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I. INTRODUCTION
One of the first questions asked of any Mexican attorney by foreign companies looking to do business in Mexico is: What are my options? Two summers ago, I confronted this inquiry quite often while working as a law clerk in a well-established law firm in Mexico City that caters largely to foreign companies and individuals pursuing business south of the border.1 Although Mexico suffered a drastic peso devaluation in 1994, our southern neighbor has long attracted foreign speculation, and its economy at the time was arguably on the up-swing.2 However, before going any further, in order to answer any legal question in Mexico, one needs to look at the law and actual practice, affectionately known as el derecho y el hecho.3
The business goals of the foreign company considering operations in Mexico will largely determine what legal guidelines apply. Most companies look to Mexico as an offshore production site, where inexpensive labor can be utilized to assemble products for exportation back to the country of origin or other countries.4 For these purposes, the wellknown Maquila Program5 continues to offer significant benefits. However, a growing consumer class in Mexico combined with outdated and inefficient domestic production6 has caused many outside companies to seriously consider entering the national market. While maquiladoras are allowed to allot some of their production to the Mexican market, the little known Temporal Importation Program to Produce Articles for Exportation (PITEX)7 may often provide greater benefits for foreign companies interested in both offshore export production and the Mexican domestic market.
This paper largely results from the lack of information on the PITEX Program, both in and outside of Mexico. While most Mexican attorneys who counsel foreign clientele can rattle off the Maquila Program guidelines, few even know of the PITEX Program.8 In the United States, little if any mention is ever made of the PITEX Program, and I have yet to encounter translated copies of the PITEX provisions. However, even if such copies were available, they would be of little benefit because the Mexican government's administration of the PITEX Program goes far beyond its official text. As mentioned previously, a large gap often exists between el derecho y el hecho.
In the next few pages, I will analyze and compare...