November 5, 1999

WASHINGTON -- Responding to the concerns expressed mainly by the Mexican community in the United States, the Embassy of Mexico in Washington, D.C., today issued the following statement:

Mexico's government has postponed by a few weeks the effective date of new rules governing the temporary importation of vehicles into Mexico. The decision to put the new rules into effect at a later date will allow more time to fine-tune the measures and make them as flexible as possible for Mexicans living in the United States and others who wish to drive their vehicles into Mexico. The new rules are expected to be in place for the 1999-2000 Christmas holiday season.

Among the improvements being made to the proposed new rules are:

Technical adjustments in the cross-border control system of Banjorcito (Mexican Army Bank) to guarantee that temporary vehicle importation fees may be paid with a credit card as well as cash.

Similarly, these deposits will be refundable regardless of whether the point of departure for a vehicle is different from the point of entry.

Some measures in the proposed new rules will remain unchanged, including:

-- The increase in the value of duty-free goods for Mexicans residing abroad and entering Mexico by land will be increased from $50 to $300 per person to match the amount granted to visitors arriving by air. This "pilot program" will last from Dec. 1, 1999 through Jan. 10, 2000, after which the results will be assessed.

-- As in other years, a deposit will be required for the temporary importation of vehicles.

-- The deposit will be based on a sliding scale, depending on the year in which the vehicle was manufactured: $400 for 1993 and earlier models; $600 for 1994-1998 models; and $800 for 1999 and 2000 models.

-- These measures will no longer have to be made through a depository company, as had been required in previous years.

-- As laid out in the law, these measures will take effect once they have been published in the Diario Oficial de la Federaci (Mexico's Federal Register).

The new rules are designed to safeguard the rights of law-abiding citizens who want to visit Mexico in their vehicles while giving law enforcement authorities stronger tools to stop the illegal importation of vehicles. Mexico's automobile industry is one of the country's major economic engines, providing nearly 1.5 million direct and indirect jobs and exports three times that of the oil industry.

It should be noted that there is no need for a guarantee deposit for anyone who drives a vehicle within the border zone, which extends 20 kilometers on either side of the international boundary.

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