JULY 2006 EDITION ARCHIVE
Legal Updates
Trends Toward Guaranties of Professional Secrecy Rights
On June 6, 2006 a Decree was published in the Official Journal of the Federation amending and adding to various provisions of the Mexican Federal Code of Criminal Procedure and the Federal Penal Code, which establish clearly that one is not obligated to provide testimony or evidence in a criminal proceeding with respect to information such individual receives, knows of, or has in their possession concerning communications with attorneys, technical consultants, notaries public, ministers of any denomination... [Read More]Amendments to the Federal Consumer Protection Law
On June 6, 2006 amendments to the Mexican Federal Consumer Protection Law were published in the Official Journal of the Federation. The amendments establish that parties not regulated by financial law, and which carry out mutual insurance transactions with interest and pledges of assets, must register their form contracts (Adhesion Contracts) before the federal consumer protection authorities, as well as to make available on a permanent basis the terms and conditions contained in their contracts... [Read More]Customs Transmittal Fee Declared Unconstitutional
In 2005 the Federal Law of Fees, as it corresponds to the customs transmittal fee (known by its initials in Spanish, DTA), was changed in order to require a payment of eight per mil on all importations of foreign merchandise, even when such importations are exempt from general import duties. As the DTA has been declared unconstitutional by the Supreme Court of Justice of the Nation, a new legislative act was required as a result of the appeal filed by various importers, in response to which... [Read More]Identification of Customs Authority in Complaint Filed Pursuant to an Administrative and Customs Matter Proceeding (PAMA)
The Supreme Court of Mexico has identified through jurisprudence contradicting previous rulings the requirements that must be contained in a complaint filed pursuant to an administrative and customs matter proceeding (PAMA). The Court established that the initial complaint must contain: i) the date of issuance and expiration of the identification credential of the person identified as having customs power of attorney, ii) the organization or agency that issued such credential, iii) the... [Read More]Offers of Employment and Notice of Termination of Employee Provided to Mexican Social Security Institute
The Mexican Supreme Court has sustained in previous cases offers of employment in labor lawsuits pursued by an employer when the employer has previously given notice to the Social Security office of the termination of such employee, as in cases of bad faith and, as a result, the employer has not had to provide any proof concerning the facts surrounding such termination. Recently, the Court sustained that the deregistration of an employee before the Mexican Social Security institute on a date... [Read More]Possible Modifications to the Decree for the Development and Operation of the Maquiladora Export Industry
Recently the National Commission of the National Council of the Maquiladora Export Industry (CNIME) and the Association of Maquiladoras, A.C. (AMAC) presented to the Department of Economy a series of proposals contained in a document titled “Decree of the Manufacturing Export Industry” (Decreto de la Industria Manufacturera de Exportación), with various development programs to increase exports from those now in place (PITEX, ALTEX, PROSEC and Maquila). Additionally, it proposed... [Read More]Business & Politics Outlook
The Federal Electoral Institute Finalizes Vote Count
Jurisdictional Proceedings Initiated before the Federal Electoral Institute. The Federal Electoral Institute (known by its initials in Spanish, IFE) concluded its vote count in what has been the closest presidential election in Mexican history. According to the IFE, National Action Party (PAN) candidate Felipe Calderón received a majority of votes cast with 35.89%, with a slight margin of 0.56% over the Democratic Revolutionary Party (PRD) candidate, Andres Manuel López... [Read More]Mexican Markets Remain Volatile
Uncertainty over pending electoral appeals, as well as fear of higher interest rates in the U.S., have kept the Mexican financial markets volatile. Even with this, it is important to note that fluctuations in the Mexican stock market and foreign currency markets have been moderate, and domestic as well as foreign investors have reacted with calm and optimism.Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of July 13, 2006 was $11.03 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on July 13, 2006 at 18,724.40 points.Interest Rates
On July 13, 2006, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.3050%.Feature Website
www.ife.org.mx
During this electoral month we recommend that our friends and clients visit the Federal Electoral Institute (IFE) web page at www.ife.org.mx where they may find information and results from the Federal Election of 2006.