Complete Home & Office Legal Guide

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ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constitución Política de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Título I Capítulo I. Ley de Nacionalidad y Naturalización (Nationality and Naturalization Law). Capítulo VI (Disposiciones generales) Ley Org nica de la Fracción I del Artículo 27 de la Constitución (Organic Law of the First Section of Article 27 of the United Mexican States Political Constitution). Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Capítulos I y IV (Objeto y Fideicomisos en frontera y litorales) Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). Título III Capítulo I y Título III Capítulo III. (Inversión extranjera mediante fideicomisos) DESCRIPTION: Investment Foreigners and foreign enterprises, as defined in the Constitución Política de los Estados Unidos Mexicanos; and Mexican enterprises without a foreigners' exclusion clause may not acquire "direct dominion" (dominio directo) over land and water in a 100 kilometers strip along the country's borders or in a 50 kilometers strip inland from its coasts (the Restricted Zone). Nevertheless, foreigners, foreign enterprises and Mexican enterprises may acquire "Certificados de Participación Ordinaria" (CPO's). Such CPO's grant to the beneficiaries the right to use and enjoy the real estate and to receive the profits that it may obtain from the profitable use of the property. The CPO's are issued by a Mexican credit institution that has been granted authorization to acquire through trust the title to real estate intended for industrial and tourist activities in the Restricted Zone for a period not to exceed 30 years. The trust is renewable if: (a) The beneficiaries of the trust which is to be extinguished or terminated will be beneficiaries of the new trust; (b) the new trust is to be executed under the same terms and conditions as the trust which is to be extinguished or terminated, in respect of the purposes of the trust, the use of real estate and its characteristics; (c) the respective permits are requested within a period of 360 to 181 days prior to the trust be extinguished or terminated; and (d) the provisions of the Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera and its regulations are observed. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEGAL CITATION: Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment The Comisión Nacional de Inversiones Extranjeras in order to evaluate the applications submitted to its consideration (acquisitions or establishment of investments in restricted activities as set out in this Schedule), shall take into account the following criteria: (a) Its effects on employment and training; (b) Its technological contribution; (c) In general its contribution to increase the Mexican industrial production and competitiveness. The Comisión Nacional de Inversiones Extranjeras may impose performance requirements which are not prohibited by Article 1106 of the Investment Chapter. DURATION: Description shall govern upon entry into force of this Agreement. ================================================================ ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Mexico will review the acquisition, whether directly or indirectly, of more than 49% of the ownership interest of a Mexican enterprise in an unrestricted sector, that is owned or controlled by Mexican nationals, directly or indirectly, by an investor of another Party if the value of the gross assets of the Mexican enterprise is not less than the applicable thresholds, effective on the date of entry into force of this Agreement and adjusted on each anniversary thereof. The calculation of the applicable review thresholds is set out in the following section below. DURATION: Description shall govern upon entry into force of this Agreement. The basis for calculating the threshold will be: (a) USD 25 million, for the three year period commencing on the date of entry into force of this Agreement; (b) USD 50 million, for the three year period commencing on the fourth year after the date of entry into force of this Agreement; (c) USD 75 million, for the three year period commencing on the seventh year after the entry into force of this Agreement; (d) USD 150 million, for the tenth year after entry into force of this Agreement. Beginning with the Agreement's second year these thresholds shall be adjusted for cumulative inflation based on the US GDP price deflator from the date of entry into force of this Agreement. Beginning with year eleven after entry into force of this Agreement, the threshold will be adjusted for growth in nominal Mexican GDP--but in no case will the threshold to be applied exceed that of Canada. ================================================================ ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constitución Política de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley General de Sociedades Cooperativas (General Law of Cooperative Companies). Título I Capítulo I y Título II Capítulo II DESCRIPTION: Investment No more than 10 percent of the persons participating in a Mexican Cooperative Production enterprise may be foreigners. Foreigners cannot engage in general administrative functions. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: All sectors SUB-SECTOR: All sub-sectors INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal para el Fomento de la Microindustria (Law to Promote the Microindustry). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may qualify as microindustry enterprises. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Agriculture, Livestock, Forestry, and Lumber Activities SUB-SECTOR: Agriculture, Livestock or Forestry INDUSTRY CLASSIFICATION: CMAP 1111 Agriculture CMAP 1112 Livestock CMAP 120011 Forestry CMAP 120012 Exploitation of Forest Nurseries CMAP 120030 Collection of Forest Products CMAP 120040 Falling Trees TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constitución Política de los Estados Unidos Mexicanos (United Mexican States Political Constitution). Ley Agraria (Agrarian Law). Título VI DESCRIPTION: Investment All enterprises constituted in Mexico which own land for agriculture, livestock or forestry purposes, must issue a special type of shares ("T" shares) which represent the value of the aforementioned land at the time of its acquisition. Investors of another Party and their investments may own up to 49 percent of such "T" shares. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting and Multipoint Distribution Systems, (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Repetition of Television Programming (Limited to Production, Transmission and Repetition of Television Programs, MDS, Direct Broadcasting Systems, and High Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisión (Radio and Television Federal Law), Título IV (Funcionamiento), Capítulo III (Programación) Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisión (Regulations of the Radio and Television Federal Law and Motion Picture Industry Law relating to Radio o Television Content), Título III (Programación) Reglamento del Servicio de Televisión por Cable, (Cable Television Regulations) Capítulo VI (Programación) DESCRIPTION: Cross-Border Services For the protection of copyrights a holder of a concession for a commercial broadcast station or for a cable television system in Mexico is required to obtain an authorization from the Secretaría de Gobernación to import in any form radio or television programming for broadcast or cable distribution of such programming within Mexico. The authorization will be granted if the request includes documentation showing that the foreign government, sponsoring international organization, or the private entrepreneur or organizer has granted the license ("derechos") to retransmit or distribute by cable such program. ================================================================ ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to cable television) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constitución Política de los Estados Unidos Mexicanos(United Mexican States Political Constitution), Article 32 Ley de Vías Generales de Comunicación (General Means of Communication Law), Libro I Capítulo III (Concesiones, Permisos y Contratos) Ley Federal de Radio y Televisión (Radio and Television Federal Law), Título III, (Concesiones, Permisos e Instalaciones) Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento del Servicio de Televisión por Cable (Cable Television Regulations), Capítulo II (Concesiones) Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-Border Services 1. A concession granted by the Secretaría de Comunicaciones y Transportes is required to construct and operate, or to operate, cable television systems. Such concession is granted only to Mexican nationals or Mexican enterprises. Investment: 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico which owns or operates a cable television systems or provides cable television services. DURATION: Cross-Border Services Indeterminate. Investment Paragraph 2 of the description shall govern upon entry into force of this Agreement; subject to discussion by the Parties five years after the entry into force of this Agreement. ================================================================ ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services INDUSTRY CLASSIFICATION: CMAP 941103 Private Exhibition of Films (cinema) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de la Industria Cinematogr fica (Motion Picture Industry Law) Reglamento de la Ley de la Industria Cinematogr fica (Regulations of the Motion Picture Industry) DESCRIPTION: Cross-Border Services and Investment On an annual basis, 30 percent of the screen time of every theater may be reserved for films produced, either within or outside Mexico, by Mexican enterprises. DURATION: The description shall govern upon entry into force of this Agreement. Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, Multipoint Distribution Systems (MDS), and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941104 Private Production and Transmission of Radio Programs (Limited to Production and Transmission of Radio Programs, MDS and uninterrupted music) CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Production, Transmission and Retransmission of Television Programs, MDS, Direct Broadcasting Systems, High-Definition Television and Cable Television) TYPE OF RESERVATION: National Treatment (Article 1202) Performance Requirement (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisión, (Radio and Television Federal Law), Título IV (Funcionamiento), Capítulo III (Programación) Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisión (Regulation of Radio and Television Federal Law and Regulations of the Motion Picture Industry Law relating to Broadcasting Content), Título III (Programación) Reglamento del Servicio de Televisión por Cable (Cable Television Regulations), Capítulo VI (Programación) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language is required for the broadcast, cable or multipoint-distribution-system distribution of radio or television programming, except when the Secretaría de Gobernación authorizes the use of another language. A majority of personnel involved in the production and performance of a live broadcast programming activity must be Mexican nationals. To perform in Mexico, a radio and television announcer or presentor who is not a Mexican national must obtain an authorization from the Secretaría de Gobernación. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Entertainment Services (Broadcasting, and Multipoint Distribution Systems and Cable Television) INDUSTRY CLASSIFICATION: CMAP 941105 Private Services of Production, Transmission and Retransmission of Television Programming (Limited to Broadcasting, Cable Television and Multipoint Distribution Systems) TYPE OF RESERVATION: National Treatment (Article 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Radio y Televisión, (Radio and Television Federal Law), Título IV (Funcionamiento), Capítulo III (Programación) Reglamento de la Ley Federal de Radio y Televisión y de la Ley de la Industria Cinematogr fica relativo al contenido de las transmisiones de Radio y Televisión (Regulations of the Radio and Television Federal Law and Regulation of the Motion Picture Industry Law relating to Broadcasting Content), Título III (Programación) Reglamento del Servicio de Televisión por Cable, (Cable Television Regulations), Capítulo VI (Programación) DESCRIPTION: Cross-Border Services and Investment The use of the Spanish language or Spanish subtitles is required for advertising broadcast or distributed in Mexico. Advertising included in programs transmitted directly from outside Mexico may not be broadcast in such programs when they are retransmitted or distributed in Mexico DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Telecommunications (Enhanced or Value-Added Services) INDUSTRY CLASSIFICATION: CMAP 720006 Other Telecomunications Services (Limited to Enhanced or Value-Added Services) TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) Local Presence (Article 1205) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Vías Generales de Comunicación (General Means of Communication Law), Libro Primero, Capítulo III (Concesiones, Permisos y Contratos) Reglamento de Telecomunicaciones (Telecommunications Regulations), Capítulo 4, (Permisos) Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Cross-border Services 1. A provider of enhanced or value-added services must obtain a permit issued by the Secretaría de Comunicaciones y Transportes. 2. Persons of Canada or the United States may provide all enhanced or value-added services, except videotext or enhanced packet switching services, without the need to establish local presence. 3. Videotext and enhanced packet switching services may not be provided on a cross-border basis. Investment 1. Investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides any telecommunication enhanced or value-added service, other than videotext or enhanced packet switching services. 2. Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. DURATION: Cross-border Services Paragraphs 2 and 3 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, a person of Canada or the United States may provide videotext or enhanced packet switching services without the need to establish a local presence in Mexico. Investment Paragraph 1 of the description shall govern upon entry into force of this Agreement. Commencing July 1, 1995, investors of another Party and their investments may own 100 percent of an enterprise established or to be established in Mexico that provides videotext or enhanced packet switching services. ================================================================ ANNEX I Schedule of Mexico SECTOR: Communications SUB-SECTOR: Transport Telecommunications General Means of Communication INDUSTRY CLASSIFICATION: CMAP 7200 Communications CMAP 7100 Transport CMAP 9411 Radio and Television TYPE OF RESERVATION: National Treatment (Articles 1102, 1202) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Vías Generales de Comunicación (General Means of Communication Law) Ley Federal de Radio y Televisión, (Radio and Television Federal Law) Reglamento del Servicio de Televisión por Cable (Cable Television Regulations) Reglamento de Telecomunicaciones (Telecommunications Regulations) DESCRIPTION: Investment Foreign Governments and Foreign state enterprises or their investments may not invest, directly or indirectly, in a Mexican enterprise providing services related to the general means of communication set out herein. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: INDUSTRY CLASSIFICATION: CMAP 501101 Residential or Housing Construction CMAP 501102 Non-residential Construction CMAP 501200 Construction of Urbanization Projects CMAP 501311 Construction of Industrial Plants CMAP 501312 Construction of Electricity Generation Plants CMAP 501321 Construction and Maintenance of Electricity Conduction Lines and Networks CMAP 501411 Mounting or Installing Concrete Structures CMAP 501412 Mounting or Installing Metallic Structures CMAP 501421 Marine and River Works CMAP 501422 Construction of Routes for Land Transportation CMAP 502001 Hydraulic and Sanitation Installations in Buildings CMAP 502002 Electrical Installations in Buildings CMAP 502003 Telecommunications Installations CMAP 502004 Other Special Installations CMAP 503001 Earth Movement CMAP 503002 Cement Works CMAP 503003 Underground Excavations CMAP 503004 Underwater Works CMAP 503005 Installation of Signs and Warnings CMAP 503006 Demolition CMAP 503007 Construction of Water Purification or Treatment Plants CMAP 503009 Drilling Water Wells CMAP 503010 Construction Activities not Elsewhere Classified TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment), Capítulos II y III Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that carry out construction activities as set out in the classification mentioned above. DURATION: Five years after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of such enterprises without Comisión Nacional de Inversiones Extranjeras' prior approval. ================================================================ ANNEX I Schedule of Mexico SECTOR: Construction SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: CMAP 503008 Exploration and drilling works and services done by specialized contractors excluding the case when these same works and services are done by personnel of PEMEX in the activities classified under industrial classification 220000. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Constitución Política de los Estados Unidos Mexicanos (United Mexican States Political Constitution), Título I Capítulo I. Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo (Regulatory Law of Article 27 of the United Mexican States Political Constitution in matters related with Petroleum) Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Capítulo I Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Risk-sharing services contracts are prohibited. Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party and their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico involved in "non-risk sharing" service contracts for the drilling of petroleum and gas wells. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Educational Services SUB-SECTOR: Private Schools INDUSTRY CLASSIFICATION: CMAP 921101 Preschool Private Educational Services CMAP 921102 Primary School Private Educational Services CMAP 921103 Secondary School Private Educational Services CMAP 921104 Middle High School Private Educational Services CMAP 921105 Higher Private Educational Services CMAP 921106 Private Educational Services that Combine Preschool, Primary, Secondary, Middle High and Higher Instruction TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) Ley Para la Coordinación de la Educación Superior (Law for the Coordination of the Higher Education), Capítulo II Ley Federal de Educación (Education Law), Capítulo III DESCRIPTION: Investment Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico that operates educational services as set out in the classification mentioned above. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 623050 Retail Sales of Gas of liquified petroleum gas (LPG), including the installation of fixed deposits when the facilities are built by the same establishment. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Capítulo I Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo de Petróleo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Distribución de Gas.(Regulations of the Distribution of LPG). Capítulos I y II (Autorizaciones y permisos) Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may engage in the distribution of liquified Petroleum gas. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Energy SUB-SECTOR: Commercialization of Petroleum Products INDUSTRY CLASSIFICATION: CMAP 6260000 Retail Outlets of Gasoline and Diesel. Includes Lubricants, Oils and Additives for Resale in these Retail Outlets. TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo (Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil) Reglamento de la Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo (Reglamentation of the Regulatory Law of Article 27 of the United Mexican States Political Constitution related to Oil). DESCRIPTION: Only Mexican nationals and Mexican enterprises with foreigners' exclusion clause may acquire, establish and operate retail outlets engaged in the resale of gasoline, diesel, lubricants, oils and additives. DURATION: The description shall govern upon entry into force of this Agreement ================================================================ ANNEX I Schedule of Mexico SECTOR: Fishing SUB─SECTOR: Fishing INDUSTRY CLASSIFICATION: CMAP 130011 Fishing on the High Seas CMAP 130012 Coastal Fishing CMAP 130013 Fresh Water Fishing CMAP 130014 Fishing in the Economic Exclusive Zone TYPE OF RESERVATION: National Treatment (Article 1102) Most-Favored-Nation Treatment (Article 1103) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley de Pesca (Fishing Law) Capítulo I. Ley de Navegación y Comercio Marítimo (Navigation and Maritime Commerce Law), Libro II Título Unico Capítulo V Ley Federal del Mar (Federal Sea Law) Ley Federal de Aguas (Federal Law of Water) Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). DESCRIPTION: Investment With respect to enterprises established or to be established in Mexico performing coastal fishing, fresh water fishing and fishing in the exclusive economic zone, investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of such enterprises. With respect to enterprises established or to be established in Mexico performing fishing on the high seas, prior approval of the Comision Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of enterprises established or to be established in Mexico performing fishing on the high seas. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Manufacturing and Assembly of Goods SUB-SECTOR: Auto Parts Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Industry Sector) of this Agreement. Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment). Reglamento de la Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment). Decreto para el fomento y modernización de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree"). Decreto que Determina Reglas para la Aplicación del Decreto para el Fomento y Modernización de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations"). DESCRIPTION: Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownwership interests of an enterprise established or to be established in Mexico and engaged in the auto parts industry. Investors of another Party and their investments that qualify as "national suppliers" may own 100% of an enterprise established or to be established in Mexico engaged in the manufactured of specified auto parts. To qualify as "national supplier", the enterprise must: (a) obtain a national value added calculated as set out in the "Auto Decree Implementing Regulations" of at least 20%; and (b) not be controlled or related, directly or indirectly, to a manufacturer of motor vehicles. DURATION: Annex 300-A (Trade and Investment in the Automotive Sectors) of Chapter Three (National Treatment and Market Access) shall govern. Commencing on the sixth year after the entry into force of this Agreement, investors of another Party and their investments may own 100 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in auto parts industry. (See also page I-M-39 of this Schedule performance requirements) ================================================================ ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Automotive Industry INDUSTRY CLASSIFICATION: CMAP 383103 Manufacturing of Parts and Accessories for Electrical Automotive Systems CMAP 3841 Automotive Industry. CMAP 384121 Manufacture and Assembly of Car and Truck Bodies and Tows CMAP 384122 Manufacture of Car and Trucks Motors and Their Parts CMAP 384123 Manufacture of Car and Truck Transmission System Parts CMAP 384124 Manufacture of Car and Truck Suspension System Parts CMAP 384125 Manufacture of Car and Truck Brake System Parts and Accessories CMAP 384126 Manufacture of Other Car and Truck Parts and Accessories TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) of this Agreement Decreto para el fomento y modernización de la Industria Automotriz (Decree for the Development and Modernization of the Automotive Industry) ("Auto Decree") Decreto que Determina Reglas para la Aplicación del Decreto para el Fomento y Modernización de la Industria Automotriz (Resolution that Establishes Rules for the Implementation of the Auto Decree) ("Auto Decree Implementing Regulations") DESCRIPTION: Investment Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern. A summary of performance requirements in the automotive industry follows: (a) National value added shall constitute at least 20% of the total value of sales of an enterprise of the autoparts industry or of a "National Supplier". In calculating the national value added, custom duties shall be included in the value of imports. (b) A manufacturer of motor vehicles must attain specified levels of national value added from suppliers of Mexican parts (enterprises of the autoparts industry and national suppliers) and must comply with specified trade balance requirements in order to receive permits for the importation of new motor vehicles. (c) Manufacturers of autotransportation vehicles may only import the types of autotransportation vehicles it produces in Mexico and in a quantity not exceed 50% of the number of such vehicles it produces in Mexico in a year. DURATION: Annex 300-A (Trade and Investment in the Automotive Sector) of Chapter Three (Market Access) shall govern upon entry into force of this Agreement Commencing on the sixth year after entry into force of this Agreement Mexico will eliminate restrictions on the number of an autotransportation vehicles that a manufacture autotransportation vehicles may import. Commencing on the eleventh year after the entry into force of this Agreement, Mexico will eliminate all performance requirements in the Auto Decree and the "Auto Decree Implementing Regulations". ================================================================ ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Maquiladora Industry INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Aduanera (Customs Law) Decreto para el Fomento y Operación de la Industria Maquiladora de Exportación (Decree for the Promotion and Operation of Maquiladora Industry for Export) DESCRIPTION: Investment Persons authorized by the Secretaría de Comercio y Fomento Industrial to operate under the "Maquiladora Decree" may not sell to the domestic market more than 50% of the total value of its exports. DURATION: Domestic market may not exceed: (a) during the first year of entry into force of this Agreement, 55% of the total value of its exports; (b) during the second year after the date of entry into force of this Agreement, 60% of the total value of its exports; (c) during the third year after the date of entry into force of this Agreement, 65% of the total value of its exports; (d) during the fourth year after the date of entry into force of this Agreement, 70% of the total value of its exports; (e) during the fifth year after the date of entry into force of this Agreement, 75% of the total value of its exports; (f) during the sixth year after the date of entry into force of this Agreement, 80% of the total value of its exports; (g) during the seventh year after the date of entry into force of this Agreement, 85% of the total value of its exports; (h) from the eighth year after the date of entry into force of this Agreement and thereafter, persons may not be subject to this requirement. ================================================================ ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act) Decreto para el Fomento y Operación de las Empresas Altamente Exportadoras" (Decree for the Promotion and Operation of High-Export Firms) DESCRIPTION: Investment 1. "Direct exporters" authorized by the Secretaría de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 40% of their total sales or $2,000,000. U.S. dollars. 2. "Indirect exporters" authorized by the Secretaría de Comercio y Fomento Industrial to operate under the "ALTEX Decree" must export at least 50% of their total sales. DURATION: Seven years after the entry into force of this Agreement, direct and indirect exporters will not be subject to the above mencioned percentage. ================================================================ ANNEX I Schedule of Mexico SECTOR: Manufacture of Goods SUB-SECTOR: Not applicable INDUSTRY CLASSIFICATION: Not applicable TYPE OF RESERVATION: Performance Requirements (Article 1106) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior (Mexican Foreign Trade Act). Ley Aduanera (Customs Law). Programa de Importación Temporal para Producir Artículos de Exportación (Temporal Import Program to Produce Export Goods). DESCRIPTION: Investment Persons authorized by Secretaría de Comercio y Fomento Industrial to operate under the "PITEX Decree" are required to: (a) export at least 30% of their total production for the temporary entry of machinery, equipment, instruments, molds and durable tools used in the manufacturing process; equipment used to handle materials directly related to exported such goods; and research, industrial security, quality control, communication, training personnel, computer and environmental devices, equipment and accessories or others related with the process of the goods exported. (b) export at least 10% of their total production or $500,000 U.S.dollars for the temporary import of raw materials, parts and components totally used as inputs on the export merchandise, packages, bottles, containers and trailer's containers which are fully used to contain export merchandise; fuel, lubricants, auxiliary materials, reparation of tools and equipment consumed in the export process. DURATION: As from the eighth year after the date of entry into force of this Agreement such persons will not be subject to the above mentioned percentages. ================================================================ ANNEX I Schedule of Mexico SECTOR: Manufacturing Industry SUB-SECTOR: Artificial explosives, fireworks, firearms and cartridges INDUSTRY CLASSIFICATION: CMAP 352236 Manufacturing of Artificial Explosives and Fireworks CMAP 382208 Manufacturing of Firearms and Cartridges TYPE OF RESERVATION: National Treatment (Article 1102) Senior Management (Article 1107) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Federal de Armas de Fuego y Explosivos (Federal Law of Firearms and Explosives) Título III Capítulo I Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Federal de Armas de Fuego y Explosivos (Regulations of the Federal Law of Firearms and Explosives) Capítulo IV Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Investors of another Party and their investments may own, directly or indirectly, up to 49 percent of the ownership interest of an enterprise established or to be established in Mexico that manufacture artificial explosives and fireworks, and ammunition as set out in the classification mentioned above. Foreigners cannot appoint directors nor become members of the board of directors of such enterprises. DURATION: Indeterminate ================================================================ ANNEX I Schedule of Mexico SECTOR: Mining SUB-SECTOR: Extraction and Exploitation of Minerals INDUSTRY CLASSIFICATION: CMAP 210000 Exploitation of Mineral Carbon CMAP 231000 Extraction of Minerals Containing Iron CMAP 232001 Extraction of Minerals Containing Gold, Silver and Other Precious Minerals and Metals CMAP 232002 Extraction of Mercury and Antimony CMAP 232003 Extraction of Industrial Minerals Containing Lead and Zinc CMAP 232004 Extraction of Minerals Containing Copper CMAP 232006 Extraction of Other Metallic Minerals Not Containing Iron CMAP 291001 Extraction of Sand and Gravel CMAP 291002 Extraction of Marble and other Gravels for construction CMAP 291003 Exploitation of Feldspar CMAP 291004 Extraction of Kaolin, Clay and Refractory Minerals CMAP 291005 Extraction of Limestones CMAP 291006 Exploitation of Gypsum CMAP 292001 Extraction of Barium Oxide CMAP 292002 Extraction of Phosphoric Rock CMAP 292003 Extraction of Fluorite CMAP 292004 Extraction of Sulphur CMAP 292005 Extraction of Other Minerals in Order to Obtain Chemicals CMAP 292006 Extraction of Salt CMAP 292007 Extraction of Graphite CMAP 292008 Extraction of other Non Metallic Minerals TYPE OF RESERVATION: National Treatment (Article 1102) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Ley Minera (Mining Law) Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Law to Promote Mexican Investment and to Regulate Foreign Investment) Reglamento de la Ley Minera (Mining Law Regulations) Reglamento de la Ley Para Promover la Inversión Mexicana y Regular la Inversión Extranjera (Regulations of the Law to Promote Mexican Investment and to Regulate Foreign Investment) DESCRIPTION: Investment Prior approval of the Comisión Nacional de Inversiones Extranjeras is required for investors of another Party or their investments to own, directly or indirectly, more than 49 percent of the ownership interests of an enterprise established or to be established in Mexico engaged in the extraction or exploitation of all kind of minerals.