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Border Governors Conference 2011

Border Governors Conference 2011

Border Governors Conference 2011By Adina Moloman

The XXIX Border Governors Conference Mexico-United States will take place September 28th and 29th of 2011 in Ensenada, Baja California with the purpose of working for a better border region.

The XXIX Border Governors Conference of the United States and Mexico (BGC) will be hosted by the Governor of Baja California, Jose Guadalupe Osuna Millán, after Arizona Governor Jan Brewer canceled the event last year in Phoenix because of a planned boycott by Mexican governors over Arizona’s new immigration law.

The  annual forum, will bring  together the governors of the 10 U.S. – Mexico border states (California, Arizona , New Mexico, Texas -Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon, Tamaulipas), along with other stakeholders of both countries.

The conference will focus on the four strategic areas of competitiveness (the advantage of the maquiladora program, new foreign direct investment etc), security (US-Mexico border crossing), quality of life, and sustainability.

Along with other participant members of the Border Research Partnership, the Woodrow Wilson Center-Mexico Institute and the El Colegio de la Frontera Norte, will present the inaugural Awards for U.S.-Mexico Cross-Border Cooperation and Innovation at the BGC.

The awards will recognize extraordinary experiences of U.S.-Mexico cross-border cooperation and will present “success stories” of bi-national institutions, non-profits, and local and state governments from different areas of development.

Mexican Labor Laws

Aspects of Mexican Labor Law

Mexican Labor Laws
By Adina Moloman

By doing business in Mexico it is important to become familiar with Mexican labor laws.

Mexico’s labor law framework in theory is much more protective of workers than are State and Federal laws in the United States.

The Mexican labor law has its foundation in Article 123 of the Mexican Constitution, and is implemented through a number of Federal laws, including, the Federal Labor Law (Ley Federal del Trabajo), the law regulating the National Housing Fund for Workers (Ley del Instituto del Fondo Nacional de la Vivienda para los Trabajadores), the Social Security Law (Ley del Seguro Social) and others.

Besides the definitions of work hours, overtime and holydays, salary requirements, termination etc, it is important to know the specific details which make it different from others countries labor lows such:

If a work relationship is not specifically defined as temporary from the beginning, there are few circumstances under which a company can legally dismiss an employee without incurring compensation responsibilities.

The unions in Mexico play an important role. The constitution and the Federal Labor Law both favor unionization. Approximately 30% of the Mexican work force is unionized, about twice the U.S. rate, and has comparable rates with the European Union countries.

The unions are protecting the interest of employees, with emphasis on workers with more seniority. This could pose a problem if the senior workers of a company are not the most productive.

This year The Mexican Congress was moving to consider regressive labor law changes that would further undermine rights for workers. It hasn’t been any significant change in Mexican labor law since the passage of NAFTA.

The North American Free Trade Agreement (NAFTA), does not prevent governments from lowering worker rights standards. Governments are required only to enforce whatever national labor laws exist and not the internationally-recognized worker rights established by the International Labor Organization (ILO) conventions. The new regressive reforms promoted by the Mexican Institutional Revolutionary Party (PRI), which have gained support with the ruling National Action Party (PAN), would directly violate ILO standards for basic labor rights. This decision held the idea of preventing foreign direct investment loss and trying to attract more investment in the country. It’s more of an interpretable government strategy than a permanent solution to attract investments in the country.

Lawmakers stepped back from forcing quick passage of the reform after unions and workers took to the streets in protest.

Manufacturing in Mexico

US Debt Crisis- the implications on Mexican economy

Mexico Economy
By Adina Moloman

Source: CNN International, CNN Mexico, Embassy of the US in Mexico, Mexico’s Economy

The United States appears to be no closer to raising the debt ceiling than it was in January when the issue arose, but wasn’t seen  a priority since now because of US internal problems. Democrats and Republicans might be further apart now than they were then but their leaders are set to unveil new deficit reduction plans as top officials scramble to raise the debt ceiling.

Much of the public focus is on the nation’s public debt, which is $14.3 trillion.

The International Monetary Fund says the United States must lift the debt ceiling to prevent a “severe shock” to the world economy.

The U.S. is Mexico’s largest trading partner, buying more than 80% of Mexican exports during 2010.  Mexico is the third largest U.S. trading partner after China and Canada.  Bilateral goods trade reached $362 billion in 2010 and in 2009 they totaled $278 billion, especially as a result of the agriculture programs and Mexico Maquiladora Program.

Mexico and the U.S. do as much business in goods and services that it’s inevitable not to think that the US Debt Crisis has no implications on Mexican economy.

Since June Mexico was preparing for an eventual withdrawal of “capitalflows” and thus has been preparing to reduce any risk exposure in case that the US Debt crisis it’s going to take a while.

The trade imbalance that US have with countries around the world isn’t all bad news because it means US transnational companies are willing to invest especially in countries such as Brazil on a larger scale or Mexico.

The strategy to creates jobs and activates the economy is by selling US goods and services to foreign countries, in this case by supplying the US maquiladoras established at the US-Mexico Border.

Baja California Maquiladora’s plants

New opportunities for Baja California Maquiladora’s plants of Japanese companies

Baja California Maquiladora’s plants
By Adina Moloman

Sources: Global Auto Reports  (Report by Scotia Economics).; Mexican Automotive Report ( The Impact of the Earthquake and Tsunami in Japan of the Mexican automotive Industry)

Japan is one of the main investors in Baja California, employing  almost 44,000 workers in more than 70  Japanese companies established throughout the State of Baja California. The main TNS (transnational companies) established in Baja California are automakers companies and electronics companies. Japan is also Mexico’s second largest trading partner after the United States, and the primary destination of Mexican exports to Asia.

The Japanese catastrophes have affected especially automotive and auto parts industries in Mexico, nevertheless, it also represents new opportunities for Mexico Maquiladora industries.

I can explain this with a few facts:

Japanese companies like Toyota Motor Corp., the world’s biggest automaker, Honda,  Nissan Motor Co. etc, shuts down production  of its plants temporarily in Japan, for   Japanese manufacturers overall, means losses for a couple of months because of disruptions to the supply chain.

Global vehicle demand remains strong. Assembly plant shutdowns in Japan have led to losses in vehicle production of about 37,000 units per day since the earthquake.

The major risk to the global auto and auto parts industry, including non-Japanese automakers, lies in the potential for auto parts shortages globally and its impact on the global supply chain, due to delays of component deliveries by Japanese suppliers. I’m referring first to a unique pigment (important paint additive)  that has been manufactured only in Japan, leaving all the Japanese, US, and European automakers without this component; and second automotive electronic components (computer chips, etc)  in more than 50% has been manufactured in Japan.

The March disasters in Japan affected not only Japanese automakers, it caused repercussions among automakers everywhere because of today nature of motor vehicle supply chain which is highly integrated at a global level. It comes to a conclusion that is necessary to diverse the source for certain parts in case of supply chain interruptions as its happening right now.

Mexican officials from Toyota, Honda, Mazda, Subaru, and Isuzu mentioned that the majority of the assembly plants suffered delays in the delivery of autos and auto parts and also dismissed the possibility that their business plans in Mexico will suffer long term consequences. The opportunities that can come out for the Maquiladora’s plants in Baja California is a consequence of  Japan’s reduction of electric power supply as a result of the earthquake and tsunami that might  shift additional production of automobiles to Mexican assembly plants of Japanese companies.

So far Samsung announced that will expand its plant in Tijuana, Baja California.

corporation risk concerns

European multinational corporation risk concerns

corporation risk concernsBy Adina Moloman

Source: Strategic Risk Report (Marsh Risk Consulting UK)

This report summarizes the professional opinion of 30 leading risk management professionals in the largest multinational European corporations. Research for this report was conducted in the first trimester of 2011 (a period when unforeseen political turmoil in Middle East was the front line of every news ; environmental risk such as: Japanese earthquake and tsunami struck, 2010 ash cloud resulting from the Icelandic volcano eruption, the Australian floods ,etc where also a world concern).

European companies risk concerns were analyzed in five categories: economic, environmental, geopolitical, societal and technological.

Economic risks:

inflation, higher risk transfer costs, slow US recovery, rising energy and commodity prices, exchange rates, continuing recession, restrictive regulations, increased competition from china, protectionism, recession recovery problems.

Environmental risks:

natural disasters, extreme weather events, pollutions.

Societal risks:

civil unrest, business travel threats, demographic challenges, pandemic, migration.

Geopolitical risks:

political turmoil, war in Middle East, crime and corruption, governance failures, terrorism.

Technology risks:

data theft and leakage, malicious hacking, fraud, internet breakdown.

Even all of those risks are closely analyzed, the top ten risk perceived by the European companies before investing in a new country are: economic recession and recovery, political turmoil, climate change, data theft and leakage, regulation, security of IT systems, energy and commodity prices, crime and corruption, civil unrest, exchange rates.

When it comes to crime and corruption, this report especially mentioned the Mexico drug cartel conflict and how the European companies are sensitive to Mexico border conflicts.

Economic recession is a top priority concern when a multinational corporation is about to invest, because they are concerned about the possibility of double dip recession with huge financial consequences on their customers and suppliers.  Their biggest concern is evaluating the risk in their supply chain. The solution is diversification into emerging growth markets. US economy recovery is also a big concern of European companies.

Terrorism and pandemics where not among the top five risk.

Geopolitical risk shared first place with economic risk in multinational European companies concerns.

Societal: reputation risk is the biggest of all. So even the security issue in Mexico especially at Tijuana border has reached lower levels, risk perception is often the most important factor in determining multinational corporation priorities to invest in a country.

This should count as available information when promotions organisms from Mexico are attending international shows in search of presenting the advantages of Mexico Maquiladora Services at the border region and the benefits of doing business in Mexico.

Annual B2B International event for the Aerospace and Defense Industry held in Tijuana, Baja California

Annual B2B International event for the Aerospace and Defense Industry held in Tijuana, Baja California

Baja AerospaceBy Adina Moloman

Source: Secretary of Economy, Baja Aerospace Show, American Industries Group

This July 20-21st 2011 will take place the Second Annual Baja California International Aerospace Supplier Forum, at the Matrix Maintenance Facility, at the Tijuana International Airport.

The Forum offers: Strategic business meetings, Networking events, Exhibitor halls, Panel discussions on the business opportunities in the Baja Region, Up to date Conferences on key topics from world leaders in this sector, etc.

This event is the result of a strong Mexican   Government Commitment to promote and consolidate the aerospace cluster in Baja California and to develop the aerospace industry in Mexico who had an intense activity during the past 5 years. This is a consequence of a signed agreement in 2007, between  the Mexican and  the US Governments  called  the BASA  (Bilateral Aviation Safety Agreement), where  the FAA (Federal Aviation Agency recognizes the General Direction of Civil Aeronautics (MEXICO) as an  agency with full capacity to certify any  product or service of any corporation.

Along with the Mexican government (Local, State and Federal Government Agencies), Aerospace Companies located in the region,   Business Organizations, and Academia will make possible this second edition.

Why in Baja California?

The first aerospace company established in Mexico was in 1969 in Mexicali, Baja California.  Most of them where established at the beginning at Mexicali border and Tijuana border, to support  the California (US) based  operations,  especially for the US proximity and lower transportation costs.

Since then Baja California reached  a mature aerospace  environment with companies established  in the city over 40 years  ago, had also  worked on good aerospace educational programs provided by local  universities linked to the industry.

Out of the 11 aerospace companies with international operations listed in the “Fortune 500”, 7 have operations in Mexico and most of them are located in Baja California.

Starting with the 1980 local small and medium sized companies followed the trend as small suppliers of this huge industry.

In 2010, over 380 B2B meetings where conducted at the first Supplier Forum in Tijuana, with the participation of 14 global aerospace corporations established in the region as buyers and over 70 suppliers from the United States, Canada, Europe, Asia and Latin America.

Even this huge number of business meetings it may show a positive response of the forum, it will be interesting to hear how many businesses were closed or are in process after this mass event.

This year are expected more than 500 scheduled business meetings with global leaders such as Eaton Aerospace, C&D Zodiac, Tyco Electronics, Delphi, Parker, Honeywell, Goodrich, Gulfstream, and GKN, among others. At this second forum the attention it will be hold not only at US companies, but also on aerospace transnational corporations from the United Kingdom, Canada and France.

Mexico Shelter Programs

The new generation of Mexico Shelter Programs

Mexico Shelter Programs

By Adina Moloman
Source: BCG (The Boston Consulting Group analysis)

At the beginning of 1970 when the Shelter model was conceived the Shelter operator was the one who was responsible for compliance with all Mexican regulations and answered to the Mexican authorities. So at the beginning the North American Manufacturers had the opportunity to benefit from a single cost advantage — reduced labor in Mexico.

New emerged countries in Asia and Eastern Europe started developing domestic supply chains which actually reduced the total delivered cost. Because of the competition pressure, shelter operators and the government began working with domestic suppliers to develop needed supply chains within Mexico.  It was added new services to their offerings: they began helping their clients find and develop local suppliers; they helped the first and second tier suppliers to OEMs, move their manufacturing operations close to their customers.

The next step was the importance to leverage economies of scale by working with multiple companies operating at the same industrial park.  So the Shelter clients share the costs of common needs such as freight, security, administration and maintenance.

So this new generation of Mexico Shelter offers competitive cost advantages at every level labor, supply chain, capital investment and administration.

This new trend also involves different operation systems within Mexico Shelter companies. Some of them help a manufacturer operate in Mexico without establishing an immediate legal presence, other shelter companies offers services that can range from simple consulting to a service provider that completely integrates every aspect involved in setting up and operating a manufacturing facility in Mexico. There are a few Shelters model such as: start up Services Shelter model[1], off-site Management Services Shelter model[2], on-site Shared Services Shelter model[3].

[1] The  start-up model  is addressed to manufacturers which are  seeking a simple type of services that involves operating under a short to medium-term contract, they assist in site selection, logistics, facilities licensing, can help in the initial selection of key Mexican personnel, legal requirements ,etc.

[2] Off-site management services shelter model– is the case when shelter companies provide services that continuously support their clients’ operations, usually is a long-term lease. After the set-up, the client can choose from a menu of management services involving administration and management of services such as human resources, payroll, accounting services, facilities management, logistics, procurement, worker transportation, medical services, import/export etc.

The services this model is leveraging typically include: human resources, payroll, accounting services, facilities management, logistics, procurement, worker transportation, medical services, delivery services including software. Other important services may also be included such as: compliance with labor and safety laws as well as government, labor and community relations.

[3] On-site shared services-There are shelter operators that combine start-up and management services with centralization that maximize economies of scale to provide added cost savings and efficiency to their clients. Operators of shared-services facilities handle every support aspect while their clients completely control the manufacturing process. Service providers focused on this model, create an environment that allows each client to develop its own corporate identity and control its own production process. This environment utilizes a centralized administrative center that provides the service provider with the leverage and economies of scale to actively reduce overall administrative cost.

These providers bring several services to their clients together to operate in a single industrial park. Start-up in this situation can be extremely fast and affordable since the operational environment already exists.

A United States Customs agent waits for a northbound truck crossing the border to enter the United States from Nogales, Mexico.

U.S. – Mexico cross-border trucking agreement

A United States Customs agent waits for a northbound truck crossing the border to enter the United States from Nogales, Mexico.

A United States Customs agent waits for a northbound truck crossing the border to enter the United States from Nogales, Mexico.

By: Adina Moloman
Sources: Reuters, BBC News

After nearly 17 years, the U.S. and Mexico have agreed over a pilot program that will end the dispute over cross-border trucking that subjected the U.S. to billings in punitive tariffs.
In March, President Obama and Mexican president, Felipe Calderón, signed an agreement that provides for Mexican trucking companies to gain certification as safe to operate on U.S. highways. Under the terms of the final deal, signed by their respective transportation secretaries, both sides agreed this month July, 2011) to drop their barriers for a trial period of three years. Mexico will suspend half of the subject tariffs within 10 days. The rest will be eliminated when the first Mexican trucking company is allowed to deliver goods into the U.S. More

Inter-maquila transfers / Articulo sobre transferencias entre IMMEX

Inter-maquila transfers / Articulo sobre transferencias entre IMMEX

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Empresas IMMEX

Riesgos de las transferencias entre maquiladoras.

Por:
Leobardo Tenorio Malof, socio
ltenorio@ptlegal.net

Los nuevos requisitos establecidos por la Secretaria de Hacienda y Crédito Público (“Hacienda”), mediante la publicación de la Segunda Resolución de Modificaciones a las Reglas de Carácter General en Materia de Comercio Exterior para 2010 (las “Reglas de Comercio Exterior”), deben de llevar a las empresas IMMEX a evaluar sus operaciones de transferencia y, sobre todo, el control documental sobre las mismas. Particular atención debe de ponerse a los requisitos que se establecieron para considerar como “válidas” las transferencias entre empresas IMMEX.

Antecedentes

La adición de la regla 4.3.25 a las Reglas de Comercio Exterior, consolida en una sola regla los procedimientos que empresas IMMEX deben de seguir al realizar transferencias entre ellas mismas.

Entre las modificaciones importantes son:

• Prohibición de transferir bienes en la misma condición.Salvo cuando el importador original es una maquiladora de servicios (cabe recordar que una empresa certificada cuenta con esta modalidad en los términos de la regla 3.3.15. de las Reglas y Criterios de Carácter General en Materia de Comercio Exterior emitidas por la Secretaria de Economía), no se permiten las transferencias de bienes en la misma condición (esto es, bienes no transformados) en la que fueron importadas. Por lo tanto, una IMMEX industrial no puede importar bienes y transferirlos sin someter dichos bienes a una transformación.

• Reducción de plazo depermanencia. Se redujeron los plazos de permanencia en el país a 6 meses cuando las mercancías se reciben en transferencia. Sin embargo, esta reducción de plazo no es aplicable para:

1. Empresas certificadas.

2. Mercancías enajenadas por proveedores nacionales.

3. Transferencias de maquinaria y equipo.

• Transferencias Válidas. Se establecieron 8 requisitos que se deberán probar para que una transferencia sea considerada como “válida” por las autoridades aduaneras:

1. Cumplir con el procedimiento establecido para las transferencias.

2. Las transferencias deben de estar incluidas en el control de inventarios a que se refieren los apartados I y II del Anexo 24 según sea el caso.

3. El traslado físico de las mercancías.

4. Se deberán comprobar los pagos de los medios de transporte utilizados, así como los gastos en que incurre el medio de transporte en su traslado, en
caso de que sean pagados por la empresa que reciba las mercancías.

5. La salida física de la mercancía de los almacenes de la empresa que transfiere la mercancía.

6. El acuse de recibo de las mercancías a los almacenes de la empresa que recibe la transferencia

7. Factura o nota de remisión (que debe cumplir con los requisitos establecidos en el Código Fiscal de la Federación) de la mercancía objeto de la transferencia.

8. El proceso de elaboración, transformación o reparación, antes de la transferencia, en su caso.

Reestructura de operaciones?

Debido a la lista de los hechos y documentos que las empresas IMMEX tienen que probar para que las transferencias sean válidas por al autoridades aduaneras, es indispensable evaluar sus operaciones de transferencia y, sobre todo, el control documental sobre las mismas.

En una revisión por parte de las autoridades aduaneras, estas verificarán si se cumplen con todos y cada uno de los 8 casos antes mencionados. Es muy probable que la autoridad aduanera invalide la o las transferencia(s) realizadas por la falta de cualquiera de los documentos o hechos mencionados.

Como consecuencia de lo anterior, es necesario que todas las empresas analicen si una autorización de submaquila es una alternativa viable para su operación o para parte de su operación. Por ejemplo, si una empresa IMMEX industrial desea continuar importando los bienes directamente para después enviárselas a un subcontratista, sin una transformación de por medio, la única opción que tendrá será la de solicitar una autorización de submaquila y, además, presentar los reportes requeridos tanto por el Reglamento de la Ley Aduanera y de las Reglas de Comercio Exterior.

Realmente hay que considerar los beneficios de una operación de submaquila/submanufactura, como por ejemplo, (a) dichos servicios, en términos generales, están gravados a la tasa del 0% del impuesto al valor agregado; y, (b) no hay necesidad de presentar pedimentos de importación/exportación virtuales. Sin embargo, se requieren presentar reportes mensuales, principalmente, sobre las mercancías enviadas a los subcontratistas. De cualquier modo, lo principal es solicitar y obtener la autorización por parte de la Secretaria de Economía, así como los escritos en los que asume la responsabilidad solidaria respecto de los impuestos de comercio exterior que pudieran llegar a generarse.

Por último, cabe mencionar, que las empresas certificadas tienen la opción de presentar los reportes mensuales ante las autoridades aduaneras “simplificados” y sin la necesidad de presentarlos con la información requerida respecto a la fecha y número de pedimento de importación temporal y especificaciones del proceso industrial al que serán destinadas las mercancías.

Conclusión

Debido a la lista de los hechos y documentos que las empresas IMMEX tienen que probar para que las transferencias sean válidas, es indispensable evaluar si:

(a) una o varias de sus operaciones con subcontratistas pueden o deben substituirse con una operación de submaquila;

(b) evaluar la obtención, control y mantenimiento de los documentos administrativos y hechos que se tienen que probar para la validez de dichas transferencias, y/o;

(c) remedios contractuales sobre el incumplimiento de cualesquier obligación y/o pérdida de los bienes importados temporalmente en el caso de operaciones de submaquila.

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IMMEX Companies

Risks of the inter-maquila transfers.

By:
Leobardo Tenorio Malof, partner
ltenorio@ptlegal.net

The new requirements established by the Ministry of Tax and Public Finance (“Hacienda”), published through the Second Amendment to the Foreign Trade Rules for 2010 (the “Foreign Trade Rules”), should make all IMMEX companies to evaluate their inter-maquila transfers and, above all, the control of the documents to evidence such transfers. Special attention must be made to the requirements that were established to consider as “valid” an inter-maquila transfer.

Background

The addition of rule 4.3.25 of the Foreign Trade Rules, consolidates into one rule the procedures that IMMEX companies must follow when transferring goods among them.
Among the most important amendments are:

• Restriction on transferring goods in the same condition. Unless the importer operates under a Service-type maquila company (it should be noted that a company that is a “certified company”, pursuant to rule 3.3.15 of the Rules and Criteria of Foreign Trade published by the Ministry of Economy, the service-type program deemed to be authorized), transfers of goods in the same condition (that is, that have not been subject to any transformation) is not allowed. Therefore, an IMMEX company with an Industrial-type program cannot import and transfer goods in the same condition to another IMMEX company.

• Reduction of the term. The term that the goods can remain in the country were reduced to 6 months when the goods are received by an inter-maquila transfer. Nevertheless, such reduction does not apply to:

1. Certified companies.

2. Goods sold by local suppliers.

3. Transfers of machinery and equipment.

• Valid Transfers. The customs authorities will analyze 8 facts and/or documents to consider that an inter- maquila transfer took place and, therefore, to consider them as “valid” transfers:

1. Comply with the inter-maquila transfers procedures.

2. The transfers must be reflected in the inventory control system that is mentioned in sections I and II of Exhibit 24 as the case may be.

The physical transfer of the goods.

3. Proof of payment of the transportation of the goods, as well as the expenses incurred in transporting the goods when the company receiving the goods is paying for such transportation.

4. Evidence that the good left the warehouse of the company that is transferring the goods.

5. Acknowledgment of receipt of the warehouse of the company that receives the goods.

6. Invoice or delivery note (that meets the requirements established in the Federal Fiscal Code) of the goods that are being transferred.

7. Transformation, production or repair process before the goods was transferred.

Restructure of Operations?

Considering the list of facts, information and documents that an IMMEX company must proof in order for the inter-maquila transfers to be considered as valid by the customs authorities, it is very import to evaluate the inter-maquila transfers and, overall, the documents that the company must have.

In a review by the customs authorities, most likely, they will verify that each and every one of the 8 requirements is met. It is likely that the customs authorities invalidate any transfer for not meeting any of the requirements.

As a consequence of the above, it is necessary for all companies analyze if a submaquila operation is a viable alternative or can be implemented in its operation. For example, if an industrial-type IMMEX company would like to continue directly importing the goods and then sending them to a subcontractor, without any transformation whatsoever, the only option will be to apply for a submaquila operation and, in addition, file for the required reports as required by the Regulations to the Customs Law and the Foreign Trade Rules.

The benefits for a submaquila/submanufacture operation must be considered, for example, (a) the services, in general terms, are subject to a 0% value added tax rate, and; (b) there is no need to file import/export virtual declarations. Nevertheless, monthly reports must be filed, mainly in connection with the goods that are sent to subcontractors. In any event, the main issue is to request and secure the submaquila authorization from the Ministry of Economy, and the letters whereby joint liability for any duties that may be payable is assumed.

Lastly, companies that are considered as certified companies, have the option to file “simplified” monthly reports and without the need to file them with the required information related to the date and temporarily declaration number and the specifications of the industrial process to which the goods will be subject to.

Conclusion

Due to the list and facts and documents that IMMEX companies must proof in order for the inter-maquila transfer to be valid, it is necessary to evaluate if:

(a) one or several operations with subcontractors may or must be substituted with a submaquila operation;

(b) evaluate obtaining, controlling and maintaining the documents that the company must have and the facts that it must proof in order to consider that the transfers are valid, and/or;

(c) contractual remedies for any default or loss of the temporarily imported goods by the subcontractor.

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Source: Leobardo Tenorio-Malof is a partner of TP LEGAL, S.C. d/b/a TENORIO, TORRES, PEDRIN & TORTOLERO (www.tplegal.net)

U.S. Consulate General Tijuana

Opening of new Consulate offices in the Otay Mesa area

Tijuana, June 30, 2011

The Tijuana office of the Consulate General of the United States will shortly move into its new offices.  The new building is located on Paseo de las Culturas in the Otay Mesa area (up the road from the Bus Station).  The new building was constructed at a cost of approximately $120 million USD.  The project begin in February of 2008 and will be ready for operation during the third week of July, 2011.  The new  installations represents the dynamic and  strong friendship between the two countries.

The new complex was designed by Integrus Architecture of Spokane, Washington and is LEED Certified (Leadership in Energy & Environmental Design), and consists of a main building, workshops and gardens that cover more than 10 acres.  The buildings provide for ample space for consular services with 47 service windows available, assistance to U.S. citizens as well as space for cultural and informative events.  This new space will integrate all U.S. government agencies currently present in Tijuana for better corrdination.

Public services will cease on July 8, 2011 in the (old) current locations.  Consular services will begin in the new location on Monday, July 18, 2011.  Telephone services currently available will continue uninterrupted at (664) 140-6041 [general information, visa appointments, etc.].  We ask those persons who have applied for a visa to pay special attention to the instructions provided them at the moment of their application.  The “CAS” offices [American Citizen Services ACS] will continue operating in a normal manner.

Beginning July 18, 2011 the new telephone numbers will be:

General Information:  (664) 977-2000
Emergency (for U.S. citizens) after-hours: (664) 977-2000
Information and visa appointments: (664) 140-6041

Mailing address:

Paseo de Las Culturas s/n
Mesa de Otay
Delegacion Centenario
Tijuana, Baja California  C.P.  22425

MAP

New Consulate

New Consulate Location

Note: the Consulate General will shortly be organizing a tour of its new installations. Look for a future press release

New Consulate

Proposed New Consulate