General Import and Export, listed in Annex III of the IMMEX Decree, exclusively for the production of goods that are classified in Chapters 50 to 63 and subheading 9404.90 of that rate (textile manufacturing inputs, production of textiles and clothing) may increase the amount for the temporary importation of such goods, presenting a free written, according to the next:
I. For the companies referred to in section I of Rule 3.4.8 of the Agreement establishing the Ministry of Economy issues rules and criteria on foreign trade is concerned, may justify the following two:
-Use of idle capacity, including, where appropriate, the companies that carry out sub-manufacturing.
-Expansion of own installed or, if necessary, capacity of each of the companies that carry out sub-manufacturing.
For companies II section II of Rule 3.4.8 refers, shall specify the percentage of additional use of spare capacity or expansion of installed capacity for the next six months.

2-4-4 Type of IMMEX
-Holding companies IMMEX program, the same program when the manufacturing operations of a certified company named controller and one or more subsidiaries are integrated;

-Industrial IMMEX program, when an industrial process of manufacturing or processing of goods for export is carried out;

-Services IMMEX Program, when services are performed to export goods or export services are provided only for the development of the activities that the Secretary determines, after opinion of the Secretariat of Finance and Public Credit;

-Hostel IMMEX program when one or more foreign companies will provide the technology and the productive material without the latter directly operate the Program, and

-Outsourcing-IMMEX program, when a certified company that does not have facilities for production processes, perform manufacturing operations through third parties to register in your program.

2-4-5 PROSEC
The Programs of Sector promotion called PROSEC. It is an instrument to manufacture enterprise producing certain goods, whereby they are allowed to import tariff preferential ad-valorem (General import tax between 3-0 % ) goods to be used in the production of specific products, regardless of which goods to produce for export or the domestic market.
The manufacture enterprise who manufactures goods of the PROSEC Decree may import tariff ad valorem preferential specified in the Decree, various goods to be incorporated and used in the production process of the designated goods. To import goods and the goods produced are grouped by sectors in the following:
1.The industry electric
2. The industry electronic
3. The industry of the furniture,
4. The industry of toy, games for recreation and items sporting,
5.The industry of the footwear,