MEXICAN raSHERY LEGISLATION 



In addition to the exemptions given cooperatives which shall be discussed later, 

 local packing plants are exempt frcm exploitation taxes (Appendix IV, Art. 3). New 

 industries are also exempt from various taxes, but these will not be treated. 



In the Reciprocal Trade Agreement (Appendix XXXIX) Mexico fixed the import duties on 

 canned salmon and canned California sardines at 70 centavos per legal kilogram, which was 

 the duty rate at that time. The United States, on the other hand, reduced the duty by 

 50% on Mexican totoaba, shark fins and canned tuna. The concession on tuna can be revokec 

 upon six months notice any time after the termination of the national emergency. The 

 United States also froze free fish sounds, fish livers, shark skins, fish scrap and meal 

 for fertilizers, fresh or frozen spiny lobsters, fresh or frozen shrimp, and abalone. 



Of the above-mentioned free items, shrimp is now the subject of much discussion 

 amongst our shrimp fishermen, who are threatening an attempt to restrict the amount of 

 Mexicein shrimp that caji enter the United States, 



Mexico has both free zones and free ports which have certain advantages with respect 

 to the fisheries. The free zones are all of Lower California and a portion of Sonora 

 bordering on the Colorado River (Appendix XLI) and Chetumal and Cozumel in Quintana Roo 

 (Appendix XUI), The free ports are Salina Cruz and Matias Romero, Oaxaca, Puerto Lexico, 

 Veracruz, and Topolobampo, Sinaloa (Appendix XXXV), 



According to the Law of Mexican Free Ports (Appendix XIV, Art. 25-V): 



"Fishery products fVom the high seas, destined for export, are not subject 

 to export duties." 



Fishery products from territorial waters, ■rtiich are introduced into free ports, 



"are considered as domestic products and therefore the corresponding export duties 

 must be guaranteed " (loc. cit. Art. 25-IV). 



Fishery products which are industrially produced, manufactured or trainsformed in free 

 ports and zones are not subject to export duties (Appendix XLIII, Art. A19). 



Ptee ports and zones are given further protection by Article /^O of the Customs Law 

 which provides that foreign merchandise similar to that produced in the free ports and 

 zones, and entering them, must pay the import duties (Appendix XLIII). For fishery products, 

 this is further strengthened by Circular No. .301-10-16 (Appendix XLIV) which specifically 

 makes the above applicable to Lower California. 



COOPERATIVES 



Mexico has been cooperative-minded and for this reason, many special privileges are 

 granted to cooperatives, 



A fishing cooperative is restricted in membership to active fishermen. There must be at 

 least ten fishermen to organize a cooperative. Each cooperative must join a federation if 

 one exists in the area. The federations are regional and in accordance with the product, 

 which means that the federations cover one specific area and only fishing cooperatives can 

 belong to a fishing federation. The federation is supposed to represent the various affili- 

 ated cooperatives and should be for the purpose of selling and buying in common the products 

 of and the purchases for the member cooperatives. The federation is comprised of representa- 

 tives from each cooperative and there cannot be more than three representatives from any one 

 cooperative . 



The federations are banded into the National Cooperative Confederation. This latter is 

 a national organization which is supposed to represent all the federations regardless of 

 their nature. No federation can have more than two representatives in the Confederation. 



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