WORLD TRADE G/SG/N/1/MEX/1
12May1995
ORGANIZATION(95-1240)
Original: Spanish Committee onSafeguards
NOTIFICATION OFLAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TOSAFEGUARD MEASURES
MEXICO
Thefollowing communication, dated 2May1995, hasbeenreceived from thePermanent
Mission ofMexico.
_________________
Inaccordance withtheestablished procedures, Iamforwarding herewith thetextofthe
Mexican lawonsafeguard measures andthepertinent regulations.
Itshould benoted thattheMexican legislation onsafeguard measures ismade upofvarious
provisions oftheMexican Foreign Trade ActanditsRegulations, together withtheAgreement on
Safeguards oftheWorld Trade Organization.
Since theAgreement onSafeguards iswellknown, thiscommunication includes onlythe
safeguard provisions of:
- theForeign Trade Act,published intheDiario Oficial delaFederación (Official
Journal) of27July1993 (Annex I),and
- theRegulations under theForeign Trade Act,published intheDiario Oficial dela
Federación of30December 1993 (Annex II).G/SG/N/1/MEX/1
Page2
ANNEX I
FOREIGN TRADE ACT
TITLE II
POWERS OFTHE FEDERAL EXECUTIVE, THE MINISTRY
OFTRADE AND INDUSTRIAL DEVELOPMENT
AND THE AUXILIARY COMMISSIONS
Chapter I
Powers oftheFederal Executive
ARTICLE 4-TheFederal Executive shallhavethefollowing powers:
II. Toregulate, restrict orprohibit theexportation, importation ortransit ofgoods, in
circumstances deemed toconstitute anemergency, bymeans ofdecrees published in
theDiario Oficial delaFederación, inaccordance withArticle 131oftheMexican
Constitution.
TITLE VI
SAFEGUARD MEASURES
SoleChapter
ARTICLE 45-Safeguard measures aremeasures which, intheterms ofsubparagraph IIof
Article 4,temporarily regulate orrestrict imports ofgoods identical oraliketoordirectly competitive
withproducts ofthedomestic industry andareintended toprevent orremedy serious injury and
facilitate adjustment bythedomestic producers.
Such measures shallbeimposed onlywhen ithasbeendetermined thatthegoods arebeing
imported insuchincreased quantities andunder suchconditions astocause orthreaten tocause
serious injury tothedomestic industry.
Safeguard measures mayconsist ofspecific oradvalorem duties, licences ormaximum
quotas.
ARTICLE 46-Serious injury shallmean significant overall injury toadomestic industry.
Threat ofserious injury shall mean animminent andclearly foreseen riskofserious injury toa
domestic industry. Adetermination oftheexistence ofathreat ofserious injury shallbebased on
factsandnotmerely onallegation, conjecture orremote possibility.
ARTICLE 47-Serious injury orthreat ofserious injury anditscausal linkwithincreased
imports shall bedetermined andsafeguard measures established byconducting aninvestigation in
accordance withtheadministrative procedure laiddown inthisActanditsRegulations.
ARTICLE 48-Forthepurpose ofdetermining safeguard measures, theMinistry shall, asfar
aspossible, obtain alltherelevant information andevaluate allthesignificant factors having abearing
onthesituation ofdomestic producers ofidentical, likeordirectly competitive goods. This
information shallinclude:G/SG/N/1/MEX/1
Page3
I. Theincrease inimports oftheproduct concerned, inabsolute andrelative terms;
II. Thepenetration ofthedomestic market bythese imports;
III. Changes inthelevelofsales, production, productivity, installed capacity utilization,
profits, employment, prices andinventories;
IV. Theability oftheenterprises togenerate capital; and
V. Other information which theMinistry maydeem necessary.
TITLE VII
PROCEDURE INRELATION TOUNFAIR INTERNATIONAL
TRADE PRACTICES AND SAFEGUARD MEASURES
Chapter I
Common Provisions Relating totheInitiation ofProceedings
ARTICLE 49-Theinvestigation ofunfair international trade practices andsafeguard
measures shallbeinitiated exofficio orattherequest ofaparty, inaccordance withtheprovisions
ofthenextarticle.
Intheinvestigation procedure towhich thisTitlerefers, anadministrative dossier shallbe
compiled toserve asabasis fortheissuance oftherelevant administrative resolutions.
ARTICLE 50-Aninterested-party request maybesubmitted bynatural andlegal persons
producing:
I. Goods identical oralike tothose being imported orintended forimport in
circumstances involving unfair international trade practices, or
II. Goods identical oraliketoordirectly competitive withthose being imported under
conditions andinvolumes suchthattheyseriously injure orthreaten seriously to
injure thedomestic industry.
Therequesting parties must berepresentative ofthedomestic industry, within themeaning
ofArticle 40,orbelegally constituted organizations.
Inhisrequest, therequesting party mustindicate, inwriting, tothecompetent authority, with
anundertaking totellthetruth, thereasons whyitisnecessary thatcountervailing duties orsafeguard
measures beapplied. Therequest mustcomply withtherequirements laiddown intheRegulations.
Requesting parties mustattach totheirwritten communication thequestionnaire issued bytheMinistry
forthepurpose.
ARTICLE 51-Theterm"interested party" means theproducers whohavesubmitted requests,
importers andexporters oftheproduct under investigation, aswellasanyforeign legal persons
having adirect interest intheinvestigation inquestion andthose whoaresodefined ininternational
trade agreements andtreaties.G/SG/N/1/MEX/1
Page4
ARTICLE 52-Within aperiod of30daysfollowing thesubmission oftherequest, the
Ministry shall:
I. Accept therequest anddeclare theinitiation oftheinvestigation through aresolution
tothateffect tobepublished intheDiario Oficial delaFederación;
II. Asktherequesting party forfurther items ofevidence andinformation which must
beprovided within amaximum of20daysfollowing receipt ofthenotification. If
therequested elements aredulyproduced, theMinistry shall, within aperiod of
20days, proceed inconformity withthepreceding subparagraph. Iftherequested
elements arenotdulyproduced within thementioned deadline, therequest shallbe
considered ashaving beenabandoned andtherequesting party shallbepersonally so
notified; or
III. Reject therequest ifitdoesnotfulfil therequirements setforth intheRegulations,
andpersonally notify therequesting party ofsuchrejection.
Inanycase, theMinistry shallpublish thecorresponding resolution intheDiario Oficial de
laFederación.
ARTICLE 53-Starting from thedayfollowing thepublication intheDiario Oficial dela
Federación oftheresolution toinitiate aninvestigation, theMinistry shallnotify theinterested parties
ofwhich itisaware, sothattheymayappear inorder tomake whatever statement theyseefit.The
interested parties shallbeaccorded aperiod of30daysfollowing thepublication oftheresolution to
initiate aninvestigation intheDiario Oficial delaFederación toprepare theirdefence andsubmit the
information requested.
Thenotification shallbeaccompanied byacopyoftherequest submitted andsuchattached
documents asdonotcontain confidential information or,asthecasemaybe,anyrelevant documents
regarding exofficio investigations.
ARTICLE 54-TheMinistry mayrequest theinterested parties toproduce evidence,
information anddatawhich itconsiders relevant, forwhich purpose theMinistry 'squestionnaires shall
beused.
Iftheabove request isnotsatisfied, theMinistry shalldecide onthebasis oftheinformation
available.
ARTICLE 55-TheMinistry mayrequest theproducers, distributors ortraders ofthegoods
inquestion aswellasthecustoms officers, agents, representatives andpersons receiving theimported
goods, oranyother person itdeems appropriate, toprovide information anddatawhich theyhave
attheirdisposal.
ARTICLE 56-Theinterested parties inaninvestigation shallsendtheother interested parties
copies ofeachofthereports, documents oritems ofevidence which theysubmit totheauthorities
during theproceedings, except theconfidential information referred toinArticle 81.G/SG/N/1/MEX/1
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Chapter III
Procedure inRelation toSafeguards
Section 1
Determination ofSafeguard Measures
ARTICLE 75-Thesafeguard measures shallbedetermined bytheFederal Executive, within
aperiod of260daysfrom thedayfollowing thepublication oftheinitiating resolution intheDiario
Oficial delaFederación, subject totheprovisions oftheinternational treaties andconventions to
which Mexico isaparty.
ARTICLE 76-Once theinvestigation concerning theapplication ofsafeguard measures has
beenconcluded, theMinistry shallsubmit theadministrative dossier andadraftfinalresolution tothe
Commission foritsopinion, prior tothepublication ofthesaidresolution.
Theresolution determining thesafeguard measures shallbepublished intheDiario Oficial
delaFederación andshallsetforthallpertinent issues offactandlawandother information referred
tointheRegulations.
ARTICLE 77-Except incases where alonger period isjustified, safeguard measures may
notbeapplied formore thanfouryears. Theduration ofthese measures shallbesubject tocompletion
oftheadjustment programmes undertaken bythedomestic industry.
Section 2
Critical Circumstances
ARTICLE 78-TheFederal Executive maydetermine provisional safeguard measures within
aperiod of20daysfromthedayfollowing thepublication oftheinitiation ofaninvestigation inthe
Diario Official delaFederación, whenever:
I. Critical circumstances havearisen andanydelay would result indamage which it
would bedifficult torepair, and
II. There isevidence thatincreased imports have caused orarethreatening tocause
serious injury.
ARTICLE 79-Theduration oftheprovisional measures shallnotexceed sixmonths. During
thisperiod therequirements oftheinternational treaties andconventions towhich Mexico isaparty
shallbemet.Thefinalresolution confirming, modifying orrevoking theprovisional measures shall
bepublished within sixmonths ofthedayfollowing thepublication oftheresolution determining
provisional measures intheDiario Oficial delaFederación.
Iftheprovisional measures areconfirmed orrevoked, thefinalresolution shallmake their
application effective or,asthecasemaybe,order therefunding, withinterest, oftheamounts
previously paidoranydifference.G/SG/N/1/MEX/1
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Chapter IV
Other Common Provisions Relating totheProceedings
ARTICLE 80-TheMinistry shallprovide timely opportunities fortheinterested parties to
seeallinformation intheadministrative dossier relevant tothepresentation oftheir cases.
Confidential information shallbemade available onlytotheaccredited legal representatives ofthe
parties interested intheadministrative investigation, except inthecaseofrestricted commercial
information which, ifdivulged, could cause substantial andirreversible injury totheowner ofthat
information, andconfidential government information.
Thelegalrepresentatives oftheinterested parties having access totheconfidential information
shall notusesuchinformation fortheirpersonal benefit, nordisseminate it.Infringement ofthis
requirement shall bepunishable under theprovisions ofthisAct,independently ofsuchciviland
criminal penalties asmaybeapplicable.
During theinvestigation proceedings referred tointhissection theMinistry shall provide
timely access, attherequest oftheinterested parties ortheirrepresentatives, toanynon-confidential
information forming partoftheadministrative dossier ofanyother investigation afteraperiod of
60daysfollowing thepublication oftherelevant finalresolution.
ARTICLE 81-Inthenotification referred toinArticle 53,theMinistry shall inform the
interested parties thatapublic hearing willbeheldatwhich theymayappear andsubmit arguments
indefence oftheirinterests and,inthecaseofsafeguard action, present therelevant evidence. At
thishearing, interested parties mayquestion theother interested parties. Inthecaseofinvestigations
intounfair international trade practices, thehearings shallbeheldfollowing thepublication ofthe
preliminary resolution andprior tothepublication ofthefinalresolution.
ARTICLE 82-Theinterested parties mayadduce evidence ofalltypes except statements by
theauthorities ormaterial considered contrary topublic order oroffensive tomorals ordecency.
TheMinistry mayagree atanytime totheinstitution, repetition orextension ofany
proceedings considered necessary andconducive tothediscovery ofthetruthregarding thematters
under dispute. Furthermore, theMinistry mayinstitute suchproceedings asitconsiders appropriate
inorder toobtain better information.
TheMinistry shallappoint aperiod forpleadings following theperiod forthepresentation
ofevidence topermit theinterested parties tomake theirsubmissions.
TheMinistry 'sdecisions toaccept agiven piece ofevidence shall notbeopen toappeal
during theproceedings.
ARTICLE 83-TheMinistry mayverify theinformation andevidence submitted during the
course oftheinvestigation, andforthatpurpose mayissue awritten order authorizing asearch ofthe
legaldomicile, theestablishment ortheplace where therelevant information islocated. TheMinistry
mayproceed asitdeems appropriate inorder toverify thatthesaidinformation andevidence conform
withtheaccounts ofthecompany subject tothesearch, tocollate thedocuments intheadministrative
dossier ortomake attested copies.
Information andevidence submitted bytheinterested parties maybeverified inthecountry
oforigin iftheinterested parties soagree. Without theirconsent, theMinistry shallassume thatthe
requesting party'sclaims aretrue,unless there existelements which indicate otherwise.G/SG/N/1/MEX/1
Page7
Searches bytheMinistry forthepurpose ofverification shallbecarried outonworking days
andduring working hours byitsownaccredited staff. However, theymayalsotakeplace outside
working daysandhours where necessary, inwhich casetheofficial letter ordering thesearch shall
contain thenecessary authorization.
Detailed records ofthesearches shallbedrawn upinthepresence oftwowitnesses provided
bytheparty subject tothesearch or,intheabsence ofthesaidparty orintheevent thatthesaid
party refuses toprovide witnesses, bytheauthority incharge oftheproceedings. These searches
shallbesubject totheprovisions oftheRegulations.
ARTICLE 84-Thenotifications referred tointhisActshallbetransmitted totheinterested
party orhisrepresentative personally athisdomicile byregistered mailwithacknowledgement of
receipt orbyanyother direct means suchasaspecialized messenger service orelectronic mail. The
notifications shallenter intoforce ontheworking dayfollowing thedayonwhich theywereissued.
TheRegulations shallestablish theform andcontent ofthenotifications.
ARTICLE 85-Intheabsence ofanyexpress provision inthisActconcerning the
administrative proceedings inrespect ofunfair international trade practices andsafeguard action, the
Federal TaxCode shallapply bydefault onasupplementary basis forallmatters pertaining tothe
nature ofthesaidproceedings. Thisprovision shallnotapply inrespect ofnotifications andsearches
forthepurpose ofverification.
ARTICLE 86-Ifinthecourse oftheproceedings referred tointhissection theMinistry
observes thatanyoftheinterested parties isinvolved inthemonopolistic practices which are
punishable under therelevant legislation, itshallsoinform thecompetent authority.
ARTICLE 87-Countervailing duties andsafeguard measures maybespecific, oradvalorem.
Ifspecific, theyshallbecomputed atafixed rateperunitofmeasurement, andshallbeassessed in
theequivalent inMexican currency. Ifadvalorem, theyshallbecomputed asainpercentage ofthe
customs value oftheproduct inquestion.
ARTICLE 88-When imposing acountervailing dutyorproposing theapplication ofa
safeguard measure, theMinistry shall ensure asfaraspossible thatsuchmeasure, inaddition to
providing timely defence forthedomestic industry, avoids anynegative impact onother production
processes andonconsumers.
ARTICLE 89-Provisional andfinalcountervailing duties andsafeguard actions shall be
applied from thedayfollowing theirpublication intheDiario Oficial delaFederación.
Importers ortheirconsignees shallberequired tocalculate intherelevant import applications
theamounts oftheprovisional andfinalcountervailing duties orsafeguard duties andtopaythem,
together withtheirforeign trade taxes, without prejudice totheguarantees inrespect ofprovisional
countervailing duties pursuant toArticle 65andinrespect ofthefinalcountervailing duties pursuant
toArticle 98,subparagraph III.G/SG/N/1/MEX/1
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TITLE IX
INFRINGEMENTS, PENALTIES AND APPEALS
Chapter I
Infringements andAdministrative Penalties
ARTICLE 93-Itshall betheresponsibility oftheMinistry topunish thefollowing
infringements:
III. Presentation offalseinformation ordocuments, failure toprovide valid information
ordocuments, oralteration thereof, toobtain theapplication ofcountervailing duties
orsafeguard action: byafineequivalent tothevalue oftheimported goods during
theperiod ofinvestigation inquestion;
IV. Failure toprovide theMinistry withthedocuments andreports relating tocases
referred toinArticle 55within thedeadline stipulated intherelevant request: bya
fineequivalent to180times thelegalminimum wage;
V. Importation ofgoods insignificant quantities, ascompared tototalimports and
domestic production, within arelatively short period, when there areprevious cases
onrecord ofunfair practices intheexport market inquestion, orwhen theimporter
knew orshould haveknown thattheexporter wasengaged insuchpractices: bya
fineequivalent totheamount resulting fromtheapplication ofthefinalcountervailing
dutytotheimports entered foruptothree months prior tothedateofapplication of
theprovisional countervailing duties. Thispenalty shall onlybeapplied oncethe
Ministry hasissued theresolution determining thefinalcountervailing duties; and
VI. Disclosure ofconfidential information orutilization thereof forpersonal benefit within
themeaning ofArticle 80ofthisActorinrespect ofthedispute settlement
mechanisms setforth intheinternational treaties orconventions towhich Mexico is
aparty: byafineproportional tothelosscaused ortothebenefit obtained by
disclosing orutilizing thesaidinformation.
Forthepurposes ofthisArticle, theterm"legal minimum wage" shallbeunderstood tomean
thegeneral dailyminimum wage inforce intheFederal District atthetimeatwhich theinfringement
wascommitted.
Inapplying thefinesreferred toinsubparagraphs VandVIofthisArticle, theMinistry shall
takeaccount oftheseriousness oftheinfringement, theinjury andlosses caused, theprevious record
andthepersonal andeconomic situation oftheoffender.
Thefines referred tointhisArticle shallbeimposed independently ofthepenal andcivil
sanctions applicable under thelaw. Thefinesshallonlybeimposed oncethesuspected offender has
beenheard.G/SG/N/1/MEX/1
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ANNEX II
REGULATIONS UNDER THE FOREIGN TRADE ACT
TITLE V
SAFEGUARD MEASURES
SoleChapter
ARTICLE 70-Todetermine whether asafeguard measure isappropriate, theMinistry shall
carry outaninvestigation pursuant totheadministrative procedures laiddown intheAct,inthe
international treaties andconventions towhich Mexico isasignatory, andinthese Regulations.
Safeguard measures maybeapplied onlyif,asaresult oftheinvestigation, theMinistry determines,
ontheevidence, thattheproduct investigated isbeing imported insuchincreased totalquantities and
under suchconditions astoconstitute asubstantial cause ofserious injury orthreat ofserious injury
tothedomestic producers ofidentical, likeordirectly competitive goods.
ARTICLE 71-Inorder todetermine serious injury orthethreat ofserious injury, the
Ministry shallevaluate theimpact oftheimports under investigation onthetotaldomestic production
ofidentical, likeordirectly competitive goods oronthose domestic producers whose collective output
constitutes amajor proportion ofthetotaldomestic production ofsuchgoods.
Iftherequesting parties donotrepresent thewhole ofdomestic production, theymust
nevertheless submit information ontotaldomestic production totheMinistry, using theprescribed
questionnaire, provided thattherequired figures arereasonably available tothem. Inanycase, the
request must include areliable estimate ofthefigures forthetotaldomestic production concerned
required bytheMinistry, together withanindication ofthemethodology used.
Inanyevent, theMinistry shallsatisfy itself thatthecorresponding determination ofserious
injury orthreat ofserious injury isrepresentative ofthesituation ofdomestic production asawhole.
Forthatpurpose, theMinistry shallobtain thenecessary information from domestic producers who
arenotrequesting parties, andthelatter shallsubmit itintherequired form.
ARTICLE 72-Indetermining whether increased imports arecausing serious injury tothe
domestic industry, theMinistry shalltakeintoaccount:
I. Whether there hasbeen aconsiderable increase intotalimports oftheproduct in
question within arelatively short period, either inabsolute terms orrelative to
domestic consumption orproduction, andwhether there hasbeenasustained decline
inthedomestic industry 'sshare ofthedomestic market;
II. Anyrelevant objective andquantifiable economic factors indicating adeterioration in
theposition ofthedomestic industry, inparticular:
A. Asubstantial decline intheutilization ofinstalled capacity;
B. Evidence thatasubstantial partofthedomestic industry issuffering sustained
losses;
C. Theclosure ofenterprises;G/SG/N/1/MEX/1
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D. Asustained fallinlevels ofoccupation, and
E. Other factors indicating thatthedomestic industry concerned isinastateof
economic andfinancial decline. Inthiscase, eachofthefactors taken into
account must beidentified inthecorresponding resolution andtheir
importance explained.
ARTICLE 73-Indetermining whether increased imports arethreatening tocause serious
injury tothedomestic industry, theMinistry shalltakeintoaccount:
I. Aconsiderable increase intotalimports oftheproduct inquestion within arelatively
short period, ineither absolute orrelative terms, aswellasanytendency towards a
sustained decline inthedomestic industry 'sshare ofthedomestic market, and
II. Anyrelevant economic factors ofanobjective andquantifiable nature indicating a
deterioration intheposition ofthedomestic industry, inparticular:
A. Adecline inthesales, output, productivity, oremployment and,where
appropriate, anincrease intheinventories ofthedomestic industry;
B. Afallinprofits, andaninability tofinance potential investment andgenerate
capital, and
C. Other factors indicating adverse economic trends inthedomestic industry. In
thiscase, eachofthefactors taken intoaccount must beidentified inthe
corresponding determination anditsimportance explained.
ARTICLE 74-TheMinistry shallevaluate theeconomic factors relevant totheindustry in
thecontext oftheeconomic cycle andtheconditions ofcompetition specific totheindustry affected.
Forthatpurpose, therequesting parties shallsubmit information ontherelevant factors andindicators
andcharacteristics oftheindustry covering atleastthethree years preceding thesubmission ofthe
request, including theperiod under investigation, unless theenterprise concerned hadnotbeen
established forthewhole ofthatperiod. Inaddition, thedomestic producers making therequest or
theorganizations representing them shallsubmit economic studies, casestudies, technical literature
andnational andinternational statistics ontheperformance ofthemarket concerned, oranyother
documentation permitting identification ofeconomic cycles andconditions ofcompetition specific to
theindustry affected.
TITLE VII
PROCEDURE RELATING TOSAFEGUARD MEASURES
Chapter I
General Provisions
ARTICLE 118-Therequest byaninterested party toinitiate anadministrative investigation
concerning safeguard measures, inaddition tobeing submitted inwriting andsatisfying the
requirements ofArticle 50oftheAct,shallcontain thefollowing elements:
I. Thedesignation ofthecompetent administrative authority towhich therequest is
made;G/SG/N/1/MEX/1
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II. Hisname orbusiness name anddomicile and, ifapplicable, those ofhis
representative, accompanied byaccrediting documentation;
III. Hisprincipal activity;
IV. Thevolume andvalue ofdomestic production oftheproduct identical oraliketoor
directly competitive withtheimported product;
V. Adescription, interms ofvolume andvalue, ofhisshare ofdomestic production;
VI. Ifapplicable, membership oftheorganization towhich hebelongs, indicating the
number ofmembers andincluding information onthegoods theyproduce asa
percentage share ofdomestic production;
VII. Thelegalbasis oftherequest;
VIII. Description oftheimported product, together withspecifications anddetails showing
itsquality incomparison withthedomestic product andother distinguishing details;
thevolume andvalue imported, based ontheappropriate unitofmeasure, andits
tariff classification according totheschedule oftheGeneral Import Taxes Act;
IX. Name orbusiness name anddomicile oftheimporters, stating whether theimport
consisted ofoneorseveral shipments;
X. Name ofthecountry orcountries oforigin orsource oftheproduct, asappropriate,
andthename orbusiness name oftheperson orpersons exporting it;
XI. Analysis ofthecompetitive position ofthedomestic industry herepresents;
XII. Theprogramme ofadjustment thatwillbeinstituted ifasafeguard measure isapplied,
anditsviability;
XIII. Adescription ofthefactsanddatawhich show thatthesoleorprincipal cause of
serious injury orthreat ofserious injury todomestic production oftheproduct
identical oraliketoordirectly competitive withtheimported product isasubstantial
increase inimports, and
XIV. Ifappropriate, adescription ofrequests forother regulatory ortrade-restrictive
measures concerning theproduct which isthesubject oftherequest.
Therequest towhich thisArticle refers shallcontain thesignature oftheinterested party or
hisrepresentative andshallbesubmitted intheoriginal andasmany copies asthere areimporters,
exporters andforeign governments identified intherequest.
Theinvestigation procedure shallnotprevent theclearance bythecustoms concerned ofthe
goods involved intheinvestigation.
ARTICLE 119-Thesafeguard investigation proceedings shall address theexistence of
imports inquantities andunder conditions suchastocause orthreaten tocause serious injury tothe
domestic industry. They shallinclude aperiod which covers imports ofgoods identical oraliketoor
directly competitive withthose produced bythedomestic industry which mayhavebeenaffected,G/SG/N/1/MEX/1
Page12
entered overaperiod ofsixmonths prior tothecommencement oftheinvestigation, together with
anyother element relevant totheoutcome oftheinvestigation.
Theperiod ofinvestigation towhich theforegoing paragraph refers maybemodified atthe
discretion oftheMinistry. Inthatcase, theresolutions imposing safeguard measures shallrelate to
themodified period.
ARTICLE 120-Iftherequest isambiguous orirregular, theMinistry shall, onceonly, advise
therequesting party sothathemayclarify, correct orcomplete it,forwhich purpose itshall be
returned tohim,withspecific indications ofitsomissions andambiguities. When thetwenty daysto
which subparagraph IIofArticle 52oftheActrefers haveelapsed, theMinistry shallproceed with
orreject therequest, asappropriate.
ARTICLE 121-Iftherequirements oftheActaresatisfied, theMinistry shallaccept the
request andformally declare theinitiation oftheinvestigation bypublishing theinitiating resolution
intheDiario Official delaFederación while notifying theinterested parties.
ARTICLE 122-Inthenotification referred tointhepreceding Article, theMinistry shall
request theinterested parties toprovide anyitems ofevidence ordataitconsiders pertinent, forwhich
purpose theyshallusetheforms prepared bytheappropriate department.
ARTICLE 123-TheMinistry shall evaluate theviability ofthecompetitive adjustment
programme submitted bythedomestic producers. Thisprogramme shallbederived fromananalysis
ofthefactors which influence anddetermine thesector 'scompetitiveness, onthebasis ofwhich the
measures andtheestimated timerequired foritsimplementation shallbedefined; these measures may
varyasaresult oftheMinistry 'sevaluation oftheinformation contributed bytheinterested parties
inthecourse oftheproceedings andthatwhich ititself obtains.
ARTICLE 124-Theresolutions announcing theacceptance oftherequest andtheinitiation
oftheadministrative investigation orimposing provisional orfinal safeguard measures shall be
reasoned andjustified. Accordingly, theyshallcontain thefollowing information:
I. Thecompetent authority issuing theresolution;
II. Thename ornames orbusiness name anddomicile ofthedomestic producer or
producers oftheidentical, likeordirectly competitive product;
III. Thename ornames orbusiness name anddomicile oftheimporter orimporters and
oftheexporters;
IV. Thecountry orcountries oforigin orsource oftheidentical, likeordirectly
competitive product;
V. Adescription oftheprocedure concerned;
VI. Adetailed description oftheproduct which hasbeenorisbeing imported, indicating
thetariff rateapplicable under theschedule oftheGeneral Import Taxes Act;
VII. Adescription ofthedomestic product identical oraliketoordirectly competitive with
theproduct which hasbeenorisbeing imported;
VIII. Theperiod under investigation;G/SG/N/1/MEX/1
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IX. Thearguments andcircumstances taken intoconsideration bytheauthority forthe
purpose ofissuing theresolution, and
X. Anyother information agreed intheinternational treaties orconventions towhich
Mexico isaparty which theMinistry mayhaveconsidered.
Chapter II
Initiating Resolution
ARTICLE 125-Inaddition totheinformation indicated inthepreceding Article, theinitiating
resolution shallcontain:
I. Asummons totheinterested parties andforeign governments, sothattheymay
appear inorder toexercise theirrighttomake representations fit;
II. Thetime-limit within which theresolution imposing theappropriate safeguard
measures willbeissued;
III. Thetimeallowed forthepresentation and,where appropriate, rebuttal ofevidence;
IV. Thedate,timeandplace forthepublic hearing andthepleadings towhich Articles 81
and82oftheActrefer, and
V. Astatement thatthecountries signatories totheinternational treaty orconvention to
which Mexico isaparty willbenotified forconsultation purposes.
Chapter III
Final Resolution
ARTICLE 126-Inaddition tothedataindicated inArticle 124ofthese Regulations, thefinal
resolution shallcontain:
I. Adescription oftheserious injury caused orwhich maybecaused tothedomestic
industry;
II. Adescription ofthevolume ofimports andtheconditions ofimportation;
III. Thetypeofsafeguard measure tobeapplied;
IV. Theintended duration ofthesafeguard measure or,ifnotpossible, areference tothe
transiency ofthemeasure;
V. Ifpossible, thetimetable fortheprogressive liberalization ofthesafeguard measure;
VI. Astatement thatthecountries signatories totheinternational treaty orconvention to
which Mexico isaparty willreceive anexplanation oftheresolution;
VII. Astatement thattheMinistry ofFinance andPublic Credit willbenotified soasto
permit thetimely application ofthemeasure imposed, andG/SG/N/1/MEX/1
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VIII. Asummary oftheopinion oftheCommission inexplanation oftheresolution.
ARTICLE 127-TheMinistry shallrecommend totheFederal Executive thetype, amount
andduration ofthesafeguard measures, giving theappropriate explanations andjustifications. Inthis
recommendation, theMinistry shalltakeintoaccount:
I. Theshort- andlong-term social andeconomic costs ofapplying themeasure;
II. Thecostofnotapplying themeasures proposed;
III. Theeffect ofthemeasures onconsumers andoncompetition inthedomestic market;
IV. Alternatives involving lower costs forthesectors concerned;
V. Where appropriate, theimpact ofthecompensation which would havetobeoffered
inthecontext ofMexico 'sinternational commitments ontheother domestic industries
affected, and
VI. Other factors relating tothepublic interest ornational security.
TheMinistry mayalsorecommend some other typeofmeasure oraction designed to
contribute tothecompetitive adjustment ofthesector without restricting trade flows.
Chapter IV
Provisional Safeguard Measures
inCritical Circumstances
ARTICLE 128-Theprovisional safeguard measures referred toinArticle 78oftheActmay
beapplied whenever there isproof orreasonable evidence thattheincreased imports constitute a
substantial cause ofserious injury orathreat ofserious injury todomestic production ofidentical,
likeordirectly competitive goods and,moreover, that:
I. There hasbeenasubstantial increase inimports within arelatively short period and
thisincrease hascreated conditions fordomestic producers suchthatanydelay inthe
application ofthemeasures would result intheserious injury being difficult torepair
inthetimelaiddown intheprocedure, and
II. Intheevent ofaprovisional determination ofathreat ofserious injury, provisional
measures maybeapplied onlyiftheproducts under investigation areperishable
agricultural products anditisdetermined thatbecause ofthevery nature ofthe
product serious injury cannot beprevented inthetimelaiddown intheprocedure.
ARTICLE 129-Therequest byaninterested party toinitiate anadministrative investigation
withaview toimposing safeguard measures incritical circumstances, which must besubmitted in
writing, willstatethereasons whyitisnecessary toapply thesafeguard regime andbeaccompanied
bysuchinformation andpertinent evidence asisreasonably available totherequesting party.
Therequest mustcontain thedatareferred toinArticle 118ofthese Regulations, except for
theadjustment programme mentioned insubparagraph XIIofthatArticle, and,inaddition, an
explanation ofthedamage which would bedifficult torepair ifthere wereanydelay intheapplication
ofsafeguard measures.G/SG/N/1/MEX/1
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Theadjustment programme shall besubmitted within aperiod ofnotmore than30days
following thepublication oftheresolution establishing provisional safeguard measures.
ARTICLE 130-Theresolution imposing provisional safeguard measures referred toin
Article 78oftheActshall contain, inaddition tothedataindicated inArticle 124ofthese
Regulations, thefollowing elements:
I. Adescription ofthecritical circumstances caused bytheserious injury orthreat of
serious injury;
II. Thetypeofsafeguard measure tobeapplied, and
III. Astatement thattheMinistry ofFinance andPublic Credit shallbenotified witha
viewtothetimely application ofthemeasure imposed.
ARTICLE 131-Theresolution imposing finalsafeguard measures referred toinArticle 79
oftheActshall contain, inaddition tothedataindicated inArticle 124ofthese Regulations, the
following elements:
I. Iftheexistence ofserious injury orathreat ofserious injury todomestic production
duetoincreased imports inthevolumes andunder theconditions referred tointhe
Actandinthese Regulations isconfirmed:
A. Adescription oftheserious injury caused orwhich maybecaused tothe
domestic industry;
B. Adescription ofthevolume ofimports andtheconditions ofimportation;
C. Thetypeofsafeguard measure tobeapplied;
D. Astatement thattheMinistry ofFinance andPublic Credit shallbenotified
withaviewtothetimely application ofthemeasure imposed, and
E. Asummary oftheopinion oftheCommission inexplanation oftheresolution.
II. Ifitisestablished thattheincreased imports, inthese volumes andunder these
conditions, arenotcausing orthreatening tocause serious injury tothedomestic
industry, astatement thattheadministrative investigation procedure isbeing
terminated without theimposition ofsafeguard measures.
Chapter V
Other Provisions
ARTICLE 132-TheMinistry shallconsult withtherepresentatives oftheproductive sectors
concerning theapplication ofthecompensation measures which must beadopted under the
international treaties andconventions towhich Mexico isaparty. Inanycase, theMinistry shall
safeguard thepublic interest.
ARTICLE 133-Once theappropriate safeguard measure hasbeenimposed, theMinistry shall
regularly review theprogress oftheadjustment programme inorder tomake surethatitisbeing dulyG/SG/N/1/MEX/1
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implemented and, where necessary, shall consider anychange ofcircumstances thatmay be
preventing itsimplementation, authorizing theappropriate changes andmodifications.
ARTICLE 134-Thesafeguard measures shallbeapplied onlyforsuchperiod oftimeasmay
benecessary toprevent orremedy serious injury andtofacilitate adjustment. TheMinistry shall
determine theduration ofthesafeguard measures onthebasis oftheevaluation oftheadjustment
programme anditsimplementation. Inanycase, therequirements oftheinternational treaties and
conventions towhich Mexico isaparty shallbemet.
TITLE VIII
COMMON PROVISIONS FOR PROCEEDINGS WITH REGARD TOUNFAIR
INTERNATIONAL TRADE PRACTICES AND SAFEGUARD MEASURES
Chapter I
Exofficio Investigation, Legally Constituted Organizations
Withdrawal, Administrative Dossier andTransmission
ofCopies toInterested Parties
ARTICLE 135. Intheabsence ofanexpress provision inthese Regulations concerning
administrative proceedings withregard tounfair international tradepractices andsafeguard measures,
theRegulations oftheFederal TaxCode shallbeapplied, totheextent thattheyareapplicable tothe
nature ofthese proceedings. Thisprovision shall notapply tonotifications andsearches forthe
purpose ofverification.
Theconduct andresolution ofinvestigation proceedings towhich thisTitlerefers which are
initiated exofficio inaccordance withthelawshall besubject tothesame legal andregulatory
provisions asthose applicable toinvestigations undertaken attherequest ofaparty.
ARTICLE 136. Forthepurposes ofArticle 50oftheAct,legally constituted organizations
aredeemed tobechambers, associations, confederations, councils oranyother group ofproducers
constituted inaccordance withMexican law,whose object istorepresent theinterests ofnatural or
legal persons engaged intheproduction ofgoods identical, alike toor,inthecaseofsafeguard
measures, directly competitive withtheimported products.
ARTICLE 137. Theinterested party maywithdraw therequest towhich Article 50ofthe
Actrefers, subject tothefollowing rules:
I. Iftherequest iswithdrawn prior topublication oftheresolution toinitiate the
investigation, theinvestigating authority shall declare theinvestigation void on
grounds ofwithdrawal, andshall publish thecorresponding notice intheDiario
Oficial delaFederación, and
II. Iftherequest iswithdrawn after publication oftheresolution toinitiate the
investigation, thewithdrawal mayonlytakeeffect when theimporters orforeign
exporters and,inthecaseofsubsidies, representatives oftheforeign governments,
givetheirconsent inwriting totheMinistry. Inthatcase, theMinistry shalldeclare
theinvestigation terminated, andshallpublish thecorresponding notice intheDiario
Oficial delaFederación.G/SG/N/1/MEX/1
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ARTICLE 138. Intheinvestigation proceedings towhich thisTitlerefers, theMinistry shall
compile anadministrative dossier onthebasis ofwhich therelevant resolutions shallbeissued.
Theadministrative dossier shallconsist of:
A. Documentary orother information presented totheMinistry orobtained byitinthe
course oftheadministrative proceedings, including anygovernment communications
concerning thematter, andreports, records ormemorandums ofmeetings withone
oralltheinterested parties, thirdparties oradditional parties;
B. Resolutions issued bytheMinistry inrelation thereto;
C. Transcriptions orrecords ofmeetings orhearings before theMinistry;
D. Notices published intheDiario Oficial delaFederación concerning theadministrative
proceedings, including review, and
E. Records ofsessions oftheCommission dealing withtheestablishment ofsafeguard
measures anddraftfinalresolutions withregard tounfair international tradepractices,
anddraft resolutions inwhich theMinistry accepts theundertaking offoreign
exporters orgovernments towhich Article 72oftheActrefers.
ARTICLE 139. Awritten report shallbeprepared ofanycommunication, whether direct or
made byother conventional orelectronic means, between theMinistry andanyinterested party, his
representatives oradditional parties during theinvestigation andreview proceedings. Thisreport shall
contain asummary oftheobject ofthecommunication andtheconclusions reached. Inaddition it
shallcontain thename andoffice ofthepublic servant whoprepared it,theplace andsignature and
shallbeincluded forthwith intheadministrative dossier.
ARTICLE 140. Copies ofreports, documents oritems ofevidence towhich Article 56of
theActrefers shallbedespatched atthesame timeastheyarepresented totheMinistry. Interested
parties shall sendcopies toother interested parties appearing onthemailing listprovided bythe
Ministry. Thisobligation doesnotrelieve theinvestigating authority from thedutytonotify and
provide theinterested parties withinformation, documents oritems ofevidence pertaining tothe
administrative dossier when sorequested.
Atthetimewhen thedocumentation towhich thepreceding paragraph refers istransmitted,
theinterested parties shallalsosubmit acertificate ofdespatch ofthatdocumentation totheother
interested parties, together withthecorresponding receipt stating thename ofthesender andthedate
ofreceipt, inconformity withtheforms issued bytheMinistry.
ARTICLE 141. TheMinistry maytransmit thedocuments towhich thesecond paragraph of
Article 53oftheActrefers byelectromagnetic means.
Chapter II
Notification
ARTICLE 142. TheMinistry shall, inatimely manner, notify theinterested parties in
writing oftheresolutions issued withregard totheproceedings towhich thisTitlerefers.G/SG/N/1/MEX/1
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ARTICLE 143. Forthepurposes ofthese Regulations, domicile means:
I. Fornatural persons: theplace where theyhavetheirprincipal seatofbusiness orthat
oftheirrepresentative, and;
II. Forlegalpersons: theplace where theprincipal office ofthebusiness orthatoftheir
representative islocated. Inthecaseoflegal persons resident abroad, theplace
where theprincipal office ofthebusiness islocated intheircountry orknown tothe
authority or,failing that,theplace designated bytheinterested party.
ARTICLE 144. Fornotifications, there must beacorresponding receipt ofdespatch. Post
office receipts, returned certificates ofreceipt, andanyother acknowledgement ofreceipt shall be
included intheadministrative dossier.
ARTICLE 145. Where theMinistry doesnotknow theaddress ofthepersons tobenotified,
whether resident inMexico orabroad, thenotification shallbebypublication intheDiario Oficial
delaFederación and,onetimeonly, inoneofthenewspapers ofmajor circulation inMexico; the
latter publication shall contain asummary oftherequest concerned andtheproceedings tobe
conducted.
Forpersons resident outside thecountry, theMinistry shallsendthecommunications towhich
theprevious paragraph refers todiplomatic missions offoreign governments, sothattheymaytake
thenecessary steps todistribute thecontent ofresolutions.
Forthepurposes ofthisArticle, thedateofnotification isdeemed tobethatofpublication
intheDiario Oficial delaFederación.
ARTICLE 146. TheMinistry shallnotify those subject toasearch thatasearch istobe
carried outforthepurposes ofverification, asreferred toinArticle 83oftheAct. Thenotification
shallcontain:
I. Thedesignation ofthecompetent issuing authority;
II. Thename ornames orbusiness name ofthepersons towhich itisaddressed;
III. Theplace orplaces where thesearch istotakeplace, which maybesupplemented
following notification totheperson subject tothesearch, andthedateofthesearch;
IV. Thegrounds andjustification forthesearch, anditsobject orpurpose;
V. Thesignature ofthecompetent official, and
VI. Thename ornames ofthepersons whowillcarry outthesearch, whomaybe
replaced orwhose number maybeincreased orreduced atanytimebytheMinistry.
Inthelatter case, thereplacement oraddition ofpersons whoaretocarry outthe
search shallbenotified totheperson subject tothesearch. Inaddition, theMinistry
shallnotify theperson subject tothesearch ifexternal consultants areincluded among
suchpersons.
Thenotifications shallbemade insuchawaythattheinterested party receives them atleast
tendaysprior tothesearch, during thisperiod theperson subject tosearch mustgivehisconsent to
theMinistry.G/SG/N/1/MEX/1
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Chapter III
Public, Confidential, Restricted Commercial andConfidential
Government Information
ARTICLE 147. Forthepurposes ofArticle 80oftheAct,theMinistry, onwritten request,
shall grant theinterested parties theopportunity toexamine alltheinformation contained inthe
administrative dossier forthepresentation oftheirarguments, under theterms established intheAct
andinthese Regulations. Thisinformation maybeexamined bytheparties during theinvestigation
proceedings, thereview andappeal forreversal, thehearing intheUpper Chamber oftheFederal Tax
Court andalternative dispute settlement mechanisms withregard tounfair international tradepractices
referred tointheinternational treaties oragreements towhich Mexico isaparty and,ifapplicable,
withregard tosafeguard measures.
TheMinistry shall, attheexpense oftheinterested parties, sendcertified copies ofallorpart
oftheadministrative dossier requested, when appropriate, inconformity withtheprovisions of
Article 80oftheActandthese Regulations.
ARTICLE 148. Forthepurposes oftheproceedings towhich thisTitle refers, public
information shallbedeemed tobe:
I. Information published byanymethod ofdissemination, regardless ofitscoverage, or
made available tothepublic bytheperson submitting it,orwhere thatperson has
consented toitspublication byathirdparty;
II. Summaries ofconfidential information andrestricted commercial information
presented under theterms ofArticle 153ofthese Regulations;
III. Records relating tosearches forpurposes ofverification andannexed documents,
except forconfidential, restricted commercial orconfidential government information;
IV. Anyother information ordatawhich under theAct,these Regulations andother
national orforeign legislation donotconstitute confidential, restricted commercial or
confidential government information andwhose publication isnotprohibited.
ARTICLE 149. Forthepurposes oftheproceedings towhich thisTitlerefers, andsubject
tocompliance withtheprovisions ofArticles 152,153and158ofthese Regulations, confidential
information shallbedeemed tobe:
I. Production processes fortheproduct concerned;
II. Production costs andspecification ofcomponents;
III. Distribution costs;
IV. Terms andconditions ofsale,except those offered tothepublic;
V. Selling prices bytransaction andbyproduct, except components ofprices suchas
dates ofsalesanddistribution oftheproduct, andtransport ifbypublic routes;
VI. Description ofthetypeofindividual customers, distributors orsuppliers;G/SG/N/1/MEX/1
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VII. Ifapplicable, theexact amount ofthemargin ofprice discrimination inindividual
sales;
VIII. Theamounts ofadjustments forterms andconditions ofsale,volume orquantities,
variable costs andtaxcharges proposed bytheinterested party, and
IX. Anyother specific information about theenterprise concerned whose disclosure or
dissemination tothepublic maycause injury toitscompetitive position.
Theinformation oncosts andprices towhich subparagraphs II,III,andVIIofthisArticle
refermaybepresented bytheinterested party oradditional parties inranges ofpercentage variation
thatdonotexceed thefactor of10percent.
ARTICLE 150.Restricted commercial information, subject tocompliance withtheprovisions
ofArticles 152, 153and158ofthese Regulations, shall bedeemed tobeinformation whose
disclosure mayresult insubstantial andirreversible financial damage orharm tothenetworth ofthe
owner ofthatinformation andwhich mayinclude, among other things, secret formulas orprocesses
which haveacommercial value, arenotpatented andknown exclusively toasmall group ofpeople
whousethem intheproduction ofacommercial product.
ARTICLE 151. Thename ofthenatural orlegal persons from whom theinterested party
obtained relevant information shall beknown only totheMinistry andmayonly bedisclosed
following theconsent ofsuchpersons.
ARTICLE 152. Theinterested party shallberesponsible forpointing outwhere appropriate
initsrequests, answers, replies totheMinistry orinanyform ofappearance, anyinformation ofa
confidential orrestricted commercial character. Likewise, hemust justify thereason forso
designating hisinformation.
ARTICLE 153. Theparty interested inensuring theconfidential orrestricted commercial
treatment ofhisinformation anddocuments shallsubmit apublic summary thereof totheMinistry.
This summary shall bepresented inwriting andshall besufficiently detailed toallow anyone
consulting ittohaveareasonable andcomprehensive understanding ofthesubject.
ARTICLE 154. Forthepurposes oftheproceedings towhich thisTitlerefers, confidential
government information shallbedeemed tobeinformation whose disclosure isprohibited bylawsand
other public legislation, andbyinternational treaties oragreements towhich Mexico isaparty.
Inanyevent, confidential government information shallinclude data,statistics anddocuments
concerning national security andstrategic activities forthescientific andtechnological development
ofthecountry, andinformation contained ingovernment-to-government communications ofa
confidential nature.
ARTICLE 155. When sorequired, theMinistry shall provide thepublic, confidential,
restricted commercial orconfidential government information toadministrative tribunals, courts and
dispute settlement mechanisms relating tounfair international trade practices andsafeguard measures
contained ininternational trade treaties oragreements towhich Mexico isaparty, when theyare
seized withanappeal against thefinalresolutions towhich theActandthese Regulations refer. In
anyevent, thepublic servant responsible fortransmitting theinformation concerned tothe
aforementioned authorities andmechanisms shallindicate itscharacter.G/SG/N/1/MEX/1
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ARTICLE 156. When thetime-limit towhich Article 80oftheActrefers hasexpired, the
Ministry maydespatch certified copies ofthedossier ofthematter concerned or,ifsorequested, shall
permit theinterested parties ortheirrepresentatives toinspect therequested dossiers.
ARTICLE 157. Intheproceedings towhich Articles 60,68and94oftheActrefer, the
provisions concerning public, confidential, restricted commercial andconfidential government
information contained intheActandinthese Regulations shallbeobserved.
Chapter IV
Request forConfidentiality ofInformation
ARTICLE 158. Interested parties ornatural andlegalpersons who, under theActandthese
Regulations participate intheproceedings towhich thisTitlerefers, shallhavetheright torequire
theMinistry totreattheirinformation asconfidential orasrestricted commercial information. For
thatpurpose, theinterested party concerned shallcomply withthefollowing requirements:
I. Therequest shallbesubmitted inwriting;
II. Heshall explain whyhisinformation isofaconfidential orrestricted commercial
character;
III. Heshallpresent asummary oftheinformation or,ifapplicable, anexplanation ofthe
reasons whyitcannot besummarized; and
IV. Ifapplicable, givehisexpress consent inwriting thattheinformation marked as
confidential orrestricted commercial maybeexamined bythelegal representatives
oftheother interested parties.
ARTICLE 159. Forthepurposes ofArticle 80oftheAct,anaccredited legalrepresentative
shallbedeemed tobethenatural person authorized bytheMinistry tohaveaccess toconfidential
information, oncompletion ofthefollowing requirements:
I. Presentation totheMinistry ofarequest inwriting stating theneedtoexamine the
confidential information;
II. Submission ofofficial documents accrediting therequesting party asalawyer entitled
toexercise hisprofession inMexico inaccordance withtheapplicable laws.
Therequest towhich thissubparagraph refers mayalsobesubmitted byanyother
person provided thathemeets therequirements established inthisArticle, withthe
exception oftheprovision oftheprevious paragraph, andisassisted byalawyer;
III. Presentation oftheoriginal document orcertified copy thereof accrediting himas
representative;
IV. Show theofficial document orcertified copy thereof accrediting thename and
authority oftheofficial oftheenterprise granting thepower ofrepresentation;
V. Hemust beresident inMexico;G/SG/N/1/MEX/1
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VI. Hemustundertake andsubmit thecommitment toconfidentiality, under theterms laid
down bytheMinistry inaccordance with theprovisions oftheActandthese
Regulations;
VII. Hemust stateinwriting thatheisaware oftheliabilities andsanctions towhich he
maybesubject ifheviolates theconfidentiality oftheinformation entrusted tohim;
VIII. Hemuststateinwriting thereasons whytheconfidential information heisrequesting
toexamine isrelevant tothedefence ofhiscase. Insuchasituation, theMinistry
mayspecify under whatconditions itshallbeconsidered thatconfidential information
maybeuseful tothedefence ofthecaseinquestion; and
IX. Hemust giveanundertaking totheMinistry toreturn theoriginal versions ofhis
notes orsummaries made when examining theconfidential information, within ten
daysfollowing theissue ofthefinalresolution.
Theconfidential information which legal representatives ofinterested parties havetheright
toexamine under these Regulations shallbestrictly forpersonal useandshallnotbetransferable for
anyreason whatsoever. Inthecasementioned inthesecond partofsubparagraph IIofthisArticle,
thelawyer assisting thelegally-authorized representative shallcomply withtherequirements towhich
subparagraphs VtoIXofthisArticle referandshallbejointly responsible fortheunauthorized use
oftheconfidential information.
ARTICLE 160. Inaddition totheprovisions ofthepreceding Article, thelegalrepresentative
shallcomply withthefollowing requirements, failing which heshallnotbeauthorized toexamine the
confidential information:
I. Heshallnothavebeenconvicted ofadeliberate offence oradministrative breach of
thelaw;
II. Hemust beofgood personal andprofessional standing;
III. Hemust nothave been apartner, adirector oracted asasalaried agent or
representative oftheenterprise which hepurports torepresent, norofanyofthe
other interested oradditional parties intheproceedings inquestion, during the
previous year; and
IV. Hemust provide aform ofsecurity fortheamount fixed bytheMinistry under the
Federal TaxCode, against hiscommitting theunlawful actsdescribed insubparagraph
VIofArticle 93oftheAct. Thesecurity maybecancelled following thepublication
oftheresolution inquestion.
When therequirements havebeenfulfilled, theMinistry shallholdthelegal representative
asaccredited andshall send himtherespective confirmation within tendays from thedayof
submission oftherequest.
ARTICLE 161. Forthepurposes oftheproceedings towhich thisTitle refers, the
examination oftheconfidential information shall takeplace intheoffices oftheMinistry, inthe
presence ofanofficial oftheMinistry. TheMinistry shall allow reasonable timetothelegal
representative toenable himtoexamine theconfidential information, ofwhich hemaymake notes
orsummaries.G/SG/N/1/MEX/1
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Inaddition, when itisdeemed appropriate, theMinistry may provide copies ofthat
information, indicating therequirements tobeobserved bythelegalrepresentative forthetreatment
andreturn ofthatinformation.
Chapter V
Evidence, Public Hearing andPleadings
ARTICLE 162. TheMinistry shallaccept asevidence public andprivate documents, expert
reports, administrative recognition orverification, personal evidence, presumptions andanyother
method ofevidence notprohibited bylaw.
ARTICLE 163. Theperiod fortheexamination ofevidence shallrunfromthedayfollowing
thepublication oftheinitiation oftheadministrative investigation andtheacceptance oftherequest,
intheDiario Oficial delaFederación untilthedatewhen thepublic hearing towhich Article 81of
theActrefers isdeclared concluded.
ARTICLE 164. Inthecaseofproceedings inrespect ofunfair international trade practices
andsafeguard measures, following publication oftheinitiation oftheadministrative investigation and
acceptance oftherequest, importers, exporters and, ifapplicable, representatives offoreign
governments whohavebeennotified orwhoappear oftheirownrightbefore theMinistry, shallhave
atime-limit ofthirty daystoformulate theirdefence andpresent therequired information.
When thetime-limit towhich thepreceding paragraph refers haselapsed, theMinistry shall
give theopportunity totherequesting parties and, ifapplicable, thejoint parties topresent
counter-arguments orreplies within theeight daysfollowing.
Following thepublication intheDiario Oficial delaFederación ofthepreliminary resolution
towhich Article 57oftheActrefers, theMinistry shallgrant aperiod ofthirty daystoallow the
interested parties topresent supplementary arguments andevidence which theyconsider relevant.
ARTICLE 165. Thepurpose ofthepublic hearing shallbetoallow theinterested parties and,
ifapplicable, additional parties, toquestion orreject thearguments oftheother parties regarding the
information, dataandevidence submitted.
ARTICLE 166. When thehearing isopened, therepresentative oftheMinistry shall, where
heconsiders necessary, introduce fordiscussion theevidence presented bytherequesting party.
Following that,importers, foreign exporters anddomestic producers inthatorder shallbepermitted
tospeak. Each party shallspeak, inturn, twice inrespect ofevidence submitted byother parties.
TheMinistry, subject toagreement withtheinterested parties, shallfixthemaximum timepermitted
foreachintervention, without prejudice toextending thetimeallocated forparticipation byinterested
parties asitconsiders necessary.
ARTICLE 167. Inthecaseofexpert evidence, where there aredifferences among experts,
therepresentative oftheMinistry shallallow themtospeak, under theterms ofthepreceding Article.
ARTICLE 168. Thediscussion towhich thepreceding Articles refermayconsist ofrebuttals
andquestioning bytheinterested parties. Therepresentative oftheMinistry mayrequire the
interested parties torepeat their arguments inorder toclarify disputed points. Therules of
confidentiality ofinformation laiddown intheActandinthese Regulations shallbeobserved inthis
hearing.G/SG/N/1/MEX/1
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ARTICLE 169. Theabsence ofanyoftheinterested parties, experts andother persons who
bythenature oftheevidence should appear shallnotprevent thepublic hearing being held.
ARTICLE 170. Arecord ofthepublic hearing shall bedrawn upcontaining adetailed
account oftheproceedings; itmust besigned bytheinterested parties andtherepresentative ofthe
Ministry, andincluded inthedossier ofthecase.
ARTICLE 171. Theinterested parties mayonlypresent information, evidence anddatathat
theyconsider relevant indefence oftheirinterests during theperiod forthesubmission ofevidence.
Nevertheless, theMinistry mayallow thesubmission, repetition oramplification ofanyevidence or
evidential actsoutside theperiod forthesubmission ofevidence, provided thatitconsiders it
necessary andthatitmayresult inbetter knowledge ofthetruthabout thefactsunder investigation.
ARTICLE 172. Upon theconclusion oftheperiod forthesubmission ofevidence, the
Ministry shallopenaperiod ofpleadings during which theinterested parties maysubmit inwriting
theirconclusions onthesubstance ormatters arising inthecourse oftheproceedings. Inthiscase,
therules ofconfidentiality established intheActandthese Regulations shallbeobserved.
Chapter VI
Searches forthePurpose ofVerification
ARTICLE 173. When carrying outthesearches forthepurpose ofverification towhich
Article 83oftheActrefers, thefollowing rules shallbeobserved:
I. Searches shall becarried outattheplace orplaces indicated intherespective
notification andbythepersons indicated therein;
II. Thesearch shall beattended bytheperson subject tothesearch orhisaccredited
representative, orbytheperson present onthedatewhen thesearch takes place;
III. Atthecommencement ofthesearch, thepersons responsible forcarrying outthe
search shall formally identify themselves totheperson orpersons withwhom the
proceeding hasbeen arranged, requiring them todesignate twowitnesses. If
witnesses arenotdesignated orthedesignated persons donotconsent toserve as
such, thevisiting officials shalldesignate witnesses, noting thatfactintherecord,
without thatinvalidating theresults ofthesearch;
IV. Theinterested parties, theirrepresentatives ortheperson withwhom thesearch atthe
fiscal domicile hasbeenarranged, areobliged toallow thevisiting officials designated
bytheMinistry access totheplace orplaces which arethesubject oftheproceeding
andmake available tothem theaccounts andother documents tosupport the
information presented during theinvestigation. Inthatcase,thevisiting officials may
obtain copies tobecompared withtheoriginal documents andauthenticated bythe
officials andtobeannexed totherecord ofthesearch. Verification shall alsobe
permitted ofgoods, documents, disks, tapes oranyother datastorage system
maintained bytheinterested party attheplaces searched.
Iftheinterested party subject tothesearch maintains hisaccounting system orpart
ofitonanelectronic recording system, thecomputer equipment anditsoperators
shallbemade available tothevisiting officials sothattheycanassist them intheir
work;G/SG/N/1/MEX/1
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V. Arecord ofevery search shall bedrawn upgiving fulldetails ofthefacts or
omissions noted bythevisiting officials, determining thelegalconsequences ofsuch
actsandomissions fortheinterested parties;
VI. Oncompletion oftheverification procedure andtherelevant report, noadditional
reports maybedrawn upwithout anewnotification;
VII. Oncompletion oftheverification procedure andtherelevant report, theinterested
parties ortheirrepresentatives maypresent totheMinistry theirobjections, opinions
andsupplementary information which theauthority inquestion might haverequired
fromthemduring theverification procedure, within fivedaysfromtheconclusion of
therelevant report. Ifwithin thistime-limit noopinions orobjections tothecontent
ofthereport aresubmitted, theactsandomissions contained therein shallbeheldto
beaccepted, and
VIII. Thereport drawn upatthetimeofthesearch forthepurposes ofverification shall
besigned bythevisiting officials, theinterested party orhisrepresentative orthe
person withwhom theprocedure wasarranged andbythewitnesses. Ifanyofthe
persons indicated refuses tosignthereport concerned, thevisiting officials shallnote
thisfactinthereport itself without itaffecting itsvalidity andvalue asevidence.
ARTICLE 174. TheMinistry shallbeempowered toaskthirdparties whohavehadbusiness
relations withtheinterested party subject tothesearch, suchassuppliers, customers andagents, for
information anddataenabling ittoestablish thetruth oftheinformation supplied, bothduring the
investigation andduring thesearch.
ARTICLE 175. TheMinistry mayrequest accounting andanyother information, dataand
documents fromtheinterested parties, inorder toverify thetruthoftheirsubmissions andstatements
attheofficial domicile oftheMinistry.
Theperson subject tothesearch shallhavetherighttoindicate whether theinformation or
datasupplied ortobesupplied tothevisiting officials isofaconfidential orrestricted commercial
character, provided thathesatisfies theprovisions ofthese Regulations.
Theprovisions contained inArticles 152and153ofthese Regulations maybefulfilled during
thesearch orwithin thetime-limit towhich subparagraph VIIofArticle 173ofthese Regulations
refers.
ARTICLE 176. TheMinistry mayutilize theservices ofspecialized consultancy firms to
provide support ininvestigating, ascertaining andverifying information anddataneeded toenable it
toissue itsresolutions.