Issue 44–August 2007

August 24, 2007

Compensatory Duties Expire

On September 8, 2006, the International Commercial Practices Unit (known by its initials in Spanish UPCI) of the Mexican Department of the Economy published in the Official Journal of the Federation a decree giving notice of the elimination of compensatory duties imposed on the following products: steel I-beams originating in the Federal Republic of Brazil (deadline to file notice of interest: August 28, 2007); furazolidone originating in the People’s Republic of China and European Union (filing deadline: September 18, 2007); Trichloroisocyanuric acid originating in the People’s Republic of China (filing deadline: November 9, 2007); and footwear and their components originating in the People’s Republic of China (filing deadline: November 9, 2007). The decree states that Mexican producers of merchandise that … read more

August 24, 2007

Recent Legal Decision

A recent decision of the Mexican Supreme Court holds that public authorities not designated as responsible parties in a constitutional amparo lawsuit are obligated to take all actions necessary to enforce the terms of an amparo lawsuit judgment. In this manner, even though a governmental authority has not been included as a party in an amparo lawsuit, such authority will be obligated to follow the amparo decision. The change yields significant practical value and efficiency. This important decision must be taken into consideration by those individuals and companies who file amparo lawsuits, or who are enforcing amparo judgments, as this decision confirms prior Supreme Court holdings and interpretations in this area. Such prior interpretations sought to provide more complete remedies … read more

New Regulations for Insurance and Reinsurance Activities in Mexico

On July 24 the Department of Finance and Public Credit (SHCP) published in the Official Journal of the Federation (DOF) new regulations for insurance and reinsurance transactions denominated in foreign currency by mutual insurance institutions and companies in Mexico (Reglas para operaciones de seguro y reaseguro en moneda extranjera celebradas por instituciones y sociedades mutualistas de seguros en el país). The new regulations establish that insurance institutions and companies in Mexico may assume up to 100% of their technical reserves risks derived from insurance policies denominated in foreign currency. In addition, the regulations provide for the issuance of insurance policies denominated in foreign currency, as well as corresponding reinsurance contracts assigned and/or pre- assigned, including those of foreign reinsurance companies … read more

Nullity of Trademarks

Mexican law establishes various causes to nullify registration of a trademark. This item focuses on the cause contained in article 151, section V of the Mexican Industrial Property law (Ley de Propiedad Industrial) which states that any authorized agent, user or distributor of a trademark registered outside of Mexico may request and obtain registration of the foreign trademark in Mexico without consent of the party listed as owner in Mexico if the listed owner’s registration was obtained in bad faith. The authorized owner may file a proceeding to nullify the foreign trademark previously registered in Mexico by the unauthorized party. Mexican law recognizes that the trademark registration procedure may be abused when trademarks rightfully belong to foreign parties, and such … read more