MÉXICO
¿Qué pasa?

A Guide for Canadian Visitors


TABLE OF CONTENTS


Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, ON K1A 0G2
or call 1-800-267-8376 (in Canada) or (613) 944-4000.

The Department is on the Internet at:
http://www.dfait-maeci.gc.ca

Ce document est aussi disponible en français

©Department of Foreign Affairs and International Trade
April 1998
Cat. No.: E2-176/1998E
ISBN 0-662-26515-7


INTRODUCTION

Mexico is one of the most popular destinations for Canadian international travellers. One million Canadians visit Mexico each year. Vacationers are drawn by the country's superb beaches, pre-Columbian ruins, colonial architecture and the sights and sounds of numerous cultural events. Business travellers are attracted by Mexico's status as one of the most open economies in Latin America. Under the North American Free Trade Agreement (NAFTA), Canadians enjoy special access to pursue investment opportunities, work as professionals and intra-company transferees, and sell their goods and services. Many Canadians combine business and pleasure when they go.

Mexicans are warm, hospitable people, and Canadians will find themselves welcome in their country. But careful preparation is a key part of any successful foreign trip. This is especially true in countries such as Mexico where a much different culture and legal system will be encountered. A simple checklist of travel requirements can mean the difference between a minor glitch and a major disaster.

Mexican Culture

Whether you are travelling, living or working in Mexico you will find yourself in a vastly different culture from the one you're used to at home. Mexicans, like Canadians, have as many differences among them as they have characteristics in common. We often use the word "culture" to describe the common characteristics. As important as these generalizations are to our own learning process, always remember that every person is a distinct individual. Mexico is a rapidly changing society, where young educated executives are taking over decision-making positions from a more traditional, older generation. And there are distinct regional variations.

Mexicans are friendly and outgoing people, who readily welcome foreign visitors. They appreciate Canadians as people who come from a multicultural society and are sensitive to cultural differences.

Before You Go

The amount of preparation you need depends on the purpose and duration of your trip. If you are on vacation, and your stay will be fairly brief, you can use the entry form provided by the airline during your flight. If your trip includes business, be prepared to provide information about the purpose of the visit and the companies or individuals you will deal with. A salesperson calling on a client needs less documentation than someone going to Mexico to perform services for a fee.

There are four categories of business traveller recognized under the NAFTA. Business visitors who do not intend to enter the local labour market can enter with a business visitor visa -- Forma Migratoria de Negocios (FM-N) -- that can be obtained at the Mexican port of entry or from travel agents and airlines. Professionals working on contract, intra-company transferees, traders and investors may need professional advice to prepare documentation in advance. The Mexican Embassy in Ottawa or the consulates in other parts of Canada can provide up-to-date information.

Regardless of the purpose of your trip, you will require proof of citizenship. A Canadian passport is the simplest way to prove your citizenship and comply with the requirement for photographic identification. A passport is also convenient identification for other purposes, such as changing money in Mexico and re-entering Canada. Check your immunizations and verify if other health precautions are necessary. Take into account the high altitudes in the Mexico City area and potential problems with water quality. Book arrangements for travel and accommodation well in advance. Please make sure you review the contents of this booklet carefully to ensure you have all the documentation you may require.

Mexican authorities are vigorously enforcing immigration and entry laws. If the purpose of your visit is anything other than tourism (i.e., not-for-profit artistic, cultural or sporting activities or business) we recommend that you contact Mexican authorities to obtain the proper visa.

Do you speak English?
¿Habla usted inglés?
I don't understand.
No entiendo.

You may also want to read about the social, political and economic environment in Mexico before you go. If possible, take time to learn some basic Spanish. Mexicans appreciate visitors who make an effort to communicate with them in their own language, even if it is just a few phrases.

Business people may want to consult the Information Source on Mexico, export i, on the Internet (http://www.dfait-maeci.gc.ca/exporti) which provides market summaries, market profiles, business guides and business tools for doing business in Mexico. The Mexico Trade Action Plan is also available through the Department's Internet home page (http://www.dfait-maeci.gc.ca). A look at the Canadian Embassy Web site (http://www.canada.org.mx) will also certainly prepare you better for your trip.


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ENTERING MEXICO

Some procedures for entering Mexico are more complex than their Canadian equivalents. Some visitors make the mistake of assuming that, if a particular requirement is not enforced on one trip, it will be the same the next time. But because of increased visitor traffic, especially since the advent of the NAFTA, officials are enforcing some regulations more vigorously than in the past. Moreover, there is always potential for differing interpretations between ports of entry or individual officials. For example, visitors who have never been asked to return their tourist documents on departure may be surprised when they miss a flight because of a lost form. Prudent visitors always obey the law, even though it might not seem to be enforced in a particular instance.

Travel Documents

My name is ...
Mi nombre es.../Me Ilamo...
I don''t speak Spanish.
No hablo español.

As already mentioned, proof of citizenship is the fundamental document for all foreign travel, and Mexico is no exception. A passport is the best way to provide this proof. Naturalized Canadian citizens must present a valid passport. Carry a marriage certificate if your name is different from the one on your birth certificate or photo identification. The other required documents vary depending on your personal circumstances as well as the mode and purpose of your trip. It is prudent to have copies of each document so you can carry them and leave originals in your hotel safe.

Canadians travelling for business can complete a Forma Migratoria de Negocios (FM-N), authorizing the conduct of business for up to 30 days per visit. This permit cannot be extended or renewed, and you will require a new one each time you re-enter the country. You can get this form from travel agents and airlines or at the port of entry. If you want to pursue gainful employment in Mexico, you will need special documentation, discussed later in this guide.

Arriving by Air

Canadian tourists staying no more than 180 days do not need to obtain a visa in advance. They must complete an entry form, available from travel agents and airlines, or at the port of entry. They will be given a Forma Migratorio Turista (FM-T), tourist card. The FM-T is for all practical purposes a visa; the traveller must carry a copy at all times, and must surrender it on departure. An immigration official will stamp the visa and will enter the number of days you will be allowed to remain in Mexico. Do not assume that you will be granted the full 180 days. The authorities can demand this card at any time. Tourists are limited to activities defined by the FM-T category, which include sports, health, artistic and cultural activities. Extensions of up to 90 days beyond the 180-day limit are possible if a physician certifies that you are not fit to travel. Visitors can be expelled from the country if they violate their tourist status or stay longer than 180 days, and can be fined if they lose their FM-T.

Arriving by Car

Tourists entering Mexico in certain frontier areas along the U.S. border do not require tourist cards for stays of 72 hours or less. But taking a Canadian automobile into Mexico can involve a few complications.

Canadian driver's licences are valid in Mexico. A temporary vehicle importation permit -- Solicitud de importación temporal de vehículos -- is required for a foreign-registered vehicle to enter Mexico. You can obtain one at the border by providing the following documents:

Temporary permits are not required in certain designated border areas, such as those immediately south of California, where there is a lot of local tourist traffic. But be sure you know exactly where you are going before relying on this alternative. The vehicle permit is valid for six months and is good for multiple entries.

Can you help me please?
¿Me puede ayudar?

The temporary vehicle importation permit costs US$11 and must be paid for with a credit card. The card must be issued by a major Canadian or U.S. financial institution in the name of the vehicle owner. Visa, MasterCard and American Express are all accepted but cash is not. If the visitor does not have a credit card, a bond can be purchased with cash and deposited. You must display proof of payment on the vehicle windshield, and close out the permit on the way out of Mexico. This document constitutes a promise to take the car out of the country within a specified period, and the car will be confiscated if you overstay. Recreational vehicles and large trucks require additional permits.

It is illegal to import used vehicles permanently into Mexico except in designated northern border areas. Your vehicle can be confiscated if it is not properly imported. It is illegal to sell a car brought in on a temporary permit, even to another non-resident.

A temporary vehicle importation permit will be issued to a tourist only for one 180-day period in one year. Visitors intending longer stays are expected to obtain a non-immigrant visa, in which case their vehicle permits will follow the same timing as their visa. If the car will remain in Mexico for more than 180 days, a tax of approximately 30 percent of the value of the vehicle is levied.

Automobile insurance issued outside the country is not valid in Mexico, and you must obtain insurance from a Mexican company. You must do this at the border before entering Mexico. The Canadian Automobile Association (CAA) and the American Automobile Association (AAA) can provide further information, from their offices nearest you. As in other parts of Latin America, if there is an accident, both drivers can be held responsible pending an investigation. They can be jailed and their vehicles seized if there is no proof of ability to pay. In case of serious personal injury, both drivers may be jailed in any event.

Vehicle traffic in Mexico City is restricted to control air pollution. The regulations are based on the last digit of the licence plate number. On every weekday, vehicles with plate numbers ending in designated digits may not be driven in the city. For example, if the plate number ends in 1 or 2, the vehicle may not be used on Thursdays. This amounts to a restriction on 20 percent of vehicles on each weekday. There are no restrictions on Saturdays or Sundays except when an environmental emergency is declared.

On federal Mexican highways, there is a vehicle assistance service called "Green Angel," operated by the Ministry of Tourism -- Secretaria de Turismo. Green trucks equipped for basic repairs and first aid travel each major route at least twice daily.

Arriving by Sea

Cruise ships typically stop at more than one country on a voyage and many of them have their own requirements for documentation. Many such cruises originate and terminate in the United States. Travellers on these cruises require a valid passport and, in some cases, ship authorities may retain passports during the cruise. Otherwise there are no special requirements for arriving in Mexico by sea.

Canadian yachts can enter Mexico with relatively little procedure. Assuming that the vessel is longer than 4.5 metres, a temporary import permit -- Solicitud de importación temporal -- must be obtained. Every person on board must also complete a tourist card. The title to the boat, or a lease agreement for a rented boat, must be presented along with proof that the boat is registered to a foreign resident. You will also need an official document showing departure clearance from Canada. The fee is US$10, which must be charged to a major credit card. If you place your boat in care of a marina in Mexico when you leave the country, you must return at least once per year. A departure clearance is required when you take the vessel out of Mexican waters.

Mexican Citizens

Mexicans who have immigrated to Canada and become citizens are entitled to enter Mexico on the same basis as other Canadians. They may, however, have additional rights as Mexican citizens. In December 1996, the Mexican Senate approved amendments to articles 30, 32 and 37 of the Constitution which recognized dual citizenship for the first time. An application to the Mexican authorities is required to take advantage of this right, and time limits apply. Further information is available from the Mexican Embassy in Ottawa or from consulates across Canada. (See the section, Mexican Government Offices in Canada for the addresses.)

Customs

All persons entering Mexico must undergo customs inspection. In the major ports of entry, travellers who have "nothing to declare" are selected for inspection at random. You will be asked to press a button in the customs area which turns on a light. If the light is red, your baggage will be inspected.

Visitors arriving by air or sea are permitted to bring in US$300 worth of goods. Those arriving by land are allowed only $50 per person. Travel-related items, such as clothing, may be brought in duty free, although there can be differences of opinion over the quantity of baggage that a tourist should have when crossing by land. Goods beyond the duty free limits may be subject to duty and taxes, which totalled nearly 33 percent in early 1998. Visitors should be prepared to document the value of goods they may be transporting.

Imports of tobacco are limited to 20 packs of cigarettes or 50 cigars or 250 grams of tobacco. Alcoholic beverages are restricted to three litres of wine, beer or spirits. There are special restrictions on imports of endangered species or goods based on their exploitation.

How much is it?
¿Quanto cuesta?

Visitors bringing commercial samples or display materials for trade shows or other events may obtain a temporary import permit, provided the goods will be re-exported. Goods that are intended as charitable donations can enter duty free only if they are covered by a government permit. Such permits are issued only to certain approved associations, and a customs broker is usually required.

Mexican customs regulations make special provisions for the import of product samples, such as those typically carried by sales people or those attending trade shows. An invoice stating that they are not for commercial use must accompany the samples. If the invoice states that the samples are of no commercial value, they will not be subject to duty and will also be exempt from Mexico's system of quality standards known as Normas Oficiales Mexicanas (NOMs). Nonetheless, any health certificates that are otherwise required must accompany samples of plant and animal products. The requirements for prior approval for importation of certain plant and animal products are waived in the case of personal use samples if they are accompanied by a letter stating that the samples are not for commercial use and will not be transferred to another person. Visitors carrying samples should be prepared to pay duty or a bond for temporary import in case customs officials at the border disagree with the claim of no commercial value.

If you have obtained a visa to live in Mexico, you are allowed to import reasonable quantities of household goods, on a one-time basis. The determination of what is "reasonable" can take some discussion with customs officials, and it is best to be prepared to pay some duty and taxes. You may want to consider using the services of a customs broker. Nevertheless, you should prepare a detailed inventory, in Spanish, and clear it with a Mexican consulate in Canada in advance; border officials may still disagree with the consulate's interpretation of what qualifies as duty free.

Children

Immigration authorities in most countries, including Canada and Mexico, are becoming more vigilant about documentation for children crossing international borders. Unless the child has a valid Canadian passport, or is accompanied by both natural parents, he or she needs special documentation, in addition to proof of citizenship.

If only one parent escorts the child, notarized consent from the absent parent must be presented in addition to a copy of any separation or divorce decree. This consent is required even if the separation or divorce documents award custody of the child to the accompanying parent. If there is only one parent named on the child's birth certificate and the child is travelling with that parent, then no additional releases are required.

A child travelling to Mexico alone must have a notarized form -- Declaración notarial -- which grants permission for a minor travelling to Mexico and is available from Mexican consulates. Both parents must sign this form, which is valid for 180 days.

Pets

Dogs or cats can be brought into Mexico without advance approval. You will need a certificate from a Canadian veterinarian, issued within the previous 72 hours, stating that the animal is free of communicable diseases. You will also need a rabies vaccination certificate showing that the pet was vaccinated against rabies at least one month but not more than one year before departure.

When bringing the pet back to Canada, you must present a certificate from a Canadian or Mexican veterinarian stating that the pet was vaccinated for rabies within the preceding three years. Canada has special regulations governing the importation of more than two dogs aged less than eight months. Taking birds or exotic pets into Mexico is not generally possible and the pet may be confiscated on arrival. Consult the Canadian Food Inspection Agency for more information.

Firearms

My key please.
Mi llave por favor.

Mexico maintains strict controls on the importation of firearms. Handguns are prohibited, and even hunting weapons require complex authorization procedures. Mexico has ongoing problems with drug traffickers, armed robbers and guerrillas. Possession of an undocumented weapon is taken very seriously and may be grounds for imprisonment.

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VISITING MEXICO

When you visit Mexico, you will need to consider various aspects of the physical, cultural and legal environment. The specifics will depend on the purpose of your trip and your destination, but the following considerations apply to most travellers.

Travel

Travel within Mexico is mainly by inter-city buses and domestic airlines, although car travel and trains are also alternatives.

Private vehicles can be a good way to reach some isolated locations. Mexico has a modern system of toll freeways, but local roads are often in poor condition. Car rentals are available, although they are considerably more expensive than in Canada. Collision damage deductibles are sometimes as high as US$2,000. Automobile insurance issued outside the country is not valid in Mexico. If you rent a car, be certain that you have full insurance coverage. If you have an accident, you will be jailed if you cannot provide proof of adequate insurance. Cheap rentals should be avoided because the cars are often in poor condition and inadequately insured. Many visitors find it more practical to hire a car and driver. Travel on the highways at night can be dangerous.

Mexico has an extensive system of long-distance buses run by private companies licensed to operate on national highways. They are generally modern, comfortable and reliable, and many are equipped with video systems. First class buses make fewer stops but are not necessarily more comfortable than second class. Some deluxe buses on major routes feature food and beverage service. It is not advisable to travel on buses at night.

Mexico has more than 50 airports served by regular passenger flights. Mexicana and Aeromexico serve the major cities, and smaller regional carriers go to the smaller cities. Fares vary depending on the popularity of the route but are generally high.

Train service is a practical alternative on some routes. Ferrocarriles Nacionales de México (FNM), the national railway, is heavily oriented toward cargo, and passenger service can be unreliable and uncomfortable. But the FNM is now offering a first class service called primera especial, on selected routes, using modern equipment. These services are comfortable and inexpensive, but still relatively slow.

Food and Drink

Where are the toilets?
¿Dónde están los servicios?

The check, please.
La cuenta, por favor.

Visitors to Mexico may suffer from traveller's diarrhea. Micro-organisms in water are the usual cause. Local people tend to be tolerant to these organisms, but visitors may not be. Drinking only bottled water, which is widely available in hotels and restaurants, can prevent problems. Food in tourist-oriented restaurants is generally safe, but eating food purchased on the streets is not recommended. Some travellers avoid uncooked food, such as fresh salad, that has been washed in water. It is a wise precaution to take over-the-counter medicine for the treatment of traveller's diarrhea with you when you leave Canada. But if symptoms persist, seek medical attention.

Health Care

Good quality health care is available from private hospitals and clinics in most parts of Mexico. But it is unlikely that Canadian health coverage will provide adequate protection, and many doctors and hospitals require payment in advance. Provincial health care programs generally include limited coverage for medical expenses incurred during short-term stays outside the country. Coverage may lapse after a few months, and there may be a re-qualification period when you return. Supplementary health insurance policies often cover the full cost of foreign health care, as well as emergency evacuation back to Canada. Canadians who sever their residency and become residents of Mexico usually purchase private insurance in Mexico.

When purchasing health insurance, be sure to ask whether or not your policy:

Carry a copy of your insurance policy and a list of contact numbers when travelling. If possible, leave a second copy with a travelling companion or friend.

Before leaving Canada, ensure that any special medical needs you may have are available in the region where you will be staying.

Make sure you have adequate supplies of prescription drugs, eyeglasses and other medical necessities. Over-the-counter drugs are generally available in Mexico but, if you have special needs, it is wise to carry them with you.

Carrying a duplicate of your original prescription for medication and eyeglasses or contact lenses is recommended. If you lose them, they will be easier to replace.

Other Insurance

Some travellers' insurance packages also cover lost or stolen luggage and flight cancellations for medical or other reasons.

Drugs

There are serious penalties for the possession of illegal drugs in Mexico, and you should exercise the utmost caution when travelling. Never carry a package or luggage for someone else, unless you have completely checked the contents. At the airport, verify that your baggage claim tags match those on your bags before passing through customs. Choose travelling companions carefully, since you may be implicated if they are found to be carrying drugs. Be equally careful about what is in your car, since the driver may be held accountable.

Prescription medicines and syringes may be considered suspicious by Mexican authorities. Keep all drugs in their original containers and carry the prescriptions with you. If you have a medical need for syringes, carry a medical certificate stating so.

Crime

Some parts of Mexico suffer from serious crime problems. The economic crisis spawned by the devaluation of the peso in 1995 led to a sharp rise in the crime rate, especially street crime. The severity of the problem varies greatly depending on the specific location, and you should take common sense precautions to protect yourself.

Robbery and theft -- the principal crimes faced by foreign visitors -- are a bigger problem in larger cities. They are also a more serious threat at night than in the daytime. In resort areas, beaches should be avoided at night and visitors should return directly to their hotels from restaurants and nightclubs. Professional travel advisors suggest particular caution when using taxis or public transportation in Mexico City. There has been a sharp increase in reports of foreigners being beaten and robbed by taxi drivers. You can hire a car and driver by the hour or day at major hotels. If you use a taxi, use a radio (sitio) car. Do not hail taxis in the street. Credit and automated teller machine (ATM) cards are not necessarily safer than cash. There have been some incidents where visitors were held captive so the cards could not be reported stolen. A few visitors have been forced to reveal a personal identification number (PIN), often resulting in a maximum daily withdrawal before midnight and another on the next day.

The following precautions are suggested for Mexico City and other large urban areas.
I do not do drugs.
Yo no tomo drogas.
I am not interested
Yo no le gago a eso.

Outside of Mexico City and other locations known to be hazardous, travellers should employ the same precautions they would on any trip to a developing country. Leave a copy of your itinerary with someone who can be contacted in an emergency. Phone home at regular intervals if you do not have a fixed schedule. Keep a record of traveller's cheques, credit card purchases and insurance.

The Justice System

When in Mexico, you are subject to Mexican laws and are not entitled to any special protection or consideration because of your Canadian citizenship.

Mexico has a highly evolved legal system, which functions reasonably well. Based on Greek, Roman and French traditions, the Mexican justice system is comparable to those elsewhere in Latin America and in Continental Europe. It is, however, very different from the Canadian system and those of other countries that follow common law legal traditions.

For Canadians, the largest difference concerns criminal law. An accused person is considered guilty until proven innocent. For example, if you are accused of drug smuggling, then the system will consider you guilty until such time as you can prove innocence. As well, in an automobile accident, when persons are injured, you can be jailed pending the results of the investigation. Also, many aspects of fraud may involve imprisonment pending the results of an investigation. Bail is not usually available for foreigners, except for very minor crimes.

If you are arrested or detained, you can request the arresting officer to inform the nearest Canadian diplomatic mission. You will need a Mexican lawyer and the mission can refer you to one who speaks English or French. Meanwhile, be aware that what you say can be used against you. Avoid making any arrangements with police or court officials unless your lawyer is present. Do not sign anything in Spanish if you do not understand the language, without the permission of your lawyer.

Communications

The Mexican telecommunications network has improved appreciably since long distance and value-added services were privatized. But the system is still well below Canadian standards. Service in some areas is sporadic, and long distance charges are high and sometimes unpredictable. Canadians living in Mexico may face long waits to obtain a telephone line. Many hotels add large service charges to outgoing long distance calls.

When calling Canada, a good alternative is provided by Canada Direct. This service is offered by Stentor, the alliance of Canada's full-service telecommunications companies.

Internet access is now widely available in Mexico. A list of providers is available on the Internet (http://thelist.internet.com/countrycode.html). Access can also be arranged through the business centres in the larger international hotels.

CANADA DIRECT

When in Mexico, making calls to Canada can be difficult because of language problems or unpredictable long distance rates and hotel* surcharges. With Canada Direct** service, you can avoid most of the difficulties associated with calling Canada from abroad.

With Canada Direct service, you get:

  • a simple, automated service which gives you access to the Canadian telecommunication network and to bilingual Canadian operators;

  • a choice of payment methods -- use your calling card, call collect or choose a Hello!TM Phone Pass or CALL-METM service;

  • Canadian rates -- to get the best rates, use your calling card and ensure you are a member of your local telephone company's long distance savings plan.

For more information on Canada Direct service, call 1-800-561-8868 before leaving home. To use Canada Direct service from Mexico, dial 01-800-123-0200. Visit the Canada Direct Web site (www.stentor.ca/canada_direct).

From Stentor, the alliance of Canada's full-service telecommunications companies: BC TEL, Bell Canada, Island Tel, Manitoba Telecom Services, Maritime Tel & Tel, NBTel, NewTel Communications, NorthwesTel, QuébecTel, SaskTel and TELUS.

Intercontinental communications route by Teleglobe Canada Inc.

* Some hotels in Mexico are blocking the service or rerouting the Canada Direct access code through the United States. If this occurs and you are asked for a credit card number, do not provide it. Try your call from another location and report the incident via the 800 number listed above.

** Canada Direct and the Canada Direct logo are trademarks of Teleglobe Canada Inc.

Money and Banking

Canadian currency and Canadian dollar-denominated traveller's cheques are not widely accepted in Mexico. While they can be exchanged at some banks and most hotels in major cities, you may find it more convenient to carry traveller's cheques denominated in U.S. dollars. Canadian credit cards usually offer competitive exchange rates on purchases in Mexico. Visa, MasterCard and American Express cards are widely accepted in Mexico. Nonetheless, there are often problems with authorization procedures, and you should not rely on them as your only payment option.

Automated teller machines in major centres can access Canadian bank accounts, but caution is advised in Mexico City where these machines tend to attract criminals. Moreover, there have been many complaints of ATMs debiting the customer's account but not dispensing cash. Canadians can open accounts at Mexican banks, but the procedure is sometimes complex. If you plan to open a bank account, a letter of reference from your Canadian bank will help to expedite the procedure.

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WORKING AND DOING BUSINESS IN MEXICO

Canadians wishing to work temporarily in Mexico have a variety of options. Normal Mexican immigration procedures allow for the entry of foreigners in occupations where employers can demonstrate that qualified Mexicans are not available for the work. But in almost every case, the four categories of entry available to Canadians under the NAFTA provide better terms of access.

Of the four NAFTA categories, business visitor is the simplest, since it does not require a work authorization. Business visitors can engage in certain business activities in Mexico provided they otherwise comply with immigration requirements for temporary entry. The purpose of these provisions is to facilitate the entry of the short-term business visitor who has no intention of entering the Mexican labour market and will not receive compensation from within Mexico. The appropriate permit can be obtained at the port of entry.

I want to change
dollars to pesos.

Quiero cambiar
dólares a pesos.

Business persons entering Mexico as professionals, intra-company transferees, or traders and investors, may engage in a gainful occupation in Mexico. To do so, they require a type of non-immigrant visa that includes the authorization for work, Forma Migratoria-3 (FM-3). There are different types of FM-3 and, depending on the circumstances, professional advice may be needed.

Business Visitors

Business visitors must complete a Mexican Forma Migratoria de Negocios (FM-N), available at a Mexican port of entry or from airlines and Canadian travel agents. The following information is required:

Examples of permitted activities include market research, marketing products, negotiating contracts or taking orders. Canadians providing after-sales service are eligible as business visitors, but must be prepared to show, in addition to the basic documents, a copy of the sales contract and proof that they possess the necessary specialized knowledge and skills. There is no charge for an FM-N visa, which is valid for 30 days per trip.

Work Authorization

Unlike business visitors, people who plan to receive remuneration, directly or indirectly, from Mexican employers or clients must apply for an FM-3 visa. This can be done in Canada at the Mexican Embassy or one of the consulates. Regardless of the category involved, fees are levied for all types of work permit. Business visitors who enter on an FM-N for business development purposes and then decide to stay to work on a contract can apply at an Instituto National de Migración (National Migration Institute) office in Mexico. They must, however, obtain an FM-3 before they can begin remunerative work.

Regardless of the NAFTA category involved, the procedures for applying for an FM-3 are basically the same. The visa is normally issued within one month, and is valid for one year, renewable annually for an additional four years. An application for an FM-3 must be accompanied by the following documents:

The applicant must also provide details of his or her employment relationship or other source of income in Canada and Mexico. If the circumstances of the employment change, the FM-3 permit is no longer valid and a new one must be obtained. The requirements vary by category and are described below.

If applying in Canada, four copies of each document must be sent to a Mexican consulate. The original passport will be returned along with the visa, which is a small booklet. An immigration office in Mexico must validate the visa within 45 days of arrival. If applying in Mexico, the procedures are slightly different, and details can be obtained from an immigration office.

The FM-3 can be renewed annually four times at an immigration office in Mexico. After five years, a new FM-3 can be obtained, but some long-term visitors elect to upgrade to an FM-2 visa at that time. This is discussed in the section, Living in Mexico.

Specified Professionals

All persons in the professional categories specified in Appendix 1603.D of the NAFTA are exempt from the normal job-validation process. In this case, you must provide, in addition to the basic documents, proof that you possess the necessary professional qualifications. You must also prove that you work for a Canadian company by providing a letter on company stationery. The letter must state:
How do you get to?
¿Cómo llego a?
I want to go to ...
Quiro ir a...

Some professionals also need a professional identity card from the Directorate General of Professions of the Secretaría de Educación Pública (SEP) (Secretariat of Public Education) before practising in regulated occupations.

Intra-Company Transferees

Intra-company transferees are executives, managers and staff with specialized knowledge who are employed by a Canadian company. They can be transferred to a Mexican branch, subsidiary or affiliate office for up to seven years. In this case, you must provide, in addition to the basic documents, the following documentation:

If the transferee stays longer than two consecutive years, then a residency application or immigrant visa -- Forma Migratoria-2 (FM-2) -- is required. Applications must be submitted by the employer in Mexico directly to the Secretaría de Gobernación (Secretariat of the Interior).

Traders and Investors

Traders and investors are Canadian citizens who own or have a controlling interest in a business enterprise that is to be set up, or is already in operation, in Mexico. Traders are business persons seeking to do substantial trade in goods or services. They must be employed in a capacity that is supervisory or executive, or which involves essential skills. Investors are business persons seeking to develop and direct the operations of an enterprise in which they have invested, or are actively in the process of investing, a substantial amount of capital.

Taxation

The tax situation of Canadian professionals and business executives working in Mexico depends on their individual residency status, and the residency status of the organization from which they receive income. When you leave Canada, you need to determine your residency status for Canadian income tax purposes. This affects how you file your Canadian income tax return and the types of income you have to report. Your residency status depends on such things as the purpose and permanence of your stay in Mexico, your residential ties with Canada, and the length and regularity of your visits to Canada. If you have not severed your residential ties with Canada, you will be considered a factual resident of Canada while living or travelling outside of Canada, and you will be taxable in Canada on your world income. For assistance in determining residency status, or filing a Canadian income tax return, you should contact the International Tax Services Office of Revenue Canada. (See the Where to Get Help section for information on how to contact the International Tax Services Office).

Could you wait for
me a moment?

¿Puede esperar un
momento?

Employees rendering services temporarily in Mexico, for no more than 183 days in a 12-month period, are considered non-residents. They are exempt from Mexican personal income taxes on income from an employer that does not have a permanent establishment in the country. If a company has a permanent establishment in Mexico, it will be considered as providing Mexican-source income to the individuals involved. In this case, employees will pay taxes in one of two ways.

Individuals will be considered residents of Mexico when they have established a home in Mexico unless they are physically in another country for more than 183 days in a calendar year. They must also be able to prove residence for tax purposes in that other country. Foreigners working in Mexico under an FM-3 business visa are not generally considered residents for tax purposes unless they establish their principal home in Mexico.

Residents are subject to progressive income tax rates. The top marginal tax rate for the 1996 tax year was 35 percent. A 34 percent rate was reached after 61,058 Mexican pesos annually, which is roughly C$10,800. Tax brackets are indexed to inflation and are adjusted quarterly.

Non-residents on temporary assignment for a permanent establishment, up to 183 days a year, pay taxes on their Mexican source income at special rates. Amounts less than US$10,000 annually are exempt, and the rate is 15 percent up to US$90,000. After that, taxes are withheld at the rate of 30 percent. Taxes withheld at source are considered final, with no return being filed.

Tax Treaty

In 1992, Canada became the first country to sign a bilateral tax convention with Mexico. It is called the Convention Between the Government of Canada and the Government of the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income. This Convention eliminates double taxation and may reduce taxes for firms resident in Canada and doing business in Mexico. The treaty supersedes Mexico's tax laws in several areas, notably the taxation of royalties and fees remitted to Canada. There is a uniform withholding rate of 15 percent on remittances from Mexico to Canada. This differs from the general Mexican law which provides for up to 35 percent withholding tax on royalty remittances. In addition, the treaty includes limits on rates of withholding tax applicable to dividend remittances, should Mexico implement such a tax.

Setting Up a Corporation or Branch in Mexico

Canadian companies doing business in Mexico can chose between several alternative corporate forms. This description is intended only as a brief overview of the alternatives. A more detailed explanation is provided in the publication, Moving Into Mexico, which is part of the DFAIT Information Source on Mexico, export i series (http://www.dfait-maeci.gc.ca/exporti).

Partnership with a Mexican Firm

A partnership is an increasingly popular vehicle used by Canadian firms of all sizes to enter the Mexican market. A good partner can provide market knowledge, infrastructure, human resources and cultural counselling, all of which are vital to successful market entry. Partners can be especially important in service businesses that depend on a high degree of personal contact and cross-cultural communication. In certain cases, Canadian professionals without Mexican accreditation can work through a local partner to deliver their services.

Incorporation or Branch Registration

Some Canadian companies set up branches in Mexico, but incorporation of a Mexican business entity is a more popular form of market entry. The Mexican Sociedad Anónima (designated as S.A.) is a limited liability corporation as that term is understood in Canada. Canadians can incorporate business entities on the same basis as Mexican citizens, provided that the company has a physical residence in Mexico. Incorporation can take one or two months and branch registration can take longer. A lawyer and a tax accountant are usually needed.

Nice to meet you.
Mucho gusto.

The Mexican government has taken steps to accommodate the needs of short-term service providers. In 1994, the Comisión Nacional de Inversiónes Extranjeras (CNIE) (National Commission for Foreign Investment) began to authorize business entities in Mexico that would be established for the sole purpose of carrying out contracts with government agencies. Non-resident companies are now being given a two-year temporary, but renewable, approval from the CNIE.

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LIVING IN MEXICO

Canadians who decide to live in Mexico on a long-term basis include those who have established careers or businesses there, as well as retirees and others with income from outside the country. The visa requirements depend on whether the individual has earned income in Mexico.

Employment

Canadians who live in Mexico and who receive remuneration, directly or indirectly from Mexican employers or clients must apply for a version of the Forma Migratoria-3 (FM-3) visa that includes permission to work. This can be done in Canada at the Mexican embassy or one of the consulates. Specific information about the source of earnings must be provided, as described in the section on Working and Doing Business in Mexico.

Retirees

Canadians who retire in Mexico are not considered tourists and should obtain a Forma Migratoria-3 (FM-3) visa. For less than 180 days, this visa is available in the visitor category. For longer periods, retirees can obtain a special version of the FM-3 visa. The FM-3 inmigrante rentista status is intended for foreigners who are not part of the local work force but are supported by income from outside Mexico or earned from Mexican-based investments. Holders of an FM-3 can bring reasonable quantities of household goods and one automobile with them duty free when they arrive.

An FM-3 visa can be obtained from the Mexican embassy or consulate in Canada, or an immigration office in Mexico. The procedures are described in the section, Working and Doing Business in Mexico. The only difference in the case of rentistas is that instead of details of employment, the rentista must show proof of minimum income.

The FM-3 can be renewed annually four times at an immigration office in Mexico. After five years, a new FM-3 can be obtained, but many foreign residents elect to upgrade it to an FM-2 visa at that time. An FM-2 is an immigrant visa. It must be renewed annually, but after five years the holder is eligible to apply for inmigrado status, which is permanent residency. An FM-2 application must be made in Mexico and usually requires a lawyer.

The minimum income for either an FM-2 or an FM-3 changes periodically, and it is expressed as a multiple of the Mexico City minimum wage. In late 1997, it was approximately 10,000 Mexican pesos per month. About half the minimum is required for each dependant. Twelve months of bank statements or proof of Canadian pension eligibility are usually accepted as proof.

Retirees receiving pensions from a Canadian source in Mexico will generally be subject to withholding taxes in Canada and may also be taxed in Mexico. The Canada-Mexico tax treaty prevents double taxation of these earnings by setting maximum rates for the total tax. Pensioners contemplating living in Mexico should verify the details with the International Tax Services Office of Revenue Canada.

Real Estate

Canadians (and other foreigners) may acquire real estate in Mexico, and they have the same rights as Mexican citizens, except for three principal restrictions.

Non-residents must acquire an additional permit from the Secretaría des Relaciónes Exteriores (SRE) (Secretariat of Foreign Affairs).

Indirect foreign ownership of land within the border and coastal zones can be arranged using a fideicomiso -- a bank trust with a 50-year term. The bank holds legal title to the property for the benefit of the buyer. A fideicomiso can also be used outside the restricted zones to establish multiple owners or successor rights.

Do you accept cheques?
¿Se aceptan cheques?

I do not have change.
No tengo cambio.

To prevent the assembly of large estates, Mexican law restricts maximum property sizes, depending on the type of land involved. For example, the limit is 100 hectares for irrigated land and 300 hectares for non-irrigated land.

Mexican real estate transactions can be complex, and Canadians should research potential property purchases very carefully. Real estate agents are not licensed or regulated. Zoning laws may restrict the use of some properties, and financing is not generally available. It can be extremely difficult to evict existing tenants. Closing costs are usually borne by the buyer and include agents' commissions and transfer taxes. The buyer also pays the fee for a notary public or notario, who must handle all real estate transactions.

Time share properties are becoming increasingly common in Mexico. There have been many complaints about unscrupulous operators in this business, and buyers should proceed with caution. Mexican law allows time share contracts to be cancelled within five days with no penalty.

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RETURNING HOME

When planning your trip home, there are a few things to consider. First, make sure you have cash ready to pay the Mexican departure tax. In early 1998, this tax was US$11.50. The peso equivalent is accepted but Canadian dollars are not. Normally this tax must be paid in cash on departure from Mexico, although in some circumstances it may be included in airline ticket prices. The tax applies to adults and children two years of age and older.

On departure, travellers must surrender the tourist card they were given when they entered the country.

Returning travellers should be prepared for customs procedures when they enter Canada. Everything acquired abroad must be declared, so keeping receipts of all purchases is advisable. Customs forms are usually distributed on airlines flying to Canada and are available at airports and land and sea ports of entry.

Canadian residents can bring back $50 worth of goods after 24 hours outside the country, $200 worth after 48 hours and $500 worth after seven days. Alcohol and tobacco may not be included in the 24-hour exemption, but otherwise, you can include up to 1.14 litres of liquor or wine, or a case of 24 12-ounce containers of beer. Tobacco imports are restricted to 50 cigars, 200 cigarettes, 200 grams of tobacco and 200 tobacco sticks. Travellers importing alcohol and tobacco products must satisfy the age restrictions of the province or territory where they enter Canada.

Can you take me to ...
¿Me puede llevar a...
I will be back at ...
Regresaré a...

Canada imposes special restrictions on a variety of imported goods. They include meat and dairy products, weapons, plants, vehicles and environmentally harmful products, as well as exotic animals and goods based on their exploitation. Check with Canada Customs in advance if you plan to import any articles in these categories. It is illegal to bring obscene materials or hate propaganda of any kind into the country.

Canadians who have resided in Mexico for 12 months or more are entitled to special customs treatment for household and personal items. Details of these provisions are found in Moving Back to Canada, a booklet published by Revenue Canada.

If you have any doubts about what you're allowed to bring back, you can call Revenue Canada's toll-free information service at 1-800-461-9999 from within Canada. From Mexico, you can access this service with a toll call to (613) 993-0534.

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WHERE TO GET HELP

The Department of Foreign Affairs and International Trade

For consular assistance and emergency consular services:
Tel.: 1-800-706-29-00 (in Mexico) or (613) 996-8885 (in Canada)
Fax: (613) 995-9221 or (613) 943-1054

For travel information:
Tel.: 1-800-267-6788 (in Canada) or (613) 944-6788
Fax: 1-800-575-2500 (in Canada) or (613) 944-2500

To order our free publications:

The Department produces a number of publications on safe travel, available free of charge. Call 1-800-267-8376 (in Canada) or (613) 944-4000 or access them on the Internet (http://www.dfait-maeci.gc.ca).

I'll arrive a little late.
Llegaré un poquito tarde.
In a little while.
En un momentito.

Travel Reports:
These reports offer travellers current information on conditions in over 170 countries, including safety, health and passport requirements. They are available via telephone at 1-800-267-6788 (in Canada) or (613) 944-6788; a FaxCall system at 1-800-575-2500 (in Canada) or (613) 944-2500; or the Travel section at DFAIT's Internet site (http://www.dfait-maeci.gc.ca). These services are available 24 hours a day, seven days a week.

World Wide Web:
Much of the information in this and other departmental publications is available on the Department's home page (http://www.dfait-maeci.gc.ca) from the export i site (http://www.dfait-maeci.gc.ca/exporti); or through the Canadian Embassy site (http://www.canada.org.mx).

Canadian Automobile Association

1145 Hunt Club Road
Ottawa, ON K1V 0Y3
Tel.: (613) 247-2117
Fax: (613) 247-2118
Internet: www.caa.ca

The Canadian Food Inspection Agency

Publications related to import requirements may be obtained by writing to:
The Canadian Food Inspection Agency
Public and Media Relations
59 Camelot Drive
Nepean, ON K1A 0Y9
Tel.: (613) 225-2342

Citizenship and Immigration Canada (CIC)

CIC publications, including Dual Citizenship, may be obtained from:
Citizenship and Immigration Canada
Public Affairs Branch
365 Laurier Avenue West19th Floor
Ottawa ON K1A 1L1
Tel.: (613) 954-9019
Internet: http://cicnet.ci.gc.ca

Health Canada

Health Canada provides information for travellers through a network of public and private health and travel clinics across the country. Information on the clinic nearest you may be obtained by calling (613) 957-8739; by FaxLink at (613) 941-3900; or Internet (www.hc-sc.gc.ca/hpb/lcdc).

Health Issues

The World Health Organization publishes International Travel and Health, which can be purchased from:
Canadian Public Health Association
1565 Carling Avenue, Suite 400
Ottawa, ON K1Z 8R1
Tel.: (613) 725-3769, ext. 190
Fax: (613) 725-9826
Internet: www.cpha.ca

The book Health Information for Canadian Travellers is available from:
Canadian Society for International Health
1 Nicholas Street, Suite 1105
Ottawa, ON K1N 7B7
Tel.: (613) 241-5785
Internet: www.csih.org

The National AIDS Clearinghouse has a number of publications providing information on HIV and AIDS. These may be obtained by writing to:
National Aids Clearinghouse
1565 Carling Avenue, Suite 400
Ottawa, ON K1Z 8R1
Tel.: (613) 725-3434
Fax: (613) 725-1205
Internet: www.cpha.ca/CPHA/ch/ch.html

The Passport Office

Applications for Canadian passports are available at Passport offices, from Canadian missions in Mexico, travel agencies and from the North West Company through its network of northern stores in communities in the far north. There are separate forms for adults and children, both available in English or French. Allow at least three weeks for delivery.

If you have any questions about passports, call 1-800-567-6868. Locally, you can call:
Montreal (514) 283-2152
Ottawa-Hull (819) 994-3500
Toronto (416) 973-3251
Vancouver (604) 775-6250
Visual ear: (819) 994-3560

Mailed-in applications should be sent to:
Passport Office
Department of Foreign Affairs and International Trade
Ottawa, ON K1A 0G3

Revenue Canada

Do you have
identification?

¿Tiene una identificación?

Customs and Excise has a year-round, 24-hour telephone service to answer questions about what you can and cannot bring back to Canada. From inside Canada call 1-800-461-9999. From Mexico call (613) 993-0534. Collect calls will be accepted from Mexico. You can also check the Internet site for Revenue Canada (www.rc.gc.ca).

Revenue Canada also has a number of publications to assist the Canadian traveller. These include I Declare, Moving Back to Canada, Importing a Motor Vehicle into Canada and Importing a Firearm into Canada. These can be obtained by writing to:
Revenue Canada
Customs and Excise
Communications Branch
Ottawa, ON K1A OLS
Tel.: 1-800-461-9999 or (613) 991-0517
Copies are also available from Canadian diplomatic missions in Mexico.

PLease speak more slowly.
Más despacio por favor.
It's a great pleasure.
Es un placer.

Revenue Canada's International Tax Services Office processes the income tax returns of non-residents, deemed residents as well as Canadians posted overseas. It also services all non-resident tax withholding accounts. The Office provides client assistance by telephone, correspondence and counter service.

The Office may be contacted by mail at 2204 Walkley Road, Ottawa, ON K1A 1A8 or by fax at (613) 941-2505.

The International Tax Services Office may also be contacted from anywhere outside of Canada (collect calls will be accepted) at the following numbers:

General inquiries:
(613) 952-3741 (English)
(613) 954-1368 (French)
Non-resident withholding:
(613) 952-2344 (English or French)

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CANADIAN GOVERNMENT OFFICES AND SERVICES IN MEXICO

Assistance and information may also be sought in Mexico from the Consular Section of the Canadian Embassy and the consulates throughout the country. When dialling from within Mexico the area code for all Canadian missions is 91; when dialling from outside Mexico the area code is 52.

Mexico City
Canadian Embassy
Calle Schiller No. 529 (Rincon del Bosque), Colonia Polanco
11560 México, Distrito Federal México
Postal address: P.O. Box 105-05
11580 México, Distrito Federal México
Tel.: 52 (5) 724-7900
toll-free: 01-800-706-29-00
(in Mexico)
Fax: 52 (5) 724-7980
Internet: www.canada.org.mx

Acapulco
Consulate of Canada
Centro comercial Marbella
Local 23, esq. Prolongación Farallón y Miguel Alemán
Acapulco, Guerrero, México
Postal address: Estrella de Oro Adpo Postal 94C, 39690 Acapulco Guerrero, México
Tel.: 52 (74) 84-13-05
Fax: 52 (74) 84-13-06

Cancun
Consulate of Canada
Plaza Caracol II, 3er piso
Local 330,Boulevard
Kukulcan km 8.5
Zona hotelera, 77500 Cancún Quintana Roo, México
Tel.: 52 (98) 83-3360/3361
Fax: 52 (98) 83-3232

Guadalajara
Consulate of Canada
Hotel Fiesta Americana, Local 31
Aurelio Aceves 225
Col. Vallarta Poniente Guadalajara, Jalisco, México
Postal address: P.O. Box 44100 Guadalajara, Jalisco, México
Tel.: 52 (3) 615-6270/6215/6266
Fax: 52 (3) 615-8665

Mazatlán
Consulate of Canada
Hotel Playa Mazatlán
Zona Dorada, Rodolfo Loaiza
No. 202 82110 Mazatlán
Sinaloa, México
Postal address: P.O. Box 614 82110 Mazatlán, Sinaloa, México
Tel.: 52 (69) 13-7320
Fax: 52 (69) 14-6655

Monterrey
Consulate of Canada
Edificio Kalos, Piso C-1
Local 108-A, Zaragoza
1300 Sur y Constitución
64000 Monterrey, Nuevo León México
Tel.: 52 (8) 344-3200/2753/
2906/2961
Fax: 52 (8) 344-3048

Oaxaca
Consulate of Canada
Pino Suarez 700, Local 11B
Multiplaza Brena, Col. Centro
68000 Oaxaca, México
Tel.: 52 (951) 3-3777
Fax: 52 (951) 5-2147

Puerto Vallarta
Consulate of Canada
Calle Zaragoza 160, Interio 10
Colonia Centro
48300 Puerto Vallarta, Jalisco México
Tel.: 52 (322) 2-5398, 3-0858
Fax: 52 (322) 2-3517

San Miguel de Allende
Consulate of Canada
Mesones 38-15
San Miguel de Allende
37700 Guanajuato, México
Tel.: 52 (415) 230-25
Fax: 52 (415) 268-56

Tijuana
Consulate of Canada
Germán Gedovius 10411-101
Condominio del Parque, Zona Rio
22320 Tijuana, Baja California Norte, México
Tel.: 52 (66) 84-0461
Fax: 52 (66) 84-0301

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MEXICAN GOVERNMENT OFFICES IN CANADA

The Embassy of Mexico and Mexican consulates can provide assistance and guidance to Canadian companies in need of information about the immigration regulations related to doing business in Mexico. For more information, contact:

Embassy of Mexico

45 O'Connor Street, Suite 1500
Ottawa, ON K1P 1A4
Tel.: (613) 233-8988
Fax: (613) 235-9123
Internet: http://www.docuweb.ca/mexico

Consulates General of Mexico in Canada

Ottawa
45 O'Connor Street, Suite 1500
Ottawa, ON K1P 1A4
Tel.: (613) 233-6665
Fax: (613) 235-9123

Montreal
2000 Mansfield Street
Suite 1015
Montreal, PQ H3A 2Z7
Tel.: (514) 288-2502/4916
Fax: (514) 288-8287

Toronto
199 Bay Street, Suite 4440
P.O. Box 266, Station Commerce Court West
Toronto, ON M5L 1E9
Tel.: (416) 368-2875/8141/1847
Fax: (416) 368-8342

Vancouver
810-1130 West Pender Street
Vancouver, BC V6E 4A4
Tel.: (604) 684-3547/1859
Fax: (604) 684-2485


If you require urgent assistance in Mexico, call the Embassy of Canada in Mexico City at

1-800-706-29-00

or

the Department of Foreign Affairs and International Trade in Ottawa at

(613) 996-8885