Publication Category: CCN MexicoReport™

Mexican Tourism Welcomes Good News

Recent hard times in Mexico have made it difficult to highlight, as should be the case, the progress and achievements of society as a whole, regardless of whether such progress has occurred in the public or private sector. Bad news related to violence, insecurity, corruption and organized crime has generated public distrust. This has prevented a clear appreciation of a series of achievements in different areas that evidence Mexico’s progress. It is true that some electoral results have been criticized, but it is equally true that they were processes that have been conducted without major problems. The fact that the winning candidates do not have high percentages of votes in their favor is the result of the spreading of votes … read more

Economic Indicators

On July 19, 2017, the financial indicators reflected:   Peso/Dollar Exchange Rate: $ 17.4937 pesos per Dollar.    Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed at 51,086.93 points.    Interest Rates: The Average Interbank Rate (TIIE) for a 28-day period was at 7.3675%

Recent Jurisprudence – Burden of Proof in Claims of Days of Weekly Rest and Compulsory Rest, by Adrian Salgado

The Second Chamber of the Supreme Court of the Nation recently published decision number 2a./J. 63/2017 (10a), entitled: “Days of weekly rest and compulsory rest. Burden of proof in regards to claims for such items.” This decision resolves the contradiction between the prior decisions of the Circuit Collegiate Tribunals, the Third of the Auxiliary Center of the Tenth Region, and the First of the Auxiliary Center of the Fourth Region, the latter being the subject of an article in the June 2014 CCN MexicoReport™. In the present case, the Second Chamber concluded that two procedural burdens are generated in accordance with the general principle that whoever makes a claim is obligated to provide the proof. As such, the first burden … read more

A New Era in the Regulation of Natural Gas in Mexico, by José María Lujambio

July 1, 2017 is an historic date for the natural gas sector in Mexico. On such date started the so-called “permanent regime” of capacity reservation in the National Integrated Transportation and Storage System. In addition, the terms and conditions for the first-hand sales of natural gas made by Pemex Industrial Transformation, and the natural gas trading contract model for the affiliate MGC México, entered into force. The last time the Energy Regulatory Commission (“CRE”) had sought to launch the “permanent regime” was in September 2011. At that time, Pemex Gas and Basic Petrochemistry successfully challenged the resolution by such regulator. In fact, that was the last attempt by the CRE to demonstrate that the regulatory framework, institutional arrangement and industrial … read more

Restructure of the VAT Certification System, by Edmundo Elias and Marisol de León

Based on the First Resolution of Modifications to the General Rules of Foreign Trade for 2016, published on May 9, 2016, a new comprehensive certification scheme was established, consisting of a permanent compliance program for companies that will be certified in new modalities, including VAT Certification and Authorized Economic Operator. Under this new comprehensive certification scheme, obligations that used to be of instant or temporary compliance, have become permanent. Even though the VAT certification renewal process has been simplified, compliance with the obligations derived from the VAT certification may be reviewed at any time and, in case of non-compliance, a cancellation procedure may be initiated. The government authorities that review compliance with a VAT certification have a stricter policy and … read more

Customs Valuation

The recent publication of new Regulations to Mexico’s Customs Law offer important changes in customs valuation methodologies. The obligations established in Article 81 of such Regulation, which consists of presenting documentation attached to the statement of value provided to a customs agent, should have entered into force. However, this obligation has been extended on several occasions and will now enter into force in January 2018. The documents that will be required to be delivered to the customs agent include the following: a) Commercial invoice; b) Bill of lading, packing list, airway bill and/or other transport documents; c) Certificate of origin; d) When the value declared in customs is less than the estimated prices by the Secretary of Economy, the document … read more

Money Laundering Prevention in Outsourcing Services, by Miriam Name and Fernando Juárez

In November 2016, the Financial Intelligence Unit (“UIF”) of the Ministry of Finance and Public Credit (“SHCP”) published on its website new rules in relation to outsourcing activities. In such rules, the UIF determined that the provision of services constituted a vulnerable activity under the terms of the Federal Law for the Prevention and Identification of Operations with Resources of Illegal Origin (“LFIPIORPI”) or “Anti-Laundering Law”. This new rule may reviewed at The new rules imply that companies that provide personnel services (outsourcing and/or insourcing) must comply with a series of administrative burdens established by the Anti-Laundering Law. These obligations include identifying operations, appointing representatives before the UIF, filing notices and keeping documentation on file, among others. As can … read more

Relevant Aspects to Consider When Managing Employee Attendance Records, by Maria Fernanda Magallanes

In Mexico, it is vital for companies to take appropriate measures to control their employees’ attendance. This not only entails confirming their schedules, but also issues related to the measurement of productivity within the company and how to avoid claims in the event of a labor lawsuit. It is the employer whom, in case of labor lawsuit, has the burden to prove the following to the labor authorities: i) the work schedule; (ii) whether or not the employees worked overtime, and, if applicable, the payment of the such; and (iii) if the employees were absent from work with a justified or unjustified reason, and, if applicable,  be able to  prove the corresponding discounts for these absences or even to prove … read more

Criminal Liability of Entities, by Eduardo Parroquín Patiño

With the new National Code of Penal Procedures entering into force and the reforms made to the Federal Penal Code on June 18 and 17, 2016, respectively, entities in Mexico may now incur criminal liability and, consequently, be severely sanctioned for crimes committed under the auspices and with the assets of the entity. The foregoing is regardless of the liability incurred by the individual whom committed, participated in or provided instructions as to the criminal act. It may be possible to mitigate an entity’s criminal liability by demonstrating that authorized individuals monitor and take precautions to prevent criminal conduct by the organization. Article 11 Bis of the Mexican Federal Penal Code establishes a list of crimes for which an entity … read more

Secretary of Economy establishes web site to receive comments on modernization of NAFTA.

July 3rd, 2017 On June 25, 2017, the Secretary of Economy announced the authorization and implementation of a website, to receive comments regarding the possible modernization of the North American Free Trade Agreement (“NAFTA”).   According to the statement, the Secretary of Economy authorized the following website:   The authorization of the website is part of the consultation process prior to the beginning of the negotiations for the modernization of NAFTA.   The website where the comments related to the modernization of NAFTA will be received, will be available between June 26 to July 26, 2017.