1911 1912 1913 19:4 1915 1916 1917 1018 1919 1920 210.000.000 200000000 190,000,000 180,000,000. $170,000,000 160,000000 150,000000 140,000,000 1/30,000,000 120000.000 110,000,000 100,000,000 90,000,000 80,000,000 70,000,000 60,000,000 50.000.000 40.000.000 30000.000 Imports from the United States TABLE II (Arranged in order of importance.) CHIEF IMPORTS FROM UNITED STATES, 1921 (FIRST 7 MONTHS) Article Pipes and fittings (cast and wrought)... Cotton (manufactured).. Automobiles and Parts (passenger and commercial). Cotton (unmanufactured).. Lard, Compounds and Substitutes. Corn Pitch Pine Locomotives Mineral Oils and Lubricants. Boots and Shoes... Value .$25,222,390 10,460,615 7.581,133 6,356,088 5,879,993 5,410,534 5,381,921 4,957,872 4,281,467 4,059,714 MINOR IMPORTS FROM UNITED STATES, 1921 (FIRST 7 MONTHS) TABLE III IMPORTS AND EXPORTS, U. S.-MEXICO, BY CHIEF U. S. CUSTOMS *A FEW SUGGESTIONS THAT WILL EXPEDITE By E. J. GODDARD Representative in Mexico, The National City Bank of New York Selling Terms: In the question of terms under which sales are to be made, what applies to South America, in general, applies to Mexico. After a careful investigation as to the financial standing of a merchant, if found of proven responsibility, credit terms of from 30 to 90 days from date of arrival of merchandise at port of entry are justified and indispensable for the development of trade. During the past year the greater volume of sales to this country were effected on the above terms, drafts being drawn to be accepted against delivery of documents. While a certain number of merchants in Mexico will not permit drafts to be drawn on them, they are in the minority and, as a rule, long-established firms of such standing as to warrant open account transactions. Trade Marks: The registration of a trade mark is of vital importance to the manufacturer who is to introduce a trade-marked article in this country, as Mexico, like most Latin-American countries, grants the exclusive right to use a trade mark to the first applicant, and this regardless of whether it is already in use by another. The ownership of a mark is based upon registration, and because of this the necessity for registering at the earliest moment and in the name of the manufacturer is obvious. The registering of the trade marks by unscrupulous and unauthorized persons or firms for speculative purposes is not uncommon in Mexico, many manufacturers having been caused considerable trouble and expense because of this practice. The Patent and Trade Mark Law of Mexico now in effect was passed in August, 1903, and affords ample protection to legitimate owners of trade marks. It is defective in that the Patent Office makes no investigation as to novelty or prior registration, and as long as formal requirements of the law are complied with it grants a certificate of registration. This is the case even when the same mark has been previously registered. However, the same law protects the first registration and imposes severe *Reprinted from The Americas, by special permission of the National City Bank. penalties on those who undertake to use or imitate a duly registered mark. Article 18 of the law covering this point reads as follows: "Any person who places upon the goods that he manufactures a trade mark duly registered by another covering the same class of goods will be punished by imprisonment of from one to two years and fine of from one hundred to two thousand pesos. "Any person who places upon his goods a trade mark that is an imitation of one legally registered, in such manner that at first sight it is confused with the original and is detected only after a careful examination, will be subject to the same penalties referred to in the foregoing paragraph. "A similar penalty will be imposed upon any person who places upon his goods a mark which may have been legally registered, so as to make it appear as if it were another, by any addition, subtraction or alteration."' Packing and Marking Merchandise: In packing merchandise for export to Mexico, the following points should be considered: Bear in mind the final destination and means of transportation used to reach that place, as well as the physical and chemical properties of the manufacture. The purchaser, as a rule, gives explicit instructions at the time of placing his order as to the most appropriate packing, and his instructions should be carefully followed. It must be remembered that duties are levied ad valorem, or on gross legal or net weight, and, consequently, that the duties on the same merchandise oftentimes vary because of the class of container used in packing. While the purchaser, who is usually familiar with the classification the merchandise he orders will receive, and takes this into consideration when giving instructions as to packing, it is advisable for the exporter to familiarize himself with the Custom Tariff, as it may apply to the merchandise he handles. Mark all packages clearly with brush or stencil and on at least two sides. The marks usually take the form of numbers and letters inserted in squares, circles or triangles. Number the packages consecutively; give their gross, net, and legal weight in pounds and kilograms, and on goods intended for water transportation show cubic dimensions. All these marks, numbers and weights should be faithfully reproduced on all documents. Stamp Charges: Stamps are required on commercial invoices. drafts, receipts and on practically all documents pertaining to payments. The charges are as follows: Cheques, 2 cents, regardless of the amount (but only 5-cent stamps are printed at present). Drafts, 10 cents, regardless of the amount. Promissory notes, 2 cents for every twenty pesos, or fraction. Invoices, 5 cents per 1000. On all documents requiring stamps, but drawn in foreign currency, the charge is calculated on the equivalent in local currency at gold parity. On drafts drawn in foreign currency and originating in a foreign country, but payable in Mexico (drafts sent for collection), the stamp charge is the same as on drafts drawn here. Foreign invoices covering goods shipped to Mexico require no stamps. Delegation of power, simple contracts, deposits, etc., require a 50-cent stamp. Books of accounts must be rubricated, a charge of 5 cents being made for each leaf. Examination of Merchandise: It is not customary to permit examination of merchandise before acceptance or payment of draft. Where the consignor has no objection to merchandise being examined, draft should carry instructions to that effect. The Custom Houses permit the examination of merchandise in their possession to those presenting a negotiable bill of lading, in order, and properly filled out application (forms for the purpose are furnished by the Custom House). There is no charge in connection with this service. Protest of Drafts: Drafts can be protested for non-acceptance or nonpayment. If protested for non-acceptance, they must necessarily be protested for non-payment before legal action can be secured. When drafts are presented for acceptance and refused, and a notation is made on the draft itself to that effect, the draft must be protested within 24 hours. If refusal for non-acceptance is verbal, no notation being made on the draft, protest can be effected at a future date. Drafts must be protested within 24 hours after date of maturity. Drafts drawn to a fixed date should be presented for acceptance the same as those drawn at day's sight.. Protest charges vary from 10.00 to 100.00 pesos, depending on the amount involved and the number of notifications necessary. Charges on average protest of draft under $1000 United States currency amount to between 10.00 and 25.00 pesos. Where items are paid after protest, it is customary for drawee to pay charges. Salesmen's Licenses: In each state, and oftentimes in different cities of the same state, the tax imposed on traveling salesmen or representatives varies. For instance, in the State of Chihuahua the salesman or rep resentatives visiting any city in that state will be taxed from $3.00 to $50 00 Mex., depending on the importance of the business to be transacted; in the State of Guerrero, $5.00 to $10.00; in the State of Tamaulipas, including Tampico, no tax is levied; in the State of San Luis Potosí, $10.00 to $100.00; in the State of Jalisco, in some places, $1.00 to $1000.00; and in others no charge is made. As a whole, the tax imposed is very moderate. Where representatives or salesmen do not carry samples, or the purpose of their trip is to appoint agents, in the majority of the states no tax is levied. Shipping Documents: On shipments entering Mexico through border points, the customs broker and forwarding agent must be provided with the original Bill of Lading or Express Receipt; 3 copies of United States Shippers' Export declaration (custom house Form 7525); 1 copy of United States Shippers.' Certificate of Exemption-Transportation Tax (Treasury Department Internal Revenue Form 799), and 2 copies each of Commer cial Invoice and Packing List. These shipping documents should be sent to the customs broker promptly upon the forwarding of the shipments from the point of origin and thereby avoid delays to shipments pending receipt of the documents at the border port.. Separate invoices should be rendered for each order, but one or more orders may be included in each shipment to save ocean freight and booker's fees at the port of entry. Instructions Accompanying Drafts: What applies to South America, as outlined by F. O. Malley, of the National City Bank, in his publication, "Our South American Trade and Its Financing," page 31, applies to Mexico. In Mexico drafts can only be protested for their face value, and in the event that drafts carrying instructions as to charges are protested, these are superfluous. Drafts should carry the following instructions as to payment: "Pagadero precisamente en oro nacional metalico al tipo de cambio a que venda el Banco sus giros sobre Nueva York." Samples: Custom Houses will permit the introduction of samples which are intended to be re-exported within six months after date of entry, and without the payment of duties where acceptable bond is furnished, under which the guarantor becomes liable for the duties and a fine in addition thereto in the event that they are not returned within the specified time limit or extension of time secured. By applying to the head of the Custom Houses Department in Mexico City the time limit for the re-exportation of samples can be extended up to a period of two years. Shipments to Interior Points in Mexico: As through bills of lading are not available to interior points in Mexico, shipments are usually consigned to the purchaser's agent or broker at port of entry. Where documents are to be delivered against acceptance or payment of draft, these, together with the draft, should be forwarded to destination, unless special arrangements are made for payment or acceptance at port of entry. On shipments from Atlantic ports to Vera Cruz or Tampico, final destination being at interior point, the documents should be forwarded by mail, via Laredo, to collecting bank at destination, the purchaser recovering documents against payment or acceptance, as the case may be, and forwarding documents to port. Due to the faster time the documents make by mail, these can usually reach Vera Cruz or Tampico at about the same time the merchandise does. This also applies to shipments to interior points routed via Laredo or Eagle Pass and originating in the Eastern States. Documents Required for Releasing Shipments: In any seaports of entry the only document required by the carrier is a negotiable copy of bill of lading, and, in the absence of this, in the case of direct consignments, shipments will be released on furnishing an acceptable bond. Trouble is experienced in securing release of merchandise in "to order" shipments, it being usually necessary to have the carrier's agent at point of origin give instructions to this effect. Custom houses will release merchandise on presentation of negotiable bill of lading in order and consular invoice. Where consular invoice is missing, merchandise can be withdrawn from custom house by furnishing acceptable bond, under which is assumed the obligation to produce the invoice within 30 days. In the event this is not complied with, a penalty of double duties is imposed. On shipments entering Mexico through frontier ports of entry the only document required is the consular invoice, which is taken out by the shipper or custom house agent on the American side. |