Insurance: -Full-coverage insurance costs 7^ percent for 10- 

 percent deductible. Most boats are covered only by total -loss and 

 cost-of-salvage which runs about 5 percent annually. This amount may 

 be decreased by 10 percent if no towing charges have been accumulated 

 during the year. If a Carmen shrimp-trawler breaks down at sea and 

 is towed to port by another trawler, the latter charges for towing. 

 There is also a federal tax of 54 percent on the premiums. 



For a boat valued at 260,000 pesos, or $20,800, which does 

 not ovje any towing charges, the annual insurance premium for total loss 

 and salvage would be about $1,000. 



The above rates prevail throughout Mexico. 



Dep reciati on ; -The usual accounting practice is to depreciate 

 the hulls in 10 years and the engines in 5 or 6 years. 



Miscellaneou s ; -Under this heading are included the cooperative 

 "factura" charges, medical supplies and services, boat dispatch or port 

 clearance charges, and donations. 



The "factura" is a bill of sale issued by the cooperative, 

 establishing that cooperative fishermen caught the shrimp. By law, all 

 shipments of shrimp must be covered by a factura. The factura charge 

 in Carmen is a standard 10 centavos a kilogram (about .5 cents a 

 pound before devaluation and .h cents a pound since). It is a service 

 charge and not a tax. 



Since the fishermen are not covered by social security, 

 the boat owners pay for medical supplies and services for injui^ies 

 or illness. 



According to Mexican lav;, the captain must report the amount 

 of catch to the fishery office on returning from each trip and must 

 obtain clearance for the next trip before the port captain will allow 

 departure. Minor charges usually accrue from these procedures. These 

 regulations apply to all of Mexico . 



West coast 38/ 



The cost of trawl -caught shrimp on the west coast of Mexico 

 for the 195^1-55 season probably avera.ged between 30 and J4O cents a 

 pound (tabl.i 20). These costs do not appear to differ significantly 

 from the costs for the 1953-5U season. 



38/ Prices or costs of specific items such as fuel, ice, etc. , are those 

 prevailing during the winter of 1955-56. 



100 



