MEXICO Law and Practice Contributed by: Melissa Franco and Mauricio Oropeza, Deloitte Impuestos y Servicios Legales, S.C.
Obligations , certain notices must be provided to the RNIE, and the authorisations for FDI are provided by the CNIE. If deemed necessary, both agencies have the power to request additional information from investors and to oversee compliance with the obliga - tions in the matter. In the case of opening a PE, the authorisation must be obtained before activities commence in Mexico. The CNIE has a 45-day term to provide a definitive resolution. If a commercial treaty is in place with the country of origin of the company, then the resolution is immediate. For the RNIE, all the obligations arise at the time that each applicable assumption arises. 7.2 Criteria for National Security Review The foreign investment regulation applies to Mexican companies with foreign investment, FDI by means of a PE or a trust over shares or partnership equity, real estate or neutral investment, by virtue of which rights are derived in favour of foreign investment or Mexi - cans who possess or acquire another nationality and who have their domicile outside the national territory. 7.3 Remedies and Commitments Additional requirements or amends to the corporate documentation or structure can generally only be requested in the authorisation of a neutral investment from the CNIE. 7.4 National Security Review Enforcement If there is no authorisation for a neutral investment or the opening of a PE, administrative sanctions and penalties might arise. In the specific case of a PE, additional tax sanctions can arise, as the authorisation requires the company to register with the tax authori - ties. 8. Other Review/Approvals 8.1 Other Regimes The LIE provides for the following limits on foreign participation in the following activities. • Co-operative production companies: 10%.
• The manufacture and marketing of explosives, firearms, cartridges, ammunition and fireworks, not including the acquisition and use of explosives for industrial and extractive activities, or the manufac - ture of explosive mixtures for consumption in such activities: up to 49%. • The printing and publication of newspapers for exclusive circulation in the national territory: up to 49%. • Series “T” shares of companies owning agricul - tural, livestock and forestry land: up to 49%. • Freshwater, coastal and exclusive economic zone fisheries, excluding aquaculture: up to 49%. • Comprehensive port management: up to 49%. • Port pilotage services for vessels to carry out inland navigation operations under the terms of the law on the subject: up to 49%. • Shipping companies engaged in the commercial operation of vessels for inland navigation and cabotage, with the exception of tourist cruises and the operation of dredgers and naval devices for the construction, maintenance and operation of ports: up to 49%. • The supply of fuels and lubricants for ships and aircraft and railway equipment: up to 49%. • Broadcasting – factoring in the reciprocity that exists in the country in which the investor or the economic agent that ultimately controls it, directly or indirectly, is incorporated: up to 49%. • Scheduled and non-scheduled domestic air trans - port service; non-scheduled international air trans - port service in the form of air taxis; and specialised air transport service: up to 49%. • Domestic land transport of passengers, tourism and cargo, not including courier and parcel servic - es: reserved for Mexicans or Mexican companies with a foreigner’s exclusion clause. • Development banking institutions, under the terms of the relevant law: reserved for Mexicans or Mexi - can companies with a foreigner’s exclusion clause. • The provision of professional and technical ser - vices expressly indicated in the applicable legal provisions: reserved for Mexicans or Mexican com - panies with a foreigner’s exclusion clause. In addition, foreigners cannot directly acquire real estate in the “restricted zone”, which comprises 100
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