1. General Customs Administration of Mexico May 23 rd, 2013

2. 246 inspection sites. 77, 177 taxpayers registered in the Importers Database.* 5% are large taxpayers. 793 customs brokers. * The GCA controls 49 customs * Up to April 30th Tijuana Cd. Juárez Nuevo Laredo Reynosa Monterrey Altamira Veracruz Lázaro Cárdenas Manzanillo Guadalajara AICM Toluca Border21 Maritime17 Interior11 Total49 2

3. Main Figures In 2012, international trade represented 63% of Mexico’s Gross Domestic Product (GDP). 49% of value added tax (VAT) is collected through customs. On daily basis Mexican Customs account for: Imports and exports of nearly 2.6 billion USD. More than 900,000 people cross national borders. 39,884 international passengers arrive by plane. 25,500 trucks and 162,326 light vehicles drive across the country’s border. 3

4. Outdated facilities Today 4 In the past, customs were conceived only as checkpoints for cargo and passengers. Inspection sites lack technology and infrastructure to provide efficient services and perform custom duties. TechnologyInfrastructure Nonintrusive and advanced technology for inspection is not available in this facilities. Facilities are not properly designed for current operation. Inappropriate examination areas. Maneuvers interfere with lanes. Lack of control infrastructure for secure operations and user’s safety.

5. Outdated facilities Today 5 Cd. Hidalgo Puerto Palomas

6. Modern facilities Today Customs facilitate trade by optimizing cargo flows and passenger inspection as well as ensuring tax collection is efficient and compliant with security measures. Mexican Customs work with modern infrastructure and automated services, applying risk assessment models to support operations. TechnologyInfrastructure Mexican Foreign Trade Single Window (VUCEM). Nonintrusive inspection systems (X-Ray, Gamma, Canine inspection). Gate System for Customs Control (SIECA). Vehicle Surveillance and Control System (SIAVE). Proper transit areas and switchyards. Adequate road signaling. Circulation designed to reduce waiting time. Expedite cargo flow and operation. Well-equipped offices. 6

7. Modern facilities Today Inspection areas Light vehicles access area 7

8. Customs in the 21 st Century Challenges The General Customs Administration envisions Mexican Customs in the 21 st Century as modern and automated, following the guidelines established by the World Customs Organization: Trade Single Window Data Collection Center Risk assessment models Nonintrusive Inspection Vehicle Surveillance and Control System 1.Trade facilitation 2.Tax collection 3.National security 4.Community’s protection 5.Gathering trade data 8

9. US is Mexico's largest trading partner. Mexico is the US third largest trading partner, after Canada and China. Last year, trade between Mexico and the US added up to 449 billions USD. Five times greater than in 1993 (409%). Since NAFTA Mexican exports destined to US have increased by 541.1%. 78.6% of Mexican exports are destined to the US. 49.7% of US imports come from Mexico. In 2012 Mexican investments in the US represented 15.5% of total investments from Latin America and the Caribbean. NAFTA, Before & After US-Mexico Border 9

10. The following took place after signing NAFTA: 70 infrastructure under development. 2010: Crossings in Reynosa-McAllen and Rio Bravo-Donna. 2012: Tijuana (El Chaparral) - San Ysidro. 2013: Railway crossing in Matamoros-Brownsville. Setting up of 39 X-Ray and 41 Gamma machines to expedite the inspection. Infrastructure US-Mexico Border 10

11. Operating México-US Border 2010: Río Bravo -Donna New facilities. - Light vehicles (first stage) 2012: Puerta Mexico-San Ysidro Investment: 20.5 millionUSD - Passengers 2013: Export platform expansion - Mesa de Otay Investment: 12.9 million USD - Cargo exports 2010: Border crossing Anzaldúas-Mission New facilities. - Light vehicles (first stage) 11

12. 12 Upcoming Projects US-Mexico Border 2013: Nogales III- Mariposa - Cargo 2013: Matamoros- Brownsville rail crossing - Cargo 2015: Crossing in Tijuana – San Diego Airport - Passengers

13. 13 Upcoming Projects US-Mexico Border Border Crossing at Guadalupe Tornillo New Facilities - Cargo and light vehicles 2013-2014: Ciudad Juárez-Córdova Facilities redesign Investment: 53 million USD - Cargo and light vehicles 2014: Ciudad Juárez- Zaragoza Facilities redesign Investment: 29 million USD - Cargo and light vehicles 2014: Ciudad Juárez-San Jerónimo Facilities redesign Investment: 45 million USD - Cargo and light vehicles 2014-2015: Camargo Customs New facilities Investment: 23 million USD - Cargo

14. Bilateral Strategic Plan Signed in 2007 and revised in 2012. General guidelines for cooperation between the two nations to foster commercial facilitation and security. Important Facts Together, Mexico and US control 19 customs, 50 border crossings and 196 inspection points. Trade at the US-Mexico border generates 6% of world’s GDP. Initiatives of the BSP Coordinated operation to protect intellectual property. Binational Security Committees in 19 customs. Working hours homologation. Information exchange agreement. Rail single manifest project. US-Mexico Border 14

15. Impact of future infrastructure The economic activity in US-Mexico border is responsible for 6 million jobs. A 1% increase US GDP represents 2% increase in Mexican exports. New international bridge projects at the US-Mexico border, such as in the Tijuana-San Diego region, will provide an economic benefit of 30 billion dollars in a 10-year period. By raising customs efficiency, the final price of goods could decrease up to 5%. US-Mexico Border 15

16. Infrastructure projects Southern Border Mexico is developing new facilities in five inspection sites in the Southern border. Comitán-Trinitaria, Catazajá and Huixtla in the border with Guatemala. Nuevo Orizaba and Chactemal in the border with Belize. The project aims to broaden control to prevent illegal trade in 50 checking points. Total investment of the Southern Border Project: 105 million USD. Progress New facilities in Huixtla (May 6 th ) and Chactemal (May 15 th ): Entry lines and inspection checkpoints for trucks and light vehicles. Nonintrusive inspection systems. The remaining sites are under construction. 16

17. Infrastructure projects Southern Border 17 2012: Chactemal New facilities Investment: 2o million USD - Cargo and light vehicles 2012: Huixtla New facilities Investment: 13 million USD - Cargo and light vehicles

18. Infrastructure projects Southern Border Huixtla 18

19. Infrastructure projects Southern Border Chactemal 19