Foreign Investment Law

Original Language Title: Ley de Inversión Extranjera

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Foreign Investment Law

FOREIGN INVESTMENT LAW

Official Journal of the Federation on December 27, 1993

Last reform published in the DOF on August 11, 2014

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

CARLOS SALINAS DE GORTARI, Constitutional President of the United Mexican States, to its inhabitants known:

That the H. Congress of the Union has served to address the following

DECREE

" THE CONGRESS OF THE MEXICAN UNITED STATES, D E C R E T A:

FOREIGN INVESTMENT LAW

TITLE FIRST

GENERAL PROVISIONS

Chapter I

Of The Law Object

ARTICLE 1o.- This Law is of general public order and observance throughout the Republic. Its object is the determination of rules to channel foreign investment into the country and to encourage it to contribute to national development.

ARTICLE 2o.- For the purposes of this Law, it is understood by:

I.- Commission: The National Committee on Foreign Investment;

II.- Foreign investment:

a) The participation of foreign investors, in any proportion, in the social capital of Mexican companies;

b) The one made by Mexican companies with a majority of foreign capital; and

c) The participation of foreign investors in the activities and acts contemplated by this Law.

III.- Foreign investor: to the natural or moral person of nationality other than Mexican and foreign entities without legal personality;

IV.- Registration: the National Registry of Foreign Investments;

V. Secretariat: the Secretariat of Economics;

VI.- Restricted Zone: The belt of the national territory of 100 kilometers along the borders and fifty along the beaches, referred to by the fraction I of the Article 27 of the Political Constitution of the United Mexican States; and

VII.- Clause of Exclude of Foreigners: The express agreement or covenant that forms an integral part of the social statutes, whereby the companies concerned are established not to directly or indirectly admit as partners or shareholders to foreign investors, nor to companies with an admission clause of foreigners.

ARTICLE 3o.- For the purposes of this Law, the Mexican investment will be equated by foreigners in the country with the status of Permanent resident, except that made in the activities referred to in the First and Second Titles of this Law.

ARTICLE 4.- Foreign investment will be able to participate in any proportion in the social capital of Mexican companies, acquire fixed assets, enter new fields of economic activity or manufacturing new product lines, opening and operating establishments, and extending or relocating existing ones, except as provided for in this Act.

The rules on the participation of foreign investment in the activities of the financial sector referred to in this Law shall apply without prejudice to what the laws establish specific to those activities.

For the purposes of determining the percentage of foreign investment in economic activities subject to maximum participation limits, the investment shall not be computed Foreign investment, which is indirectly carried out through Mexican companies with a majority of Mexican capital, provided that the latter are not controlled by foreign investment.

Chapter II

Of Reserved Activities

ARTICLE 5o.- Functions that determine the laws in the following strategic areas are reserved exclusively to the State:

I. Exploration and extraction of oil and other hydrocarbons, in terms of the provisions of Articles 27, seventh and 28th, fourth paragraph of the Constitution Policy of the United Mexican States and the respective Regulatory Law;

II. (Repeals.)

III. Planning and control of the national electricity system, as well as the public service of electric power transmission and distribution, in terms of the Articles 27, sixth and 28th, fourth paragraph of the Political Constitution of the United Mexican States and the respective Regulatory Law;

IV.- Generation of nuclear power;

V.- Radioactive minerals;

VI.- (Repeals).

VII.- Telegraphs;

VIII.- Radiotelegraphy;

IX.- Post;

X.- (Repeals).

XI.- Ticket Issue;

XII.- Currency coinage;

XIII.- Control, monitoring and surveillance of ports, airports and heliports; and

XIV.- The others expressly stated in the applicable legal provisions.

ARTICLE 6o.- The economic activities and companies mentioned below are exclusively reserved for Mexicans or Mexican companies with a clause of exclusion of foreigners:

I.- National land transport of passengers, tourism and cargo, not including courier and parcel services;

II.    (Repeals.)

III.- Repeals

IV.- (Repeals).

V.- Development banking institutions, in the terms of the law of the matter; and

VI.- The provision of professional and technical services expressly signposting the applicable legal provisions.

Foreign investment may not participate in the activities and companies referred to in this Article directly, or through trusts, agreements, social pacts or (a) statutory, pyramidation schemes, or other mechanism which grants them control or participation, except as provided for in Title V of this Law.

Chapter III

Of Activities and Acquisitions with Specific Regulation

ARTICLE 7o.- In the economic activities and companies mentioned below, foreign investment may participate in the following percentages:

I.- Up to 10% on:

Cooperative production societies;

II.- Up to 25% on:

a) National air transport;

b) Transport in aerotaxi; and

c) Specialized air transport;

III.- Up to 49% on:

a) (Repeals).

b) (Repeals).

c) (Repeals).

d) (Repeals).

e) Repeals

f) Repeals

g) Repeals

h) Repeals

i) Repeals.

j) Repeals.

k) Repeals.

l) Repeals

m) (Repeals).

n) (Repeals).

o) Repeals

p) Manufacture and marketing of explosives, firearms, cartridges, ammunition, and fireworks, not including the acquisition and use of explosives for industrial and extractive activities, nor the manufacture of explosive mixtures for the consumption of such activities;

q) Printing and publishing of newspapers for exclusive circulation in territory national;

r) Series "T" shares of companies holding agricultural land; livestock and forestry;

s) Fishing in freshwater, coastal and exclusive economic zone, not including acuaculture;

t) Comprehensive port administration;

u) Port services for piloting vessels to perform operations inland navigation in the terms of the Law of the Matter;

v) Shipping companies engaged in commercial exploitation of vessels for the inland navigation and cabotage, with the exception of tourist cruises and the exploitation of dredgers and naval vessels for the construction, conservation and port operation;

w) Supply of fuels and lubricants for ships and aircraft and equipment rail, and

x) Broadcasting. Within this maximum foreign investment shall be the reciprocity that exists in the country in which the investor or the economic agent is established, which ultimately controls the investor, directly or indirectly.

IV.- (Repeals)

The limits for foreign investment participation indicated in this article may not be directly rebased, nor through trusts, agreements, social pacts or statutory schemes, schemes for the establishment of a pyramid scheme, or any other mechanism granting control or greater participation than is established, except as provided for in Title V of this Law.

ARTICLE 8.- A favorable resolution of the Commission is required for foreign investment to participate in a percentage greater than 49% in economic activities and companies are mentioned below:

I.- Port services to vessels to perform their inland navigation operations, such as towing, mooring and lanchage;

II.- Shipping companies engaged in the exploitation of vessels exclusively in high traffic;

III.- concessionary or permit companies for public service aerodromes;

IV.- Private preschool, primary, secondary, upper, upper, and combined education services;

V.- Legal services;

VI. Repeals

VII. Repeals

VIII. Repeated

IX.- Repeals

X.        (Repeals.)

XI.      (Repeals.)

XII.- Construction, operation and operation of railways that are the general way of communication, and provision of the public rail transport service.

ARTICLE 9o.- A favorable resolution of the Commission is required for Mexican companies where foreign investment intends to participate, directly or indirectly, in a a proportion of the total assets of the companies in question, which is greater than 49% of their share capital, at the time of the submission of the acquisition request, based on the amount determined annually by the Commission itself.

TITLE SECOND

OF THE ACQUISITION OF REAL ESTATE, THE EXPLOITATION OF MINES AND WATERS, AND OF TRUSTS

Chapter I

From the acquisition of real estate and mine and water exploitation

ARTICLE 10.- Pursuant to the provisions of section I of Article 27 of the Political Constitution of the United Mexican States, Mexican companies with a clause of the exclusion of foreign nationals or who have concluded the convention referred to in that provision may acquire the domain of immovable property in the national territory.

In the case of the companies in whose statutes the agreement provided for in Article 27 of the Constitutional Treaty is included, it will be the following:

I.- They may acquire the domain of real estate located in the restricted zone, intended for the performance of non-residential activities, and must give notice of such acquisition to the Secretariat of Foreign Affairs, within 60 working days following that in which the acquisition is made, and

II.- They may acquire rights to immovable property in the restricted zone, which are intended for residential purposes, in accordance with the provisions of the following Chapter.

ARTICLE 10 A.- Foreigners who intend to acquire real estate outside the restricted zone, or obtain concessions for the exploration and exploitation of mines and waters in the national territory, must present before the Secretariat of Foreign Relations a document in which the provisions of Article 27 of the Political Constitution of the United Mexican States agree with the provisions of Article 27 of the Constitution. the corresponding permission for that dependency.

When the property is intended to be acquired in a municipality wholly located outside the restricted zone or when it is intended to obtain a concession for the exploitation of mines and waters in national territory, the permit shall be understood if the refusal of the Secretariat of Foreign Affairs is not published in the Official Journal of the Federation within five working days of the the date of the submission of the application.

When the property that is intended to be acquired in a municipality partially located within the restricted zone, the Secretariat of Foreign Relations will resolve the request within 30 working days of the date of its submission.

The National Institute of Statistics, Geography and Informatics will publish in the Official Journal of the Federation and keep a list of the municipalities updated mentioned, as well as those that are fully located in the restricted zone.

The Foreign Relations Secretariat may determine, by means of general agreements to be published in the Official Journal of the Federation, cases in which the In order to have the right referred to in this Article, foreign nationals must submit to such a dependency only a letter in which the provisions of Article 27 (I) of the Constitutional Treaty agree, without requiring the corresponding permission of the said article. dependency.

Chapter II

From Trusts on Inmovable Property in Restricted Zone

ARTICLE 11.- It requires permission from the Secretariat of Foreign Relations for credit institutions to acquire as a trustee, rights to property located in the United within the restricted zone, where the object of the trust is to permit the use and use of such goods without constituting actual rights on them, and the trustees are:

I.- Mexican companies with no exclusion clause from foreigners in the case provided for in Article 10 (II) of this Law; and

II.- Foreign physical or moral persons.

ARTICLE 12.- The use and use of the real estate located in the restricted zone, the rights to the use or enjoyment thereof, including, where appropriate, the production of fruits, products and, in general, any performance resulting from the operation and exploitation, through third parties or the trust institution.

ARTICLE 13.- The duration of the trusts to which this chapter refers shall be for a maximum period of fifty years, which may be extended at the request of the person concerned.

The Secretariat of Foreign Relations will be able to verify at any time the fulfillment of the conditions under which the permits will be granted in the Title, as well as the presentation and veracity of the content of the notices arranged therein.

ARTICLE 14.- The Secretariat of Foreign Relations shall decide on the permits referred to in this Chapter, considering the economic and social benefit that the realization of these operations implies for the Nation.

Any request for permission must be resolved by the Secretariat of Foreign Relations within five working days of the date of its submission to the the competent central administrative unit, or within the following 30 working days, if it is presented in the state delegations of that unit. If such time-limits are not issued, the respective application shall be deemed to have been approved.

THIRD TITLE

OF SOCIETIES

From the Constitution and Modification of Societies

ARTICLE 15.- The Secretariat of the Economy will authorize the use of the denominations or social reasons with which the societies are intended to be constituted. It must be inserted in the statutes of the companies which are constituted, the exclusion clause of foreigners or the convention provided for in the section I of Article 27 of the Constitutional Treaty.

ARTICLE 16.- The procedure referred to in the previous article shall apply for incorporated companies that change their name or social reason.

Companies that modify their exclusion clause from foreigners by admission must notify the Secretariat of Foreign Relations within thirty years. business days following such modification.

If these companies own real estate located in the restricted zone intended for non-residential purposes, they shall give the notice to which the Article 10 of this Law, within the period provided for in the preceding paragraph.

ARTICLE 16 A.- The requests referred to in Articles 15 and 16 of this Law must be resolved by the Secretariat of Economy within two days. Immediate business following that of their presentation.

TITLE FOURTH

OF INVESTING FOREIGN MORAL PEOPLE

ARTICLE 17.- Without prejudice to the provisions of international treaties and conventions to which Mexico is a party, they shall obtain authorization from the Secretariat:

I.- Foreign moral persons who intend to habitually conduct trade in the Republic, and

II.- The persons referred to in Article 2,736 of the Civil Code for the Federal District in common matter, and for the entire Federal Republic, which they intend to establish themselves in the Republic and are not governed by laws other than that Code.

ARTICLE 17 A.- The authorization referred to in the preceding article shall be granted when the following requirements are met:

a) That those people check that they are constituted according to the laws of their country;

b) That the social contract and other documents constituting such persons are not contrary to the precepts of public order established in Mexican law, and

c) In the case of persons referred to in Part I of the previous Article, to be established in the Republic or have in it any agency or branch; or, in the case of persons referred to in Part II of the previous Article, having a representative domiciled in the place where they are to operate, authorised to respond to the obligations they contract.

Any application that complies with the above requirements must be granted within 15 working days of the date of filing. This deadline shall be terminated without a resolution being

.

The Secretariat shall forward to the Secretariat of Foreign Relations a copy of the applications and authorizations it grants on the basis of this Article.

TITLE FIFTH

NEUTRAL INVESTMENT

Chapter I

From The Neutral Investment Concept

ARTICLE 18.- The neutral investment is that made in Mexican companies or in trusts authorized under this Title and will not be computed to determine the percentage of foreign investment in the social capital of Mexican companies.

Chapter II

Neutral Investment Represented by Instruments Issued by Trust Institutions

ARTICLE 19.- The Secretariat may authorize fiduciary institutions to issue neutral investment instruments that they will only grant, in respect of companies, pecuniary rights to their holders and, where appropriate, limited corporate rights, without granting their holders the right to vote in their Ordinary General Assemblies.

The Secretariat shall have a maximum period of thirty-five working days to grant or deny the requested authorization, counted from the day following that of the submission of the application. After that period has been completed without a resolution, the respective application shall be deemed to have been approved.

Chapter III

Neutral Investment Represented by Special Series of Actions

ARTICLE 20.- The investment in non-voting shares or with limited corporate rights is considered neutral, provided that they obtain prior authorization of the Secretariat and, where applicable, of the National Banking and Securities Commission.

The Secretariat shall have a maximum period of thirty-five working days to grant or deny the requested authorization, counted from the day following that of the submission of the application. After that period has been completed without a resolution, the respective application shall be deemed to have been approved.

Chapter IV

Neutral Investment in Financial Group Controller Companies, Multiple Banking Institutions and Exchange Houses

ARTICLE 21.- (Repeals)

Chapter V

From Neutral Investment by International Financial Societies for Development

ARTICLE 22.- The Commission will be able to resolve the neutral investment that international financial companies intend to make for development in the social capital of companies, in accordance with the terms and conditions that are established for the purpose in the regulation of this Law.

TITLE SIXTH

FROM THE NATIONAL FOREIGN INVESTMENT COMMISSION

Chapter I

From the Commission Structure

ARTICLE 23.- The Commission shall be composed of the Secretaries of the Interior; of Foreign Relations; of Finance and Public Credit; of Social Development; of the Middle Environment, Natural Resources and Fisheries; Energy; Commerce and Industrial Development; Communications and Transportation; Labor and Social Security, as well as Tourism, who will be able to appoint a Deputy Secretary as an alternate. It may also be invited to participate in the Commission's sessions to those authorities and representatives of the private and social sectors that have a bearing on the issues to be dealt with, who will have a voice but no vote.

The Commission shall meet semi-annually, at least, and decide on the matters of its competence by a majority of votes, with its president voting for quality, in the event of tie.

ARTICLE 24.- The Commission will be chaired by the Secretary of Commerce and Industrial Development and for its operation will have an Executive Secretary and a Committee of Representatives.

ARTICLE 25.- The Committee of Representatives shall be composed of the public servant designated by each of the Secretaries of State in the Commission, meet four months, at least, and have the powers delegated to it by the Commission itself.

Chapter II

From Commission Powers

ARTICLE 26.- The Commission will have the following attributions:

I.- Dictate policy guidelines on foreign investment and design mechanisms to promote investment in Mexico;

II.- Resolve, through the Secretariat, on the origin and, where appropriate, the terms and conditions of the participation of the foreign investment of the activities or acquisitions with specific regulation, in accordance with Articles 8 or 8. and 9o. of this Act;

III.- To be a mandatory consultative body for foreign investment for agencies and entities of the Federal Public Administration;

IV.- Establish the criteria for the application of laws and regulations on foreign investment by issuing general resolutions; and

V.- The others that correspond to it in accordance with this order.

ARTICLE 27.- They are the privileges of the Executive Secretary of the Commission:

I.- Represent the Commission;

II.- Notify the Commission's resolutions, through the Secretariat;

III.- Perform the studies entrusted to you by the Commission;

IV.- Present to the Congress of the Union a quarterly statistical report on the behavior of foreign investment in the country, including sectors economic and the regions in which it is located; and

V.- The others that correspond to you in accordance with this Law.

Chapter III

From Commission Operation

ARTICLE 28.- The Commission shall resolve the applications submitted for consideration within a period not exceeding 45 working days from the date of submission of the respective application, in the terms set out in the Regulation of this Law.

If the Commission fails to resolve within the deadline, the application shall be deemed to have been approved in the terms submitted. At the express request of the person concerned, the Secretariat shall issue the appropriate authorization.

ARTICLE 29.- To evaluate the applications submitted for consideration, the Commission will meet the following criteria:

I.- The impact on workers ' employment and training;

II.- The technological contribution;

III.- The compliance with environmental provisions contained in the ecological systems that govern the matter; and

IV.- In general, the contribution to increase the competitiveness of the country's productive plant.

The Commission, when resolving the provenance of an application, may only impose requirements that do not distort international trade.

ARTICLE 30.- For reasons of national security, the Commission may prevent acquisitions by foreign investment.

TITLE SEVENTH

OF THE NATIONAL FOREIGN INVESTMENT REGISTER

ARTICLE 31.- The Registry shall not be public in character, and shall be divided into the sections established by its regulations, as determined by its organization, as well as information that must be provided to the Registry itself.

ARTICLE 32.- You must enroll in the Registry:

I.- Mexican societies in which they participate, including through trust:

a) Foreign investment;

(b) Mexicans who hold or acquire another nationality and who have their domicile outside the national territory, or

c) The neutral investment;

II.- Those who habitually carry out acts of trade in the Mexican Republic, provided that it is:

a) Foreign physical or moral persons, or

(b) Mexicans who hold or acquire another nationality and who have their domicile outside the national territory, and

III.- The trusts of shares or social parts, real estate or neutral investment, by virtue of the (a) which rights are derived in favour of foreign investment or of Mexicans who hold or acquire another nationality and who have their domicile outside the national territory.

The registration obligation shall be borne by the natural or moral persons referred to in fractions I and II and, in the case of fraction III, the obligation shall correspond to the Fiduciary institutions. The registration must be completed within 40 working days from the date of the formation of the company or the participation of foreign investment; of formalization or protocolization of the relative documents of the company foreign investment; or to the establishment of the respective trust or grant of rights of trustee in favor of foreign investment.

ARTICLE 33.- The Registry will issue the enrollment constances when the following data is contained in the request:

I.- In the cases of fractions I and II:

a) Name, name or social reason, address, date of incorporation as appropriate, and main economic activity to be developed;

b) Legal representative's name and address;

c) Name and address of authorized persons to hear and receive notifications;

d) Name, name or social reason, nationality and condition of stay in your case, domicile of foreign investors abroad or in the country and their percentage of participation;

e) Social capital amount subscribed and paid or subscribed and payable; and

f) Estimated start date of operations and approximate amount of total investment with its calendarisation.

II.- In the case of fraction III:

a) Denomination of the trust institution;

b) Name, name or social reason, domicile and nationality of foreign investment or foreign investors who are competent;

c) Name, name or social reason, domicile and nationality of foreign investment or foreign investors appointed trustees;

d) Trust date, purpose and duration; and

e) Description, value, target and where applicable, location of the fideicomitting heritage.

Once the registration record and its renewals have been issued, the Registry reserves the right to request clarification regarding the information presented.

Any modification to the information presented in the terms of this article shall be notified to the Registry in accordance with its rules of procedure.

ARTICLE 34.- In the constitution, modification, transformation, merger, division, dissolution and liquidation of commercial companies, of civil societies and associations and in In all acts and legal acts in which the persons obliged to register in the Register under Article 32 of this Law are involved or represented, the public authorities shall require such persons or their representatives, who are accredited to them in the register, or in the event of be registered as an application, which will give you the appropriate application. If it fails to prove it, the holder may authorise the public instrument concerned, and shall inform the Registry of such omission within 10 working days of the date of the authorisation of the instrument.

ARTICLE 35.- The subjects required to register in the Register must renew their registration record annually, for which it is sufficient to submit a questionnaire financial-economic in terms of the respective regulations.

ARTICLE 36.- Federal, state and municipal authorities are required to provide the Secretariat, reports and certifications necessary for compliance with the its functions in accordance with this Law and its regulatory provisions.

TITLE EIGHTH

SANTIONS

ARTICLE 37.- In the case of acts in violation of the provisions of this Law, the Secretariat may revoke the authorizations granted.

The acts, conventions or social and statutory covenants declared void by the Secretariat, as contrary to the provisions of this Law, will not have legal effects between the parties or may be enforceable before third parties.

ARTICLE 38.- The violations of this Law and its regulatory provisions shall be sanctioned according to the following:

I.- In the event that the foreign investment carries out activities, acquisitions or any other act that requires a favorable resolution of the Commission for its realization, without it having been obtained previously, a fine of one thousand to five thousand will be imposed. wages;

II.- In case foreign moral persons habitually carry out acts of trade in the Mexican Republic, without having obtained prior authorization from the Secretariat, a fine of five hundred to one thousand salaries shall be imposed;

III.- In case of acts in violation of this law or its regulatory provisions on neutral investment, fines of 100 to three hundred salaries shall be imposed;

IV.- In case of omission, extemporaneous compliance, incomplete or incorrect submission of information regarding the obligations of registration, report or notice to the Registry by Part of the obliged subject, a fine of thirty to one hundred wages shall be imposed;

V.- In the event of a simulation of acts for the purpose of allowing the enjoyment or disposal of real estate in the restricted zone to foreign natural or moral persons or to Mexican companies that do not have a foreign exclusion clause, in Contrary to the provisions of the Second and Third Titles of this Law, the infringer shall be punished with fine up to the amount of the operation; and

VI.- In the case of other violations of this law or its regulatory provisions, a fine of one hundred to one thousand salaries shall be imposed.

For the purposes of this article, the general minimum wage, in force in the Federal District at the time of the determination of the infringement, is understood.

In order to determine and impose sanctions, the person concerned must be heard in advance and, in the case of financial penalties, take into account the nature and gravity of the infringement, the economic capacity of the infringer, the time elapsed between the date on which the obligation was due and its compliance or regularisation, and the total value of the operation.

It will be up to the Secretariat to impose the sanctions, except for what it does to the infringement referred to in the fifth paragraph of this article and the other related to the Second and Third Titles of this Law, which will be applied by the Secretariat of Foreign Affairs.

The imposition of the sanctions referred to in this Title shall be without prejudice to the civil or criminal liability that is appropriate.

ARTICLE 39.- Public fedarios shall relate, insert or add to the official file or appendix of the instruments in which they intervene, the trades in which they are authorisations to be issued in the terms of this Law. When authorizing instruments in which such authorizations are not related, creditors shall be granted penalties to determine the laws of the relevant notary and the Federal Law of Public Brokerage.

TRANSIENT

FIRST.- This Law will take effect the day after its publication in the Official Journal of the Federation.

SECOND.- It is opened:

I.- The Law to Promote Mexican Investment and Regular Foreign Investment, published in the Official Journal of the Federation on March 9, 1973;

II.- The Organic Law of Fraction I of Article 27 Constitutional, published in the Official Journal of the Federation on January 21, 1926; and

III.- The Decree establishing the temporary need to obtain permission for the acquisition of foreign goods and for the constitution or modification of Mexican companies that have or have foreign partners, published the Official Journal of the Federation on July 7, 1944.

THIRD.- They are repealed:

I.- Articles 46 and 47 of the Federal Firearms and Explosives Act, published in the Official Journal of the Federation on January 11, 1972; and

II.- All laws, regulations and administrative provisions of a general nature that oppose this Law.

FOURTH.- As long as the Regulations of this Law are issued, the Regulation of the Law to Promote Mexican Investment and Regular Foreign Investment, published in the Official Journal of the Federation on May 16, 1989, will remain in force in all that does not object to it.

QUINTO.- Foreign investors and foreign-invested companies, which at the date of publication of this Law have agreed programs, requirements and commitments to the Commission, its Executive Secretary or the General Investment Directorate Foreign of the Secretariat, may submit to the aforementioned General Directorate the exemption of its compliance, for which this administrative unit must answer on the conduct within a period that will not exceed 45 working days, counted from the submission of the relevant application. Those foreign investors who do not accept the possibility of the exemption referred to above shall comply with the commitments previously defined to the Commission, persons and public entities identified.

SIXTH.- They are exclusively reserved for Mexicans or Mexican companies with a clause of exclusion of foreigners the activities of international ground transportation of passengers, tourism and cargo between points of the territory of Mexico and the Service for the administration of truckloads of passengers and ancillary services.

However, in the above mentioned activities foreign investment may participate in accordance with the following provisions:

I.- As of 18 December 1995, up to 49% of the share capital of Mexican companies;

II.- From 1o. of January 2001, up to 51% of the share capital of Mexican companies; and

III.- From 1o. January 2004, up to 100% of the share capital of Mexican companies without the need to obtain the favourable resolution of the Commission.

SEVENTH.- Foreign investment may participate up to 49% of the share capital of Mexican companies engaged in the manufacturing and assembly activities of parts, equipment and accessories for the automotive industry, without prejudice to the provisions of the Decree for the Promotion and Modernization of the Automotive Industry. From January 1, 1999, foreign investment will be able to participate up to 100% in the social capital of Mexican companies, without the need to obtain the favorable resolution of the Commission.

EIGHTH.- The foreign investment will be able to participate up to 49% of the social capital of the Mexican companies dedicated to the activities of providing the services of videotext and commutation in package. From 1 July 1995, foreign investment may participate up to 100% in companies engaged in the services referred to above, without obtaining the favourable resolution of the Commission.

NINTH.- A favourable resolution of the Commission is required for foreign investment to participate in a percentage greater than 49% of the share capital of companies carrying out the construction, construction and installation of works. From the first of January 1999, foreign investment may participate up to 100% in the share capital of Mexican companies dedicated to them, without the need to obtain the favorable resolution of the Commission.

DECIMAL.- For the purposes of Article 9, and as long as the Commission fixes the amount of the total value of the assets referred to in that Article, the amount of eighty-five million new weights is determined.

TENTH FIRST.- To foreign investors and Mexican companies with an admission clause of foreigners who have fideicomies in their favor real estate in zone restricted to the entry into force of this Law, the provisions of Chapter II of the Second Title of the Law shall apply to them in all that they benefit.

Mexico, D. F., at December 15, 1993.-Dip. Fernando Rodriguez Cerna, President.-Sen. Eduardo Robledo Rincon, President.-Dip. Juan Adrian Ramírez García, Secretary.-Sen. Antonio Melgar Aranda, Secretary.-Rubicas.

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I hereby issue this Decree at the residence of the Government. Federal Executive, in Mexico City, Federal District, at the twenty-three days of December of a thousand nine hundred and ninety-three.- Carlos Salinas de Gortari.-Heading.-The Secretary of the Interior, José Sponsorio González Blanco Garrido.-Heading.