CCN MEXICO REPORT

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Issue #
98
 – 
February 2012

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New Law on Public Private Partnerships

February 27, 2012

On January 16, 2012, the Official Journal of the Federation published a Decree promulgating the Public PrivatePartnership Law (LAPP, for its acronym in Spanish) and amending the Public Works and Related Services Lawwith such, among other provisions. In accordance with LAPP, its purpose is to regulate the framework for thedevelopment of projects by public private partnerships, subject to articles 25 and 134 of the Constitution of theUnited Mexican States. Furthermore, under the LAPP, public private partnership projects are defined as thosecreated under any framework to establish a contractual long term relationship between entities in the public andprivate sectors for the provision of services to the public sector or the end user using infrastructure completely orpartially provided by the private sector for the purpose of increasing social well-being and investment in thecountry. In addition, it is established that these projects should be justified accordingly, specify the intendedbenefit to society and demonstrate their financial benefit as compared to other forms of financing. It should benoted that in accordance with the LAPP, the Procurement, Leasing and Public Sector Services Law and the Public Works and Related Services Law, their regulations and provisions will not be applied to this type of project unless expressly indicated by the LAPP. The LAPP expressly excludes substantive productive activitiesreferred to by articles 3 and 4 of the Regulatory Law of Constitutional Article 27 of the Petroleum Sector, as wellas those cases in which the applicable provisions establish that the private sector may not intervene. The LAPPcame into effect on the day following its publication, January 17, 2012, and is expected to have an importantimpact on the structuring of projects with a social impact for the benefit of Mexico’s national infrastructure.

Suspension of Importer’s Registration

February 27, 2012

On January 11, 2012, the Second Chamber of the Supreme Court of Justice of the Nation (SCJN, for its acronymin Spanish) approved court decision number 2a./J.6/2012, titled “Suspension of importer’s registration; It doesnot constitute a definitive act but rather a nuisance and therefore the right to a prior hearing does not apply.”The Second Chamber of the SCJN determined that the sanction consisting of the suspension of the importer’sregistration in accordance with article 51 of the Customs Law, including the General Rules on ForeignCommerce, does not constitute a resolution of a definitive character but rather a provisional suspension whichallows the competent government authority to verify that import proceedings are carried out in accordance withthat established by applicable regulation. The Second Chamber established that since this is a temporary measure,issuing an immediate suspension without allowing the importer an opportunity to present evidence and defend itsinterests does not amount to a violation of the right to a prior hearing, especially since “the rules themselvesprovide for the possibility that the entity may remedy or clarify the irregularity detected by making thecorresponding request, the same which would render the temporary measure without effect and repair the injury.”Consequently, since the suspension is a temporary measure, it does not constitute a definitive act and, therefore, itis not feasible to comply with the right to a prior hearing. This court precedent is pending publication in theJudicial Weekly of the Federation.

Additional Obligations for Housing Developers
February 27, 2012
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Internal Labor Regulations
February 27, 2012
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New Law on Public Private Partnerships
February 27, 2012
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Suspension of Importer’s Registration
February 27, 2012
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