Circular informing federal dependencies, parastatal entities, and the Attorney General of the Republic subject to Free Trade Agreements of the conversion to national currency for the second half of 2023, valid July 1 to December 31, 2023

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Official Gazette of the Federation (DOF): 27/06/2023

CIRCULAR OFFICIAL LETTER informing dependencies and their decentralized administrative bodies, entities of the Parastatal Public Administration, as well as the Attorney General of the Republic, subject to the coverage of the Free Trade Agreements indicated

On the margin a seal with the National Shield, which says: United Mexican States.- FINANCE.- Secretariat of Finance and Public Credit.- General Administration Office.- Regulatory Unit.- Official Letter No. UN/700/TU/AD/198/2023.

SUBJECT:

Conversion to national currency of the thresholds applicable to the Free Trade Agreements with government procurement chapters for the second semester of 2023.

ADDRESSEES: HEADS OF THE ADMINISTRATION AND FINANCE UNIT OR EQUIVALENTS IN THE DEPENDENCIES, ENTITIES, DECENTRALIZED BODIES OF THE FEDERAL PUBLIC ADMINISTRATION AND IN THE ATTORNEY GENERAL OF THE REPUBLIC, SUBJECT TO THE COVERAGE OF THE FREE TRADE AGREEMENTS

PRESENT.

Based on articles 4, section F, fraction IX and 46, fraction XVI of the Internal Regulations of the Secretariat of Finance and Public Credit, powers that continue in force in terms of articles First and Ninth Transitory of the DECREE reforming, adding and repealing various provisions of the Organic Law of the Federal Public Administration, published on May 3, 2023 in the Official Gazette of the Federation, the following information is disseminated for its due application as it is of interest to the dependencies, entities and decentralized administrative bodies of the Federal Public Administration, listed in the procurement chapters of the public sector of the free trade agreements listed below:

LOCATION OF DEPENDENCIES AND ENTITIES SUBJECT TO THE COVERAGE OF THE PROCUREMENT CHAPTERS OF THE PUBLIC SECTOR OF THE FREE TRADE AGREEMENTS

Annex	Chapter or Title Number	Name of the Free Trade Agreement
Section A and B of Annex 13-A	Chapter 13	Treaty between the United Mexican States, the United States of America and Canada (USMCA)
Sections 1 and 2 of Part A of Annex I	Chapter VI	Free Trade Agreement between the United Mexican States and the State of Israel (FTA Mexico-Israel)
Sections 1 and 2, of Part A-Mexico of Annex XII	Chapter V	Free Trade Agreement between the United Mexican States and the States of the European Free Trade Association (FTA Mexico-EFTA)
Sections 1 and 2 of Part A of Annex VI	Title III	Economic Partnership, Political Coordination and Cooperation Agreement between the United Mexican States and the European Community and its Member States, and specifically Decision 2/2000 of the EC-Mexico Joint Council. (FTA EUM)
Sections 1 and 2 of Part B of Annex 11	Chapter 11	Agreement for the Strengthening of the Economic Partnership between the United Mexican States and Japan (FTA Mexico-Japan)
Section B-Mexico List of Annex 15 bis-01	Chapter 15 bis	Free Trade Agreement between the United Mexican States and the Republic of Chile (FTA Mexico-Chile)
Section A and C (Mexico lists) of Annex 8.2	Chapter 8	Additional Protocol to the Framework Agreement of the Pacific Alliance
Section A and C of Annex 15-A	Chapter 15	Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Article 3 (Incorporation of the Provisions relating to Trade of the Global Agreement), referenced mutatis mutandis to Sections 1 and 2 of Part A of Annex VI of the Economic Partnership, Political Coordination and Cooperation Agreement between the United Mexican States and the European Community and its Member States, and specifically Decision 2/200 of the EC-Mexico Joint Council.	Article 3 (Incorporation of the Provisions relating to Trade of the Global Agreement), referenced mutatis mutandis to Title III of the Economic Partnership, Political Coordination and Cooperation Agreement between the United Mexican States and the European Community and its Member States, and specifically Decision 2/200 of the EC-Mexico Joint Council.	Commercial Continuity Agreement between the United Mexican States and the United Kingdom of Great Britain and Northern Ireland. (CCA MX-UK)

Taking into consideration, the information provided by the Secretariat of the Economy, through Official Letter No. 522/01/025/06.XII.2021 dated December 07, 2021, which makes known the updated value in US dollars of the thresholds established in said chapters for their scope of application from January 1, 2022 to December 31, 2023, as follows:

FOR DEPENDENCIES OF THE FEDERAL PUBLIC ADMINISTRATION LISTED IN THE CHAPTERS OR TITLES OF PROCUREMENT OF THE PUBLIC SECTOR

TYPE OF CONTRACT	THRESHOLD AMOUNT IN US DOLLARS PER TREATY
USMCA; FTA MEXICO-ISRAEL; FTA MEXICO-EFTA; FTA EUM; FTA MEXICO-JAPAN; FTA MEXICO-CHILE; PACIFIC ALLIANCE; CPTPP; and CCA MX-UK
Contracts for acquisitions, leases of movable goods and services, including with public works	$92,319 USD (Ninety-two thousand three hundred nineteen US dollars 00/100 USA)
Public works contracts	$12,001,460 USD (Twelve million one thousand four hundred sixty US dollars 00/100 USA)

FOR PARASTATAL ENTITIES OF THE FEDERAL PUBLIC ADMINISTRATION LISTED IN THE CHAPTERS OR TITLES OF PROCUREMENT OF THE PUBLIC SECTOR

TYPE OF CONTRACT	THRESHOLD AMOUNT IN US DOLLARS PER TREATY
USMCA; FTA MEXICO-ISRAEL; FTA MEXICO-EFTA; FTA EUM; FTA MEXICO-JAPAN; FTA MEXICO-CHILE; PACIFIC ALLIANCE; CPTPP and CCA MX-UK
Contracts for acquisitions, leases of movable goods and services, including with public works	$461,594 USD (Four hundred sixty-one thousand five hundred ninety-four US dollars 00/100 USA)
Public works contracts	$14,771,718 USD (Fourteen million seven hundred seventy-one thousand seven hundred eighteen US dollars 00/100 USA)

Considering that paragraph 2, of Section G: Formula for Adjustments of the Thresholds of Chapter 13 of the USMCA; Annex V, Part A, paragraph 4 of Chapter VI of the FTA Mexico-Israel; Annex XVI, Part C, paragraph 1 of Chapter V of the FTA Mexico-EFTA; Annex X, Part C, paragraph 1 of Title III, of the FTA EUM, Annex XV, Part B, paragraph 4 of Chapter 11 of the FTA Mexico-Japan; Annex 15 bis-05, Section B/ paragraph 4 of Chapter 15 bis of the FTA Mexico-Chile; Annex 8.2, Section I, Section of Mexico of Chapter 8 of the Additional Protocol to the Framework Agreement of the Pacific Alliance and Annex 15-A, Section H, paragraph 2 of Chapter 15 of the CPTPP, indicate that the conversion of thresholds to national currency will be carried out by semi-annual periods of December 1 and June 1 of each year or the first business day thereafter, as corresponds, using for this purpose the value of the Mexican peso in relation to the United States of America dollar.

In accordance with the provisions in the previous paragraph, for the second semester of 2023, the exchange rate for the conversion of thresholds of the Public Sector Procurement Chapter of these treaties will be the one determined by the Bank of Mexico on June 1, 2023, published in the Official Gazette of the Federation of the day 02 of June of 2023, being this of $17.5673 M.N. (seventeen pesos with five thousand six hundred seventy-three ten-thousandths national currency) per one US dollar.

According to the above, the values in national currency of the thresholds applicable to the procurement chapters of the public sector of the free trade agreements in question, for the period from July 1 to December 31, 2023, are the following:

DEPENDENCIES OF THE FEDERAL PUBLIC ADMINISTRATION LISTED IN THE CHAPTERS OR TITLES OF PROCUREMENT OF THE PUBLIC SECTOR

TYPE OF CONTRACT	THRESHOLD AMOUNT IN NATIONAL CURRENCY PER TREATY
USMCA; FTA Mexico - Israel; FTA Mexico - EFTA; FTA EUM; FTA Mexico - Japan; FTA Mexico - Chile; Pacific Alliance; CPTPP and CCA MX-UK
Contracts for acquisitions, leases of movable goods and services, including with public works	$1,621,796.00 (one million, six hundred twenty-one thousand, seven hundred ninety-six pesos 00/100 M.N.)
Public works contracts	$210,833,248.00 (two hundred ten million, eight hundred thirty-three thousand, two hundred forty-eight pesos 00/100 M.N.)

PARASTATAL ENTITIES OF THE FEDERAL PUBLIC ADMINISTRATION LISTED IN THE CHAPTERS OR TITLES OF PROCUREMENT OF THE PUBLIC SECTOR

TYPE OF CONTRACT	THRESHOLD AMOUNT IN NATIONAL CURRENCY PER TREATY
USMCA; FTA Mexico - Israel; FTA Mexico - EFTA; FTA EUM; FTA Mexico - Japan; FTA Mexico - Chile; Pacific Alliance; CPTPP and CCA MX-UK
Contracts for acquisitions, leases of movable goods and services, including with public works	$8,108,960.00 (eight million, one hundred eight thousand, nine hundred sixty pesos 00/100 M.N.)
Public works contracts	$259,499,202.00 (two hundred fifty-nine million, four hundred ninety-nine thousand, two hundred two pesos 00/100 M.N.)

The above in order that the dependencies, entities and decentralized administrative bodies of the Federal Public Administration, as well as the Attorney General of the Republic, subject to the coverage of the procurement chapter of the public sector of the cited free trade agreements, determine the threshold that is applicable to them according to the value of the contract that will be awarded and to the type of public procurement.

The present official letter must be observed by the administrative units responsible for carrying out the public procurement procedures in the dependencies, entities, decentralized bodies and the Attorney General of the Republic.

Mexico City, at 20 of June of 2023.- The Head of the Unit, Lic. Luz Herminia Camacho Rivera.- Signature.

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Exchange Rate and Rates at 27/08/2026

DOLLAR 16.9660 UDIs 8.808255 TIIE 28 DAYS 6.7559% TIIE 91 DAYS 6.7931% TIIE 182 DAYS 6.8474% FUNDING TIIE 6.50%

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