Background on the Relevant Person: The Mexican Government
The Mexican government, committed to fostering national industrial development, has recently reformed regulations governing the measurement, accreditation, and verification of national content in public procurement. This move aims to ensure that at least 65% of the value of publicly purchased goods originates from domestic production, promoting transparency and supporting national manufacturers, including cooperatives and small businesses.
New Methodology for Calculating National Content
Previously, national content was calculated based on the selling price of goods. However, the new methodology, effective January 1, 2027, will calculate national content based on the net production cost. This change is intended to encourage greater domestic production integration and industrial capability development within Mexico.
Accreditation of National Content
Under the new regulations, suppliers awarded contracts must provide documentation to substantiate their claimed national content percentages. This ensures that the Mexican government’s purchasing power effectively benefits national production and industrial capacity development.
Combatting Simulation
The new guidelines also emphasize effective verification and the fight against simulation. To achieve this, coordinated actions between the Public Procurement Unit and Internal Control Organs will be strengthened to monitor national procedures diligently and prevent fraudulent activities detrimental to domestic manufacturers.
Incorporating Best Practices
The new regulations also include best practices for verification, such as considering electricity and water consumption in industrial plants as evidence of domestic production. This approach aims to provide a more accurate representation of national content.
Penalties for Non-Compliance
The Mexican government will impose sanctions on contractors who fail to properly accredit the required percentage of national content. This ensures adherence to the new regulations and promotes fair competition among suppliers.
Training for Effective Implementation
The Secretariat of Good Governance and Anti-Corruption has announced a training program for both suppliers and public servants to ensure proper, transparent implementation of the new rules. This initiative aims to bolster domestic industry without compromising public spending efficiency or contracting conditions.
Key Questions and Answers
- What is the main change in the regulations? The new methodology calculates national content based on net production costs instead of selling prices.
- When will these changes take effect? The new regulations will be implemented on January 1, 2027.
- Who will benefit from these changes? The reforms aim to support domestic manufacturers, including cooperatives and small businesses, by encouraging greater national production integration.
- What measures are in place to prevent simulation? Strengthened verification mechanisms, coordinated actions between relevant units, and best practices for accreditation are implemented to combat simulation.
- What happens if a supplier fails to meet the national content requirements? Suppliers who fail to properly accredit the required percentage of national content will face penalties.
