APRIL 2007 EDITION ARCHIVE
Legal Updates
Financial Transactions of Multiple Purpose Financial Entities
In conformity with the General Law of Credit Institutions and Auxiliary Activities (Ley General de Organizaciones y Actividades Auxiliares de Crédito), Multiple Purpose Financial Entities (“SOFOMES”) are those business associations whose bylaws expressly provide that the principal corporate purpose of the company is the frequent and professional engagement in one or more of the following activities: providing loans; financial leasing; or financial factoring, activities which, in... [Read More]New Third-Party Outsourcing Structure under IMMEX Program
The Decree for the Development of the Manufacturing, Maquiladora and Export Services Industry (IMMEX Decree) includes the new concept of “Third-Party Outsourcing” (Terciarización) also commonly known simply as “outsourcing”. In accordance with the IMMEX Decree, third-party outsourcing exists when a certified company does not have the facilities to carry out a certain production process and uses a third-party to perform such process under the third-party’s... [Read More]Recent Customs Law Case Decision
The Supreme Court of Justice of Mexico recently held that customs duty classifications contained in the Law of General Taxes on Importation and Exportation, which establish the payment of fixed duties on the importation and exportation of products which use as a reference the units of products, and not the value of the goods imported, are unconstitutional. Such ruling was issued based on the fact that the invalid provisions do not link the duty imposed to the taxable base of the goods and do... [Read More]Use of Electronic Media in the National Registry of Foreign Investment
Presentation of notices and reports to the National Registry of Foreign Investments (“RNIE”) via the Internet. Beginning immediately, the RNIE has established a new system to file the following documents via Internet: (i) Applications for inscription in the RNIE; (ii) Amendments to information previously provided to the RNIE (increases or decreases in capital, transfers of shares or association interests, entity mergers, entity transformations, changes of corporate name or denomination... [Read More]Intellectual Property Notes: Trademark Use and Effects of Registration in Mexico
Under Mexican law, a trademark is considered to exist by law from the time such trademark (whether it is a name, logo design or combination of both, or in three-dimensional form) is placed on a product or service in order to distinguish such product or service, independent of whether or not it has been registered. However, the lack of registration means one may not claim exclusive use of such trademark, or the right to oppose others from using the mark, particularly when a “degree of... [Read More]Business & Politics Outlook
New Government Employee Pension System
On March 22nd the Mexican House of Representatives approved by a majority vote the new Government Employees Social Services and Security Institute Law (ISSSTE). The new law creates a system with individual pension accounts for government workers and a new agency, Pensionissste, that will administer such retirement accounts. Under the new ISSSTE law, government workers will not be able to rely on a retirement financed by taxes that correspond to their salary and years worked, but will... [Read More]Mexican Tax Policy and Confidence in Issuing Mexican Sovereign Debt
As a result of the approval of the new ISSSTE law, and the Fiscal Responsibility Law (Ley de Responsabilidad Fiscal), the international rating agency Fitch Ratings increased its rating of long term foreign and local currency debt issued by the Mexican Government from “stable” to “positive”. Such rating emphasizes that recent laws approved by Mexico’s Congress have increased the credibility of the country’s fiscal policies.Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of April 12, 2007 was $10.98 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on April 12, 2007 at 29,606.97 points.Interest Rates
On April 12, 2007, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.46%.Feature Website
www.condusef.gob.mx
We recommend that our readers visit the web page of the National Commission for the Protection and Defense of Financial Services Consumers (“CONDUSEF”), www.condusef.gob.mx,where they may review applicable laws and procedures governing controversies between such consumers and financial institutions, and statistical information, among other data.