Importer´s Guide - Yucatán 2010

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    CONTENT

    INTRODUCTION .............................3

    WELCOMEIN BRIEF

    Yucatan: A state with exporting tradition

    WHERE IS YUCATAN LOCATED? .........5

    STRATEGIC GEOGRAPHICAL LOCATION

    Distances

    YUCATAN GENERAL INFORMATION ..7BASIC ECONOMIC PROFILE

    INFRAESTRUCTURE

    Airport

    Ports

    WHAT DOES YUCATAN OFFER... 11

    EXPORTABLE OFFER

    PYMEXPORTA CENTERDOEY

    Foreign Trade

    Yucatan Logistics

    INTERESTING SITES ...................................................15

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    WELCOME

    The State of Yucatan has initiated this new century becoming the financial,

    business, academic, cultural, medical, industrial and most important trade centerin the southeast of Mexico. Yucatan offers a high degree of safety and quality of

    life for all the population, and also innumerable opportunities for investment and

    growth in all economic sectors.

    Opportunities are multiplying day by day under a favorable climate for business development crea-

    ted by the labor cordial between the State Government and the private sector. Institutional support

    and respect for the internal life of organizations are two important factors that support the inves-

    tment and healthy economic growth of Yucatan.

    In addition, Yucatan, the nearest industrial center between Mexico and the East Coast of the United Sta-

    tes and the door to Central America, also offers a broad range of quality products to international markets.

    IN BRIEF

    Yucatan enjoys a privileged geographical position. It is the closest connection point from Mexi-

    co to the European Union. The distance from Yucatan to the east coast to the United States is 36

    hours by sea and one and a half hour by plane. It is also a very important access spot for all the

    Caribbean, Central and South America. This fact is an advantage, among other ones like 20% less

    transportation costs to the U.S.A. compared with Central America and the central region of Mexico,

    for the importing & exporting logistic processes regarding to easier product access. Yucatan is conso-

    lidated as the financial, business, academic, cultural,

    medical, industrial and most important trade center inthe southeast of Mexico. At the same time, Yucatan

    has an exporting tradition of more than a century that

    has made it a natural exporter State that enjoys of 12

    Free Trade Agreements signed by Mexico.

    The variety of products in Yucatan allows offering

    various options for international importers in diverse

    industrial sectors such as textile, jewelry, agribusi-

    ness, food & beverages and machinery & equipment.

    This state offers a broad range of unique high qualityproducts that are recognized worldwide like the bee honey (one of the bests internationally) and the

    habanero pepper (denomination of origin).

    Yucatan is an extraordinary place to import products, consolidate and expand global business.

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    Yucatan:A state with an Exporting Tradition

    In the last decade of the 19th Century, Henequen or Sisal as it is known in English, became one

    of the main products in Mexico, representing more than 24% of the countrys total exports by 1894,and more than 80% of worlds sisal fiber production by 1916. As a result, Yucatn positioned itself

    on international business markets and established the foundation for its productive and commercial

    forces, which prospered during the first half of the following Century.

    In the 70s, Yucatan exported products originated from Henequen and other goods like seafood,

    fruit juices, clothing and honey. The main export destinations were the U.S.A., Italy, France, Japan,

    Canada, Central America and Germany. Years later in the 1980s manufactured products made of

    plastic, textile products, wood, footwear and construction materials became the main outbound mer-

    chandise for Progreso, Yucatans main seaport.

    The strategy of open borders to trade, as a public policy for increasing market access and FDI,

    transformed Yucatan at the end of the 20th Century into one of the regions in Mexico with a greater

    capacity to attract the investments and assembly operations of multinational corporations. This in

    turn motivated local investors to become involved as suppliers of export goods.

    Today, at the beginning of the Third Millennium, the idea that Yucatan has traditional ties to the

    external sector is reaffirmed. Through the years, an export culture has been developed, which is evi-

    dent in the historical memory of a competitive people, capable of offering their products, underlying

    a rich, ancestral culture, fitted for the demands of a global society.

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    STRATEGIC GEOGRAPHICAL LOCATION

    Yucatan is located approximately 32 hours by ship and an hour and a half by plane from the United

    States of America. It is also accessible by train from the port of Salina Cruz on the Pacific Ocean.

    The transportation costs from Yucatan to the U.S.A. are reduced by 20% in comparison to those of

    Central Mexico or from Central America to the same destinations.

    Its geographic position is privileged because it allows having access to the Golf of Mexico and it

    is situated in front of the Southern Coast of the U.S. Its position is so advantageous that the most

    important cities of Florida, Texas, Louisiana, Alabama and Mississippi are reachable in approximately

    90 to 120 minutes flying from the international airport of Merida. Also, the Yucatan Peninsula is the

    contact point to the islands of the Caribbean and the Central American countries.

    Merida, the capital of Yucatan, is the closest industrial center from Mexico to the east cost of the

    U.S. It is also connected to Europe, Central and South America and the Caribbean. Merida is the

    business, financial, technological, medical and educational services most developed center of the

    Southeast of Mexico.

    Distances

    The following table shows the distance from Merida to the border cities in the north and southeast

    of Mexico:

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    The next table shows the sea distances from Progreso port to other

    important ports in the east of Mexico and to some other important

    ports in the world:

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    BASIC ECONOMIC PROFILE

    Population of the State of Yucatan: 1,921,959 habitants (CONAPO, 2009).

    Principal city: Merida (Capital) 845,767 habitants (CONAPO, 2009).

    Other important cities: Progreso, Valladolid, Tizimin, Progreso, Uman and Motul.

    Principal production activities: Agriculture, fishing, apiculture, construction, manufacturing of food

    and beverages, clothing and textile manufacturing.

    Principal companies: Monty Industries (clothing), JRA Yucatan (jewelry), Jerzees Yucatan (clothing),

    Manufacturera Lee de Mxico (clothing), Balmex (clothing), Grupo Bimbo (food), Keken (food), Tien-

    das Chapur (commerce), Hidrogenadora Yucateca (food), Grupo Bepensa (beverages), Productos de

    Harina (food), Ormex (medical/industrial), Grupo Wal-Mart (commerce), Grupo Donde (food), Cemex

    (cement), Barcel (food), Mitza (construction), Grupo Pepsico (Beverage), Coca-Cola (Beverage), Air

    Temp (Air condition systems products) and Seal and Metal Products (stainless steel seals).

    Value of exports (Jan 08- Sept 09): 1,273.3 million of dollars.

    Principal products exported (Jan 08- Sept 09): jewelry (35.3%), clothing (28.3%), machines and in-

    dustrial equipment (9%), fishing (5.61%), and furniture (4.22%).Principal country destination of exports (Jan 08- Sept 09) : United States (81.8%), Macao (3.4%),

    Canada (2.8%) & Caiman Islands (2.52%).

    (SEFOE with information from General Administration of Customs).

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    INFRAESTRUCTURE

    INFRASTRUCTURE AT A GLANCE

    Airport: Number of airports 2 (1 in

    Merida and 1 in Chichen Itza).

    Railway: 609.40 Kilometers.

    Road: 12,362 Kilometers.

    Port:

    Terminals and wharfs for the embarka-

    tion of major cargo ships.

    Areas for the handling of freezer con-

    tainers to facilitate the traffic of perisha-

    ble products.

    Special equipment for handling load.

    Development of logistic services and of

    various modes of transportation.

    Cruiser operations and tourist ferries to link the Peninsula of Yucatan with the centers of the East

    coast of the United States, the Gulf of Mexico and the Caribbean.

    Development of terminals and warehouses for containers and general load.

    Terminals, installations and transportation of people in tourist activities.

    Source: Communication and Transportation Secretariat and Integral Port Administration from Progreso.

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    Airports

    The International Airport of Merida is the second

    of ASUR (Southeast Airports) in receiving traffic and

    income. It counts with:

    A charging terminal

    Custom office.

    Custom agencies.

    Bank for fiscal payments.

    Yucatan also has another airport smaller in size,

    the international airport of Kaua, located near form

    de archeological zone of Chichen Itza, located in thecenter of the state of Yucatan.

    Technique information of the international airport

    of Chichen Itza:

    Localization: Kaua, Yucatan.

    Runways: 10-28 => 2,800 x 45 meters.

    Capacity: 3,233 passengers.

    Classification: International.Type: Tourist / Freight.

    Ports

    Progreso is the chief port of Yucatan state. It is

    based on a large fishing industry and it has been con-

    solidated from the construction of the Port of height,

    single offshore facility consisting of a viaduct into the

    sea that has 6.5 km of distance, to gain depth and

    allow a ship of 34 feet-as a strategic hub for expor-ting & importing logistics. Containers loaded with go-

    ods leave Progreso towards the Caribbean and other

    countries nearby.

    International Airport of Merida

    International Airport of Chichen Itza

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    The costal region of the state of Yucatan limits in the East with the state of Quintana Roo and in

    the West with the state of Campeche. The littoral of Yucatan has an extension of 365 km and invol-

    ves 13 littoral communities: Celestun, Hunucma, Progreso, Ixil, Dzernul, Telchac Puerto, Sinanche,

    Dzinzantun, Yobain, Dzilam de Bravo, San Felipe, Rio Lagartos and Tizimin. In the humid coasts of

    Yucatan there are four Natural Protected Areas (ANP), two of them are federal: Special Reserve ofthe Biosphere of Celestun and the Lagartos River. The two others are the State Reserve of El Palmar

    and the Bocas de Dzilam.

    For more information about the diffe-

    rent routes, please visit the following

    web site:

    http://www.puertosyucatan.com/ne/rutas.htm

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    WHAT DOES YUCATAN OFFER

    Exportable Offer

    The following graph shows the Exports by industry from Yucatan for the period January 2008 to

    September 2009:

    The next graph illustrates the Top 10 Exported Products from Yucatan for the period January 2008

    to September 2009:

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    PYMEXPORTA CENTER

    Centro Pymexporta Yucatan is the agency in charge

    of promoting and increasing exports. It belongs to

    the Economic Development Secretariat of the State

    of Yucatan and aims to develop small and medium-

    sized enterprises, improving opportunities in export

    markets.

    It is responsible for the registration and incorporation of local export products in order to respond

    efficiently to international demands. One of the services offered is to arrange business meetings,

    fulfilling the need to constitute a communication platform that links business initiatives to foreign

    buyers.

    Being the state organism in charge of international commerce, Centro Pymexporta Yucatan meets

    with governments, associations and private and public interest groups to develop relations between

    Yucatan and the international trade community.

    The State of Yucatan is an excellent location for business opportunities. Its strategic geographical

    position transforms it into a platform of production for the East Coast of the U.S., the Caribbean and

    Central America. Yucatan has access to world-class services and a modern infrastructure, along with

    the advantages of safety and high quality of life. With competitive processes and skilled labor force;

    Yucatan has become one of the most important suppliers worldwide of recognized quality products

    like: bee honey (Germany), habanero pepper (Japan, Korea and U.S.A.) & Mayan octopus (Japan) as

    well as in manufactured goods for the United States and other parts in the world.

    Free Services Pymexporta Center:

    Trade and Investment Opportunities

    Introduction to high levels of Government and Industry

    to help projects move forward faster.

    International Promotion Headquarters

    Phone: (+52.999) 930.37.30 ext. 29007

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    DOEY

    The DOEY is a Directory of the entire exportable offer in the State of Yucatan. It was created by

    PYMEXPORTA Center and incluids all the companies established in the State of Yucatan, that during

    the year 2009, have contacted the Economic development Secretariat to initiate an export project,consolidate or diversify existing exports, or that have been invited to join the group of selected enter-

    prises because of their ongoing success as an exporting company. The Directory includes companies

    that are in the process of adapting to international standards.

    Current Exporter: A company that is already exporting to one or several interna-

    tional markets, interested in consolidating or diversifying its exports. It has the ability

    to respond to a purchase order immediately.

    Indirect Exporter: A company that supplies products to another one where the

    second is responsible for marketing them abroad or incorporation into other goods

    for export.

    Potential Exporter: A company that is well prepared to supply international mar-

    kets. Even though it is neither exporting nor has exported in the past, it has the ability

    to respond to a purchase order almost immediately.

    Developing Exporter: A company in the process of becoming a successful exporter

    following the guidelines laid out by the Centro Pymexporta in areas of training, advi-

    ce, fitness products, formation of the export price, among others.

    http://www.pymexporta.yucatan.gob.mx/doey

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    FOREIGN TRADE

    Market access obtained by the implementation of Free Trade Agreements (FTA) positions Mexi-

    co as very attractive platform for trade and investment. The network of 12 FTAs subscribed by our

    country offers safe and preferential access to the markets of 44 countries that concentrate more thana billion potential consumers. These Agreements provide a long term legal framework and certainty

    for exporters, investors & consumers.

    Mexicos strategic geographical location, between the Atlantic and the Pacific Oceans, and con-

    necting north and South America, makes of it an ideal hub for world-wide production and trade.

    Mexicos strategy is to continue expanding its network of FTAs to diversify its export markets

    and to attract Mexican and foreign enterprises to invest and reap the benefits of joint production in

    a strategic location.

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    YUCATAN LOGISTICS

    Yucatan Logistics is a web site designed to provide

    all the information concerning with logistic processes

    of importing and exporting products from the State ofYucatan. It contains a directory with information from

    customs agencies, packages delivery companies, air

    services, shipping services, ground services, messa-

    ging and logistics consulting.

    http://www.yucatanlogistics.com

    INTERESTING SITES

    Central Bank of Mexico: www.banxico.gob.mx

    DOEY: www.pymexporta.yucatan.gob.mx/doey

    Economic Development Secretariat of Yucatan State (SEFOE): www.sefoe.yucatan.gob.mx

    Horizonte Yucatan. Merchant society of apparel industry: www.horizonteyucatan.com

    Mexican Government: www.gob.mx

    Ministry of Economy: www.economia.gob.mx

    National Bank of Foreign Trade: www.bancomext.gob.mx

    National Institute of Statistics, Geography and Informatics: www.inegi.gob.mx

    Progresos Port Administration: www.puertosyucatan.com/ne/rutas.htm

    Public Credit Office: www.shcp.gob.mx

    Pulso Econmico. Quarterly publication of SEFOE, which contains economic information:

    www.sefoe.yucatan.gob.mx/esp/publicaciones/publicaciones.php

    Pymexporta Center: www.pymexporta.yucatan.gob.mx/

    Yucatan Government: www.yucatan.gob.mx

    Yucatan Logistics: www.yucatanlogistics.com