Elimination of tariffs imposed by the United States of America on Mexican and Canadian Steel and Aluminum under Section 232, and retaliatory measures by Canada and Mexico.
By José Alberto Campos-Vargas, María Luisa Mendoza-López, Juan Carlos Jiménez-Labora Mateos, Laura Elisa Sánchez-Barrón, and Ernesto Vega-Zaldívar.
On May 19, 2019, the President of the United States published the “Proclamation on Adjusting Imports of Steel into the United States” and the “Proclamation on Adjusting Imports of Aluminum into the United States,” whereby Mexico and Canada were excluded from the tariffs imposed on steel and aluminum for representing a threat to U.S. national security (Section 232 measures).
Accordingly, today the President of Mexico published in the Federal Official Gazette a Decree modifying the Decree published on June 5, 2018 (see here), thus eliminating the retaliatory measures imposed on U.S. goods as a response to Section 232 measures.
Consequently, as of May 20, 2019, the retaliatory measures will no longer be in force and U.S. goods listed in the Decree of June 5, 2018, may be imported into Mexico under North American Free Trade Agreement (NAFTA) preferential treatment.
The elimination of both measures (Section 232 and the retaliatory measures) derives from the discussions between the NAFTA countries on alternative means to address the alleged threat to national security posed by imports from Canada and Mexico
According to the “Joint Statement by the United States and Mexico”, the Parties:
Eliminate the measures.
- Will terminate all pending litigation in the World Trade Organization.
- Implement measures to prevent importation under unfair trade competition (dumping or subsidies); and transshipment of non-originating steel and aluminum.
- Establish consultations in case imports of steel and aluminum “surge meaningfully beyond historic volumes of trade on a period of time”.
The elimination of these measures is good news for the pending ratification of the United States, Mexico and Canada Agreement (USMCA), since those were the greatest obstacles standing between the Parties.
Our team of experts in foreign trade and customs is closely monitoring this matter and will keep you updated on the USMCA ratification and the effects this will have on your international trade operations.
Self-Regularization Program in Money Laundering Prevention
By Daniel Maldonado-Alcantara, Alberto Lascurain-Grosvenor, Oscar Alejandro Quiroz-Chávez, and Alejandro Jaime García-Escárzaga
The Ministry of Finance and Public Credit introduced the General Provisions regulating the Self-Regularization Programs (the “Provisions”).
These Provisions include the rules that will need to be complied with by obligated parties in breach of their obligations set forth in articles 17 and 18 of the Federal Law for the Prevention and Identification of Transactions with Funds from Illegal Sources (the “Mexican Anti-Money Laundering Law”), for the period of July 1, 2013 to December 31, 2018, with prior authorization from the Tax Administration Service (SAT), provided that they are up to date with their 2019 obligations.
For the abovementioned purposes, the obligated parties, in order to obtain authorization to participate in the self-regularization program, must submit their application through the Anti-Money Laundering Website (SPPLD), within thirty business days from the date in which the Provisions enter into force, this is, by and including August 02, 2019, stating under oath their wish to correct their irregularities or omissions.
This request must include the following:
- The description of the irregularities or breaches.
- Details of the circumstances that led to said irregularities or breaches.
- Description of the actions that are to be adopted to correct the breach.
- Proving that they do not fall under any inadmissibility provisions.
The self-regulation program must be completed within six months, starting from August 3, 2019.
The authorization of the self-regularization can be requested through the SPPLD. This will not limit the SAT’s verification or compliance monitoring.
These Provisions enter into force 45 business days after their publication in the Official Gazette of the Federation, this was, on June 21, 2019.
At Sanchez Devanny we are at your service to assist you with the regularization of anti-money laundering obligations, including advice and training of your staff, as well as for the development and/or adjustment of your anti-money laundering policy/program and to review and assist you with the filing of notices on the anti-money laundering website.