A TREATISE FOR LEGAL PRACTITIONERS
AND
INTERNATIONAL INVESTORS
   
   
 
SYNOPSIS OF MEXICAN LEGISLATION ON BUSINESS,
INVESTMENT AND TRADE
(Major Codes, Federal Statutes and Regulations)
 
   
 
Appendix One
   
 
1. ADMINISTRATIVE LAW AND GOVERNMENT
1.1 Federal Public Administration Act
(Ley Orgánica de la Administración Pública Federal),
D.O.
of December 29, 1976,
As amended by D.O. December 28, 1994,
It entered into force on December 29, 1994.
   
  This federal statute establishes the structure and functions of Mexico’s federal public administration, which is divided into two parts: (a) centralized (Centralizada) and (b) parastate (Paraestatal). The centralized public administration includes the Presidency of the Republic, 19 federal departments (Secretarías de Estado) and agencies (Departmentos administrativos). The parastate public administration is formed by descentralized entities, government-owned corporations, national institutions of credit, insurance and bonds, and Fideicomisos.Composed by fifty sections (Artículos), this statute provides detailed information regarding the powers and functions of each of the 19 federal departments which form the President’s cabinet.
   
1.2 Federal Act of Parastate Entities
(Ley Federal de las Entidades Paraestatales),
D.O.
of May 14, 1986,
It entered into force on May 15, 1986
As amended by D.O. of December 24, 1996
It entered into force on December 25, 1996
   
  This federal statute details the provisions of Article 90 of the Mexican Constitution. It regulates the organization, functions and control of the parastate entities of Mexico’s federal public administration, as defined by the Federal Public Administration Act. It is composed of sixty eight sections (Artículos).
   
1.3 Regulations to the Federal Act of Parastate Entities
(Reglamento de la Ley Federal de las Entidades Paraestatales),
D.O.
of January 29, 1990
It entered into force on January 30, 1990
   
  Composed of 34 sections (Artículos), these regulations detail the establishment, organization, control and extinction of parastate entities.
   
 
2. AMPARO
2.1 Federal Amparo Act
(Ley de Amparo Reglamentaria de los Artículos 103 y 107 de la Constitución Política de los Estados Unidos Mexicanos),
D.O.
of January 10, 1936.
As amended by D.O. of December 21, 1987.
It entered into force on January 15, 1988.
   
  This federal statute governs the suit of Amparo both substantively and procedurally, as provided for by Articles 103 and 107 of the Constitution. Amparo was created (a) to protect any infringement of constitutional rights (Articles 1-28) committed by any authority; (b) to challenge federal laws or actions by federal authorities which injure or restrict the sovereignty of States; and, c) to challenge State laws or actions by State authorities which invade areas under federal jurisdiction. The statute regulates also appeals (Recursos), jurisprudence (Jurisprudencia) and the responsibility that may be incurred by federal judges and authorities. It is composed of 234 sections (Articles).
   
2.2 Act of the Federal Judicial Power
(Ley Orgánica del Poder Judicial de la Federación)
D.O.
of January 5, 1988,
As amended by D.O. of May 26, 1995,
It entered into force on May 27, 1995.
   
  Amended by President Zedillo as a consequence of a profound change to Mexico’s Federal Judicial Power (see D.O. of December 31, 1994), this statute regulates the federal judicial power exercised in that country by: 1) the Supreme Court, 2) Circuit college courts, 3) Circuit unitary courts, 4) District courts, 5) the Council of the Federal Judiciary, 6) the Federal jury of citizens (Jurado Federal de Ciudadanos) and 7) certain courts in the States and in the Federal District (Mexico City). This statute resembles the Judiciary Act of 1789.
   
2.3 Federal Act of Acquisitions and Public Works
(Ley de Adquisiciones y Obras Públicas)
D.O.
of December 30, 1993
As amended by D.O. of August 5, 1994
It entered into force on January 1, 1994 and August 6, 1994.
   
  This statute is of public order and social interest. It regulates actions regarding the planning, programming, budgeting, expenditures, implementation, conservation, maintenance and control of acquisitions and leases of movable assets; rendering of services of any kind; as well as public works and related services entered into by any public entity at the federal or state levels, including the Federal District (Mexico City) and entities of the parastate public administration. It is composed of 99 sections (Artículos).
   
2.5 Regulations to the Federal Act of Acquisitions and Public Works
(Reglamento de la Ley de Obras Públicas)
D.O.
of February 24, 1985
It entered into force on the following day of its publication (except for Articles 43, 44 and 46 which entered into force 90 days after their publication).
   
  These regulations are composed of 59 sections (Artículos), addressing these questions: General provisions (Arts. 1-5); planning, programming and budgeting of public works (Arts. 6-15); official listing of contractors (Arts. 16-23); contracts and construction of public works (Arts. 24-54); works under direct administration (Arts. 55-57); and services relative to public works (Arts. 58-59).
   
2.6 Federal Act of Responsibilities of Public Servants
(Ley Federal de Responsabilidades de los Servidores Públicos)
D.O.
of January 1, 1994
It entered into force on February 1, 1994.
   
  This statute regulates in detail Title IV of Mexico’s Constitution (Articles 108-114). It imposes liabilities and administrative sanctions to public servants; it enumerates the obligations applicable to the public service; it establishes the competent authorities and the procedures to be followed in these cases, including the patrimonial registry of public officers. It is composed by 90 sections (Artículos).
   
2.7 Regulatory Act of Article 27 of the Federal Constitution in the Oil Area
(Ley Reglamentaria del Artículo 27 Constitucional en el Ramo del Petróleo)
D.O.
of November 6, 1940
As amended by D.O. of May 11, 1995 and November 13, 1996
It entered into force on May 12, 1996
   
 

This federal statute is based on the legal premise that "[I]t corresponds to the Mexican nation the direct, inalienable and permanent ownership over all hydrocarbons found within its national territory, including the continental shelf, in layers or deposits, whatever their physical condition, including intermediate stages, and which compose crude mineral oil, or are together with it or derive from it. Only the nation shall be able to undertake the different types of hydrocarbon [commercial] exploitations in the terms [provided by this Act.]" (Articles 1 and 2). This is considered a "Regulatory Act" (Ley Reglamentaria) because its legal substance derives directly from Article 27 of the Federal Constitution. This federal statute is composed of 16 sections (Artículos) which refer to: the concept of the oil industry (Article 2); oil exploration and exploitation as an strategic activity (Article 4); contracts on construction and rendering of services entered into by PEMEX (Petróleos Mexicanos) (Article 6); permits issued by the Secretariat of Energy (Secretariat of Energy) for the conduct of surveys, prospecting and superficial explorations (Article 7); oil reserve zones (Article 8); federal jurisdiction (Article 9); regulation of gas activities (Article 14); administrative offenses and sanctions (Article 15), etc.

   
 
3. ARBITRATION
(See Conflict of Laws, 13.3 Code of Commerce)
   
 
4. ASSEMBLY PLANTS
4.1 Decree on the Promotion & Operation of the Maquiladora Industry of 1996
(Decreto que Reforma, Adiciona y Deroga los Artículos que se indican en el diverso para el Fomento y Operación de la Industria Maquiladora de Exportación)
D.O.
of October 23, 1996
It entered into force on October 28, 1996
   
  This presidential decree amends the so-called "Maquiladora Decree" (D.O. of December 22, 1989, as amended by D.O. of December 24, 1993) enacted to promote the establishment of exporting Maquiladora industries. In symmetry with Mexico’s Program of Industrial Policy and Foreign Trade (Programa de Política Industrial y Comercio Exterior), this decree introduces drastic changes to 23 articles of the original 1989 decree.
   
  In general, the changes made are of the essence for the establishment, operation, management and termination of exporting Maquiladora industries. The decree defines several new terms, such as "Submaquila," "Indirect exporter," "Export proof" (Constancia de exportación), "Mermas," "Obsolete equipment and machinery," etc. It also establishes new and more reasonable terms allowing Maquiladoras to proceed (Tacit or implicit consent, known as Positiva ficta) in certain situations, involving a) Secofi’s favorable answers to a given program or extension (10 days); b) sale of waste (7 days); c) transfers (7 days), etc. The decree imposes the obligation to persons who benefit from its provisions to provide pertinent information to Secofi and SHCP. The decree empowers Secofi to deny authorization to new programs when they affect the "Non-Maquiladora national industry." The decree includes two Annexes regarding three-month reports and basic information to initiate a Maquiladora exporting program, respectively.
   
 
5. BANKING LAW
5.1 Credit Institutions Act
(Ley de Instituciones de Crédito)
D.O. of July 18, 1990
It entered into force on July 19, 1990
As amended by D.O. of February 15, 1995 and April 28, 1995.
   
  This federal Act regulates banking and credit services, and their authorized activities and operations; their sound and balanced development; the protection of the public interests; and the specific terms under which the Mexican State shall conduct the financial direction of the Mexican Banking System. Composed by 143 sections (Artículos), this statute governs credit institutions and their operations; accountability procedures; prohibitions, administrative sanctions and crimes; the protection of the interests of the public; and the National Banking Commission.
   
5.2 Bank and Credit Regulations
(Ley Reglamentaria del Servicio Público de Banca y Crédito)
D.O.
of December 23, 1993
It entered into force on January 1, 1994
   
  These federal regulations, which parallel the substance of the Credit Institutions Act, detail its provisions and provide mechanisms for its institutional and administrative enforcement. These regulations are composed of 112 sections (Artículos).
   
5.3 Act of the Bank of Mexico
(Ley del Banco de México)
D.O.
of December 23, 1993
It entered into force on April 1, 1994
   
  The Bank of Mexico is that country’s central bank (Banco central). It is an autonomous, public law entity governed by this federal statute. This bank has been established to provide that country with national money (Moneda nacional), endeavoring to attain its sound and financial stability. The Bank is also empowered to promote the sound development of its financial system and to propitiate the good functioning of its system of payments. This Act is composed of 68 sections (Artículos).
   
5.4. General Act of Organizations and Auxiliary Activities of Credit
(Ley General de Organizaciones y Actividades Auxiliares de Crédito)
D.O.
of January 14, 1985
It entered into force on January 15, 1985
As amended by D.O. of July 15 and December 23, 1993.
It entered into force on July 16, 1993 and January 1, 1994, respectively.
   
  This federal statute regulates the organization and operations of auxiliary organizations of credit. The Secretariat of the Treasury and Public Credit (SHCP) is the competent organ to interpret this statute and regulate these organizations. This Act is formed by 103 sections (Artículos).
   
5.5. The Stock Market Act
(Ley del Mercado de Valores)
D.O.
of January 2, 1975
It entered into force on January 3, 1975
As amended by D.O. of December 23, 1993 and February 15, 1995
It entered into force on January 1, 1994 and February 16, 1995, respectively.
   
This federal statute regulates the public offering of public stock, their marketing, the activities of individuals involved in it, the National Stock Registry and Intermediaries (Registro Nacional de Valores e Intermediarios), and the authorities and services associated with the stock market. The Act consists of 117 sections (Artículos).
   
5.6. Investment Companies Act
(Ley de Sociedades de Inversión)
D.O.
of January 14, 1985
It entered into force on April 14, 1985
As amended by D.O. of December 23, 1993 and April 28, 1995
It entered into force on January 1, 1994 and April 29, 1995, respectively.
   
  This federal Act regulates the organization and operations of investment companies, their marketing and the corresponding authorities and services. Among its public policies, this statute promotes investment companies, their balanced development and the establishment of conditions endeavoring to attain a) the strengthening and descentralization of the stock market; b) the access of medium and small investors to it; c) capital democratization; and d) to contribute to the financing of Mexico’s productive plant. This Act is formed by 45 technical sections (Artículos).
   
5.7 Act to Regulate Financial Groups
(Ley para Regular las Agrupaciones Financieras)
D.O.
of July 18, 1990
It entered into force on July 19, 1990
As amended by D.O. of February 15, 1995
It entered into force on February 16, 1995
   
  This federal Act regulates the organizational and operational bases of financial groups; establishes the rules for their operations; and protects of the interests of those who enter into transactions with said financial groups. The Act is composed by 36 lengthy sections (Artículos).
   
 
6. BANKRUPTUCY
6.1. Bankruptcy Act
(Ley de Quiebras y Suspensión de Pagos)
D.O.
of April 20, 1943
It entered into force on July 20, 1943
   
  This federal statute (jointly with the Code of Commerce) governs bankruptcy and suspension of payments in Mexico. The Act comprises 469 sections (Artículos) divided into eight Titles, addressing: 1) Legal notion and declaration of bankruptcy; 2) Major organs involved in a bankruptcy; 3) Legal effects of the bankruptcy declaration; 4) Bankruptcy operations; 5) Bankruptcy termination and rehabilitation; 6) Preventing bankruptcy; 7) Bankruptcies and special suspension of payments; and 8) Appellate measures in bankruptcy and suspension of payments suits.
   
 
7. CIVIL LAW AND PROCEDURE
(See Conflict of Laws)
   
 
8. COMMERCIAL LAW
8.1 Code of Commerce (or Commercial Code)
(Código de Comercio)
D.O.
of October 7-13, 1889
It entered into force on January 1, 1890,
As amended by D.O. of December 29, 1992.
   
  This federal code, originally enacted in late 1889 and amended several times, applies only to acts of commerce, as conducted by merchants. It regulates common obligations of those who engage in commerce, as well as commercial transactions, mercantile contracts, agents, loans, pledges, purchase and sale, overland commerce and inland waterways carriers, etc. In addition, this code governs mercantile legal actions which are divided into ordinary and summary execution actions. Title IV of this code (Artículos 1415-1463), as amended in 1988 (D.O. of January 4, 1989), is devoted to commercial arbitration (See Conflict of Laws, 13.3 Code of Commerce).
   
8.2 Civil Code for the Federal District on Ordinary Matters and for the entire Republic on Federal Matters (also known as the Federal Civil Code)
(Código Civil para el Distrito Federal en Materia Común y para toda la República en Materia Federal)
D.O.
of May 26, 1928
It entered into force on October 1, 1928 (D.O. of September 1, 1932)
As amended by D.O. of January 7, 1988
It entered into force on January 8, 1988
   
  Composed by 3,074 sections (Artículos), this national code exercised a profound influence upon the formulation of the individual civil codes which were enacted by each of the 31 states forming the Republic of Mexico. Inspired by the Code of Napoleon of 1804 and the Civil Code of Spain, among others, Mexico’s Civil Code is divided into four large books: I. Civil status of persons; II. Assets (Bienes); III. Succesions; and IV. Obligations. The first part of Book IV refers to contracts, as the source of obligations (Articles 1792-1859). Specific sections in this code refer to, inter alia, the purchase-sale contract (Arts. 2248-2322); donations (Arts. 2332-2383); leases and sub-leases (Arts. 2398-2496); commodatum (Arts. 2497-2515); deposit (Arts. 2516-2538); agency (Arts. 2546-2584); rendering of professional services (Arts. 2606-2615); construction (Arts. 2616-2645); lodging (Arts. 2666-2669); guarantees (Arts. 2749-2855); pledges (Arts.2856-2892); mortgages (Arts.2893-2943); and compromise and settlement (Arts. 2944-2963). The code describes the functions of public registry as an institution, including the Civil Registry (Arts. 35-138) and the Public Registry of Property (Arts. 2999-3074).
   
 
9. COMMERCIAL PAPER
(See Negotiable Instruments)
   
 
10. CONTRACTS
(See Commercial Law)
   
 
11. CONFLICT OF LAWS
11.1 Civil Code of the Federal District (Mexico City)
(Código Civil para el Distrito Federal en Materia Común y para toda la República en Materia Federal)
D.O.
of May 26, 1928
It entered into force on October 1, 1932 (D.O. of September 1, 1932)
As amended by D.O. of January 7, 1988
It entered into force on January 8, 1988
   
  From 1928 until 1988, Mexico lacked conflict of laws rules since the doctrine of absolute territorialism impeded the application of foreign law and the adherence of Mexico to the applicable international conventions in this area was practically nil. This situation changed because of the 1988 amendments to the Federal Civil Code and other major codes. Today, specific sections of the Federal Civil Code (Articles 12-15), read in conjunction with the provisions of the Federal Code of Civil Procedure (Articles 543-556), the Code of Commerce (Artículos 1415-1463) and the Code of Civil Procedure of the Federal District provide a more complete and systematic set of conflict of laws rules in symmetry with the regional and international conventions.
   
11.2 Federal Code of Civil Procedure
(Código Federal de Procedimientos Civiles)
D.O.
of February 24, 1942
It entered into force on February 25, 1942
As amended by D.O. of January 7, 1988
It entered into force on January 8, 1988
   
  As a result of the 1988 amendments, a Fourth Book on "International Procedural Cooperation" was added to this code (Articles 543-577). This book governs general principles (Articles 543-548); letters rogatory (Articles 549-556); jurisdictional matters (Articles 557-558); reception of evidence from abroad (Articles 559-563); jurisdiction regarding enforcement of judgments (Articles 564-568), and enforcement of judgments (Articles 569-577).
   
11.3 Code of Commerce
(Código de Comercio)
D.O.
of October 7-13, 1889
It entered into force on January 1, 1890
As amended by D.O. of January 4, 1989
It entered into force on January 5, 1989
   
  Although originally enacted in 1890, this Code was amended in 1989 to add a section on "Commercial Arbitration" (Articles 1415-1463). This section regulates general principles (Articles 1415-1422); the arbitral agreement (Articles 1423-1425); composition of the arbitral court (Articles 1426-1431); jurisdiction of the arbitral court (Articles 1432-1433); arbitral proceedings (Articles 1434-1444); rendering of the award and ending of the proceedings (Articles 1445-1451); expenses (Articles 1452-1456); nullity of the award (Articles 1457-1460); and recognition and enforcement of awards (Articles 1461-1463).
   
11.4 Code of Civil Procedure of the Federal District (Mexico City)
(Código de Procedimientos Civiles para el Distrito Federal)
D.O.
of September 1-21, 1932
It entered into force on October 1, 1932
As amended by D.O. of January 12, 1988
It entered into force on January 13, 1988
   
  First enacted in 1932, this Code was amended in 1988 to add Chapter VI on "International Procedural Cooperation" (Articles 604-608). This new chapter regulates letters rogatory, the so-called "Homologación," recognition and enforcement of foreign judgments and arbitral awards, reciprocity, and documentation requirements.
   
 

12. COPYRIGHT
(See Industrial Property)

   
   
 
13. CORPORATIONS
13.1 General Act of Commercial Corporations
(Ley General de Sociedades Mercantiles)
D.O.
of August 4, 1934 and August 28, 1934 (Fé de Erratas)
It entered into effect the day of their publication in the D.O.
As amended by D.O. of June 11, 1992
It entered into force on June 12, 1992
   
 

This federal statute regulates these six different types of mercantile or commercial corporations legally recognized in Mexico: 1) Collective name corporation (Sociedad en nombre colectivo); 2) Limited partnership (Non-shares) (Sociedad en comandita simple); 3) Limited liability corporation (Sociedad de responsabilidad limitada); 4) Anonymous society (Sociedad anónima); 5) Limited partnership (Share represented capital) (Sociedad en comandita por acciones); and, 6) Cooperatives (Sociedad cooperativa). Chapters IX, X and XI of this statute address the merging, transformation, division and liquidation of corporations (Artículos 222-249). Articles 250 and 251 specifically refer to "foreign corporations." (Sociedades extranjeras). The Civil Code regulates also certain aspects of societies and associations. This statute is composed by 259 sections (Artículos).

   
 
14. CUSTOMS LAW
   
14.1 Federal Customs Act
(Ley Aduanera)
D.O.
of December 30, 1981
It entered into force on July 1, 1992
As amended by D.O. of December 15, 1995
It entered into force on April 1, 1996
   
  This federal statute regulates the entry into and the exit from Mexico of all kinds of goods (Mercancías), including their means of transportation, and the customs law documentation associated with them. It applies to owners, senders, agents, customs brokers or any other individual or legal entity involved in the introduction, extraction, custody, storage and handling of goods, including temporary importation and exportation and especially taxes. It is composed by 203 sections (Artículos) divided into nine Titles. This statute regulates also the newly established "Border Strip" and "Regional Strip;" official functions of federal customs agencies and fiscal authorities; and the activities and functions of customs agents, customs representatives and customs evaluators; and customs violations, sanctions and fines. In addition to this Act and its Regulations, customs law matters are also governed by numerous technical Acuerdos and Circulares issued by the Secretariat of the Treasury and Public Credit (SHCP) which is the federal agency with exclusive jurisdiction over these matters.
   
14.2 Customs Regulations
(Reglamento de la Ley Aduanera)
D.O.
of June 18, 1982
It entered into force on July 1, 1982
As amended by D.O. of June 6, 1996
It entered into force on June 14, 1996
   
  Formed by 198 sections (Artículos), these federal regulations detail the provisions of the Federal Customs Act including entry into and exit of goods to Mexico; means of transportation; loading and unloading of cargo; mail carriers; customs deposits; fiscal precincts; customs inspections; taxes, quotas, compensations, rules and other non-tariff restrictions to trade; exemptions; imports and exports; and the manner to make fiscal payments; temporary importation; air and maritime transportation; containers; port developments; transshipments; border and regional strips and Maquiladoras; free zones; customs authorities and functions; customs violations, sanctions and fines, and customs agents and customs brokers.
   
14.3 Custons Taxes
(Ley Federal de Derechos)
D.O.
of July 11, 1996 and December 30, 1996
It entered into force on January 1, 1997
   
  Some of the provisions of this federal statute impose different taxes (i.e., Derechos) to trade activities governed by customs regulations.
   
14.4 Foreign Trade Resolutions
(Resoluciones de Comercio Exterior)
D.O.
of June 13 and 14, 1996
It entered into force on June 14 and 15, 1996
   
  These resolutions are enacted by the Secretariat of the Treasury and Public Credit (SHCP) to govern specific aspects of foreign trade: to update taxes, to establish official forms and other documents; to set up working schedules for customs offices and agencies, etc.
   
 
15. ENVIRONMENTAL LAW
15.1 General Act of Ecological Balance and Environmental Protection
(Ley General del Equilibrio Ecológico y la Protección del Ambiente)
D.O.
of January 28, 1988
As amended by D.O. of December 13, 1996
It entered into force on December 14, 1996
   
  This federal statute constitutes the most comprehensive legislation ever enacted by Mexico in the area of environmental protection. This Act applies to the Federal District (Mexico City) in ordinary matters and to the entire Republic in federal matters. It includes sections devoted to jurisdiction, environmental policy and instruments; biodiversity and natural protected areas; wildlife flora and fauna; sustainable utilization of the natural resources such as water, soil and non-renewable resources; environmental protection of air, water, soil, hazardous activities, toxic waste, nuclear energy and other polluting sources (e.g.: noise, vibrations, heat, light, etc.). It also addresses questions involving social participation, the right to environmental information, control measures and safety, and sanctions. Originally enacted in 1988, this statute was substantially amended in late 1996.
   
  These changes were made to put Mexico’s environmental regime in symmetry with the principle of sustainable development, promote a gradual descentralization to favor individual States, encourage social participation, establish the right to environmental information and reduce the discretion of public authorities in this area. Furthermore, as a result of the 1996 amendments, several environmental felonies (Delitos Ambientales) were added to the Federal Penal Code (Código Penal Federal, Articles 414-423). This Act consists of 202 sections (Artículos). The enforcement of environmental provisions corresponds, within their respective jurisdictions, to the Secretariats of the Environment (SEMERNAP); Agriculture and Hydraulic Resources; the Navy; Mines and Energy; Transportation and Communications, and the Office of the Attorney General of the Republic.
   
15.2 Hazardous Waste Regulations
(Reglamento General de la Ley del Equilibrio Ecológico y la Protección al Ambiente en Materia de Residuos Peligrosos)
D.O.
of November 25, 1988
   
  These federal regulations, composed of 63 sections (Artículos), regulate the generation, handling, import and export, control and safety, and sanctions applicable to hazardous wastes. This area is exclusively reserved to the Federal Executive through SEMERNAP (Artículos 150-153, Environmental Act).
   
15.3 Decree for the Importation and Exportation of Hazardous Waste
(Decreto relativo a la Importación o Exportación de Materiales o Residuos Peligrosos que por su Naturaleza puedan causar Daños al Medio Ambiente o a la Propiedad, o Constituyen un Riesgo para la Salud o Bienestar Públicos)
D.O.
of January 19, 1987
It entered into force on January 20, 1987
   
  Formed by 20 sections (Artículos), this federal decree establishes the procedure which must be followed to import and export any hazardous materials or waste which may cause environmental injury or damage to property, or represent a risk to health or public welfare, including storage, recycling, transportation, ecological waybills (Guías Ecológicas), sanctions and the legal definition of hazardous materials or waste (Materiales o residuos peligrosos).
   
15.4 Official Forms to be Used to Report Hazardous Residues
(Acuerdo por el que se dan a conocer los Formatos en los que la Industria Nacional debe Declarar el Volumen y Tipo de Generación de Residuos Peligrosos)
D.O.
of May 3, 1989
It entered into force on May 4, 1989
   
  This federal Acuerdo, issued by the SEDUE (now SEMERNAP), establishes the three types of official form (Manifiesto) that Mexican industries must fill out to report to SEMERNAP 1) the generation (Manifiesto para Empresas generadoras de Residuos Peligrosos); 2) delivery, transport and reception (Manifiesto de Entrega, Transporte y Recepción de Residuos Peligrosos); and 3) the accidental spillage of hazardous residues (Manifiesto para Casos de Derrame de Residuos Peligrosos por Accidente).
   
15.5 Regulations for the Prevention and Control of Water Contamination
(Reglamento para la Prevención y Control de la Contaminación de Aguas)
D.O.
of March 29, 1973
It entered into force on May 29, 1973.
   
  Formed by 70 sections (Artículos), these federal regulations govern the prevention and control of water contamination in coastal areas; residual, surface and drainage waters; treatment and purification; technical standards, sanctions, etc.
   
15.6 Regulations Against Noise Pollution
(Reglamento para la Protección del Ambiente contra la Contaminación Originada por la Emisión del Ruido)
D.O.
of December 6, 1982
It entered into force on February 6, 1983.
   
  Formed by 79 sections (Artículos), these federal regulations govern the prevention and control of noise pollution, including legal definitions; sources and technical standards; education measures; monitoring, inspections and sanctions.
   
15.7 Regulations to Prevent and Control Marine Pollution
(Reglamento para Prevenir y Controlar la Contaminación del Mar por Vertimiento de Desechos y Otras Materias)
D.O.
of January 23, 1979
It entered into force on January 24, 1979.
   
  Formed by 34 sections (Artículos), these federal regulations govern the jurisdiction; procedures; inspections and monitoring; preventive measures; and general provisions. Three technical annexes enumerate polluting substances and compounds.
   
15.8 Listing of Highly Hazardous Activities
(Acuerdo que contiene el Primer Listado de Actividades Altamente Riesgosas)
D.O.
of March 28, 1990
It entered into force on March 29, 1990.
   
 

This official Acuerdo, issued by SEMERNAP and formed by 7 sections (Artículos), contains the first listing of highly hazardous activities classified by specific substances, volume, physical state, etc. These activities were chosen and enumerated based on a number of factors, whether natural or man made, associated with flammable, explosive, toxic, reactive, radioactive, corrosive or biological substances.

   
 
16. FIDEICOMISO
16.1 Federal Constitution of Mexico, Art. 27 (I)
(Constitución Política de los Estados Unidos Mexicanos)
D.O.
of February 5, 1917
It entered into force on May 1, 1917.
   
16.2 Foreign Investment Act of 1993, Articles 2(VI), 11-14 and 15-18
(Ley de Inversión Extranjera, See Foreign Investment)
   
16.3 Foreign Investment Regulations of 1989, Articles 1(XIII), 10-12, 16-22, 30-34 and 36-38
(Reglamento de la Ley de Inversión Extranjera, See Foreign Investment)
   
 
17. FORBIDDEN OR RESTRICTED ZONE
(See Fideicomiso)
   
 

18. FOREIGN EXCHANGE CONTROLS
(See Commercial Law)

   
 
19. FOREIGN INVESTMENT
19.1 Foreign Investment Act of 1993
(Ley de Inversión Extranjera)
D.O.
of December 27, 1993
It entered into force on December 28, 1993
As amended by D.O. of December 24, 1996.
It entered into force on December 25, 1996.
   
  This federal statute governs foreign investment in Mexico. Contrary to the to the 1973 Act, considered to be rigid and inflexible, the new Act modernizes and promotes foreign investment. Composed by 39 sections (Artículos), this statute regulates acquisition of real estate and trusts (Fideicomisos); foreign corporations and their investments; the peculiar concept of "neutral investment;" the functions of the National Commission on Foreign Investments and the corresponding Registry; and sanctions. The new Act preserves the system of having strategic areas exclusively reserved to the State, economic activities exclusively reserved to Mexican nationals or Mexican corporations with an Exclusion of Foreigners Clause, and activities and acquisitions under specific regulations.
   
19.2 Foreign Investment Regulations of 1989
(Reglamento de la Ley para Promover la Inversión Mexicana y Regular la Inversión Extranjera)
D.O.
of May 16, 1989
It entered into force on May 17, 1989.
   
  Although these regulations derive from the original 1973 Foreign Investment Act, in reality they represent a drastic and welcome change in Mexico’s foreign investment. These regulations liberalized foreign investment beyond the original intention of the 1973 Act. Formed by 86 sections (Artículos), these federal regulations expand and detail all the major areas on foreign investment. In essence, the 1989 Regulations not only departed substantially from the 1973 Act but created the more open policies in the area of foreign investment which were later on incorporated into the 1993 Act. These regulations are particularly important because they allowed foreign investment without limitations in areas not included in the so-called "Classification," without requiring the authorization from SECOFI. They promoted foreign investment through fideicomisos, neutral investment, immovable assets (Articles 5-26). They also expanded the scope of foreign investment in industrial, commercial and service activities (Articles 27-29), allowing the direct acquisition and lease of immovable assets (Articles 36-38). These regulations restructured the National Registry of Foreign Investments (Articles 42-79) and the National Commission of Foreign Investments (Articles 80-83).
   
 
20. FRANCHISES
20.1 Industrial Property Act (IPA) Article 142 of the IPA and Art. 65 of its Regulations
   
  Article 142 of the IPA provides that a franchise is in place when the licence for the use of a trademark, for the transfer of technical knowledge or for technical assistance is granted upon an individual so he/she can produce or render services in a uniform manner and under the operational, commercial and administrative methods established by the [legal] holder of the trademark in order to maintain the quality, prestige and image of the products and services protected by the trademark. In addition, the one who grants a franchise [Franchisor] must give to the intended recipient [Franchisee], prior to the entering into the corresponding agreement, information pertinent to the company’s situation, in the terms provided by the Regulations of this Act. The provisions of this chapter (Chap. VI: Of Licences and the Transfer of Rights) shall apply to the recording of a franchise.
   
  Article 65 of the Regulations provides a detailed listing of the minimum "technical, economic and financial information" that the holder of a franchise must provide to those intending to enter into a franchise agreement. For example: 1) name, address and nationality of the franchisor; 2) description of the franchise; 3) franchisor’s years of commercial operations; 4) industrial property rights involved; 5) amounts and terms of the payments the franchisee must pay the franchisor; 6) types of technical assistance and services the franchisor must provide the franchisee; 7) geographical definition of the territorial area where the commercial establishment is going to exploit the franchise; 8) whether or not the franchisor has the right to transfer sub-franchises to third parties and, if this is the case, under what requirements; 9) franchisee’s obligations regarding confidential information provided by the frenchisor; and 10) In general, the franchisee’s obligations and rights derived from the entering into the franchise agreement.
   
 

Author & General Coordinator:
JORGE A. VARGAS
Professor of Law,
University of San Diego School of Law
Published by ©West Group (1998)
To purchase this book 
please click on icon below:



   
 
 
 
   
 
   
Home  
About the Author  
 
   
 
Book Description  
Book Reviews  
Buy this book  
The Seven Appendices  
Synopsis 1 thru 20  
Synopsis 21 thru 40  
Recent Developments  
Volume 1 Table of Contents  
Volume 2 Table of Contents  
Volume 3 Table of Contents  
Volume 3 Preface  
Volume 3 Introduction  
Volume 4 Table of Contents  
Volume 4 Introduction  
     
 
Dictionary Description  
Who Should Buy the Dictionary  
Examples of Legal Terms  
Buy this Dictionary  
   
 
1. Introduction  
1.1 Overview of Mexico's Legal System  
1.2 Mexican Law Information in Spanish  
1.3 Mexican Law Information in English  
     
2. Legislative Enactments  
2.1 No Mexican Federal Statutes in English  
2.2 Mexican Federal Statutes in Spanish  
2.3 Mexico's Major Codes in Spanish  
a. Federal Civil Code  
b. Code of Commerce  
c. Code of Civil Procedure  
d. Federal Code of Criminal Procedure  
e. Federal Criminal Code  
f.  Fiscal Code of the Federation  
2.4 Mexico's Diario Oficial de la Federación  
2.5 The Federal Constitution of 1917  
a. Mexico: A Federal Republic  
b. The Executive Power  
c. The Legislative Power  
d. The Judicial Power  
     
3. International Treaties and Conventions  
3.1 Secretariat of Foreign Affairs (SRE)  
3.2 List of International Treaties and Conventions on conflict of laws,
business and environmental questions to which Mexico is a party
 
3.3 International Judicial Cooperation  
     
4. Mexico's Federal Government  
     
5. State Governments  
5.1 Specific State legislation (i.e, State Constitution, codes, laws, etc.)  
     
6. Legal Background and History of Mexico  
     
APPENDIX I Mexico's Federal Legislation  
APPENDIX II Mexico's 18 Secretariats of State Web Sites  
APPENDIX III Web Sites of Mexico's 31 States  
APPENDIX IV Compendium of the Best Mexican Law Web Sites (5 in English and 6 in Spanish)