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ranking Toyota officials attending the announcement.
"As you know, Toyota recently announced plans for selling vehicles in Mexico. We are very excited about establishing manufacturing operations here as well," Taguchi said. "We very much look forward to becoming a member of the local community and are pleased to have Baja California as the newest member of our growing North American family."
Company officials said that details regarding employment and investment would be provided in the coming months. Last May, Toyota Motor Sales, U.S.A. announced the incorporation of its Mexican affiliate, Toyota Motor Sales de Mexico, S. de R.L. de C.V., which will be in charge of the sales, marketing and service operations of Toyota in Mexico from the second quarter of 2002.
Toyota is the fourth largest automaker in North America. By 2003, the company will employ some 33,000 people throughout North America with direct investment topping $13 billion.
Web: www.toyota.com
MEXICAN GOVERNMENT ISSUES NATURAL GAS PIPELINE PERMIT TO SEMPRA ENERGY INTERNATIONAL
Mexico's Energy Regulatory Commission (CRE) issued a natural gas transportation permit to the international subsidiary of Sempra Energy (NYSE: SRE) for the construction of the 135-mile Mexican segment of the North Baja Pipeline Project.
Sempra Energy International, Próxima Gas S. A. de C.V. and
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PG&E Corporation (NYSE: PCG) are developing the $230 million, 215-mile Arizona-to-Mexico pipeline.
In October 2001, PG&E Corporation's National Energy Group (NEG) filed an application with the FERC to build the 80-mile U.S. portion of the pipeline. "The northern Mexico and Southern California markets are at a critical point in the need for additional pipeline capacity, largely because of the increased use of natural gas to fuel electric generation," said Thomas B. King, president and chief operating officer of the NEG's western region.
The project will begin at an interconnection with El Paso Natural Gas Co. near Ehrenberg, Ariz., traverse southeastern California and northern Baja California, Mexico, and terminate at an interconnection with an existing pipeline system.
Próxima Gas S.A. de C.V. is a private Mexican company that develops and invests in infrastructure projects of great economic impact in Mexico.
The Company currently is involved in joint or solo ventures that provide natural gas and electricity services to more than 2.5 million customers in Argentina, Canada, Chile, Mexico, Peru, the United States and Uruguay.
In Mexico, Sempra Energy International and its partner, Próxima Gas, currently own and operate three natural gas distribution systems and one gas transmission pipeline, with the goal of reaching 125,000 customers by 2005.
Sempra Energy International is a subsidiary of Sempra Energy, a Fortune 500 energy services holding company based in San Diego.
Web: www.sempra.com
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A NAFTA product that is made in Mexico is shipped to the USA, and then shipped to a non-NAFTA country and then shipped back to the USA. Can it enter the USA with a NAFTA claim?
The NAFTA text under Article 411 does not expressly prohibit the NAFTA claim unless the good underwent production or any other operation while it was in the non-NAFTA country. In this case, the product was shipped to the non-NAFTA country. It was not used, nor did it undergo further production. It returned to the USA in the same condition. If the product was in the same condition as exported from the USA, it appeared that the product could be entered in to the USA under NAFTA. The same text found in NAFTA Article 411 is found in the U.S. Tariff General Headnote 12(l).documento.jpg (7531 bytes)
However, hidden deep in the bowels of Customs Regulations, found in Appendix to 19CFR181, Paragraph (1)(a) of PART VI, Section 16, it states that a product otherwise qualifying as an originating good loses that status if the good is withdrawn from customs control outside the territories of the NAFTA countries. Therefore, even if the product returned to the USA in the same condition as when it was exported, if it was withdrawn from customs control in the Non-NAFTA country, a NAFTA claim cannot be made when it is returned to the USA.
Rule of Thumb: If an otherwise NAFTA product is shipped to a non-NAFTA country, it cannot be returned to the USA with a NAFTA claim.
Source: A.F.ROMERO CO.,
U.S. CUSTOMS BROKERS
Calexico, CA Tel. (760) 357-1183 / Fax: (760) 357-5918
Web: www.afromero.com
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