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September 22, 2016

BIS Proposes to Extend Time Limit for Temporary Exports to Mexico under TMP

On August 23, 2016, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) issued a proposed rule that would align the time limit of License Exception Temporary Exports, Reexports, and Transfers (In-Country) (“License Exception TMP”), for certain temporary exports to Mexico, with the time limit of Mexico’s IMMEX[1] program—a program used by U.S. and foreign manufacturers to lower production costs by temporarily importing production materials into Mexico.

License Exception TMP generally allows the trade community to temporarily export and reexport items subject to the Export Administration Regulations without a license, provided that the items are returned within a year of export, reexport, or transfer (unless the items have been consumed or destroyed). Under the proposed amendment, items temporarily exported or reexported under TMP and imported into Mexico under the IMMEX program would be authorized to remain in Mexico for up to four years from the date of export or reexport.

Comments on the proposed rule must be received by October 24, 2016.

[1] Mexico’s Decree for the Promotion of Manufacturing, Maquiladora and Export Services (commonly known as “IMMEX”).