RESTRICTED
WORLD TRADE G/ADP/N/1/MEX/1
18 May 1995
ORGANIZATION
(95-1307)
Original: Spanish
Committee on Anti-Dumping Practices
NOTIFICATION OF LAWS AND REGULATIONS
UNDER ARTICLE 18.5 OF THE AGREEMENT
MEXICO
The following communication, dated 2 May 1995, has been received from the Permanent
Mission of Mexico.
_________________
In accordance with the established procedures, I am forwarding herewith the text of the Mexican
unfair practices law (anti-dumping aspects) and the pertinent regulations.
It should be noted that the relevant Mexican unfair practices legislation is made up of various
provisions of the Mexican Foreign Trade Act and its Regulations, together with the Agreement on
Implementation of Article VI of the General Agreement on Tariffs and Trade of the World Trade
Organization (Anti-Dumping Agreement).
Since the Anti-Dumping Agreement is well known, this communication includes only the
provisions concerning unfair practices of:
-the Foreign Trade Act, published in the Diario Oficial de la Federación (Official Journal) of 27
July 1993 (Annex I), and
-the Regulations under the Foreign Trade Act, published in the Diario Oficial de la Federación of
30 December 1993 (Annex II).G/ADP/N/1/MEX/1
Page 2
ANNEX I
FOREIGN TRADE ACT
TITLE V
UNFAIR INTERNATIONAL TRADE PRACTICES
Chapter I
General Provisions
ARTICLE 28 - The term "unfair international trade practices" means the importation of goods
under conditions of price discrimination or subsidization in the country of origin or source which cause or
threaten to cause injury to the domestic industry. Natural or legal persons importing goods in
circumstances involving unfair international trade practices shall be obliged to pay a countervailing duty, in
accordance with the provisions of this Act.
ARTICLE 29 - The existence of price discrimination or subsidies, injury or threat of injury and a
causal link between them and the imposition of countervailing duties shall be determined on the basis of
an investigation, in accordance with the administrative procedure prescribed in this Act and its Regulations.
Evidence of injury or threat of injury shall be required whenever the country of origin or source of
the goods in question observes reciprocity. Otherwise, the Ministry may impose the appropriate
countervailing duties without having to prove injury or threat of injury.
Chapter II
Price Discrimination
ARTICLE 30 - Importation under conditions of price discrimination consists in the introduction
of goods into the national territory at less than their normal value.
ARTICLE 31 - The normal value of goods exported to Mexico is the comparable price, in the
ordinary course of trade, for identical or like goods when destined for the domestic market of the country
of origin.
However, when there are no sales of identical or like goods in the country of origin, or when such
sales do not permit a proper comparison, the normal value shall be deemed to be:
I.A comparable price of identical or similar goods when exported from the country of origin to a
third country in the ordinary course of trade, or
II.A computed value in the country of origin obtained as the sum of the cost of production,
general costs and a reasonable profit, all in the ordinary course of trade in the country of
origin, in that order.
ARTICLE 32 - The term "in the ordinary course of trade" shall mean commercial transactions
which reflect market conditions in the country of origin and which are concluded customarily, or within a
representative period, between independent buyers and sellers.
Sales in the country of origin or of export to a third country which reflect sustained losses shall be
disregarded in calculating the normal value. Such sales shall be deemed to include transactions whoseG/ADP/N/1/MEX/1
Page 3
prices are insufficient to cover the costs of production and general costs incurred in the ordinary course of
trade within a reasonable period of time, which may be more extensive than the period of investigation.
When the transactions in the country of origin or of export to a third country which generate
profits are insufficient to be described as representative, the normal value shall be established on the basis
of the computed value.
ARTICLE 33 - In the case of imports originating in a country with a centrally planned economy,
the normal value of the goods in question shall be taken to be the price of identical or like goods in a third
country with a market economy, which may be regarded as a substitute for the country with a centrally
planned economy for the purposes of the investigation. The normal value shall be determined in
accordance with the provisions of the preceding articles.
ARTICLE 34 - When goods are exported to Mexico from an intermediate country and not
directly from the country of origin, the normal value shall be the comparable price of identical or like
goods in the country of export.
However, if the goods in question are merely transshipped through or are not produced in the
country of export or there is no comparable price for them in that country, the normal value shall be
determined on the basis of the market price in the country of origin.
ARTICLE 35 - Where there is no export price or where it appears to the Ministry that the export
price is not comparable with the normal value, that price may be calculated on the basis of the price at
which the imported products are first resold to an independent buyer in the national territory.
ARTICLE 36 - The Ministry shall make the necessary adjustments to enable the export price and
normal value to be compared. In particular, allowance shall be made for difference in terms and
conditions of sale, quantities, physical characteristics and tax charges. When an interested party requests
that a particular adjustment be taken into consideration, it shall be incumbent upon that party to provide
the corresponding supporting evidence.
Chapter IV
Injury and Threat of Injury to the Domestic Industry
ARTICLE 39 - For the purposes of this Act, injury means material loss or impairment or
deprivation of any lawful, normal gain which the domestic producers of the goods in question may suffer,
or impediment to the establishment of new industries. Threat of injury means the imminent and clearly
foreseen risk of injury to the domestic industry. A determination of threat of injury shall be based on facts
and not merely on allegation, conjecture or remote possibility.
The administrative investigation must establish that the injury or threat of injury to the domestic
industry is a direct consequence of importation under conditions involving price discrimination or
subsidization within the meaning of this Act.
ARTICLE 40 - For the purposes of this Act, the expression "domestic industry" shall be
understood as referring to at least 25 per cent of the domestic production of the goods in question.G/ADP/N/1/MEX/1
Page 4
However, when certain producers are related to the exporters or importers or are themselves
importers of the product under investigation, the term "domestic industry" may be interpreted as referring
to at least 25 per cent of the rest of the producers. When all of the producers are related to the exporters
or importers or are themselves importers of the product under investigation, the term "domestic industry"
may be interpreted as referring to the entire group of producers of the goods produced during the
immediately preceding stage in the same continuous line of production.
ARTICLE 41 - The Ministry shall determine whether the importation of a particular product
causes injury to the domestic industry taking the following criteria into account:
I.The volume of imports of the goods subject to unfair international trade practices, in order to
determine whether there has been a significant increase in such imports in relation to the
country's domestic production or consumption;
II.The impact which the importation of goods under conditions involving unfair international
trade practices has or may have on the prices of identical or like products on the domestic
market. Consideration shall be given in this respect to whether the imported product is
sold on the domestic market at a price considerably lower than that of identical or like
products or whether the effect of such imports is to depress prices in an abnormal
manner or to prevent a reasonable price rise which would otherwise have taken place;
and
III.The impact which such imports have had or may have on domestic producers of products
identical or alike to those imported, considering all of the relevant economic factors and
indices having a bearing on the state of the sector in question, such as actual and potential
decline in output, sales, market share, profits, productivity, return on investment, or
utilization of installed capacity; factors affecting domestic prices; negative effects actual
and potential on cash flow, inventories, employment, wages, ability to raise capital,
investment or production growth;
IV.Any other elements which the Ministry deems appropriate.
ARTICLE 42 - The Ministry shall determine the existence of a threat of injury to domestic
production taking the following criteria into account:
I.An increase in the importation into the domestic market of goods subject to unfair practices,
pointing to a well-founded probability of a significant increase in such imports in the
immediate future;
II.The freely disposable capacity of the exporter or an imminent substantial increase therein,
pointing to the well-founded probability of a significant increase in exports to the Mexican
market in unfair conditions, with due regard for the availability of other export markets to
absorb any additional exports;
III.Whether imports are entering at prices which will have a significant depressing or suppressing
effect on domestic prices, and will likely increase demand for further imports;
IV.Inventories of the product under investigation;
V.Where appropriate, the expected return on realizable investments;
VI.Any other elements which the Ministry deems appropriate.G/ADP/N/1/MEX/1
Page 5
In order to determine the existence of a threat of injury, the Ministry shall take into account all of
the above factors which make it possible to conclude whether further imports in unfair conditions are
imminent and whether, unless countervailing duties are applied, injury within the meaning of this Act will
occur.
ARTICLE 43 - For the purposes of assessing the elements mentioned in Articles 41 and 42, the
Ministry may cumulate the volume and the impact of imports of identical or like products from two or
more countries under investigation, subject to the conditions and exceptions provided for in the
Regulations.
ARTICLE 44 - Injury or the threat of injury to production in an isolated market within the
national territory may be considered to exist whenever there is a concentration of imports into that market,
in circumstances involving unfair practices, which adversely affects a significant part of its production. In
such cases, the isolated market may be considered as such only if its producers sell a significant part of
their production in that market and if demand is not to any substantial degree supplied by producers
located elsewhere in the national territory.
TITLE VII
PROCEDURE IN RELATION TO UNFAIR INTERNATIONAL
TRADE PRACTICES AND SAFEGUARD MEASURES
Chapter I
Common Provisions Relating to the Initiation of the Procedure
ARTICLE 49 - The investigation of unfair international trade practices and safeguard measures
shall be initiated ex officio or at the request of a party, in accordance with the provisions of the next Article.
In the investigation procedure to which this Title refers, an administrative dossier shall be
compiled to serve as a basis for the issuance of the relevant administrative resolutions.
ARTICLE 50 - An interested-party request may be submitted by natural and legal persons
producing:
I.Goods identical or alike to those being imported or intended for import in circumstances
involving unfair international trade practices, or
II.Goods identical or alike to or directly competitive with those being imported under conditions
and in volumes such that they seriously injure or threaten seriously to injure the domestic
industry.
The requesting parties must be representative of the domestic industry, within the meaning of
Article 40, or be legally constituted organizations.
In his request, the requesting party must indicate, in writing, to the competent authority, with an
undertaking to tell the truth, the reasons why it is necessary that countervailing duties or safeguard
measures be applied. The request must comply with the requirements laid down in the Regulations.
Requesting parties must attach to their written communication the questionnaire issued by the Ministry for
the purpose.
ARTICLE 51 - The term "interested party" means the producers who have submitted requests,
importers and exporters of the product under investigation, as well as any foreign legal persons having aG/ADP/N/1/MEX/1
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direct interest in the investigation in question and those who are so defined in international trade
agreements and treaties.
ARTICLE 52 - Within a period of 30 days following the submission of the request, the Ministry
shall:
I.Accept the request and declare the initiation of the investigation through a resolution to that
effect to be published in the Diario Oficial de la Federación;
II.Ask the requesting party for further items of evidence and information which must be provided
within a maximum of 20 days following receipt of the notification. If the requested
elements are duly produced, the Ministry shall, within a period of 20 days, proceed in
conformity with the preceding subparagraph. If the requested elements are not duly
produced within the mentioned deadline, the request shall be considered as having been
abandoned and the requesting party shall be personally so notified; or
III.Reject the request if it does not fulfil the requirements set forth in the Regulations, and
personally notify the requesting party of such rejection.
In any case, the Ministry shall publish the corresponding resolution in the Diario Oficial de la
Federación.
ARTICLE 53 - Starting from the day following the publication in the Diario Oficial de la
Federación of the resolution to initiate an investigation, the Ministry shall notify the interested parties of
which it is aware, so that they may appear in order to make whatever statement they see fit. The interested
parties shall be accorded a period of 30 days following the publication of the resolution to initiate an
investigation in the Diario Oficial de la Federación to prepare their defence and submit the information
requested.
The notification shall be accompanied by a copy of the request submitted and such attached
documents as do not contain confidential information or, as the case may be, any relevant documents
regarding ex officio investigations.
ARTICLE 54 - The Ministry may request the interested parties to produce evidence, information
and data which it considers relevant, for which purpose the Ministry's questionnaires shall be used.
If the above request is not satisfied, the Ministry shall decide on the basis of the information
available.
ARTICLE 55 - The Ministry may request the producers, distributors or traders of the goods in
question as well as the customs officers, agents, representatives and persons receiving the imported goods,
or any other person it deems appropriate, to provide information and data which they have at their
disposal.
ARTICLE 56 - The interested parties in an investigation shall send the other interested parties
copies of each of the reports, documents or items of evidence which they submit to the authorities during
the proceedings, except the confidential information referred to in Article 81.
Chapter II
Procedure in Relation to Unfair International Trade Practices
Section 1G/ADP/N/1/MEX/1
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Preliminary Resolution
ARTICLE 57 - Within a period of 130 days from the day following the publication in the Diario
Oficial de la Federación of the resolution to initiate an investigation, the Ministry shall issue a preliminary
resolution by which it may:
I.Fix a provisional countervailing duty once the procedural formalities have been complied with
and after a period of at least 45 days following the publication in the Diario Oficial de la
Federación of the resolution to initiate the investigation;
II.Refrain from imposing a countervailing duty and continue the administrative investigation; or
III.Pronounce the termination of the administrative investigation when there is insufficient
evidence of price discrimination or subsidization, of injury or threat of injury, or of a
causal relationship between them.
The interested parties shall be notified of the preliminary resolution, which shall be published in
the Diario Oficial de la Federación.
Section 2
Final Resolution
ARTICLE 58 - Once the investigation of unfair international trade practices has been concluded,
the Ministry shall submit the draft final resolution to the Commission for its opinion.
ARTICLE 59 - Within a period of 260 days from the day following publication of the resolution
initiating the investigation in the Diario Oficial de la Federación, the Ministry shall issue a final resolution.
In this resolution the Ministry shall:
I. Impose a final countervailing duty;
II. Revoke the provisional countervailing duty; or
III.Pronounce the termination of the investigation without imposing a countervailing duty.
The final resolution shall be notified to the interested parties and published in the Diario Oficial
de la Federación.
ARTICLE 60 - Once a final countervailing duty has been fixed, the interested parties may request
the Ministry to decide whether a given product is subject to the said duty. In such case the Ministry shall
provide the said party with an answer in conformity with the procedure set forth in the regulations. This
answer shall have the character of a final resolution and shall be published in the Diario Oficial de la
Federación.
Section 3
Conciliation Meeting
ARTICLE 61 - During the administrative investigation, the interested parties may request the
Ministry to hold a conciliation meeting. At this meeting, proposals may be submitted to resolve the case
and terminate the investigation, which, if adopted, shall be approved by the Ministry and incorporated intoG/ADP/N/1/MEX/1
Page 8
the resolution which shall have the character of a final resolution. The interested parties shall be notified
of this resolution which shall be published in the Diario Oficial de la Federación.
Section 4
Countervailing Duties
ARTICLE 62 - The Ministry shall fix the amount of the countervailing duties which shall be
equivalent, in cases of price discrimination, to the difference between the normal value and the export
price, and in cases of subsidization, to the amount of the benefit.
Countervailing duties may be less than the margin of price discrimination or than the amount of
the subsidy provided they are sufficient to discourage imports of goods in circumstances involving unfair
international trade practices.
ARTICLE 63 - Countervailing duties shall be considered revenue within the meaning of Article
30 of the Federal Tax Code.
ARTICLE 64 - If the fixing of a countervailing duty involves several suppliers from one or more
countries and it is impracticable to name all these suppliers, the Ministry may order its application to the
country or countries concerned.
ARTICLE 65 - Provisional and final countervailing duties shall be collected by the Ministry of
Finance and Public Credit, which may accept guarantees provided in conformity with the Federal Tax
Code in respect of provisional countervailing duties.
If the final resolution confirms the provisional countervailing duty, payment of the said duty shall
be demanded or, failing such payment, the guarantees provided shall be put into effect. If the final
resolution modifies or revokes the duty, the said guarantees shall be annulled or modified or, where
appropriate, the amounts paid under this procedure or the corresponding difference shall be refunded
with interest.
ARTICLE 66 - Importers of a product identical or alike to the product subject to a provisional or
final countervailing duty shall not be required to pay such duty if they can prove that the country of origin
or source is different from the country exporting the goods in circumstances involving unfair international
trade practices.
ARTICLE 67 - Final countervailing duties shall remain in effect for the length of time and to the
extent necessary to offset the unfair practice which is causing or threatening to cause injury to the domestic
industry.
ARTICLE 68 - Final countervailing duties shall be reviewed annually at the request of a party and
shall at all times be subject to ex officio reviews by the Ministry. In any case, resolutions announcing the
initiation and the conclusion of a review shall be published in the Diario Oficial de la Federación. During
the review proceedings, the interested parties may give the undertakings mentioned in Article 72 of this
Act.
Resolutions confirming, modifying or revoking final countervailing duties shall also have the
character of a final resolution, and shall be submitted previously to the Commission for its opinion.
ARTICLE 69 - When final countervailing duties have been imposed to offset the threat of injury
due to imports under conditions of price discrimination or subsidy, the review shall include, where
appropriate, an evaluation of the investment which without the countervailing duty could not feasibly haveG/ADP/N/1/MEX/1
Page 9
been made. The countervailing duty may be revoked by the Ministry if the planned investment has not
materialized.
ARTICLE 70 - Final countervailing duties shall be eliminated if within a period of five years
following their entry into force none of the interested parties has requested their review and the Ministry
has not initiated such a review ex officio .
ARTICLE 71 - In cases where parts or components are introduced into the national territory for
the purpose of assembly on that territory of goods subject to provisional or final duties with a view to
eluding payment of such duties, the duty in question shall be imposed on the importation of the said parts
or components. The same rule shall apply to cases where parts or components are assembled in a third
country and the finished product is introduced into the national territory, or to the exportation of products
having relatively slight physical differences in comparison with those subject to provisional or final
countervailing duties for the purpose of eluding payment of such duties.
Section 5
Undertakings by Exporters and Governments
ARTICLE 72 - When in the course of an investigation the exporter of goods in circumstances
involving unfair international trade practices gives a voluntary undertaking to revise his prices or to cease
exports, or if the government of the exporting country eliminates or limits the subsidy in question, the
Ministry may suspend or terminate the investigation without the imposition of countervailing duties. For
this purpose, the Ministry shall determine whether, as a result of these undertakings or any similar
undertakings which may be given, the injurious effect of the unfair practice is eliminated.
ARTICLE 73 - If the Ministry accepts an undertaking given by the exporter or the interested
government, it shall issue an appropriate resolution declaring the administrative investigation suspended or
terminated. This resolution shall be notified to the interested parties and published in the Diario Oficial de
la Federación. Before being published, the resolution shall be submitted to the Commission for its
opinion. The undertaking given shall be incorporated in the corresponding resolution together with the
Commission's opinion, in accordance with the provisions of Article 6 of this Act.
ARTICLE 74 - The fulfilment of these undertakings may be reviewed periodically, ex officio or at
the request of a party. If as a consequence of the review the administrative authority finds that the
undertaking has not been fulfilled, the collection of the provisional countervailing duty shall be reinstated
immediately by publication of the corresponding resolution in the Diario Oficial de la Federación and the
investigation shall be continued.
Chapter IV
Other Common Provisions Relating to the Proceedings
ARTICLE 80 - The Ministry shall provide timely opportunities for the interested parties to see all
information in the administrative dossier relevant to the presentation of their cases. Confidential
information shall be made available only to the accredited legal representatives of the parties interested in
the administrative investigation, except in the case of restricted commercial information which, if divulged,
could cause substantial and irreversible injury to the owner of that information, and confidential
government information.
The legal representatives of the interested parties having access to the confidential information
shall not use such information for their personal benefit, nor disseminate it. Infringement of this
requirement shall be punishable under the provisions of this Act, independently of such civil and criminalG/ADP/N/1/MEX/1
Page 10
penalties as may be applicable.
During the investigation proceedings referred to in this section the Ministry shall provide timely
access, at the request of the interested parties or their representatives, to any non-confidential information
forming part of the administrative dossier of any other investigation after a period of 60 days following the
publication of the relevant final resolution.
ARTICLE 81 - In the notification referred to in Article 53, the Ministry shall inform the
interested parties that a public hearing will be held at which they may appear and submit arguments in
defence of their interests and, in the case of safeguard action, present the relevant evidence. At this
hearing, interested parties may question the other interested parties. In the case of investigations into
unfair international trade practices, the hearings shall be held following the publication of the preliminary
resolution and prior to the publication of the final resolution.
ARTICLE 82 - The interested parties may adduce evidence of all types except statements by the
authorities or material considered contrary to public order or offensive to morals or decency.
The Ministry may agree at any time to the institution, repetition or extension of any proceedings
considered necessary and conducive to the discovery of the truth regarding the matters under dispute.
Furthermore, the Ministry may institute such proceedings as it considers appropriate in order to obtain
better information.
The Ministry shall appoint a period for pleadings following the period for the presentation of
evidence to permit the interested parties to make their submissions.
The Ministry's decisions to accept a given piece of evidence shall not be open to appeal during the
proceedings.
ARTICLE 83 - The Ministry may verify the information and evidence submitted during the
course of the investigation, and for that purpose may issue a written order authorizing a search of the legal
domicile, the establishment or the place where the relevant information is located. The Ministry may
proceed as it deems appropriate in order to verify that the said information and evidence conform with the
accounts of the company subject to the search, to collate the documents in the administrative dossier or to
make attested copies.
Information and evidence submitted by the interested parties may be verified in the country of
origin if the interested parties so agree. Without their consent, the Ministry shall assume that the
requesting party's claims are true, unless there exist elements which indicate otherwise.
Searches by the Ministry for the purpose of verification shall be carried out on working days and
during working hours by its own accredited staff. However, they may also take place outside working days
and hours where necessary, in which case the official letter ordering the search shall contain the necessary
authorization.
Detailed records of the searches shall be drawn up in the presence of two witnesses provided by
the party subject to the search or, in the absence of the said party or in the event that the said party refuses
to provide witnesses, by the authority in charge of the proceedings. These searches shall be subject to the
provisions of the Regulations.
ARTICLE 84 - The notifications referred to in this Act shall be transmitted to the interested party
or his representative personally at his domicile by registered mail with acknowledgement of receipt or by
any other direct means such as a specialized messenger service or electronic mail. The notifications shall
enter into force on the working day following the day on which they were issued. The Regulations shallG/ADP/N/1/MEX/1
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establish the form and content of the notifications.
ARTICLE 85 - In the absence of any express provision in this Act concerning the administrative
proceedings in respect of unfair international trade practices and safeguard action, the Federal Tax Code
shall apply by default on a supplementary basis for all matters pertaining to the nature of the said
proceedings. This provision shall not apply in respect of notifications and searches for the purpose of
verification.
ARTICLE 86 - If in the course of the proceedings referred to in this section the Ministry observes
that any of the interested parties is involved in the monopolistic practices which are punishable under the
relevant legislation, it shall so inform the competent authority.
ARTICLE 87 - Countervailing duties and safeguard measures may be specific, or ad valorem. If
specific, they shall be computed at a fixed rate per unit of measurement, and shall be assessed in the
equivalent in Mexican currency. If ad valorem, they shall be computed as a in percentage of the customs
value of the product in question.
ARTICLE 88 - When imposing a countervailing duty or proposing the application of a safeguard
measure, the Ministry shall ensure as far as possible that such measure, in addition to providing timely
defence for the domestic industry, avoids any negative impact on other production processes and on
consumers.
ARTICLE 89 - Provisional and final countervailing duties and safeguard actions shall be applied
from the day following their publication in the Diario Oficial de la Federación.
Importers or their consignees shall be required to calculate in the relevant import applications the
amounts of the provisional and final countervailing duties or safeguard duties and to pay them, together
with their foreign trade taxes, without prejudice to the guarantees in respect of provisional countervailing
duties pursuant to Article 65 and in respect of the final countervailing duties pursuant to Article 98,
subparagraph III.
TITLE IX
INFRINGEMENTS, PENALTIES AND APPEALS
Chapter I
Infringements and Administrative Penalties
ARTICLE 93 - It shall be the responsibility of the Ministry to punish the following infringements:
III.Presentation of false information or documents, failure to provide valid information or
documents, or alteration thereof, to obtain the application of countervailing duties or
safeguard action: by a fine equivalent to the value of the imported goods during the
period of investigation in question;
IV.Failure to provide the Ministry with the documents and reports relating to cases referred to in
Article 55 within the deadline stipulated in the relevant request: by a fine equivalent to
180 times the legal minimum wage;G/ADP/N/1/MEX/1
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V.Importation of goods in significant quantities, as compared to total imports and domestic
production, within a relatively short period, when there are previous cases on record of
unfair practices in the export market in question, or when the importer knew or should
have known that the exporter was engaged in such practices: by a fine equivalent to the
amount resulting from the application of the final countervailing duty to the imports
entered for up to three months prior to the date of application of the provisional
countervailing duties. This penalty shall only be applied once the Ministry has issued the
resolution determining the final countervailing duties; and
VI.Disclosure of confidential information or utilization thereof for personal benefit within the
meaning of Article 80 of this Act or in respect of the dispute settlement mechanisms set
forth in the international treaties or conventions to which Mexico is a party: by a fine
proportional to the loss caused or to the benefit obtained by disclosing or utilizing the
said information.
For the purposes of this Article, the term "legal minimum wage" shall be understood to mean the
general daily minimum wage in force in the Federal District at the time at which the infringement was
committed.
In applying the fines referred to in subparagraphs V and VI of this Article, the Ministry shall take
account of the seriousness of the infringement, the injury and losses caused, the previous record and the
personal and economic situation of the offender.
The fines referred to in this Article shall be imposed independently of the penal and civil
sanctions applicable under the law. The fines shall only be imposed once the suspected offender has
been heard.
Chapter II
Appeal for Reversal
ARTICLE 94 - An appeal for reversal through administrative channels may be filed in respect of
resolutions:
I.Concerning the market of the country of origin or the refusal to issue prior licences or allow
participation in import or export quotas;
II.Concerning certification of origin;
III.Declaring the rejection or abandonment of the request for initiation of investigation
proceedings as referred to in Article 52, paragraphs (II) and (III);
IV.Declaring the investigation terminated without imposition of a countervailing duty pursuant to
Article 57, paragraph (III) and Article 59, paragraph (III);
V.Fixing the final countervailing duty or the actions by which it is implemented;
VI.Responding to requests by the interested parties pursuant to Article 60;
VII.Declaring the investigation terminated pursuant to Article 61;
VIII.Rejecting a request for review or concluding the review, referred to in Article 68, or
confirming, modifying or revoking final countervailing duties, referred to in the sameG/ADP/N/1/MEX/1
Page 13
Article;
IX.Declaring the investigation referred to in Article 73 concluded or terminated; and
X.Imposing the penalties referred to in this Act.
Appeals for reversal of resolutions in respect of certification of origin and actions by which final
countervailing duties are implemented shall be filed with the Ministry of Finance and Public Credit. All
other such appeals shall be filed with the Ministry.
ARTICLE 95 - The purpose of the appeal for reversal referred to in this chapter is to reverse,
modify or confirm the contested resolution and the rulings issued shall set forth the action challenged, the
legal grounds for the decision and the various points of the decision.
Appeal for reversal shall be handled and resolved in accordance with the provisions of the Federal
Tax Code, and shall be referred to the Upper Chamber of the Federal Tax Court only when such
proceedings have been exhausted.
Resolutions issued to decide an appeal for reversal or declare such appeal not receivable shall be
final in character and may be challenged before the Upper Chamber of the Federal Tax Court by an
action substantiated in accordance with the final paragraph of Article 239 bis of the Federal Tax Code.
Resolutions which are not appealed within the deadline established by the Federal Tax Code shall
be considered to have been accepted and may not be challenged before the Federal Tax Court.
ARTICLE 96 - In respect of appeals for reversal of resolutions and actions referred to in Article
94, paragraph (V), the provisions of Article 95 shall apply provided the following conditions are met:
I.The appeal shall be directed to the authority which issued the resolution, or against the authority
which implemented it. However, in cases where the appeal is directed against both
authorities, it shall be directed to the department which fixed the countervailing duties;
II.If both are challenged, the resolution on the appeal against the fixing of the countervailing duties
shall be handed down before the resolution on the appeal against the implementing
action. The authority competent to hear the former shall furnish a copy of its decision to
the department competent to hear the latter. Should the final countervailing duty fixed
be changed or revoked, the appeal against implementing action shall automatically
become null and void, without prejudice to the right of the interested party to lodge an
appeal against the new implementing action;
III.Should successive appeals be lodged against the resolution fixing the countervailing duty and
against the implementing action, the latter shall be suspended. The appellant shall be
required to give notice of the situation to the authorities responsible for hearing and
deciding these appeals. Suspension may be ordered on the initiative of the authorities
themselves when for any reason they become aware of this situation; and
IV.When a case is brought before the Upper Chamber of the Federal Tax Tribunal challenging
the resolution issued to decide the appeal for reversal lodged against the fixing of the final
countervailing duty, and subsequently the resolution issued to decide the implementing
action is also challenged, the initial request must be extended within the relevant deadline
for challenging the latter resolution.
ARTICLE 97 - Any interested party may, in respect of the resolutions and actions referred to inG/ADP/N/1/MEX/1
Page 14
Article 94, paragraph (V), choose to resort to the alternative dispute settlement mechanisms with regard to
unfair practices provided for in the international treaties and trade agreements to which Mexico is a party.
If such mechanisms are chosen:
I.Neither the appeal for reversal provided for in Article 94, nor proceedings instituted before the
Upper Chamber of the Federal Tax Court against the Ministry's resolution determining
final countervailing duties or implementing actions, or against the Ministry's resolution
issued as a result of the decisions emanating from the said alternative mechanisms, shall
be admissible;
II.Only the resolution issued by the Ministry as a result of the decision emanating from the
alternative mechanisms shall be considered final;
III.The provisions of Article 238 of the Federal Tax Code shall apply.
ARTICLE 98 - In addition to the provisions of Articles 96 and 97, appeals against the
resolutions referred to in Article 94, paragraph (V), shall be subject to the following regulations:
I.In respect of resolutions fixing final countervailing duties which are subject to appeal under the
alternative dispute settlement mechanisms provided for in international treaties or
agreements to which Mexico is a party, the time-limit for lodging an appeal for reversal of
a resolution fixing the final countervailing duty or the implementing actions shall not
come into effect until the time-limit provided under the international treaty or convention
in question for lodging such an appeal has expired;
II.In respect of resolutions fixing the final countervailing duties which are subject to appeal under
the alternative dispute settlement mechanisms provided for in international treaties or
agreements to which Mexico is a party, an appellant who chooses to lodge an appeal for
reversal must comply, in addition, with the formalities set forth in the international treaty
or convention in question; and
III.Interested parties who lodge an appeal for reversal, or resort to annulment proceedings before
the Upper Chamber of the Federal Tax Court or to the alternative dispute settlement
mechanisms referred to in this Act, may guarantee payment of the final countervailing
duties in accordance with the Federal Tax Code provided the form in which the
guarantee is provided is accepted by the Ministry of Finance and Public Credit.G/ADP/N/1/MEX/1
Page 15
ANNEX II
TITLE IV
UNFAIR INTERNATIONAL TRADE PRACTICES
Chapter I
Definitions
ARTICLE 37. For the purposes of these Regulations:
I.Identical goods mean products which are alike in all respects to the product under investigation; and
II.Like goods mean products which, although not alike in all respects, are similar in their characteristics
and composition, thus allowing them to fulfil the same functions and making them
commercially interchangeable with those with which they are being compared.
Chapter II
Imports under Conditions of Price Discrimination
ARTICLE 38. The margin of price discrimination of the goods shall be defined as the difference
between their normal value and their export price, relative to the latter price.
ARTICLE 39. If the product under investigation consists of goods which are not physically
identical with each other, the margin of price discrimination shall be estimated according to the type of
goods, in such a way that the normal value and the export price utilized for each calculation correspond to
comparable goods. In general, types of goods shall be defined according to the product classification
recognized in the accounting information system of each exporting enterprise.
When the margin of price discrimination is calculated by type of goods, the margin for the
product under investigation shall be determined as the weighted average of all the individual margins which
have been estimated. This weighted average shall be calculated according to the proportion of each type
of goods relative to the total volume of the product exported during the period of the investigation.
ARTICLE 40. As a general rule, both the normal value and the export price shall be calculated
on the basis of the weighted average figures obtained for the period of the investigation.
When the normal value is determined on the basis of the prices to which Article 31 of the Act
refers, they shall be weighted according to the proportion of each transaction relative to the total volume of
sales in the country of origin or export to a third country, as appropriate.
If the normal value is established on the basis of the computed value, the production costs
estimated for sub-periods within the period of investigation shall be weighted according to the production
in each sub-period as a proportion of the total volume produced.
Export prices shall be weighted according to the proportion of each transaction relative to the total
volume exported.
ARTICLE 41. When, in the judgement of the Ministry, the number of types of goods or the
quantity of transactions to be investigated is exceptionally large, the margin of price discrimination may be
determined on the basis of a representative sample. In both cases, the samples shall be selected in
accordance with generally accepted statistical criteria.G/ADP/N/1/MEX/1
Page 16
ARTICLE 42. For the purposes of paragraph 2 of Article 31 of the Act, it shall be deemed that
sales do not permit a proper comparison when they are not representative or their prices are not
determined in the ordinary course of trade. As a general rule, the comparable prices of identical or like
goods in the domestic market or, where appropriate, for export to a third country, shall be deemed to be
representative when they account for at least 15 per cent of the total volume of sales of the goods subject
to investigation.
ARTICLE 43. For the purposes of paragraph 2 of Article 32 of the Act, the requesting party
must submit the information justifying the exclusion of the sales in question. In such cases, the Ministry
may take into account the fact that, during the period of investigation, selling prices were exceptionally low
or costs and expenses exceptionally high, due to factors of a transitory nature or the economic situation.
As a general rule, domestic sales for profit or similar export sales to a third country shall be
deemed to be representative when they account for at least 30 per cent of the relevant market.
ARTICLE 44. Production costs, overheads and profit margins shall correspond to those
obtained in the ordinary course of trade.
With regard to production costs, when the materials and components are purchased from
suppliers who are related under the terms of Article 61 of these Regulations, the Ministry shall ascertain
that the prices of such transactions are comparable to those of purchase transactions from non-related
parties. If the buying price from related parties is lower than the price under purchase transactions with
non-related parties, the former shall be replaced by the latter for the purposes of calculating production
costs.
When purchases have been made only from related suppliers, the buying prices shall be
compared with the prices at which the related suppliers have sold the same materials and components to
non-related enterprises. If this second method is not practicable, the prices under purchase transactions
with non-related parties shall be obtained by any other economic method of investigation and on the basis
of known facts.
ARTICLE 45. For the purposes of these Regulations, the following definitions shall apply:
I.Direct costs and expenses mean those which are specific to the product under investigation;
II.Indirect costs and expenses mean those which are common to different products of the exporting
enterprise including the product under investigation;
III.Fixed costs and expenses mean those which are incurred independently of production or sales; and
IV.Variable costs and expenses mean those which result from production and sales.
ARTICLE 46. For the purposes of subparagraph II of Article 31 of the Act, the following rules
shall apply:
I.The cost of production shall include the cost of direct materials and components, the cost of direct
labour and indirect manufacturing costs. Indirect manufacturing costs shall include:
A.The cost of indirect materials and components;
B.The cost of indirect labour;G/ADP/N/1/MEX/1
Page 17
C.The cost of energy, including electricity and fuel;
D.Depreciation of assets consumed in production; and
E.Other relevant indirect costs.
Production costs shall be determined from the weighted average cost incurred in all the factories
of each exporter manufacturing the goods under investigation.
As a general rule, packaging costs shall be considered part of production costs;
II.Overheads shall be determined taking into account administration and sales, financial and other not
directly attributable costs, including research and development and depreciation of assets
not related to production;
III.Indirect costs and expenses shall be allocated proportionally to the product under investigation. In
particular, the prorating methods shall allocate a proportional contribution of each of the
indirect costs and expenses to the product under investigation. The Ministry shall
reconcile the available accounting information in order to verify that, when the proportion
allocated to the product under investigation is added to the allocations determined for
products not under investigation, each of the indirect costs and expenses is totally or
partly absorbed.
The allocation methods shall show a clear and reasonably verifiable relation between the cost or
expense to be allocated and the basis of prorating applied;
IV.With regard to overheads which cannot be directly allocated to the product under
investigation, when the available accounting information allocates parts of such expenses
at departmental level and part at corporate level, both headings are prorated to the
product under investigation, preferably on the basis of selling costs.
In the second case, the allocation of overheads to the product under investigation shall be
equivalent to the average overheads for all products of the enterprise. For the purposes
of this calculation, overheads shall be standardized in terms of selling costs. Average
overheads shall be estimated by dividing overheads among selling costs, according to the
figures reported in the financial statements of the enterprise. Overheads attributable to
the product under investigation shall be determined by multiplying the resulting factor by
the selling cost specific to that product;
V.Both production costs and overheads shall include all fixed and variable components.
Cost relating to idle factors of production shall be considered as fixed costs and, as appropriate,
directly allocated to the product under investigation or apportioned to it;
VI.Depreciation charges shall include both depreciation of assets in use and depreciation of assets
not in use;
VII.As a general rule, recovery of costs and expenses shall be deducted from the cost categories to
which they relate;
VIII.Financial expenses shall be estimated net, excluding financial revenue not related to the
normal activities of the enterprises, for example, permanent or long-term investments;G/ADP/N/1/MEX/1
Page 18
IX.All overheads recognized in the accounting period corresponding to the period of investigation
shall be taken into account. However, they shall be prorated to the period of
investigation in a proportional manner.
By way of exception to the foregoing rule, expenses recognized in an accounting period may be
allocated over a longer period, when:
A. The nature of the expense in question justifies such a procedure; and
B.The Ministry has accounting information for prior years which allows the inclusion in the
expenses of the period of investigation of a proportion of expenses previously
incurred which should be allocated in a like manner;
X.The Ministry may exclude such overheads as may be of an extraordinary nature, meaning those
which occur in a fortuitous or infrequent manner, essentially represent a loss of
accounting capital and are not related to generation of income. This exclusion shall be
considered as an exceptional case;
XI.As a general rule, the profit margin shall not be greater than that ordinarily obtained in the sale
of products of the same generic category in the country of origin.
When the margin of price discrimination is estimated by type of product, for the purposes of calculating
the profit margin, a generic category shall be deemed to be a type of product for which
the normal value is determined by domestic prices. In particular the profit margin shall
be estimated according to the weighted average profit margin for domestic sales used to
establish normal values based on prices.
If this method is not applicable because there is no normal value by class of goods determined on the basis
of prices, the generic category shall be deemed to be the first category of goods, according
to the accounting information systems of the enterprise, which contains the product
under investigation and for which there are profit figures.
When the accounting information available only reports profits at corporate level, the enterprise as a whole
shall be deemed to be a generic category. In such cases, the profit margin for the
product under investigation shall be equivalent to the average margin for all products of
the enterprise. In particular, the average margin shall be calculated by dividing the
profits, before direct taxation and distributions of the share of profits due to third parties,
into the selling cost, in accordance with corporate data. The profit attributable to the
product under investigation shall be determined by multiplying the resulting average
margin by the selling costs specific to the said product.
The methods described in the foregoing paragraphs shall not be used when they result in a profit margin
which does not reflect a long-term position, but a transitory effect or the economic
situation. In such cases, the profit margin shall be calculated on the basis of additional
financial information strictly related to the period of investigation; if the latter procedure
is not satisfactory, the Ministry shall determine the profit margin by any other method of
economic and accounting investigation, and on the basis of the facts of which it is aware;
XII.For the purposes of comparing the total of costs and expenses with domestic prices, and comparing
the computed value with export prices, the Ministry shall take into account timing
differences between production and the sales relating to them.G/ADP/N/1/MEX/1
Page 19
For the purpose of the aforementioned calculations, the Ministry shall admit as valid such
generally accepted accounting principles as apply in the country of origin, provided that they do not
contravene legislation on unfair international trade practices and other applicable legal provisions.
ARTICLE 47. In the case of trading enterprises, the buying cost shall be taken as the cost of
production. Under the terms of the first paragraph of Article 44 of these Regulations, the selling cost shall
be determined in the ordinary course of trade. Purchases by trading enterprises shall be considered as
such when they do not involve losses for the supplying enterprises, i.e. purchases are at prices exceeding
production cost plus the overheads of the suppliers. The Ministry shall verify the production costs and
suppliers' overheads before making the comparison.
When the purchases by trading enterprises which generate profits for the suppliers are
representative, the production cost for the former shall be calculated on the buying cost recorded during
the period of investigation. Alternatively, the production cost shall be estimated according to the
computed value determined by the Ministry for the supplier enterprises. For the purposes of calculating
overheads and the profit margin, the proportions derived at enterprise level shall apply to actual buying
costs.
When the trading enterprise is located in a country other than the country of origin of the goods,
the production cost shall be the cost incurred in the country of origin, plus all costs and expenses involved
in transporting and importing the goods from the country of origin to the country of consignment. In
such cases, the overheads and profit shall be that of the country of consignment.
ARTICLE 48. For the purposes of Article 33 of the Act, centrally planned economies shall be
deemed to be those where, subject to contrary evidence, the majority of enterprises are, wholly or partly,
owned by the State, and where operating criteria, including prices, production, investment programmes
and levels of employment, are under the direct control of the Government.
A substitute country means a third country with a market economy similar to the exporting
country with a centrally planned economy. The similarity between the substitute country and the
exporting country shall be defined in a reasonable manner, so that the normal value in the exporting
country, if it does not have a planned economy, may be estimated on the basis of the domestic price in the
substitute country. In particular, in selecting the substitute country, account shall be taken of economic
criteria such as the cost of factors used intensively in production of the product subject to investigation.
The product on the basis of which the normal value is determined must originate in the substitute
country. When the normal value is determined according to the export price in a substitute country, that
price shall be related to a market other than Mexico. If there is no substitute country with a market
economy in which goods are produced identical or alike to those exported by the country with a centrally
planned economy, the Mexican market itself shall be deemed to be a substitute country.
ARTICLE 49. When, under the terms of the second paragraph of Article 34 of the Act, the
normal value is determined on the basis of the market price in the country of origin, the export price shall
be established on the same basis.
ARTICLE 50. When the exporter and importer are related in any of the ways to which
Article 61 of these Regulations refers and there are compensatory arrangements between them, the export
price shall be calculated in accordance with the provisions of Article 35 of the Act.
In that case, all costs incurred between export and resale shall be deducted, including payment of
taxes and tariffs in the importing country, and profit margins on import and distribution.
ARTICLE 51. In cases where the normal value is determined on the basis of the prices to whichG/ADP/N/1/MEX/1
Page 20
Article 31 of the Act refers, the prices actually paid or payable by the purchaser shall be used, including
discounts on list prices, rebates and refunds. The same rule shall apply in calculating export prices to
Mexico. This is determined independently of the quantity adjustment to which Article 55 of these
Regulations refers.
ARTICLE 52. In addition to the adjustments to which Article 36 of the Act refers, differences
relating to levels of trade shall also be adjusted to the extent they have not otherwise been taken into
account.
ARTICLE 53. For the purposes of the provisions of Article 36 of the Act, the adjustments for
differences in terms and conditions of sale shall be applied both to the normal value and the export price.
Adjustments for differences in quantity, physical differences and differences in tax charges shall apply
exclusively to the normal value.
ARTICLE 54. Differences between the normal value and the export price with regard to terms
and conditions of sale shall be justification for adjustment provided that such differences are directly
related to the markets under investigation. The adjustable expenses must be related to sales and form
part of the selling price. Admissible adjustments include the following categories:
I.Packaging charges;
II.Transport charges, including freight and insurance, handling outside the factory, harbour dues and
customs duties;
III.Cost of credit;
IV.Commission payments; and
V.Payments for after-sales services such as technical assistance, maintenance and repair.
Salaries paid to salesmen shall be subject to adjustment to the extent that they are variable costs of
the enterprise and are analogous to the payment of commissions.
The amounts remaining after the foregoing adjustments have been made shall correspond
respectively to the normal value and the export price.
As a general rule, adjustments shall not be made for differences relating to expenses of a general
character, including those for research and development.
ARTICLE 55. The Ministry shall adjust the normal value for differences in quantity with respect
to the export price in accordance with the following criteria:
I.When prices vary inversely to the quantities sold, whether in terms of individual transactions or volumes
accumulated by the customer, both the normal value and the export price shall be
calculated on the basis of transactions for similar quantities. In such cases, the margin of
price discrimination shall correspond to the weighted average of the margins specific to
each level;
II.When the prices vary inversely to the quantities sold, whether in terms of individual transactions or
volumes accumulated by the customer, and certain domestic sales are not for quantities
similar to those of export sales, the normal value shall be calculated on the total of
domestic sales, after the differences among domestic prices due to quantity differences
have been offset. In particular, prices of domestic sales not comparable to export sales
shall be brought into line with prices of comparable domestic sales by adjusting theG/ADP/N/1/MEX/1
Page 21
difference between them;
III.When the exporter requests that the adjustments provided in either of the two foregoing subparagraphs
be taken into account, the following rules shall apply:
A.Domestic sales comparable to export sales must be regular and representative of the market of
the country of origin. For the purposes of this Article, regular sales shall mean
those which have been made recurrently during the period of investigation; and
B.The model of prices differentiated by quantity shall be drawn up in a consistent manner,
therefore, domestic sales during the period of investigation whose prices are
inconsistent with this model shall not be taken into account.
When the methods of adjustment for quantities provided in subparagraphs I and II of this Article
are not practicable, the Ministry shall make the adjustment in accordance with the facts known to it and on
the basis of available information.
ARTICLE 56. When the prices vary according to the physical characteristics of the goods sold,
and certain goods sold in the country of origin are not physically identical to the goods exported, the
normal value shall be calculated on the total of domestic sales, after the differences among domestic prices
due to physical differences between the goods have been offset. As a general rule, prices of domestic sales
which are not comparable to export sales shall be brought into line with prices of comparable domestic
sales by adjusting the difference among the variable production costs for both types of goods.
Likewise, as a general rule, when prices vary according to the physical characteristics of the goods
sold, and none of the goods sold in the country of origin are physically identical to the goods exported, the
prices of the domestic goods shall be brought into line with the prices of export sales by adjusting the
difference among the variable costs of production for both types of goods.
Generally, goods shall be deemed to be physically different when the accounting information
systems of each enterprise classify them under different product codes.
ARTICLE 57. When the tax charge on goods sold in the country of origin is different from that
on export goods, the prices of domestic sales shall be brought into line with prices of export sales by
adjusting the difference between both tax charges. Adjustable levies shall be restricted to indirect taxes
and import taxes. Indirect taxes may be adjusted on both identical or like goods sold in the country of
origin and on national inputs incorporated in them. Import taxes may only be adjusted in relation to
imported inputs incorporated in the identical or like goods sold in the country of origin.
ARTICLE 58. The effects of inflation on the information which serves as a basis for determining
the margin of price discrimination shall be adjusted in accordance with generally accepted economic and
accounting methods.
For the exchange of foreign currency, the applicable rate of exchange shall be that in effect on the
date when the transaction in question took place.
Chapter III
Injury and Threat of Injury to the Domestic Industry
ARTICLE 59. The Ministry shall establish through the appropriate investigation procedure that
determination of the injury or threat of injury to which Article 39 of the Act refers is based on the
minimum analysis of all the elements to which Articles 41 and 42 of that Act refer. The investigatingG/ADP/N/1/MEX/1
Page 22
authority shall under no circumstances determine the existence of injury in accordance with the civil law.
ARTICLE 60. The requesting parties referred to in Article 50 of the Act shall demonstrate that
they represent at least 25 per cent of the domestic production of the goods in question. However, when
certain producers are related to exporters or importers or are themselves importers of the product under
investigation, the term "domestic industry" may be considered as referring to at least 25 per cent of the rest
of the producers. In any case, the applicants shall submit the required information on domestic
production as described in Article 63 of these Regulations.
ARTICLE 61. In determining whether producers are related to exporters or importers, the
Ministry shall use criteria generally accepted by national legislation and international practice. For this
purpose, the Ministry shall take into account the following considerations:
I.Whether they are officers or directors of one another's businesses;
II.Whether they are legally recognized partners in business;
III.Whether they are employer and employee;
IV.Whether any person directly or indirectly owns, controls or holds 5 per cent or more of the issued
voting stock, shares, securities or bonds of both of them;
V.Whether one of them directly or indirectly controls the other;
VI.Whether both of them are directly or indirectly controlled by a third person;
VII.Whether together they directly or indirectly control a third person; or
VIII.Whether they are members of the same family.
The foregoing shall apply whenever there are grounds for presumption that the effect of the
relationship is such as to motivate the producer concerned to behave differently from non-related
producers. A person shall be deemed to control another when the former is legally and actually in a
position to restrict or direct the latter.
ARTICLE 62. For the purposes of the second paragraph of Article 40 of the Act:
I.To be deemed representative of the domestic industry and to have capacity to act as requesting parties
producers must demonstrate that the relationship does not and will not have the effect of
restricting competition, or where they are themselves importers of part of the products
under investigation, that their imports are not the cause of distortion in domestic prices or
the cause of the alleged injury; and
II.All manufacturers of goods produced during the stage immediately preceding in the same continuous
line of production of the goods identical or alike to the goods imported in circumstances
involving price discrimination or subsidies, may also be deemed representative of the
domestic industry when:
A.As a result of the relationship the interests of the related producer or the producer-importer coincide in
such a way with those of the exporters or importers that these producers accept
or encourage imports under conditions of price discrimination or subsidy and,
thus, would not submit a request for investigation into unfair practices;G/ADP/N/1/MEX/1
Page 23
B.The product produced at the stage immediately preceding manufacture of the goods
identical or alike to the imported product is a raw material of agricultural origin
and is a principal input of the product in question; and
C.The input of agricultural origin is used in the same continuous line of production of the
processed product and is utilized almost entirely for the production of the
processed product.
The application of this provision shall be consistent with Mexico's obligations under international
treaties or conventions.
ARTICLE 63. In order to determine the existence of injury, the Ministry shall evaluate the
impact of the imports under investigation on total domestic production, or on those domestic producers
whose collective output constitutes a major proportion of total domestic production of the product in
question.
If the requesting parties do not represent the whole of domestic production, they must submit to
the Ministry, using the prescribed questionnaire, information on total domestic production provided that
the required figures are reasonably available to them. In any case, the request must include a reliable
estimate of the figures for the total domestic production concerned together with an indication of the
methodology used.
The Ministry shall satisfy itself that the corresponding determination of injury is representative of
the situation of domestic production as a whole. For that purpose, the Ministry shall obtain the necessary
information from domestic producers who are not requesting parties who shall submit to the Ministry any
information that is requested from them.
ARTICLE 64. For the purposes of Article 41 of the Act, the Ministry shall take into account:
I.With regard to the volume of imports under investigation, whether there has been a considerable
increase in such imports in absolute terms or in relation to domestic production for the
domestic market or internal consumption in the country. The Ministry shall assess
whether the imports under investigation are competing in the domestic market to serve
the same markets or the same actual or potential customers of domestic producers and
whether they are utilizing the same distribution channels;
II.Concerning the effects of imports subject to investigation on domestic prices:
A.The pattern and trend of prices of the imports under investigation shall be analysed, to determine
whether they show a reduction in the period under investigation compared with
prices in comparable periods, or whether they are lower than other products
which are not imported under conditions of price discrimination or subsidy;
B.Whether there is a significant correlation between the reduction in prices of the imports and the growth
in quantities imported;
C.Whether the imports under investigation have a selling price considerably lower than the comparable
selling price for the like domestic product;
D.Whether the effect of the imports under investigation is to depress domestic prices or else to prevent
the reasonable increase which would otherwise have occurred; and
E.Whether the price-level at which the imports under investigation are competing in theG/ADP/N/1/MEX/1
Page 24
domestic market is the determining factor in explaining the pattern and share of
those imports in the domestic market;
III.With regard to the effects of the imports under investigation on domestic production of identical or
like goods, an evaluation shall be made of the operations of the industry in Mexico. This
evaluation shall include the impact of the quantities and prices of the imports under
investigation on all the relevant economic factors and indicators which influence the state
of the industry concerned, such as:
A.The actual and potential reduction in production and employment, domestic sales, market share,
productivity, utilization of installed capacity and real or potential increase in
inventories;
B.The factors affecting domestic prices such as conditions or terms of sale; and
C.Actual or potential negative effects of the depressing or suppressing of domestic prices and sales on
profits, cash flow, return on investment, salaries, capacity to attract capital,
investment and growth in production; and
IV.Other elements that it may consider appropriate concerning economic factors or indicators relevant to
the industry in question and not mentioned in the foregoing paragraphs. In this case, the
Ministry shall identify such factors and explain their significance to the case concerned.
ARTICLE 65. The Ministry shall evaluate the economic factors described in the preceding
Article in the context of the economic cycle and conditions of competition specific to the industry affected.
For that purpose, the requesting parties shall submit information on the relevant factors and indicators
and characteristics of the industry covering at least the three years preceding the submission of the request,
including the period under investigation, unless the enterprise concerned had not been established for the
whole of this period. In addition, domestic producers making a request or the organizations representing
them shall submit economic studies, case studies, technical literature and national and international
statistics on the performance of the market concerned, or any other documentation permitting
identification of economic cycles and conditions of competition specific to the industry affected.
ARTICLE 66. The effect of imports subject to unfair practices shall be evaluated in relation to
domestic production of the identical or like product when the available data allow its separate identification
on the basis such criteria as the production process, sales by producers and their profits. If it is not
possible to identify production separately, the effect of such imports shall be assessed by analysing
production of the narrowest group or range of products which includes the identical or like product for
which all the necessary information to show injury can be provided.
ARTICLE 67. In order to determine injury, when imports of a product from more than one
country are simultaneously subject to investigation for unfair international trade practices, the Ministry shall
cumulatively assess the volume and effects of such imports, provided that the imports from the countries
under investigation compete amongst themselves and with products identical or alike to those imported
which are manufactured in Mexico.
The Ministry need not cumulatively assess the effects of imports of specific origin if such imports
are not significant and do not have any identifiable adverse effect on domestic production. In order to
determine this, the Ministry shall analyse the pattern of such imports and shall take into account the
following relevant economic factors:
I.Whether the rate of growth of the volume and share of the imports under analysis in the domestic
market shows any sign of sustained increase during the period under investigation or
whether there is any real probability that it will increase in the immediate future;G/ADP/N/1/MEX/1
Page 25
II.Whether sales of the imported product, from the country in question, in the domestic market are
isolated and intermittent; and
III.Whether, given the nature of the product under investigation and the specific characteristics of the
domestic market, the presence of such imports has any identifiable effect on domestic
prices or the factors which affect the prices of the domestic product and the conditions of
the domestic industry producing the identical or like product.
ARTICLE 68. For the purposes of Article 42 of the Act, the Ministry shall take into account:
I.Whether there is a high rate of growth of the imports under investigation in the domestic market pointing
to a well-founded probability that there will be a significant increase in such imports in the
immediate future. Likewise it shall be determined whether the growth of such imports
results in increased and sustained growth of the share of such imports in the domestic
market and the well-founded probability that market share indicators will rise to a level
which may injure the domestic industry. For this purpose, the Ministry shall consider,
among other factors, whether the imports under investigation are competing in the
domestic market to serve the same markets or the same actual or potential customers of
domestic producers and whether they are utilizing the same distribution channels;
II.The freely disposable capacity of the exporter or an imminent and substantial increase therein pointing
to the well-founded probability of a significant increase in exports to the Mexican market
under conditions of price discrimination or subsidy, taking into account the availability of
other export markets to absorb any increase in such exports;
III.Whether the imports under investigation are entering at prices such that they have a significant
depressing or suppressing effect on domestic prices. Likewise, it shall be determined
whether there is a real probability that the prices of the imports under investigation will
significantly increase the demand for further imports. In that case the factors that affect
domestic prices shall be taken into account, including changes in conditions or terms of
sale to certain customers as a direct consequence of the imports under investigation;
IV.Inventories of the product under investigation in the domestic market;
V.Where applicable, the expected return on potential investment. Investment projects must be related to
the production line of the product under investigation. The domestic producers
concerned shall submit economic and financial studies supporting the viability of the
project, and financial models which show the negative effects of the imports under
investigation on the expected profitability; and
VI.Any other demonstrable economic trend leading to the conclusion that unfair practices relating to
imports will injure the domestic industry. In determining the threat of injury, the
generally accepted methods available shall be used.
ARTICLE 69. The Ministry shall also examine known factors other than the imports under
investigation, which are simultaneously affecting domestic production, in order to determine whether the
alleged injury or threat of injury is caused directly by such imports. Factors which the Ministry may
evaluate shall include the following:
I.The volume and prices of imports which are not subject to price discrimination or subsidy;
II.Contraction of demand or changes in patterns of consumption;G/ADP/N/1/MEX/1
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III.Trade-restrictive practices of foreign and domestic producers, and competition between them; and
IV.Technological developments, productivity and export performance.
TITLE VI
PROCEDURE IN RELATION TO UNFAIR INTERNATIONAL TRADE PRACTICES
Chapter I
General Provisions
ARTICLE 75. The request by an interested party to initiate an administrative investigation into
unfair international trade practices, in addition to being submitted in writing and satisfying the
requirements prescribed in Article 50 of the Act, shall be submitted using the questionnaire issued by the
Ministry, which shall contain the following:
I.The designation of the competent administrative authority to which the request is made;
II.Name or business name and domicile of the requesting party and, if applicable, his representative,
accompanied by accrediting documents;
III.Principal activity of the requesting party;
IV.Volume and value of domestic production of the product identical or alike to the imported product;
V.Description of the volume and value of the requesting party's share of domestic production;
VI.If applicable, membership of the organization to which the requesting party belongs, indicating the
number of members and including information on the goods they produce as a
percentage share of domestic production;
VII.The legal basis of the request;
VIII.Description of the imported product, together with specifications and details showing its quality in
comparison with the domestic product and other distinguishing details; the volume and
value imported or intended to be imported based on the appropriate unit of measure and
its tariff classification according to the schedule of the General Import Taxes Act;
IX.Name or business name and domicile of the importers or intending importers of the product, stating
whether the import consisted or will consist of one or several shipments;
X.Name of the country or countries of origin or source of the product, as appropriate, and the name or
business name of the person or persons exporting or intending to export the product
under unfair conditions to Mexico;
XI.Statement of the facts and data, accompanied by reasonably available evidence, on which the request is
based. Those facts from which it can be inferred that there is a well-founded probability
of the existence of the unfair international trade practice shall be stated succinctly, with
clarity and precision;G/ADP/N/1/MEX/1
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XII.Indication of the difference between the normal value and the comparable export price or, if
applicable, the effect of the subsidy on the export price;
XIII.In addition, in the case of subsidies, information and facts concerning the unfair practice, the foreign
governmental authority or body involved, the form of payment or transfers and the
amount of the subsidy to the producer or foreign exporter of the product;
XIV.Evidence which shows that the introduction of the goods concerned into the domestic market is
causing or threatens to cause injury to the domestic industry;
XV.If appropriate, description of requests for other regulatory or trade-restrictive measures concerning the
product which is the subject of the request; and
XVI.Any other factors considered necessary.
The requests to which this Article refers shall, in addition to the provisions of the foregoing
subparagraphs, contain the signature of the interested party or the person acting in his name or
representing him.
The request and annexed documents shall be submitted in the original and in as many copies as
there are importers, exporters and, where applicable, foreign governments named in the request, together
with a public version thereof on the magnetic media indicated by the Ministry.
The investigation procedure shall not prevent the clearance by the customs concerned of the
goods involved in the investigation.
ARTICLE 76. The investigation into unfair international trade practices shall address the
existence of price discrimination or subsidy and the injury caused or which may be caused to the domestic
industry. It shall include a period which covers imports of goods identical or alike to those produced by
the domestic industry which may be affected, entered over a period of at least six months prior to the
commencement of the investigation.
The period of investigation to which the foregoing paragraph refers may be modified at the
discretion of the Ministry to cover a period which includes imports made subsequent to the
commencement of the investigation. In that case, decisions to impose provisional or final countervailing
duties shall refer both to the original period and to the extended period.
ARTICLE 77. Notwithstanding the provisions of the preceding Article, in evaluating injury or
threat of injury to domestic industry, the Ministry may require the requesting party or any other domestic
producer or person involved in the economic activity concerned, to provide the information or data it
considers relevant relating to a maximum period of five years prior to the submission of the request.
ARTICLE 78. If the request is ambiguous or irregular, the Ministry shall, once only, advise the
requesting party so that he may clarify, correct or complete it, for which purpose it shall be returned to
him, with specific indications of its omissions and ambiguities. When of the twenty days to which
subparagraph II of Article 52 of the Act refers have elapsed, the Ministry shall proceed with or reject the
request, as appropriate.
ARTICLE 79. A product shall be deemed to be intended for import when there is authentic
evidence of an agreement for its transport or dispatch to the territory of Mexico. In that case, the Ministry
may open the investigation, following examination of the legal instruments submitted for that purpose.
Offers, quotes or orders which do not legally bind the signatories are excepted from the foregoing.G/ADP/N/1/MEX/1
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In the review to which the preceding paragraph refers, the Ministry shall ascertain that the import
transaction or transactions will actually be realized.
In order that the Ministry may declare the initiation of an investigation into intended imports, the
interested party shall, in addition to the provisions of this Article, comply with the applicable provisions
contained in the Act and in these Regulations.
ARTICLE 80. The resolution to initiate the investigation into unfair international trading
practices and the preliminary and final resolutions shall contain the following information:
I.The designation of the authority issuing the resolution;
II.The grounds and reasoning justifying the decision;
III.The name or names or business name and domicile of the domestic producer or producers of
identical or like goods;
IV.The name or names or business name and domiciles of the importer or importers, foreign exporters
or, where appropriate, known agencies or authorities of foreign governments;
V.The country or countries of origin or source of the goods in question;
VI.The detailed description of the product imported or, where appropriate, intended for import, where
there is presumption of price discrimination or subsidy, indicating the tariff rate
applicable under the schedule of General Import Taxes;
VII.The description of the domestic product identical or alike to the product which has been imported or
is being imported;
VIII.The period under investigation; and
IX.Any other elements which the Ministry deems appropriate.
Chapter II
Resolution to Initiate the Investigation
ARTICLE 81. In addition to the information indicated in the preceding Article, the resolution
initiating the investigation to which Article 52 of the Act refers shall contain:
I.A summons to the interested parties and, where applicable, foreign governments, so that they may
appear in order to exercise their right to make representations fit;
II.The time allowed for presenting evidence; and
III.The date, time and place for the public hearing and the pleadings to which Articles 81 and 82 of the
Act refer.
Chapter III
Preliminary ResolutionG/ADP/N/1/MEX/1
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ARTICLE 82. The preliminary resolution to which Article 57 of the Act refers shall contain in
addition to the data indicated in Articles 80 and 81, subparagraph II of these Regulations, the following
elements:
I.Where the existence of unfair international trade practices has been established:
A.The normal value and export price obtained by the Ministry, except in the case of information which an
interested party considers to be confidential or restricted commercial
information;
B.A description of the methods used in determining the normal value and the export price and, if
applicable, the amount of the subsidy and its effect on the export price, in
conformity with Chapters II and III of Title V of the Act and the applicable
Articles of Chapter II of Title IV of these Regulations, except in the case of
information which an interested party considers to be confidential or restricted
commercial information;
C.The margin of price discrimination, the characteristics and amount of the subsidy, and its effect on the
export price;
D.A description of the injury caused or which may be caused to the domestic industry;
E.An explanation of the analysis by the Ministry of each of the factors indicated in Articles 41 and 42 of
the Act, and other factors taken into account, which it shall identify and whose
significance in each case in relation to the relevant resolution shall be explained
in detail;
F.If applicable, the export price which would not injure domestic industry and a description of the
procedure for determining it;
G.The amount of the provisional countervailing duty payable; and
H.A statement that the Ministry of Finance and Public Credit shall be notified so that it may duly collect
the countervailing duties.
II.If there has been no change in the grounds for initiating the investigation into unfair international trade
practices, a statement that the administrative investigation is continuing without the
imposition of countervailing duties, with the appropriate grounds and justification; and
III.If it is established that there are no unfair international trade practices, the statement that the
administrative investigation is terminated without the imposition of countervailing duties,
and a summary of the opinion of the Commission in explanation of the resolution.
Chapter IV
Final Resolution
ARTICLE 83. The final resolution to which Article 59 of the Act refers shall contain, in
addition to the data indicated in Article 80 of these Regulations, the following elements:
I.Where the existence of unfair international trade practices has been established:
A.The normal value and export price obtained by the Ministry, except in the case of information which anG/ADP/N/1/MEX/1
Page 30
interested party considers to be confidential or restricted commercial
information;
B.A description of the methods used in determining the normal value and the export price and, if
applicable, the amount of the subsidy and its effect on the export price, in
conformity with Chapters II and III of Title V of the Act and the applicable
articles of Chapter II of Title IV of these Regulations, except in the case of
information which an interested party considers to be confidential or restricted
commercial information;
C.The margin of price discrimination, the characteristics and amount of the subsidy, and its effect on the
export price;
D.A description of the injury caused or which may be caused to the domestic industry;
E.An explanation of the analysis by the Ministry of each of the factors indicated in Articles 41 and 42 of
the Act, and other factors taken into account, which it shall identify and whose
significance in each case in relation to the relevant resolution shall be explained
in detail;
F.If applicable, the export price which would not injure domestic industry and a description of the
procedure for determining it;
G.The amount of the final countervailing duties payable;
H.A statement that the Ministry of Finance and Public Credit shall be notified so that it may duly collect
the countervailing duties; and
I.A summary of the opinion of the Commission in explanation of the resolution.
II. If it is established that there are no unfair international trade practices, the statement that the
administrative investigation is terminated without the imposition of countervailing duties,
with appropriate grounds and justification, and a summary of the opinion of the
Commission in explanation of the resolution.
Chapter V
Technical Information Meetings
ARTICLE 84. The Ministry shall hold technical information meetings with interested parties
who so request, within five days from the day following the publication in the Diario Oficial de la
Federación of the preliminary and final resolutions.
The purpose of the technical meetings shall be to explain the method used in determining the
margins of price discrimination and calculation of subsidies, as well as injury or threat of injury and the
arguments concerning causality.
At these meetings, interested parties shall have the right to obtain the computation schedules and
computer programmes, where appropriate, which the Ministry may have used in issuing its resolutions.
ARTICLE 85. An information report of the technical meetings shall be drawn up, containing the
details of the meeting. The report shall be signed by all those present. The interested parties may
formulate questions which they consider relevant provided that they are related to the informationG/ADP/N/1/MEX/1
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published and the rules of confidentiality contained in the Act and these Regulations are observed. The
report shall be incorporated in the administrative dossier.
Chapter VI
Conciliation Meetings
ARTICLE 86. The interested parties may request the Ministry in writing to convene a
conciliation meeting, from the date of publication in the Diario Oficial de la Federación of the initiation of
the investigation until fifteen days before the close of the period for submission of evidence. The request
shall contain proposed formulas for a solution and arguments to allow their effectiveness to be assessed.
When the Ministry considers it appropriate, it may invite the interested parties to a conciliation
meeting without the request of an interested party.
ARTICLE 87. Following submission of the request to which Article 61 of the Act refers, the
Ministry shall study the proposed formulas for a solution and, if appropriate, shall within five days
following the acceptance of the request convene the other interested parties so that they can state their
views within five days following day of the notification of the meeting.
The parties summoned to a conciliation meeting shall not be obliged to participate therein and
where they do so participate they shall not be obliged to accept the proposed solutions.
ARTICLE 88. In the conciliation meeting, the Ministry shall first allow the requesting party to
put forward its formulas for a solution, so that the other interested parties may express their views on the
proposals. An administrative report of the conciliation meeting shall be drawn up, containing a detailed
account of the proceedings, regardless of the result. The report shall be signed by the representative of
the Ministry and the interested parties or their representatives who took part.
Agreements, understandings or schemes which contravene free competition or in any way hinder
economic competition shall not be accepted in conciliation meetings.
Chapter VII
Countervailing Duties
ARTICLE 89. Countervailing duties applied to imports from foreign exporters who, after having
been granted the opportunity to defend themselves, have not participated in the investigation, shall be fixed
according to the margins of price discrimination known to the Ministry.
ARTICLE 90. For the purposes of the second paragraph of Article 62 of the Act, the
countervailing duty may be less than the margin of price discrimination and the amount of subsidies,
provided that it is sufficient to eliminate the injury or threat of injury caused.
ARTICLE 91. The interested parties may, at any time, request the Ministry to decide whether a
given product is subject to a final countervailing duty, under the terms of Article 60 of the Act, in
conformity with the following requirements and procedures:
I.The request shall be presented in writing, to the competent administrative department of the Ministry by
the interested party or a person acting in his name and on his behalf, together with
accrediting documents. The request shall indicate precisely and clearly:
A.The legal grounds and justification for the request, andG/ADP/N/1/MEX/1
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B.The product in question, its physical characteristics and technical specifications, origin, function, use,
quality and nature; if applicable, components or inputs utilized in its
manufacture and other distinguishing data, as well as the description and tariff
classification under the schedule of the General Import Taxes Act. The request
shall be accompanied by samples, catalogues and other items to permit
identification of the product.
II.The Ministry shall declare the initiation of the proceedings by publication in the Diario Oficial de la
Federación. In addition it shall notify the interested parties known to it and shall
summon persons who consider they have an interest in the proceedings, so that within a
period of sixty days from the publication of the initiation of the proceedings in the Diario
Oficial de la Federación they may exercise their right to make representations;
III.Following receipt of the request, the Ministry shall issue its resolution within a maximum period of 130
days from the day of publication in the Diario Oficial de la Federación of the initiation of
the proceedings;
IV.The Ministry shall freely assess and analyse the elements and arguments supporting the request, for
which purpose it may obtain information, data, reports and other elements which it
considers relevant to reach an appropriate resolution, and
V.If the requesting party considers that the product should be excluded from the final countervailing duty,
it shall have the right not to make the payment concerned, during the proceedings,
subject to providing the customs authorities with security in one of the forms prescribed
in the Federal Tax Code.
ARTICLE 92. For the purposes of the preceding Article, if the Ministry resolves that the
product in question shall be subject to payment of a countervailing duty, the requesting importer shall pay
that duty together with a surcharge, in conformity with the applicable fiscal provisions.
If the Ministry resolves that the product in question is not subject to payment of the countervailing
duty, the security provided shall be cancelled and, if applicable, the amounts paid shall be returned, with
the related interest, which shall be calculated as provided in the preceding paragraph.
The result of the proceedings to which the preceding Article refers shall be published in the
Diario Oficial de la Federación and shall be notified to the interested parties. The resolution shall contain
the data indicated in Article 80 of these Regulations and the meaning of the related response.
ARTICLE 93. The interested parties may at any time, request the Ministry to clarify or explain a
specific aspect or aspects of the resolutions under which final countervailing duties are imposed, in
conformity with the following requirements and procedures:
I.The request shall be submitted in writing to the competent administrative department of the Ministry, by
the interested party or a person acting in his name and on his behalf, together with
accrediting documents. The request shall state precisely and clearly:
A. The arguments in support of the request;
B.The resolution concerned and the description of the aspect or aspects for which
clarification or explanation is requested, and
C.Other data allowing the authority to answer the request.G/ADP/N/1/MEX/1
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II.On receipt of the request, the Ministry shall reply to the interested party within 130 days from
the day following the presentation of the request, and
III.The Ministry may require the interested party to provide information or data, or any
document that it deems necessary to resolve the matter.
The reply to the request to which this Article refers shall be published in the Diario Oficial de la
Federación and shall be notified to the interested parties.
ARTICLE 94. The security given shall be cancelled or amended or, if applicable, the sums paid
or the difference involved shall be returned with corresponding interest, as appropriate, when the Ministry
eliminates or modifies final countervailing duties:
I.In proceedings for review of final countervailing duties;
II.In the decisions concerning applicability to a product to which Article 60 of the Act refers;
III.In proceedings to decide appeals for annulment;
IV. In application of decisions by the Federal Tax Court, and
V.In final resolutions adopted by the Ministry as a result of the decisions of alternative dispute
settlement mechanisms concerning unfair international trade practices contained in
international treaties or conventions to which Mexico is a party.
The interest to which this Article refers shall be equivalent to the amount which would correspond
to the yield which would have been generated if the amount of the duties had been invested in Federal
Treasury Bonds, at the highest rate, from the date when the payment of the duty was due until the date of
its reimbursement.
ARTICLE 95. In the case to which Article 44 of the Act refers, provisional or final countervailing
duties shall not apply to importers who demonstrate to the Ministry that the goods subject to such
measures are destined for a market established outside the area or region concerned. In that case, the
interested importers may choose to pay the countervailing duty or guarantee its payment in accordance
with the provisions of the Federal Tax Code.
On presentation of the request and the evidence supporting the facts described in the preceding
paragraph, the Ministry shall decide the matter within 130 working days from the date of receipt of the
request. Within this period, the Ministry may order any investigative proceeding to establish the truth of
the statements of the importers. If in the corresponding resolution the Ministry confirms the final
countervailing duty, the security given shall take effect. If the resolution in question revokes the
countervailing duty in favour of the interested importer, the security shall be cancelled or, if applicable, the
sums paid shall be returned, with the corresponding interest. The interest shall be calculated in
accordance with the provisions of the last paragraph of the preceding article. The Ministry's resolution
shall be published in the Diario Oficial de la Federación and shall be notified personally to the interested
party. This resolution may only be set aside by the Federal Tax Court.
ARTICLE 96. In the cases to which Article 71 of the Act refers, the Ministry shall publish the
initiation of proceedings in the Diario Oficial de la Federación and shall notify the importer, exporter or, if
applicable, the foreign government concerned, so that within a maximum of sixty days from the date of the
said publication they may exercise their right to make representations.G/ADP/N/1/MEX/1
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The Ministry may require the interested parties to provide further items of evidence or data,
which must be provided within the time-limit indicated by the authority. If the required evidence and data
are not provided within the time and in the form required, the proceedings shall be conducted on the basis
of known facts.
On completion of the procedure described in the preceding paragraphs, the Ministry shall publish
the appropriate resolution in the Diario Oficial de la Federación within a maximum of 130 days from the
publication to which the first paragraph of this Article refers and shall notify the interested parties known to
it.
ARTICLE 97. The Ministry shall apply the final resolutions issued as a result of an appeal for
reversal, a judgement of nullity or a resolution of the Ministry adopting the decisions of an alternative
dispute settlement mechanism to the extent that they are relevant to the other interested parties.
In order to determine whether the application of the final resolutions is relevant to the other
interested parties, the Ministry shall on its own initiative or at the request of a party initiate a summary
proceeding.
The Ministry shall publish the initiation of the proceedings in the Diario Oficial de la Federación
and shall notify the interested parties known to it.
The interested parties or persons entitled to participate in the proceeding shall have thirty days to
make any representations appropriate to their interests and to submit the information required by the
Ministry.
ARTICLE 98. Within sixty days from the publication of the initiation of the proceedings the
Ministry shall publish the appropriate resolution in the Diario Oficial de la Federación, and shall notify the
interested parties who appeared in the proceedings.
Chapter VIII
Review of Final Countervailing Duties
ARTICLE 99. Under the terms of Article 68 of the Act, the Ministry shall review the final
countervailing duties in the event of a change in the circumstances which determined the existence of price
discrimination or, as applicable, subsidy.
In carrying out the review of the final countervailing duties, the substantive and procedural
provisions contained in the Act and in these Regulations shall be observed, together with those relating to
the initiation of proceedings, preliminary resolution, final resolution, conciliation meeting, countervailing
duties, undertakings by exporters and governments, evidence, pleadings, public hearings, technical
information meetings, notifications, clarifications and other arrangements common to the proceedings.
ARTICLE 100. The review procedure may be requested by the interested parties who
participated in the proceedings which gave rise to the final countervailing duty or by any producer,
importer or exporter who, although not having participated in the proceedings in question, can establish
his legal interest.
The initiation of a review and the conclusion of the respective proceedings shall be published in
the Diario Oficial de la Federación and shall be notified to known interested parties, in accordance with
the provisions of these Regulations.
The review of final countervailing duties initiated ex officio shall be subject to the procedural rulesG/ADP/N/1/MEX/1
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governing the investigations which gave rise to the duties subject to review, as applicable.
ARTICLE 101. Each year, during the month of the anniversary of publication of the final
countervailing duty in the Diario Oficial de la Federación, the interested parties may request the Ministry
in writing to carry out an administrative review. In the request for review of final countervailing duties, the
interested party may request the Ministry:
I. In the case of a foreign exporter or importer of the product in question:
A. To examine or consider his individual margin of price discrimination, and
B.If appropriate, to modify or eliminate the countervailing duty;
II. If the requesting party is a national producer:
A.To examine the normal value and export price determined in a representative period,
in the ordinary course of trade, for one or more foreign exporters, and
B.If appropriate, to confirm or increase the countervailing duty.
In any event, the requesting party shall provide the relevant information and evidence to support
his request.
In the course of the proceedings, the domestic producer may request that consideration be given
to whether modifying or eliminating the final countervailing duty would lead to a recurrence of the injury
or threat of injury in which case it would be up to him to provide the relevant evidence.
The interested parties shall be obliged to submit with their request the questionnaires, established
for that purpose by the Ministry, duly completed.
ARTICLE 102. The interested parties shall have the option of providing security for the
payment of the final countervailing duty in case the review resolution confirms or modifies the duty. The
security shall be established in the form and terms prescribed in the Federal Tax Code and its
Regulations.
ARTICLE 103. Within a period of thirty days following the submission of the request, the
Ministry shall:
I. Accept the request and declare the initiation of the review, by an appropriate resolution which
shall be notified to the interested parties. The resolution to which this subparagraph
refers shall contain the information specified in Article 80 of these Regulations;
II. Ask the requesting party for further items of evidence or information which shall be provided
within a maximum of twenty days following receipt of the notification. If the requested
information is duly provided, the Ministry shall within a period of twenty days proceed
in conformity with the preceding subparagraph. If the requested items and information
are not duly produced within the time-limit mentioned, the request shall be considered as
having been abandoned and the requesting party shall be personally so notified, or
III. Reject the request when supporting information or evidence has not been presented and
personally so notify the requesting party.
The resolutions issued in accordance with the provisions of this Article shall be published in theG/ADP/N/1/MEX/1
Page 36
Diario Oficial de la Federación.
ARTICLE 104. Within a period of 260 days from the day following publication of the resolution
to initiate the review in the Diario Oficial de la Federación, the Ministry shall issue the corresponding
resolution, which shall be published in the Diario Oficial de la Federación and notified to the interested
parties.
The resolution declaring the conclusion of the review shall contain the information to which
Articles 80 and 83 of these Regulations refer.
ARTICLE 105. If in the review it is decided that there is no margin of price discrimination, the
final countervailing duty shall be annulled and the Ministry shall, ex officio , review the matter each year for
three years in the same month.
ARTICLE 106. If the review shows margins of price discrimination which are different from
those determined in the investigation which gave rise to the final countervailing duties, the new
countervailing duties which are fixed shall replace the former. These countervailing duties shall be final
and may be reviewed in accordance with the provisions of the Act and these Regulations.
ARTICLE 107. If the review shows that during the period subject to review, the importers
involved paid countervailing duties to the customs authorities in excess of those which they should have
paid under the resolution in question, the interested party may request full reimbursement of the
difference to his credit with the related interest.
If as a result of the review the Ministry notes that, during the period under review, the importers
involved paid a countervailing duty less than the duty resulting from the said review, the Ministry shall
confirm the application of the lesser duty.
The interest to which this Article refers shall be calculated in accordance with the applicable fiscal
provisions.
ARTICLE 108. The ex officio review may be initiated at any time. The resolution initiating the
review shall contain the information indicated in Article 80 of these Regulations, shall be published in the
Diario Oficial de la Federación and shall be notified to the interested parties.
ARTICLE 109. The Ministry shall declare the elimination of final countervailing duties in the
circumstances to which Article 70 of the Act refers, provided that it notifies the interested parties known to
it that the legal time-limit has elapsed. The declaration shall be published in the Diario Oficial de la
Federación.
Chapter IX
Undertakings by Exporters and Governments
ARTICLE 110. Undertakings by foreign exporters and, in the case of subsidies, by representatives
of foreign governments, to which Article 72 of the Act refers, may be submitted for consideration by the
Ministry at any time during the proceedings and until the close of the respective period for the examination
of evidence.
ARTICLE 111. The undertakings to which this Chapter refers shall be presented in writing, by
the foreign natural or legal persons who are duly accredited to the Ministry in the administrative
investigation or in the corresponding review procedure. If the undertaking is presented by the
representative of the foreign exporter or government, a special warrant or any other equivalent legalG/ADP/N/1/MEX/1
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instrument shall be required, without which the request shall not be admitted.
ARTICLE 112. Interested foreign exporters or governments may submit for consideration by
the Ministry undertakings which would have the effect of eliminating price discrimination or subsidies and
the injury or threat of injury caused to domestic industry. Consequently, the undertakings may consist of:
I. Modifications to export prices of the product in question;
II. Complete elimination of the causes which make the export price a subsidized price;
III. Restricting exports, with the intervention of the government of the country of the foreign
exporter, to quantities agreed with the Ministry;
IV.Complete suspension of exports to the country for a period agreed with the Ministry;
V.Restrictions on export subsidies for goods exported to Mexico; and
VI.Other measures which, in the opinion of the Ministry have the equivalent effects.
The Ministry may request information, data, documents and means of evidence which it
considers relevant from the interested foreign exporter or government, in order freely to evaluate the
undertaking.
ARTICLE 113. On receipt of the undertaking to which the preceding Article refers, the
Ministry shall include the request in the administrative dossier and shall notify the other interested parties
so that within a period of ten days from the date when the notification takes effect, they may express their
views. If it is considered appropriate, the Ministry shall summon the parties interested in the investigation
in question to a meeting to discuss the form and terms of the undertakings made and the feasibility of
verifying them.
ARTICLE 114. In accepting or rejecting the undertaking, the Ministry shall consider the
following factors among others:
I. Whether the undertaking given causes an adverse impact greater than might have been
caused by the countervailing duties on prices to the consumer and on supply of the
product;
II. The relative impact of the undertaking on the country's international economic interests;
III. The relative impact of the undertaking on the competitiveness of the domestic industry producing the
identical or like product, and on employment and investment in that industry; and
IV. Whether the foreign exporters or governments are subject to investigation for unfair
international trade practices or are affected by countervailing duties or equivalent
measures in the country or abroad.
Undertakings which cannot be fulfilled in practice shall not be accepted, whether because they are
undertakings which the Ministry considers unlikely to be implemented or because they involve
agreements, understandings or schemes which are contrary to free competition or in any way hinder
economic competition.
ARTICLE 115. On accepting or rejecting the undertaking by the interested foreign exporter or
government, the Ministry shall, in the corresponding final resolution, establish the form and terms underG/ADP/N/1/MEX/1
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which the undertaking given shall be implemented, stating whether as a result of that undertaking the
proceedings in question are suspended or concluded and, if applicable, the grounds and justification for
rejection.
The resolution to which this Article refers shall be published in the Diario Oficial de la
Federación and shall be notified to the interested parties.
ARTICLE 116. The Ministry shall, ex officio or at the request of an interested party, periodically
review the due implementation of the undertaking given. If the review shows that the foreign exporter or
government has failed, in whole or in part, to fulfil the undertaking, the Ministry shall impose the
appropriate countervailing duty in accordance with the facts known to it.
Chapter X
Alternative Dispute Settlement Mechanisms
ARTICLE 117. When the Government of Mexico is responsible for initiating an alternative
dispute settlement mechanism with regard to unfair international trade practices under the international
trade treaties or agreements to which Article 97 of the Act refers, the following rules shall apply:
I.The interested party who chooses to resort to such mechanisms shall present a request in writing
containing the following information:
A.His name or business name and domicile, and those of his legal representative, including telephone and
fax number;
B.The domiciles of the interested parties appearing on the mailing list;
C.Identification of the final resolution contested and the issuing authority and, if applicable, the reference
to the official publication of that resolution, or if not published, the date on
which notification of the resolution contested was received;
D.Description of the proceedings in which the party was involved; and
E.Violations or injuries caused by the final resolution.
II.Following presentation of the request, the Ministry shall request initiation of the dispute settlement
procedure in conformity with the international treaty or agreement concerned.
TITLE VIII
COMMON PROVISIONS FOR PROCEEDINGS WITH REGARD TO UNFAIR
INTERNATIONAL TRADE PRACTICES AND SAFEGUARD MEASURES
Chapter I
Ex officio investigation, legally constituted organizations, withdrawal, administrative
dossier and transmission of copies to interested parties
ARTICLE 135. In the absence of an express provision in these Regulations concerning
administrative proceedings with regard to unfair international trade practices and safeguard measures, the
Regulations of the Federal Tax Code shall be applied, to the extent that they are applicable to the nature of
these proceedings. This provision shall not apply to notifications and searches for the purpose ofG/ADP/N/1/MEX/1
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verification.
The conduct and resolution of investigation proceedings to which this Title refers which are
initiated ex officio in accordance with the law shall be subject to the same legal and regulatory provisions as
those applicable to investigations undertaken at the request of a party.
ARTICLE 136. For the purposes of Article 50 of the Act, legally constituted organizations are
deemed to be chambers, associations, confederations, councils or any other group of producers
constituted in accordance with Mexican law, whose object is to represent the interests of natural or legal
persons engaged in the production of goods identical, alike to or, in the case of safeguard measures,
directly competitive with the imported products.
ARTICLE 137. The interested party may withdraw the request to which Article 50 of the Act
refers, subject to the following rules:
I.If the request is withdrawn prior to publication of the resolution to initiate the investigation, the
investigating authority shall declare the investigation void on grounds of withdrawal, and
shall publish the corresponding notice in the Diario Oficial de la Federación, and
II. If the request is withdrawn after publication of the resolution to initiate the investigation, the
withdrawal may only take effect when the importers or foreign exporters and, in the case
of subsidies, representatives of the foreign governments, give their consent in writing to
the Ministry. In that case, the Ministry shall declare the investigation terminated, and
shall publish the corresponding notice in the Diario Oficial de la Federación.
ARTICLE 138. In the investigation proceedings to which this Title refers, the Ministry shall compile an
administrative dossier on the basis of which the relevant resolutions shall be issued.
The administrative dossier shall consist of:
A.Documentary or other information presented to the Ministry or obtained by it in the course of the
administrative proceedings, including any government communications concerning the
matter, and reports, records or memorandums of meetings with one or all the interested
parties, third parties or additional parties;
B.Resolutions issued by the Ministry in relation thereto;
C.Transcriptions or records of meetings or hearings before the Ministry;
D.Notices published in the Diario Oficial de la Federación concerning the administrative proceedings,
including review, and
E.Records of sessions of the Commission dealing with the establishment of safeguard measures and draft
final resolutions with regard to unfair international trade practices, and draft resolutions in
which the Ministry accepts the undertaking of foreign exporters or governments to which
Article 72 of the Act refers.
ARTICLE 139. A written report shall be prepared of any communication, whether direct or
made by other conventional or electronic means, between the Ministry and any interested party, his
representatives or additional parties during the investigation and review proceedings. This report shall
contain a summary of the object of the communication and the conclusions reached. In addition it shall
contain the name and office of the public servant who prepared it, the place and signature and shall be
included forthwith in the administrative dossier.G/ADP/N/1/MEX/1
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ARTICLE 140. Copies of reports, documents or items of evidence to which Article 56 of the
Act refers shall be despatched at the same time as they are presented to the Ministry. Interested parties
shall send copies to other interested parties appearing on the mailing list provided by the Ministry. This
obligation does not relieve the investigating authority from the duty to notify and provide the interested
parties with information, documents or items of evidence pertaining to the administrative dossier when so
requested.
At the time when the documentation to which the preceding paragraph refers is transmitted, the
interested parties shall also submit a certificate of despatch of that documentation to the other interested
parties, together with the corresponding receipt stating the name of the sender and the date of receipt, in
conformity with the forms issued by the Ministry.
ARTICLE 141. The Ministry may transmit the documents to which the second paragraph of
Article 53 of the Act refers by electromagnetic means.
Chapter II
Notification
ARTICLE 142. The Ministry shall, in a timely manner, notify the interested parties in writing of
the resolutions issued with regard to the proceedings to which this Title refers.
ARTICLE 143. For the purposes of these Regulations, domicile means:
I.For natural persons: the place where they have their principal seat of business or that of their
representative, and;
II.For legal persons: the place where the principal office of the business or that of their representative is
located. In the case of legal persons resident abroad, the place where the principal office
of the business is located in their country or known to the authority or, failing that, the
place designated by the interested party.
ARTICLE 144. For notifications, there must be a corresponding receipt of despatch. Post
office receipts, returned certificates of receipt, and any other acknowledgement of receipt shall be included
in the administrative dossier.
ARTICLE 145. Where the Ministry does not know the address of the persons to be notified,
whether resident in Mexico or abroad, the notification shall be by publication in the Diario Oficial de la
Federación and, one time only, in one of the newspapers of major circulation in Mexico; the latter
publication shall contain a summary of the request concerned and the proceedings to be conducted.
For persons resident outside the country, the Ministry shall send the communications to which the
previous paragraph refers to diplomatic missions of foreign governments, so that they may take the
necessary steps to distribute the content of resolutions.
For the purposes of this Article, the date of notification is deemed to be that of publication in the
Diario Oficial de la Federación.
ARTICLE 146. The Ministry shall notify those subject to a search that a search is to be carried
out for the purposes of verification, as referred to in Article 83 of the Act. The notification shall contain:
I.The designation of the competent issuing authority;G/ADP/N/1/MEX/1
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II.The name or names or business name of the persons to which it is addressed;
III.The place or places where the search is to take place, which may be supplemented following
notification to the person subject to the search, and the date of the search;
IV.The grounds and justification for the search, and its object or purpose;
V.The signature of the competent official, and
VI.The name or names of the persons who will carry out the search, who may be replaced or whose
number may be increased or reduced at any time by the Ministry. In the latter case, the
replacement or addition of persons who are to carry out the search shall be notified to the
person subject to the search. In addition, the Ministry shall notify the person subject to
the search if external consultants are included among such persons.
The notifications shall be made in such a way that the interested party receives them at least ten
days prior to the search, during this period the person subject to search must give his consent to the
Ministry.
Chapter III
Public, Confidential, Restricted Commercial and Confidential
Government Information
ARTICLE 147. For the purposes of Article 80 of the Act, the Ministry, on written request, shall
grant the interested parties the opportunity to examine all the information contained in the administrative
dossier for the presentation of their arguments, under the terms established in the Act and in these
Regulations. This information may be examined by the parties during the investigation proceedings, the
review and appeal for reversal, the hearing in the Upper Chamber of the Federal Tax Court and alternative
dispute settlement mechanisms with regard to unfair international trade practices referred to in the
international treaties or agreements to which Mexico is a party and, if applicable, with regard to safeguard
measures.
The Ministry shall, at the expense of the interested parties, send certified copies of all or part of
the administrative dossier requested, when appropriate, in conformity with the provisions of Article 80 of
the Act and these Regulations.
ARTICLE 148. For the purposes of the proceedings to which this Title refers, public
information shall be deemed to be:
I. Information published by any method of dissemination, regardless of its coverage, or made
available to the public by the person submitting it, or where that person has consented to
its publication by a third party;
II. Summaries of confidential information and restricted commercial information presented
under the terms of Article 153 of these Regulations;
III. Records relating to searches for purposes of verification and annexed documents, except for
confidential, restricted commercial or confidential government information;G/ADP/N/1/MEX/1
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IV. Any other information or data which under the Act, these Regulations and other national or
foreign legislation do not constitute confidential, restricted commercial or confidential
government information and whose publication is not prohibited.
ARTICLE 149. For the purposes of the proceedings to which this Title refers, and subject to
compliance with the provisions of Articles 152, 153 and 158 of these Regulations, confidential information
shall be deemed to be:
I. Production processes for the product concerned;
II. Production costs and specification of components;
III. Distribution costs;
IV. Terms and conditions of sale, except those offered to the public;
V. Selling prices by transaction and by product, except components of prices such as dates of sales
and distribution of the product, and transport if by public routes;
VI. Description of the type of individual customers, distributors or suppliers;
VII. If applicable, the exact amount of the margin of price discrimination in individual sales;
VIII. The amounts of adjustments for terms and conditions of sale, volume or quantities, variable
costs and tax charges proposed by the interested party, and
IX. Any other specific information about the enterprise concerned whose disclosure or
dissemination to the public may cause injury to its competitive position.
The information on costs and prices to which subparagraphs II, III, and VII of this Article refer
may be presented by the interested party or additional parties in ranges of percentage variation that do not
exceed the factor of 10 per cent.
ARTICLE 150. Restricted commercial information, subject to compliance with the provisions of
Articles 152, 153 and 158 of these Regulations, shall be deemed to be information whose disclosure may
result in substantial and irreversible financial damage or harm to the net worth of the owner of that
information and which may include, among other things, secret formulas or processes which have a
commercial value, are not patented and known exclusively to a small group of people who use them in the
production of a commercial product.
ARTICLE 151. The name of the natural or legal persons from whom the interested party
obtained relevant information shall be known only to the Ministry and may only be disclosed following the
consent of such persons.
ARTICLE 152. The interested party shall be responsible for pointing out where appropriate in
its requests, answers, replies to the Ministry or in any form of appearance, any information of a
confidential or restricted commercial character. Likewise, he must justify the reason for so designating his
information.
ARTICLE 153. The party interested in ensuring the confidential or restricted commercial
treatment of his information and documents shall submit a public summary thereof to the Ministry. This
summary shall be presented in writing and shall be sufficiently detailed to allow anyone consulting it to
have a reasonable and comprehensive understanding of the subject.G/ADP/N/1/MEX/1
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ARTICLE 154. For the purposes of the proceedings to which this Title refers, confidential
government information shall be deemed to be information whose disclosure is prohibited by laws and
other public legislation, and by international treaties or agreements to which Mexico is a party.
In any event, confidential government information shall include data, statistics and documents
concerning national security and strategic activities for the scientific and technological development of the
country, and information contained in government-to-government communications of a confidential
nature.
ARTICLE 155. When so required, the Ministry shall provide the public, confidential, restricted
commercial or confidential government information to administrative tribunals, courts and dispute
settlement mechanisms relating to unfair international trade practices and safeguard measures contained in
international trade treaties or agreements to which Mexico is a party, when they are seized with an appeal
against the final resolutions to which the Act and these Regulations refer. In any event, the public servant
responsible for transmitting the information concerned to the aforementioned authorities and mechanisms
shall indicate its character.
ARTICLE 156. When the time-limit to which Article 80 of the Act refers has expired, the
Ministry may despatch certified copies of the dossier of the matter concerned or, if so requested, shall
permit the interested parties or their representatives to inspect the requested dossiers.
ARTICLE 157. In the proceedings to which Articles 60, 68 and 94 of the Act refer, the
provisions concerning public, confidential, restricted commercial and confidential government information
contained in the Act and in these Regulations shall be observed.
Chapter IV
Request for Confidentiality of Information
ARTICLE 158. Interested parties or natural and legal persons who, under the Act and these
Regulations participate in the proceedings to which this Title refers, shall have the right to require the
Ministry to treat their information as confidential or as restricted commercial information. For that
purpose, the interested party concerned shall comply with the following requirements:
I. The request shall be submitted in writing;
II. He shall explain why his information is of a confidential or restricted commercial character;
III. He shall present a summary of the information or, if applicable, an explanation of the reasons why it
cannot be summarized; and
IV. If applicable, give his express consent in writing that the information marked as confidential or
restricted commercial may be examined by the legal representatives of the other
interested parties.
ARTICLE 159. For the purposes of Article 80 of the Act, an accredited legal representative
shall be deemed to be the natural person authorized by the Ministry to have access to confidential
information, on completion of the following requirements:
I. Presentation to the Ministry of a request in writing stating the need to examine the confidential
information;G/ADP/N/1/MEX/1
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II. Submission of official documents accrediting the requesting party as a lawyer entitled to exercise his
profession in Mexico in accordance with the applicable laws.
The request to which this subparagraph refers may also be submitted by any other person provided that he
meets the requirements established in this Article, with the exception of the provision of
the previous paragraph, and is assisted by a lawyer;
III. Presentation of the original document or certified copy thereof accrediting him as representative;
IV. Show the official document or certified copy thereof accrediting the name and authority of the official
of the enterprise granting the power of representation;
V. He must be resident in Mexico;
VI. He must undertake and submit the commitment to confidentiality, under the terms laid down by the
Ministry in accordance with the provisions of the Act and these Regulations;
VII. He must state in writing that he is aware of the liabilities and sanctions to which he may be subject if
he violates the confidentiality of the information entrusted to him;
VIII.He must state in writing the reasons why the confidential information he is requesting to examine is
relevant to the defence of his case. In such a situation, the Ministry may specify under
what conditions it shall be considered that confidential information may be useful to the
defence of the case in question; and
IX. He must give an undertaking to the Ministry to return the original versions of his notes or summaries
made when examining the confidential information, within ten days following the issue of
the final resolution.
The confidential information which legal representatives of interested parties have the right to
examine under these Regulations shall be strictly for personal use and shall not be transferable for any
reason whatsoever. In the case mentioned in the second part of subparagraph II of this Article, the lawyer
assisting the legally-authorized representative shall comply with the requirements to which subparagraphs V
to IX of this Article refer and shall be jointly responsible for the unauthorized use of the confidential
information.
ARTICLE 160. In addition to the provisions of the preceding Article, the legal representative
shall comply with the following requirements, failing which he shall not be authorized to examine the
confidential information:
I. He shall not have been convicted of a deliberate offence or administrative breach of the law;
II. He must be of good personal and professional standing;
III. He must not have been a partner, a director or acted as a salaried agent or representative of the
enterprise which he purports to represent, nor of any of the other interested or additional
parties in the proceedings in question, during the previous year; and
IV. He must provide a form of security for the amount fixed by the Ministry under the Federal Tax Code,
against his committing the unlawful acts described in subparagraph VI of Article 93 of
the Act. The security may be cancelled following the publication of the resolution in
question.G/ADP/N/1/MEX/1
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When the requirements have been fulfilled, the Ministry shall hold the legal representative as
accredited and shall send him the respective confirmation within ten days from the day of submission of
the request.
ARTICLE 161. For the purposes of the proceedings to which this Title refers, the examination
of the confidential information shall take place in the offices of the Ministry, in the presence of an official
of the Ministry. The Ministry shall allow reasonable time to the legal representative to enable him to
examine the confidential information, of which he may make notes or summaries.
In addition, when it is deemed appropriate, the Ministry may provide copies of that information,
indicating the requirements to be observed by the legal representative for the treatment and return of that
information.
Chapter V
Evidence, Public Hearing and Pleadings
ARTICLE 162. The Ministry shall accept as evidence public and private documents, expert
reports, administrative recognition or verification, personal evidence, presumptions and any other method
of evidence not prohibited by law.
ARTICLE 163. The period for the examination of evidence shall run from the day following the
publication of the initiation of the administrative investigation and the acceptance of the request, in the
Diario Oficial de la Federación until the date when the public hearing to which Article 81 of the Act refers
is declared concluded.
ARTICLE 164. In the case of proceedings in respect of unfair international trade practices and
safeguard measures, following publication of the initiation of the administrative investigation and
acceptance of the request, importers, exporters and, if applicable, representatives of foreign governments
who have been notified or who appear of their own right before the Ministry, shall have a time-limit of
thirty days to formulate their defence and present the required information.
When the time-limit to which the preceding paragraph refers has elapsed, the Ministry shall give
the opportunity to the requesting parties and, if applicable, the joint parties to present counter-arguments
or replies within the eight days following.
Following the publication in the Diario Oficial de la Federación of the preliminary resolution to
which Article 57 of the Act refers, the Ministry shall grant a period of thirty days to allow the interested
parties to present supplementary arguments and evidence which they consider relevant.
ARTICLE 165. The purpose of the public hearing shall be to allow the interested parties and, if
applicable, additional parties, to question or reject the arguments of the other parties regarding the
information, data and evidence submitted.
ARTICLE 166. When the hearing is opened, the representative of the Ministry shall, where he
considers necessary, introduce for discussion the evidence presented by the requesting party. Following
that, importers, foreign exporters and domestic producers in that order shall be permitted to speak. Each
party shall speak, in turn, twice in respect of evidence submitted by other parties. The Ministry, subject to
agreement with the interested parties, shall fix the maximum time permitted for each intervention, without
prejudice to extending the time allocated for participation by interested parties as it considers necessary.
ARTICLE 167. In the case of expert evidence, where there are differences among experts, the
representative of the Ministry shall allow them to speak, under the terms of the preceding Article.G/ADP/N/1/MEX/1
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ARTICLE 168. The discussion to which the preceding Articles refer may consist of rebuttals
and questioning by the interested parties. The representative of the Ministry may require the interested
parties to repeat their arguments in order to clarify disputed points. The rules of confidentiality of
information laid down in the Act and in these Regulations shall be observed in this hearing.
ARTICLE 169. The absence of any of the interested parties, experts and other persons who by
the nature of the evidence should appear shall not prevent the public hearing being held.
ARTICLE 170. A record of the public hearing shall be drawn up containing a detailed account
of the proceedings; it must be signed by the interested parties and the representative of the Ministry, and
included in the dossier of the case.
ARTICLE 171. The interested parties may only present information, evidence and data that
they consider relevant in defence of their interests during the period for the submission of evidence.
Nevertheless, the Ministry may allow the submission, repetition or amplification of any evidence or
evidential acts outside the period for the submission of evidence, provided that it considers it necessary
and that it may result in better knowledge of the truth about the facts under investigation.
ARTICLE 172. Upon the conclusion of the period for the submission of evidence, the Ministry
shall open a period of pleadings during which the interested parties may submit in writing their conclusions
on the substance or matters arising in the course of the proceedings. In this case, the rules of
confidentiality established in the Act and these Regulations shall be observed.
Chapter VI
Searches for the Purpose of Verification
ARTICLE 173. When carrying out the searches for the purpose of verification to which
Article 83 of the Act refers, the following rules shall be observed:
I. Searches shall be carried out at the place or places indicated in the respective notification and by the
persons indicated therein;
II.The search shall be attended by the person subject to the search or his accredited representative, or by
the person present on the date when the search takes place;
III. At the commencement of the search, the persons responsible for carrying out the search shall formally
identify themselves to the person or persons with whom the proceeding has been
arranged, requiring them to designate two witnesses. If witnesses are not designated or
the designated persons do not consent to serve as such, the visiting officials shall designate
witnesses, noting that fact in the record, without that invalidating the results of the search;
IV. The interested parties, their representatives or the person with whom the search at the fiscal domicile
has been arranged, are obliged to allow the visiting officials designated by the Ministry
access to the place or places which are the subject of the proceeding and make available
to them the accounts and other documents to support the information presented during
the investigation. In that case, the visiting officials may obtain copies to be compared
with the original documents and authenticated by the officials and to be annexed to the
record of the search. Verification shall also be permitted of goods, documents, disks,
tapes or any other data storage system maintained by the interested party at the places
searched.G/ADP/N/1/MEX/1
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If the interested party subject to the search maintains his accounting system or part of it on an electronic
recording system, the computer equipment and its operators shall be made available to
the visiting officials so that they can assist them in their work;
V. A record of every search shall be drawn up giving full details of the facts or omissions noted by the
visiting officials, determining the legal consequences of such acts and omissions for the
interested parties;
VI.On completion of the verification procedure and the relevant report, no additional reports may be
drawn up without a new notification;
VII. On completion of the verification procedure and the relevant report, the interested parties or their
representatives may present to the Ministry their objections, opinions and supplementary
information which the authority in question might have required from them during the
verification procedure, within five days from the conclusion of the relevant report. If
within this time-limit no opinions or objections to the content of the report are submitted,
the acts and omissions contained therein shall be held to be accepted, and
VIII. The report drawn up at the time of the search for the purposes of verification shall be signed by the
visiting officials, the interested party or his representative or the person with whom the
procedure was arranged and by the witnesses. If any of the persons indicated refuses to
sign the report concerned, the visiting officials shall note this fact in the report itself
without it affecting its validity and value as evidence.
ARTICLE 174. The Ministry shall be empowered to ask third parties who have had business
relations with the interested party subject to the search, such as suppliers, customers and agents, for
information and data enabling it to establish the truth of the information supplied, both during the
investigation and during the search.
ARTICLE 175. The Ministry may request accounting and any other information, data and
documents from the interested parties, in order to verify the truth of their submissions and statements at
the official domicile of the Ministry.
The person subject to the search shall have the right to indicate whether the information or data
supplied or to be supplied to the visiting officials is of a confidential or restricted commercial character,
provided that he satisfies the provisions of these Regulations.
The provisions contained in Articles 152 and 153 of these Regulations may be fulfilled during the
search or within the time-limit to which subparagraph VII of Article 173 of these Regulations refers.
ARTICLE 176. The Ministry may utilize the services of specialized consultancy firms to provide
support in investigating, ascertaining and verifying information and data needed to enable it to issue its
resolutions.