TRADE FACILITATION IN MEXICO November 2004 1
Trade Facts Mexico s trade growth within the different FTA s has been significant, becoming, on the last 10 years, one of the most dynamic, countries at a worldwide scale. Canada 166% United States 183% Costa Rica 522% Colombia 123% November 2004 2
Trade Facts Bolivia 35% Nicaragua 80.5% Chile 630% Israel 22.2% European Union 28.3% EFTA 12.4% Venezuela 137% Northern Triangle 3.7% November 2004 3
Trade Facts Mexican Customs second on operations processed within all the hemisphere customs agencies. Daily One million 150 thousand people More than 140 thousand passengers through our international airports 34 thousand cargo vehicles November 2004 4
Trade Facts With 6,300 people comprised of agents, officers, inspectors, administrative personnel and high level officials the Mexican Customs has the mandate guard: 3, 152 kilometers of northern border; 1,148 kilometers of southern border and; 11,122 kilometers of coastline. November 2004 5
Trade Facts 48 CUSTOMS PORTS 124 INSPECTIONS POINTS November 2004 6
Summary International trade flow modernization and transformation of customs services Programs and strategies expedite the flow of goods. simplify and November 2004 7
Trade Facilitation Approach Assure the role of customs to fulfill legitimate objectives. Optimize control of customs in clearance procedures. Development of mechanisms for a modern, secure and expedite flow of goods. Guarantee accurate application of revenue oriented measures. November 2004 8
Actions Towards Trade Facilitation Technology & Equipment Infrastructure Partnership Programs November 2004 9
OBJECTIVES Expedite customs clearance procedures and automation. Increase quality and efficiency of customs inspections. Achieve the highest operational standards within the premier customs agencies. November 2004 10
TECHNOLOGY & EQUIPMENT Acquiring state of the art technology in order to : Increase customs inspections quality and efficiency. Consolidate Risk management procedures Combat smuggling and corruption activities November 2004 11
EQUIPMENT Rail road Gamma Rays (VACIS) 5 equipments have been installed Weight scales Systems Empty/Cargo Truck Gamma Ray (VACIS) Closed Circuit TV Systems November 2004 12
CUSTOMS MODERNIZATION Railroad Gamma Ray System 8 Empty Trucks Gamma Ray System 9 Cargo Gamma Ray System 10 Closed Circuit TV System 2 29 November 2004 13
US-MEXICO BORDER PARTNERSHIP FACTS 3,152 km long 1,15 million people cross the border every day 70,000 trucks cross the border every day More than 250 billion dollars of bilateral trade/year 90% of such trade goes through the land border: 73% on trucks 17% on rail November 2004 14
US-MEXICO BORDER PARTNERSHIP Background Neighboring countries Long standing relations of cooperation North American Free Trade Agreement (NAFTA) Increasing volume of trade November 2004 15
US-MEXICO BORDER PARTNERSHIP September 11, 2001 Our bilateral challenge: trade Strengthen security/ facilitating November 2004 16
US-MEXICO BORDER PARTNERSHIP Signed in Monterrey, Mexico, in March 2002. Contains a 22 item Action Plan. Specific Initiatives and deliverables. Involves Customs, Immigration, National Security, Foreign Affairs and other government agencies. November 2004 17
Purpose To build the infrastructure needed to allow an orderly development of the border region. To develop and implement mechanism that guarantee a secure and expedited flow of people. To develop and implement mechanism that guarantee a modern, secure and expedited flow of goods November 2004 18
4.Harmonize port of entry operations Four regional working group Port profiles Traffic patterns analyzed Trade practices analyzed Infrastructure projects have been shared November 2004 19
4.Harmonize port of entry operations Communications between land border ports of entry has been established. Hours of service have been harmonized. Meetings with local trade communities. Special hours and segmentation of service being analyzed. November 2004 20
9. Advanced passenger information ( APIS) System allows for the collection of air passengers data before the plane arrives into our territories US system in operation since the late 80 s Mexican Customs Law amended November 2004 21
9. Advanced passenger information ( APIS) Mexican Customs will begin collecting passengers data from airlines in September 2003. Exchange of data between Customs authorities in 2003. November 2004 22
16. Public/Private Sector Cooperation Purpose= to facilitate border processing to secure/compliant importers, exporters, carriers, truck drivers, brokers. Certify largest US importers and their suppliers under the C-TPAT Bilateral monitoring to keep high levels of security/compliance November 2004 23
16. Public/Private Sector Cooperation 110 Mexican companies have been certified under BASC Mexican importers certified under Mexico s Compliant Importer/Exporter Program Goal= 300 companies=66% of bilateral trade. November 2004 24
17. Electronic exchange of information Electronic exchange of core data pertaining to all Northbound transactions at the common border (implemented) Electronic exchange of key data pertaining to shipments in-transit through the US (partially implemented) November 2004 25
17. Electronic exchange of information Electronic exchange of core data pertaining to all Southbound transactions at the common border (being developed) Truck-by-Truck Enhances compliance and security levels November 2004 26
17. Electronic exchange of information (cont) Electronic exchange of data on rail cargo. Electronic exchange of advanced shipping lines manifest data (partially implemented) November 2004 27
17. Electronic exchange of information (cont) Electronic exchange of data on air cargo In the next 12-18 months we expect to complete these initiatives and to have in place a mechanism that allows for the electronic exchange of core data pertaining to all shipments between our territories November 2004 28
18. Secure in- transit shipments Reviewing policies and procedures governing in- bond shipments to identify weakness. Determining requirements for improved accountability. November 2004 29
18. Secure in- transit shipments Developing and testing data system to improve cargo control over inbond shipments Testing mechanism to track intransit shipments November 2004 30
19. Technology sharing US and Canada have also tested e- seals Electronic seals applied to in- transit shipments MX has successfully tested e-seals and may expand program to all of its in- transit shipments November 2004 31
License plates readers 19. Technology sharing Other hi-tech equipment such as nonintrusive inspections systems, weighin-motion scales, tracking devices, etc November 2004 32
20. Secure railways Gamma ray machines being deployed at all rail crossings Trains being cleared without stopping Systems capable of sharing images Electronic exchange of data for every rail transaction being developed in 2003 November 2004 33
21. Combating Fraud Exchange of statistical data Exchange of case-specific data Common data analysis tools being used (NIPS) Specific agents assigned to the border and our capitals to undertake joint investigations November 2004 34
22. Contraband interdiction Exchanged of information Special agents assigned Firearms, narcotics and cash Cross-border cash transactions Special team from Mexico s Hacienda and US Department of the Treasury to detect and combat money laundering November 2004 35
5. Demonstration Project Hi-tech dedicated lanes (Northbound and Southbound) Available to secure and compliant companies. Certified importers, exporters, carriers, drivers, customs, brokers. November 2004 36
5. Demonstration Project Secure and compliant supply chains Express lanes will be replicated at the most important ports of entry on the border November 2004 37
Future Actions Further improvement of infrastructure Development of human resources Enhance coordination among regulatory agencies related to international trade November 2004 38
Future Actions Further develop electronic transmission of trade documents November 2004 39