RESTRICTED
WORLD TRADE S/NGMTS/W/2/Add.16/Suppl.1
18July 1995
ORGANIZATION(95-2274)
Original: Spanish Negotiating Group onMaritime Transport Services
COMMUNICATION FROM MEXICO
Additional Information Concerning theResponse ofMexico tothe
Questionnaire onMaritime Transport Services
Supplement
WithreferencetodocumentS/NGMTS /W/2/Add.16/Suppl.1,thefollowingadditionalinformation
iscirculated tomembers oftheNegotiating Group onMaritime Transport Services attherequest of
Mexico.
_______________
I. Market structure
Vessels
1. Additional information isannexed concerning vessels with foreign flags operated byMexican
nationals (Annex I),which arecurrently being incorporated intheflagregistration programme.
Trade
2. Theshare ofmaritime transport incargo operations inMexico isapproximately 28percent
(including deep-sea andcoastal traffic).
3. SeeAnnex II.
Organization ofcargo
11. Theshare ofmultimodal transport inforeign trade during 1993 wasasfollows: maritime
transport carried 3.9percent oftrade corresponding to4.5thousand tonnes ofcontainerized cargo
outofatotal of114.5 thousand tonnes ofgeneral cargo, andrailtransport carried 2.9percent,
corresponding to1.5thousand tonnes carried ontrailers (Piggy Back transport) andincontainers, out
ofageneral cargo total of5.01. Road andairtransport carried 373.3 and218.0 thousand tonnes of
general cargo respectively. Thelatter sectors donot,however, have statistical information ontheshare
ofmultimodal transport operators inthehandling ofcontainerized cargo.S/NGMTS/W/2/Add.16/Suppl.1
Page 2
II. Regulatory structure
General
2and3. Reserved cargo isregulated bytheShipping Act,which onlyrecognizes thecompetence
oftheMinistry ofCommunications andTransport toreserve specific international deep-sea transport
wholly orpartly toMexican shipping companies withMexican vessels orvessels recognized asMexican
inspecial cases where theprinciples offreecompetition arenotobserved and thenational economy
isaffected, subject toadecision bytheFederal Commission onCompetition.
Subject toadecision bytheFederal Commission onCompetition, theMinistry mayalsodecide
thatallorpartofspecific coastal traffic may only becarried byMexican shipowners andMexican
vessels orvessels recognized asMexican where theprinciples offreecompetition arenotobserved
andthenational economy isaffected.
Inaddition, theShipping Actstipulates thatinland shipping isreserved forshipowners with
Mexican vessels and, intheir absence orwhere thepublic interest sorequires, Mexican shipowners
maybegiven temporary shipping permits tocarry cargo onforeign vessels and,ifthere arenoMexican
shipowners, such permits may begranted toforeign shipping companies (Article 34).
Theoperation andexploitation ofcoastal shipping vessels may becarried outbyMexican or
foreign shipowners with Mexican orforeign vessels. Foreign shipowners orvessels require apermit
from theMinistry subject toverification thatthere isreciprocity andequivalent treatment inthecountry
ofregistration ofthevessel andthecountry inwhich theshipowner hashisregistered office andreal
andeffective place oftrade.
4. Within Mexico, multimodal transport operators must conclude contracts forthesupply of
unimodal transport services with transporters duly authorized bytheMinistry ofCommunications and
Transport(Article6andArticle9(f)oftheRegulationsonInternationalMultimodalTransport)according
tothelaws andregulations applicable toeach mode oftransport.
5. Forauxiliary services, Article 34oftheonShipping Actspecifies that, inland andcoastal
shipping operations andexploitation ofdredgers andnaval devices forthebuilding, maintenance and
operation ofports maybycarried outbyMexican orforeign shipowners withMexican orforeign vessels
ornaval devices, provided thattheyhave been given apermit bytheMinistry ofCommunications and
Transport.
Likewise, Article 35oftheShipping Actspecifies that apermit from theMinistry of
CommunicationsandTransportisrequiredfortheexploitationofvesselsprovidingthefollowingservices:
safety, rescue, aidtonavigation, tugs, unless acontract hasbeen signed with theportadministrator.
Market access
8. Formultimodal transport, Article 6oftheRegulations onInternational Multimodal Transport
states that:
"Multimodal transport services within Mexico must becarried outbyamultimodal transport
operator duly authorized bytheMinistry ofCommunications andTransport. Intheabsence
ofanauthorization, theMinistry ofCommunications andTransport shall suspend operation
ofthesaidservices.S/NGMTS/W/2/Add.16/Suppl.1
Page 3
Foreign multimodal transport operators andMexican shipping companies may conclude
international multimodal transport contracts foroperations within Mexico provided thatthey
meet therequirements laiddown inthepreceding paragraph."
Inaddition, Article 17oftheForeign Investment Actcontains ageneral limitation oninvestment
byforeign legal persons andspecifies that, inorder tocarry outregular commercial operations inthe
Mexican Republic, foreign legal persons require authorization from theMinistry ofTrade andIndustrial
Development.
10. According totheShipping Act, inMexico pilotage means thefactofguiding aship, when
theship'scaptain usestheservices ofaportpilot inorder toenter, leave, anchor, move, dock orundock.
Criteria forpilotage arelaiddown bytheMinistry ofCommunications andTransport.
National treatment
12. Concerning VAT, theamount charged toclients byshipping companies forproviding transport
services issubject tothefollowing twotaxes:
- COASTAL SHIPPING: Inaccordance with Article 14oftheValue-Added Tax(VAT)
Act, thetransport ofpersons andgoods within Mexico aredeemed tobeindependent
services subject to15percent VAT (10percent forservices supplied before
March 1995).
Natural andlegal persons supplying such services inMexico must paythistax. Those
subject tothetaxtransfer theamount ofthevalue-added taxtothepersons receiving
theservice. Transfer ofthetaxmeans payment tothetaxpayer bytheperson benefiting
from theservice ofanamount equivalent tothetaxspecified intheValue-Added Tax
Act.
- INTERNATIONAL TRANSPORT: Section VoftheArticle 29oftheaforementioned
Actstates that"international transport ofgoods byMexican residents" isdeemed to
beexport ofservices andisnottherefore subject toVAT when thetransport commences
inaMexican port andterminates inanother country.
This Article alsostates that, inthecase ofinternational transport, theservice shall
bedeemed tohave been supplied within Mexico irrespective oftheresidence ofthe
transporter when thetransport begins inMexico, even ifitisareturn journey.
VAT credit andcredit balances arealsoapplied. Thetaxcredited istheVAT paidonpurchases
andservices used byshipping companies, andcredit balances arethebalances which remain after
deduction ofthetransferred VAT from theVAT credit when thelatter isgreater.
Inaddition, Section VofArticle 29oftheValue-Added Tax(VAT) Actstates thatportservices
forloading, unloading, storage, guarding, stowage andhaulage supplied fortheexport ofgoods are
notsubject toVAT.
Port services notrelated totheexport ofgoods aresubject toVAT of15percent. This tax
applies, forexample, toservices supplied toforeign shipping companies delivering goods inMexico.
Thesupplier oftheservice must transfer thetaxtotheperson receiving theservice.S/NGMTS/W/2/Add.16/Suppl.1
Page 4
Access toport facilities
14. Atpresent, there arenoforeign suppliers. Nevertheless, itisknown thatarrangements are
being made inthisregard.
Most-favoured-nation treatment
20. There arenobilateral agreements reserving cargo. Thetreatment given tocargo reservation
isregulated bytheShipping Act, which only recognizes thecompetence oftheMinistry of
Communications andTransport toreserve specific international deep-sea transport wholly orpartly
toMexican shipping companies with Mexican vessels orvessels recognized asMexican inspecial
cases where theprinciples offreecompetition arenotobserved andtheMexican economy isaffected,
subject toadecision bytheFederal Commission onCompetition.
Subject toadecision bytheFederal Commission onCompetition, theMinistry mayalsodecide
thatallorpartofspecific coastal traffic may only becarried byMexican shipowners andMexican
vessels orvessels recognized asMexican where theprinciples ofcompetition arenotobserved and
thenational economy isaffected.
Inaddition, theActalsostates thatinland shipping isreserved forshipowners with Mexican
vessels and, intheir absence orwhere thepublic interest sorequires, Mexican shipowners may be
given temporary shipping permits tocarry cargo onforeign vessels and, ifthere arenoMexican
shipowners, such permits may begranted toforeign shipping companies (Article 34).
21. Trade agreements onmaritime transport provide forfreeaccess tocargo ofanytypetransported
byseainvessels flying anational flag, operated orchartered byshipping companies inthecountries
with which agreements have been signed, aswellasvessels recognized asnational vessels inaccordance
with thelegislation.
26. With regard toreciprocity, itisunderstood astheaction bywhich aState grants rights and
treatment thatarethesame asnational rights andtreatment toforeign vessels, shipowners andshipping
companies.
Government procurement
27. Regarding thedefinition ofcargo belonging totheGovernment, Article 1oftheNational Assets
General Actstates thatthenational heritage iscomposed ofthefollowing:
Section I- Property ofthepublic domain oftheFederation; and
Section II- Property oftheprivate domain oftheFederation.
Article 3specifies thatthefollowing areassets intheprivate domain (oftheFederation):
Section VI-Other property acquired bytheFederation under anylegal title.
Section VII-Movable andimmovable property acquired bytheFederation outside Mexico.
Inthisconnection, Article 4oftheActstates thefollowing: "The assets referred tointhe
preceding Article shall become partofthepublic domain when theyareforpublic use,apublic service
orforanyactivities equivalent topublic services oractually used forsuch purposes".S/NGMTS/W/2/Add.16/Suppl.1
Page 5
Consequently, anymovable orimmovable property which theFederation acquires under any
legal title both within andoutside Mexico andwhose purpose ispublic service isdeemed tobe
Government property.
Example:
Acquisition bytheFederal Government orbyanyparastatal body ofimmovable property such
ascomputers, spare parts forautomobiles, spare parts foranytype ofequipment, etc., forapublic
service ortobeused inaparticular official office forthepurpose ofcarrying outitswork.
Competition law
29. The Federal Act onEconomic Competition (Official Bulletin oftheFederation of
24December1992),andtheRegulationsonInternationalMultimodalTransport(1989)providepenalties
formonopolistic practices which hinder thecompetitive process andfreecompetition intheoperation
ofsuch services.S/NGMTS/W/2/Add.16/Suppl.1
Page 6May 1995
ANNEX I
MERCHANT FLEET INTHE PROCESS OFFLAG REGISTRATION
No.ofVessels Type ofVessel G.R.T. D.W.T.
4
3
3
1
1
2
3
6Tanker
Automobile transporter
Bulk
Tug
Container
Supply
Multifunctional
Passenger78,982.00
27,028.00
59,364.00
665.00
31,430.00
893.00
36,340.00
102.51126,616.00
29,936.00
89,766.00
543.50
42,000.00
1,726.00
50,024.00
83.10
23 Total 234,804.51 340,694.60
Source: Flag Registration Programme Office Promotion Sub-Division
Department ofPromotion andDevelopment
Directorate-General ofMaritime Trade
General Coordination ofPorts andMaritime Trade
Ministry ofCommunications andTransport.S/NGMTS/W/2/Add.16/Suppl.1
Page 7MERCHANT FLEET INTHE PROCESS OFFLAG REGISTRATION
No. Company/Vessel G.R.T. D.W.T. Type ofvessel
1. ATLANTIC SUBMARINES CANCUN, S.A. DEC.V.
Atlantis XII
Ana
Ixtab
Total19.51
30.70
22.00
72.2119.51
30.70
22.00
72.21Submarine
Passenger
Passenger
2. CLUB NAUTICO DECOZUMEL BANCO PLAYA,
S.A. DEC.V.
Marlin Azul
Marlin Negro
Marlin Rayado
Total10.10
10.10
10.10
30.303.63
3.63
3.63
10.89Passenger
Passenger
Passenger
3. CORPORACI ÓNDESERVICIOS PETROLEROS DE
CAMPECHE, S.A. DEC.V.
Gallant Man 299.00 956.00 Supply
4. MARITIMA MEXICANA, S.A. DEC.V.
Paige 594.00 770.00 Supply
5. NAVIERA DEL PACIFICO, S.A. DEC.V.
AlSalam,
AlSoor
Silver Eagle
Total23,127.00
23,127.00
32,612.00
78,866.0036,000.00
36,000.00
54,500.00
126,500.00Tanker
Tanker
TankerS/NGMTS/W/2/Add.16/Suppl.1
Page 8MERCHANT FLEET INTHE PROCESS OFFLAG REGISTRATION
No. Company/vessel G.R.T. D.W.T. Type ofvessel
6. NAVIERA SALTAMAR, S.A. DEC.V.
ElLeón Grande II
Darleen Tide
Total665.00
116.00
781.00543.50
116.00
659.50Tug
Tanker
7. TRANSPORTACION MARITIMA MEXICANA, S.A.
DEC.V.
Azteca 1
Bibi
Gloria
Guanajuato
Lerma
Lloyd Houston
Oaxaca
Sonia M.
Tepozteco
Toluca
Total22,155.00
16,087.00
5,779.00
9,246.00
9,246.00
9,111.00
31,430.00
11,142.00
8,536.00
31,430.00
154,162.0039,072.00
22,377.00
8,694.00
10,555.00
10,555.00
14,347.00
42,000.00
13,300.00
8,826.00
42,000.00
211,726.00Bulk
Multifunctional
Bulk
Automobile Transporter
Automobile Transporter
Multifunctional
Bulk
Multifunctional
Automobile Transporter
Container
TOTAL: 23VESSELS 234,804.51 340,694.60S/NGMTS/W/2/Add.16/Suppl.1
Page 9ANNEX II
FOREIGN MARITIME TRADE
1988 -1992
IMPORTS
TONNES
CONTINENT 1988 1989 1990 1991 1992
America 10,908,533 13,932,413 13,817,949 14,390,727 16,789,787
Europe 951,302 1,361,159 2,384,653 2,217,269 2,361,503
Asia 524,785 667,494 1,048,517 1,054,105 1,286,033
Africa 1,209,676 1,165,148 1,435,408 1,190,539 846,332
Oceania 217,578 224,460 332,711 215,897 236,252
TOTAL 13,811,874 17,350,674 19,019,238 19,068,537 21,519,907
EXPORTS
CONTINENT 1988 1989 1990 1991 1992
America 56,054,395 55,333,902 55,850,670 57,783,455 65,294,482
Europe 19,517,169 16,259,643 18,435,620 21,074,517 19,460,476
Asia 16,560,368 14,896,646 14,218,668 15,322,559 12,631,610
Africa 927,968 404,693 203,333 183,114 49,579
Oceania 30,334 106,079 189,125 76,417 27,858
TOTAL 93,090,234 87,000,963 88,897,416 94,440,062 97,464,005