02Mar

Germany’s Continental to invest 60 million euros in central Mexico

marzo 2, 2021 Jesus Aguirre

German automotive parts maker Continental AG said on Monday it will invest around 60 million euros ($72 million) in expanding a plant in the central Mexican state of San Luis Potosi.

In a statement, the company said it would manufacture brake parts in the 20,000 square meters of new production space. ($1 = 0.8304 euros)

“The decision to locate the manufacturing of these high-tech components at the San Luis Potosi plant is a strong sign of Continental’s confidence in Mexico and especially in the region,” plant manager Victor Hernandez said.

The expansion of the plant, which is scheduled for completion in October 2022, is welcome news for Mexican President Andres Manuel Lopez Obrador, whose unorthodox economic policies have spooked investors.

It also comes as Mexico’s economy recovers from its worst recession last year in almost 90 years and Lopez Obrador hopes the new United States-Mexico-Canada Agreement (USMCA) trade deal spurs new investments and jobs.

Continental said the expansion would create some 350 new jobs over the next three years, on top of the 650 people already employed at the San Luis Potosi plant. (Reporting by Abraham Gonzalez in Mexico City Writing by Laura Gottesdiener and Anthony Esposito Editing by Matthew Lewis)

Source: REUTERS

( https://www.reuters.com/article/mexico-continental/update-1-germanys-continental-to-invest-60-million-euros-in-central-mexico-idINL2N2KZ2GT )

26Feb

Entry into Force of the Declaration of Decrementables

febrero 26, 2021 Jesus Aguirre

FOREIGN TRADE NEWSLETTER

On October 26 of 2020, the Second Resolution of Modifications to the General Rules of Foreign Trade was published in the Official Journal of the Federation (DOF), in which among the most important changes, the declaration of the “Decrementable” concepts is highlighted. .

According to bulletins 17 and 21 dated September 4 and October 12 of 2020, respectively, where the modifications to the VOCE-SAAI M3 Technical Registry Guidelines were reported. The pediment format is modified to add 5 fields for the following:

Decrementable transport
Decrementable insurance
Load
Download
Other decrementables

The previously mentioned, came into force on February 26, 2021. Establishing that it is mandatory the declaration of the amounts by way of decrementables.

Decrementables
The decrementables, also known as non-incremental adjustments or negative adjustments, are regulated in Article 66 of the Customs Law, and refer to the concepts that should not be part of the transaction value, that is, of the customs value.

They will be considered decrementable as long as they are itemized or specified separately from the price paid in the digital tax receipt or equivalent document.

Article 66 of the Customs Law establishes that the transaction value of imported goods will not include the following concepts, provided that they are broken down or specified separately from the price paid:

The expenses incurred by the importer on his own account, even when it can be estimated that they benefit the seller.
The following expenses, provided they are distinguished from the price paid for the imported goods:
- Construction, installation, assembly, assembly, maintenance or technical assistance expenses incurred after importation in relation to imported goods.
- Transportation, insurance and related expenses such as handling, loading and unloading incurred as a result of the transportation of the goods
- The contributions and countervailing duties applicable in the national territory, as a consequence of the importation or sale of the merchandise.
Payments from the importer to the seller for dividends and those other concepts that are not directly related to the imported goods.

The fields that were added to the request form are the following:

Concept

Description

24. Decrementable transport

Registry M3

Field 31

Total amount of expenses paid for the transport of the merchandise, incurred.

25.Decrementable insurance

Registry M3

Field 32

Amount of the total insurance premiums paid for the merchandise.

* This field must be filled in the case of complementary pediments, internal transits to import or international transits made by rail, in which case, printing the name of this field is optional.

26.Load

Registry M3

Field 33

The total amount of the expense paid for the loading of the merchandise, after the assumptions referred to in article 56, section I of the Law.

27.Download

Registry M3

Field 34

Total amount of the expense paid for the unloading of the merchandise, after the assumptions referred to in article 56, section I of the Law.

28. Other decrementables

Registry M3

Field 35

Amount in national currency of the total amounts corresponding to the items that must be decreased at the price paid, (field 14 of this block), in accordance with the provisions of article 66 of the Law.

* This field should not be filled in when it comes to complementary requests, internal import transits or international transits carried out by rail, in which case, printing the name of this field is optional.

Infractions and Penalties

In accordance with Annex 19 of the General Rules of Commerce Exteior, related fields are multables decrementables fields, according to the following article:

Article 184 section III and article 185 section II of the Customs law: The incorrect transmission or presentation of reports or documents with inaccurate or false data or omitting any data, will be sanctioned with a fine of $ 2,010.00 to $ 2,860.00, for each document.

We hope that this information is useful to you. Any questions or comments in this regard please contact us.

26Feb

Latécoère acquires Bombardier’s EWIS business in Querétaro, Mexico

febrero 26, 2021 Jesus Aguirre

France-based aerospace company Latécoère has purchased Bombardier’s Electrical Wiring and Interconnection Systems (EWIS) business in Querétaro, Mexico.

The acquisition has an enterprise value of $45m.

The Querétaro site provides electrical harnesses and sub-assemblies required to produce EWIS systems. It has an estimated annual revenue of approximately $60m.

With this acquisition, Latécoère will be able to serve additional customers, including Airbus Canada, MHIRJ and Avcorp.

Besides expanding its customer portfolio, Latécoère will be able to boost its order book.

As part of a long-term supply agreement reached between the two companies, EWIS from this site will continue to be provided for all Bombardier platforms, including its Global and Challenger aircraft.

Latécoère chief executive officer Philip Swash said: “We are pleased to finalise this acquisition and at the same time enter a long-term supply agreement with Bombardier.

“With this transaction, Latécoère strengthens its industrial presence internationally and increase its proximity to its customers. It also signals our continued participation in the global consolidation of the aerospace industry.”

Following the acquisition, Bombardier’s remaining Querétaro operations will remain unaffected.

The rear fuselage of the Global family of business jets, including the Global 7500 aircraft is manufactured in Mexico.

Bombardier operations and operational excellence executive vice-president Paul Sislian said: “The Bombardier team looks forward to working with Latécoère toward a seamless integration as we continue to build on the successes of both our companies.”

Source: Aerospace Technology

( https://www.aerospace-technology.com/news/latecoere-bombardier-ewis-mexico/ )

22Feb

Volkswagen and Audi to resume production in Mexico after gas shortages

febrero 22, 2021 Jesus Aguirre

The Mexican unit of Volkswagen AG will resume production of its Tiguan sports utility vehicle on Monday evening, the company said in a statement on Sunday, following gas shortages that hit swathes of Mexico last week.

Meanwhile, Audi will resume normal production levels at its plant in Puebla on Monday, after “the supply of hydrocarbons to the industrial sector was guaranteed,” the company said on Sunday.

Volkswagen-de-México-incrementa-su-producción-en-2019-1100×690-c

Source: REUTERS

( https://mexico-now.com/electricity-and-natural-gas-outages-in-northern-mexico-are-causing-big-losses-for-manufacturers/ )

18Feb

THE AEROSPACE INDUSTRY

febrero 18, 2021 Jesus Aguirre

The aerospace industry in Mexico has become one of the nations top industries

The aerospace industry is currently one of the most important in the world and in Mexico. North America is the region with the largest participation, with 51.1% of the total, according to Mexico Industry. In Mexico all the components of an aircraft are manufactured, including engines, cargo doors, fuselages, landing gears and connection system. Mexico ranks as the 14^th largest aerospace manufacturer in the world, according to IHS Markit, and 12^th place worldwide regarding exports of the aerospace industry.

In 2019 the aerospace industry exported a total of $9.5 billion dollars, the main destination country being the United States. Nearly 75% of Mexican aerospace industry’s production is consumed by the USA, and around 20% by Europe.

US imports 75% of all aerospace industry production in mexico

Aerospace Industry in Mexico has grown 14.4% in 15 years

The aerospace sector has reached an annual growth of 14.4% in the last 15 years (Mexico Industry, 2020), becoming one of the nation´s top industries. According to the FEMIA (Mexican Aerospace Industry Federation), aerospace suppliers in Mexico grew from 100 companies in 2004 to over 300 in 2019). By the end of 2020 there were approximately 350 aerospace companies in Mexico.

Out of the total number companies within this sector, according to Verónica Rojas, research professor at the College of Engineering of the Center for Technical and Higher Education, 79% are dedicated only to maquila, 11% to repair and construction of engines and 10% to research and innovation in this area. Showing that Mexico has managed to consolidate itself as one of the main manufacturing centers.

The main states that contribute to this industry are Baja California, Chihuahua, Sonora, Nuevo León and Querétaro; which, due to the great growth in production and demand, have already developed academic programs together with universities and technical institutes that are linked to the needs of that industry. As of 2019 the existence of aerospace companies within the states abovementioned summed a total of 290, divided as follows:

5 states are the biggest players in mexico’s aerospace industry

Mexico’s competitive advantages have brought investment in the aerospace industry

Some of the countries that have already invested in Mexico within this sector are the United States, Canada, France and Spain; which have seen the competitive advantages that the territory has, such as the quality of the workforce, the low cost of production, the geographical position and the commercial agreements that give access to large markets.

Are you thinking of establishing your aerospace company in Mexico? Contact us. Our array of incorporation, shelter services and outsourcing has helped set up several aerospace companies with a successful and timely start of operations in Mexico.

We can support you with the following activities, among many others:

Site selection
Company incorporation
Permits and licenses procurement
Recruiting, training and outsourcing payroll.
Managing all administrative functions, including finance and labor.
Tax and accounting outsourcing
Import and export operations, customs, freight and logistics coordination, among others.

Aerospace Industry In Mexico becomes number 1 in the world

Sources:

18Feb

Electricity and Natural Gas Outages in Northern Mexico Are Causing Big Losses for Manufacturers

febrero 18, 2021 Jesus Aguirre

The electricity and natural gas outages in northern Mexico have generated a loss of US$2.7 billion in just two days, since almost all of the manufacturing operations were stopped, according to INDEX figures.

“The most affected states are Chihuahua, Coahuila, Nuevo Leon and Tamaulipas. Sonora and Baja California are not connected to the national electricity grid; therefore, their situation is kind of different,” explained Luis Hernandez, INDEX president.

In some regions, such as Matamoros and Reynosa, the manufacturing facilities shutdown entirely their operations because those cities have no electricity supply.

“At the end of the day, our losses will be higher because we will have to pay overtime to fulfill our orders and be in compliance with our clients,” said Rosalinda Torres, president of INDEX Matamoros.

INDEX figures show these electricity and natural gas outages are affecting at least 2,600 manufacturing sites in Northern Mexico and more than 1.2 million employees. This temporary or partial shutdown costs US$200 million per hour.

“We have been informed that the natural gas outages will be for high-consumption clients. Manufacturers are in this category and many of them use natural gas as a raw material in their processes and cannot operate without them,” said Fabiola Luna, president of INDEX Juarez.

Hernandez said coordination is key because the Federal Government is not doing its part on this issue. He said the cuts should be programmed; therefore, companies can plan accordingly.

Moreover, the INDEX presidents at Northern Mexico are demanding a regional contact from the Mexican Federal Government in each state to address these issues.

Winter Storm Uri chilled large areas of Texas. As a result, gas pipelines were blocked with ice or their compressors lost power. The Lone Star State prioritize much of the gas available for heating homes and businesses rather than generating electricity.

Texas also stopped natural gas exports to Mexico. Most of the CFE stations use natural gas to generate electricity and this fuel is imported via Texas. INDEX presidents in Northern Mexico said the Federal Government was aware of this situation and neither notify it to the companies nor had reserves to keep the system running.

CFE said its operations were left short as the winter storm in Texas froze natural gas pipelines. It said some private power plants also began shutting down Sunday night. Private plants supply about 80% of power in northern Mexico.

Mexico uses gas to generate about 60% of its power, compared to about 40% in the U.S. Mexico built pipelines to take advantage of cheap natural gas from the U.S., mostly from Texas.

Moreover, CFE said U.S. electricity demand also rose as temperatures plunged across the border, leading to much higher prices. It said gas prices had risen from about US$3 per million BTUs to as much as US$600 in recent days.

Source: MEXICONOW

( https://mexico-now.com/electricity-and-natural-gas-outages-in-northern-mexico-are-causing-big-losses-for-manufacturers/ )

03Feb

Volkswagen Mexico starts production of Engine EA211 in Guanajuato

febrero 3, 2021 Jesus Aguirre

On January 29th, the Volkswagen plant in Mexico installed in Silao, Guanajuato, started the production of the EA211 engine, which will be integrated into the new TAOS, which is produced at the Puebla plant.

It was on November 12, 2020, when Volkswagen de México announced the investment of $233.5 million dollars to produce the new EA211 engine, which would begin at the Silao engine plant, Guanajuato from 2021, today it is already a fact.

‘Volkswagen in México has bravely faced the challenges of 2020, we implemented more than 130 prevention measures within our plants. We prepare the new production lines for the start-up of this new engine. Despite the pandemic, we were able to start with the production of the new vehicle in Puebla, the TAOS. We applaud everyone for this great success, ‘said Christopher Glover, Vice President of Production and Logistics at Volkswagen in México.

The Silao plant had to make various adjustments to carry out the production of the EA211 such as: installation of a new complete engine assembly line, as well as new production lines for Monoblock, crankshaft, cylinder heads and connecting rods.

‘This new engine is integrated into the new Taos, which is produced in Puebla. Our commitment is not limited to making investments, in technology we also focus on the environment. 100 percent of the production in Silao is from renewable sources, ‘said Steffen Reiche, President of the Executive Council of Volkswagen in México.

The manager highlighted that the start-up of production began as stipulated and with excellent quality, he also acknowledged that this result was thanks to the team of collaborators at Silao.

This new component is in addition to the production of the 2.0 liter EA888 Turbo engine, which Volkswagen in México uses for the vehicle assembly lines at the Volkswagen plants in Chattanooga (United States) and Puebla, as well as at Audi México, in San José Chiapas, Puebla.

‘This is a sign of the confidence that this world-class company has in Guanajuato. In addition, there will be a very positive impact for the entire supply sector that is made up for the automotive cluster and a greater economic impact will be reflected in the State, ‘said Diego Sinhue Rodríguez Vallejo, Governor of the State of Guanajuato.

Currently the Silao complex has a production capacity of a thousand engines per day, however with this new launch, it will increase its capacity by around 2,500 engines per day for the following year.

With this new investment, the complex will increase 75 percent of its installed capacity from what it had previously.

The investment of $233.5 million dollars for this new project is part of a historical total amount of the 855 million dollars located only in Guanajuato.

Present at the event were: Christopher Glover, Vice President of Production and Logistics of Volkswagen in México; Steffen Reiche, President of the Executive Council of Volkswagen in México; Diego Sinhue Rodríguez Vallejo, Governor of the State of Guanajuato; Mauricio Usabiaga Díaz Barriga, Secretary of Sustainable Economic Development of Guanajuato and José Antonio Trejo Valdepeña, Municipal President of Silao Guanajuato.

Source: Cluster Industrial

(https://www.clusterindustrial.com.mx/noticia/2991/arrancan-motores-volkswagen-de-mexico-comienza-a-producir-ea211-en-guanajuato)

28Ene

Querétaro starts 2021 with an active aerospace investment portfolio

enero 28, 2021 Jesus Aguirre

Even with the prevalence of the COVID-19 pandemic and the impact it has generated on the local, national and global economy, the state of Querétaro maintains an active list of private investment intentions.

With the beginning of the year, the entity has a portfolio of 27 investment projects that are expected to settle in the state, but whose decision has not yet been defined, according to records from the Ministry for Sustainable Development (Sedesu).

The projects represent an accumulated amount of US$1,536,094 and if they are completed they would mean the incorporation of 13,766 formal jobs, informed the head of Sedesu, Marco Antonio Del Prete Tercero.

Among the projects, 22 correspond to new investments and five to extensions of companies that already reside in the territory; they focus on the manufacturing sector and correspond to both national and international investments.

“The project portfolio is mainly manufacturing, followed by information technology; Mexico, the United States, Japan and Canada are the main commercial partners that are investing in the state,” declared the state minister.

Even though the aerospace industry is one of the sectors most affected by the pandemic, he added, investment projects related to this activity have been completed in the state.

In 2020, 27 investment projects for US$595,784 were completed in the entity, they meant the creation of 5,269 direct job and had to do mainly with the automotive industry (7), information technology (4), aeronautics (2), food and beverages (1), electronics (1), among other sectors (12).

The origin of the investments made the previous year was national capital, Japanese, Canadian, German, American, and so on. And they settled to a greater extent in the metropolitan municipalities of El Marqués (9) and Querétaro (8), in addition to Colón (5), Pedro Escobedo (1), Corregidora (1) and San Juan del Río (1); two more projects have not yet defined their location.

Around the expectations for this 2021, the promotion of investments will be one of the lines of work that the state government draws, together with the continuity of strategies such as linking supply and demand and strengthening the capacities of companies.

Source: Mexico Now

(https://mexico-now.com/queretaro-starts-2021-with-an-active-aerospace-investment-portfolio/)

27Ene

Teleworking – New Mexico Law

enero 27, 2021 Jesus Aguirre

FOREIGN TRADE NEWSLETTER

Background: On December 9, it was approved by the Congress of the union the opinion with the draft decree by which article 311 is reformed and chapter XII BIS of the Federal Labor Law on Teleworking is added.

On January 11, 2021, the new guidelines were published in the Official Gazette of the Federation (DOF) that establish the rights and obligations of employers and workers who apply the modality of remote work and the rules applicable to it.

DEFINITION OF TELEWORKING:

Form of subordinate labor organization that consists of the performance of paid activities, in places other than the establishment of the pattern,, without requiring the physical presence of the worker in the workplace.

It will be considered as telework when more than 40% of the activities are carried out at the employee’s home or the place of his or her choice.

In order to carry out the teleworking modality, the use of information technologies is necessary, for effective communication, and for the supervision of the employer.

Employers’ obligations

Article 330-E establishes that employers must:

Provide, install and take care of the maintenance of the necessary equipment for teleworking such as computer equipment, ergonomic chairs, printers, among others;
Pay wages in the form and on the stipulated date.
Assume the costs derived from working under the teleworking modality, including, where appropriate, the payment of telecommunication services and the proportional part of electricity;
Keep a record of the supplies delivered to workers under this modality;
Implement mechanisms that preserve the security of information and data used by teleworkers;
Respect the right to disconnection at the end of the working day;
Register workers in the teleworking modality to the mandatory social security regime, and
Establish the necessary training and advisory mechanisms to guarantee the adaptation, learning and adequate use of information technologies by teleworkers.

Worker’s obligations

Save and conserve the equipment and materials that they receive from the employer.
Report on the agreed costs for the use of telecommunications services and electricity consumption, derived from teleworking;
Obey the occupational health and safety provisions established by the employer;
Attend and use the mechanisms and operating systems to supervise their activities,
Attend the data protection policies and mechanisms used in the performance of their activities.

trabajar-desde-casa-teletrabajo-españa-cifras-datos-ine-banco-de-espaa-informes-cisco-estudio-actualidad-noticias-panorama-actual-noticias-tecnologia-ciberseguridad-bit-life-bitlife-media

Likewise, the new law establishes that the teleworking modality must be recorded in writing by means of a contract. And that this modality will form part of the collective bargaining agreement, which may exist between unions and companies and a copy must be delivered to each worker under this modality.

In the event that employers do not have a collective bargaining agreement, they must include telework in their internal work regulations, and establish the mechanisms that guarantee the link and contact between people who perform work under the telework modality.

For its part, the Ministry of Labor and Social Welfare must issue the Official Standard (NOM), in the next 18 months, in order to regulate the implementation of safety and health in the workplace.

Once the aforementioned regulation is issued, labor inspectors will be able to verify that employers keep a record of the inputs delivered to teleworkers; as well as ensuring that teleworkers’ wages are not lower than those paid to face-to-face workers who perform the same or similar functions; among the other obligations.