New Certified Maquila Rules ______________________________

On December 15, 2011 the Fourth Resolutions Amending the Foreign Trade Rules for 2011 were published in the Official Federal Gazette (the Foreign Trade Rules). The rules pertaining to the Certified Companies have been substantially amended. The Certified Company program has been in place since, It had two programs: 1) A generic program, and; 2) an IMMEX Certified Program. Background

The old program was in place until January 1, 2012: – 11 different industrial sectors were eligible. – It granted 22 generic benefits to certified companies. – All IMMEX companies were granted 25 benefits in addition to 22 generic benefits with a total of 47 benefits. Background

The new certified company program (New Program) or NEEC, as the Mexican authorities referred to the program, eliminates several benefits to non-IMMEX companies The New Program can be analyzed as: – Generic Certified Program. – IMMEX Certified Program. – IMMEX- Premium Certified Program. New Rules for Certified Companies

6 sectors were eliminated, leaving 5 eligible sectors. The following benefits are granted: – 5 benefits to the Generic Certified Program – 6 benefits to the IMMEX Certified Program. The 36 months term for raw materials, parts and components. Simplified notice on submaquila operations. New Rules for Certified Companies

– 20 benefits specifically granted to the IMMEX- Premium Certified Program or NEEC. Sales by the parent company; virtually delivered by the maquila company. New Rules for Certified Companies

IMMEX- Premium Certified Program, in total: – 31 benefits (20 granted specifically to it + 6 for the IMMEX program + 6 generic benefits). +3 for IMMEX-Holding companies. +3 for IMMEX in the aerospace industry. +6 for qualified IMMEX companies. New Certified Company Program

It is the Mexican version of C-TPAT. – Actually, companies operating under the C- TPAT will have preference. There are 3 main principles of compliance: – Tax – Customs – Security New Certified Company Program

Minimum standards: 1.Supply chain security planning. 2.Physical security. 3.Access Control. 4.Commercial Partners. 5.Security in processes. 6.Customs Processes. New Certified Company Program

7.Security in freight vehicles, trucks, containers. 8.Personnel Security. 9.Security of information and documentation. 10.Training on Security. New Certified Company Program

Who is eligible for the Generic Certified Program? 1.Companies that have imported, at least, 300 million pesos of merchandise in the last semester. 2.Courier companies (with certain requirements). New Certified Company Program

Who is eligible for the IMMEX Certified Program: 1.Companies with imports of no less than 200 million pesos in the last semester in which the application is being filed. 2.Companies with imports that are less than 200 million pesos in goods : Additional requirements. Annual report based on the value of assets prepared by CNIME). New Certified Company Program

Who is eligible for the IMMEX-Premium Certified Program: 1.IMMEX Holding companies in terms of the IMMEX Decree. 2.IMMEX companies in the aerospace industry (with certain requirements). New Certified Company Program

3.IMMEX companies who: Have been operating for 2 years as a certified company. Have a SECIIT (Electronic Inventory Control System) –Only the electronic, electric, auto parts and automotive industries were eligible. New Certified Company Program

– Report by the CNIME) that certifies that the company has: – 1000 employees. – 30 million dollars in machinery and equipment. – Be a public company or be part of a group that is a public. – Other requirements. New Certified Company Program

In addition: 1.A report from the General Administration of International matters is required (Administración Central de Asuntos Internacionales). 2.5 years of import/export operations. 3.File a request for report Solicitud de dictamen a que se refiere el apartado L., primer párrafo de la regla New Certified Company Program

4.File, among others, a profile of the company by filing the Perfil de la empresa conforme a lo establecido en el apartado L., segundo párrafo, fracción III de la Regla An inspection visit the General Administration of International matters is required (Administración Central de Asuntos Internacionales) to validate that the company complies with the profile. New Certified Company Program

–If the company does not meet the profile A NEW APPLICATION CAN BE FILED AFTER TWO YEARS AFTER THE ORIGINAL REQUEST WAS FILED. New Certified Company Program

You will continue to benefit from the program until it expires. What happens to my current authorization?

Gracias. Leobardo Tenorio-Malof Blvd. Sanchez Taboada No , Torre Platino, Zona Rio Tijuana, Tijuana, B.C E. San Ysidro Blvd. Suite B3-808, San Ysidro, CA MX (664) US (619) TP Legal S.C. es miembro de PROLEGAL, una alianza profesional con oficinas en las ciudades de Monterrey, Chihuahua, Guadalajara, Cancún y Ciudad de México.