Keeping up with Mexico's regulations - business regulations that affect agriculture

To capitalize on the opportunities that the North American Free Trade Agreement (NAFTA) has created, U.S. exporters need to be aware of the procedures and regulations that will affect their businesses. Knowing the rules that cover import licensing, certificates of origin, health and phytosanitary regulations and labeling is vital for a strong and effective marketing effort.

Licensing

Import licenses, which had long been a standard practice in Mexico, are no longer required for food and agricultural products moving into Mexico from the United States. For products that had required licenses through 1993 -- corn, dry beans, poultry, table eggs, barley, malt and milk powder -- there are now tariffrate quotas.

Under NAFTA these products can enter Mexico duty-free up to certain annual amounts with a duty applied on volumes exceeding the duty-free levels. The duty-free quantity will increase each year, while the duty levels on the over-quota volumes will decrease until the year 2004 or 2008 -- depending on the product -- when neither quotas nor duties will be applied to any product.

NAFTA Certificate of Origin

All products entering Mexico must be accompanied by a NAFTA certificate of origin to take advantage of NAFTA's preferential duties. As of January 1, 1994, a new form is required. It is a uniform certificate of origin that the United States, Canada and Mexico created to certify that goods imported into their territories qualify for the preferential tariff treatment accorded by NAFTA. Only those importers who possess a valid certificate may claim preferential tariff treatment.

A copy of the new form follows this article and can be copied and used for official business purposes. Forms are also available from the U.S. Customs Service, local U.S. Chambers of Commerce and state Departments of Agriculture.

Health and Phytosanitary Restrictions

Health and phytosanitary restrictions, which did not change as a result of NAFTA, vary depending on the product. Some products are permitted entry only into special zones -- for example, at the border -- and others are prohibited from entering altogether. Efforts are being made to coordinate U.S. and Mexican standards.

Following are some general rules of thumb:

* Horticultural products: These must be free of specified pests, nematodes and diseases. Many phytosanitary restrictions have been revised and are subject to change. In general, shipments of horticultural products must be accompanied by the following documentation: -- A phytosanitary certificate from USDA's Animal and Plant Health Inspection Service (APHIS), and -- A certificate of origin.

In addition, certain procedures must be followed for specific products. For instance, apples must receive cold treatment at 0 degrees Celsius for 40 days or 3.3 degrees Celsius for 90 days, and other fruits such as peaches, plums and nectarines must receive post-harvest treatment with methyl bromide. U.S. companies should check with their nearest regional APHIS office for commodity-specific information.

* Beef/Poultry/Pork: All products must be from meat plants on a Food Safety and Inspection Service (FSIS)-certified list for export to Mexico. Shipments must be accompanied by the following documentation: -- An export certificate of wholesomeness (FSIS form 9060-5) which must be stamped by a Mexican Consulate, -- An import license/permit (where applicable), -- A quota certificate or "certificado de cupo" for fresh poultry and -- A certificate of origin.

U.S. companies should check with their importer for additional product-specific guidelines.

Labeling Requirements

Mexican labeling requirements have been far less stringent, especially in terms of consumer information, than those in the United States, but that may change.

Mexico is now in the process of establishing new regulations governing labeling of consumer products and processed food and beverages for retail sale. The new regulations were expected to be published during the summer, and interested parties would have 90 days following publication to comment.

The proposal may prohibit stickering over foreign language labels and require specific consumer information on all labels. For additional information on the proposal, contact:

Office of Food Safety and Technical Services

Foreign Agricultural Service Ag Box 1027, Room 5545-S U.S. Department of Agriculture Washington, DC 20250-1027 Tel. (202) 720-1301 Fax. (202) 690-0677

Increasingly, U.S. companies have been customizing their packaging for the Mexican market. However, this is not always feasible, depending on the volume being shipped.

The responsibility for meeting labeling requirements falls to the Mexican importer, who should be the first point of contact for the U.S. exporter.

While the legal requirements for labeling now are rather minimal, features such as color, style and phrasing greatly enhance a product's marketability. For this information, U.S. exporters should rely on their importers' expertise.

At a minimum, imported food products packaged for retail consumption must have a label in Spanish with the following information:

-- Brand name,

-- Product description in Spanish,

-- Product description in English,

-- Metric weight,

-- Country of origin,

-- Importer's Ministry of Finance taxation number,

-- Importer's name and address,

-- Exporter's name and address, and

-- Date of expiration.

Most U.S. food products on the shelves in Mexico are in U.S. packaging with a stick-on label that meets the above requirements. Additional information is an option and a decision made by the exporter and importer.

For further information on Mexico's labeling requirements, U.S. exporters may want to suggest that their importers contact:

Direccion General de Regulacion Sanitaria de Alimentos

Secretaria de Salud Donceles 39, Centro Mexico City, Mexico D.F.

Contacts for Additional Assistance

In addition to the offices listed above, information on NAFTA and Mexico's import requirements is available from:

* U.S. Department of Agriculture Foreign Agricultural Service

Ag Box 1024, Room 5506-S

14th Street and Independence Avenue, S.W.

Washington, DC 20250-1024 Tel. (202) 720-1340 Fax. (202) 690-2079

* U.S. Department of Agriculture Animal and Plant Health Inspection Service

Trade Support Staff

Ag Box 3480, Room 1128-S

14th Street and Independence Avenue, S.W.

Washington, DC 20250-3480 Tel. (202) 720-7677 (For information on phytosanitary norms affecting agricultural imports into the United States.)

* U.S. Department of Commerce Office of Mexico

Room 3022

14th Street and Constitution Avenue, N.W.

Washington, DC 20230 Tel. (202) 482-0300 (For information on exporting non-agricultural products from the United States to Mexico.)

* U.S. Department of Commerce Office of Mexico Flash Facts System Tel. (202) 482-4464 (Available in United States only. A 24-hour automated system that transmits a wide range of informatin directly to your fax machine. Topics include: trade, economic and marketing data; rules of origin; and tariff schedules.)

* U.S. Customs Service NAFTA Information System Tel. (202) 927-1692 or (202) 927-1694 (A 24-hour automated system that transmits information on NAFTA directly to any fax machine in the United States.)

Useful Publications

Selling U.S. Food and Agricultural Products in Mexico

U.S. Agricultural Trade Office--Mexico City

P.O. Box 3087 Laredo, TX 78044-3087 Fax. (011-52-5) 202-0528 (Fax or write for your free copy.)

The following documents may be purchased from:

Superintendent of Documents U.S. Government Printing Office Washington, D.C. 20402-9328 Tel. (202) 783-3238 or (202) 512-0000

(Prices are subject to change. Add 25 percent for international orders)

North American Free Trade Agreement, A Guide to Customs Procedures Cost: $3.75 Stock Number: 048-002-001-192 (Provides general information on NAFTA, such as rules of origin, other origin issues, entry procedures, etc.)

North American Free Trade Agreement, Volumes I and II Cost: $40 Stock Number: 041-001-00376-2 (The text of the agreement with the specific rules of origin.)

Annex 302.2: Schedule of Mexico Cost: $38 Stock Number: 041-001-00391-6 (The preferential NAFTA duty rates that will apply to products imported into Mexico.)

Title 19, Code of Federal Regulations Cost: $35 Stock Number: 869-019-00061-5 (The Customs regulations of the United States)

COPYRIGHT 1994 U.S. Department of Agriculture
COPYRIGHT 2004 Gale Group