Legal Updates Articles


June 25, 2021

Powers of Attorney Granted Abroad by Entities-Intellectual Property

By Adrián Salgado

Recently, the Second Chamber of Mexico’s National Supreme Court of Justice published the case decision, which is a precedent by contradiction, under number PC.I.A. J/170 A (10a.), which decision is titled: “Powers of attorney granted by entities abroad. Interpretation of Article 181, Section IV, of the Industrial Property Law (in force as of November 4, 2020).” In such binding precedent, all members of the Administrative Court for the First Circuit held that from a historic, systematic and harmonious interpretation of article 181, section IV of the aforementioned Law, it is not enough that a power of attorney abroad is granted pursuant to the applicable laws of the place where is granted, or pursuant to international treaties, but also that “it … read more


May 18, 2021

Ten Important Points for Mexican Investors in the U.S. to Consider

By Robert M. Barnett and Natalie Cerón

The U.S. business environment offers a favorable climate for foreign companies and individuals seeking to achieve positive results for their trade and investment activities. When assessing potential business opportunities in the U.S., it is essential for such foreign parties to carefully prepare a detailed plan which takes into consideration prevailing U.S. legal, tax and cultural aspects.  The points described in this article summarize some of the most important topics that foreign businesses and investors should understand before doing business in the U.S. Experience has shown that successful projects require foreign businesses to assemble a team of legal, financial and tax advisers who are able to advise the business as it undertakes a particular trade or investment project in the state … read more


March 26, 2021

Mexico Makes Changes to Its Federal Judiciary

By Jorge Sánchez Cubillo and Eduardo Parroquín

A Decree published in the Official Journal of the Federation on March 11, 2021 amends and adds several provisions to the Mexican Constitution regarding the structure, functions and organization of the Mexican Federal Judiciary, as well as to the rules for handling certain constitutional cases. Such amendments were proposed by the Chief Justice of the National Supreme Court of Justice (“SCJN”) and presented to Congress by the Mexican President. The following are the most relevant amendments: 1.         Collegiate Courts of Appeal to Replace the Unitary Circuit Courts. Under the new system, federal appellate courts (tribunales unitarios de circuito) will go from one presiding Magistrate to three Magistrates, each retaining their existing constitutional authority. 2.         Regional Board Courts to Replace Circuit … read more


March 26, 2021

Mexico Makes Changes to Its Federal Judiciary

A Decree published in the Official Journal of the Federation on March 11, 2021 amends and adds several provisions to the Mexican Constitution regarding the structure, functions and organization of the Mexican Federal Judiciary, as well as to the rules for handling certain constitutional cases. Such amendments were proposed by the Chief Justice of the National Supreme Court of Justice (“SCJN”) and presented to Congress by the Mexican President. The following are the most relevant amendments: 1.         Collegiate Courts of Appeal to Replace the Unitary Circuit Courts. Under the new system, federal appellate courts (tribunales unitarios de circuito) will go from one presiding Magistrate to three Magistrates, each retaining their existing constitutional authority. 2.         Regional Board Courts to Replace Circuit … read more


November 17, 2020

Notice of Change in Owners or Shareholders of Companies Domiciled in Mexico to be Filed with Mexico’s Federal Taxpayers’ Registry (RFC)

By José Soto

Section VI of Part B of Article 27 of Mexico’s Federal Tax Code (Código Fiscal de la Federación) was recently amended to require entity taxpayers to file notice with the RFC stating the name and RFC number of their owners or shareholders each time the composition of the owners or shareholders of such entity is modified or changed. Rule 2.4.19 of the Miscellaneous Tax Resolutions for 2019/20 (RMF) stipulates that the notice must be filed using transmittal form 295/CFF and occur within 30 business days following the effective date of the change of the composition of owners or shareholders. Apart from the above notice, Transitory Article Forty-Sixth of the RMF establishes that entities and other business associations that have not … read more


October 20, 2020

Mexico Adopts Changes to Information that Must Be Submitted to the National Registry of Foreign Investments

By Floriberto Morales

On September 4, 2020, Mexico published a new Decree requiring new forms to be used for requests and notices filed with its National Registry of Foreign Investments (“RNIE” by its initials in Spanish) in the Official Journal of the Federation. The new forms mandate the inclusion of more detailed information be provided in quarterly and in the annual RNIE economic reports. The following are the most significant changes: Important changes to the Quarterly Economic Report Form: • Copies of financial statements, as well as debtors and creditors’ schedules, must now be provided. • A new form called “Geographical destination of the investment or origin of the divestment” is now mandatory. • A “State presence” form requires information regarding the presence … read more


October 12, 2020

The State of Nuevo León, Mexico Enacts Important Reform for Commercial Leases Following Declaration of Health and Sanitary Emergency

By Jorge Ojeda

On October 2, 2020, Decree 358 was published in the Official Journal of the State of Nuevo León, adding a second paragraph to article 2326 of the Civil Code for the State of Nuevo León (“CCNL”), which reads as follows: “Art. 2326.- If the use of the property is impeded only in part, the tenant may request a partial reduction in rent, based on the opinion of experts, unless the parties elect to terminate the contract, if the impediment lasts as long as the time set forth in the prior article. Tenants of real property conducting commercial activities whose use and enjoyment of such real property was disturbed as a result of the declaration of a civil protection or sanitary … read more


April 3, 2020

Entry into Force Date of the USMCA

By Marissa Rodriguez

The United States, Mexico and Canada Agreement (USMCA) is scheduled to enter into force on June 1, 2020. In a letter, dated March 30, 2020, the United States Senate urged Robert Lighthizer, United States Trade Representative, to seriously consider delaying the date the USMCA will enter into force, noting that the COVID-19 pandemic has impacted governments and businesses in such a way that will not allow enough time and resources to ensure a smooth transition from the North American Free Trade Agreement (NAFTA) to the USMCA.


April 3, 2020

New Amounts in Controversy Applicable in Commercial Oral Trials and Expedited Commercial Oral Trials

By Jorge Sánchez Cubillo

The reforms to the Mexican Commerce Code, published on January 25, 2017 and amended by means of a decree dated March 28, 2018, set forth the time periods for transitioning from the traditional written trial system to commercial oral trials. Beginning January 26, 2020, lawsuits with an amount in controversy of up to four million pesos (approximately $210,500 U.S. Dollars) will be tried as Expedited Commercial Oral Trials, and those with amounts in controversy above such amount will be tried as Expedited Commercial Written Trials. On the other hand, all commercial trials for which a special trial procedure is not provided by applicable law must be tried as Commercial Oral Trials, irrespective of the amount in controversy. The principal objective … read more


March 30, 2020

UNITED STATES-MEXICO-CANADA AGREEMENT CHAPTER 15 CROSS-BORDER TRADE IN SERVICES

I. INTRODUCTION. Chapter 15 is one of the key chapters of the USMCA, as it establishes rules and obligations to facilitate cross-border trade in services among the Parties. While a few aspects of Chapter 15 remain as compared with the NAFTA, important differences exist in between the two, which were designed to positively impact cross-border services and ensure the growth of international business in the USMCA region. II. EXECUTIVE SUMMARY. The USMCA’s Chapter 15 on Cross-Border Trade in Services replaces Chapter 12, Part 5 of the NAFTA. While a few areas such as the scope, National Treatment, and Most Favored Nation (MFN) treatment remain the same, significant differences can be found with respect to modernization, expanding market access for labor … read more