Circular Office Announcing Federal Dependencies, Paraestatal Entities, and the Attorney General's Office Subject to Free Trade Agreements and National Currency Conversion for First Semester 2023

DOF: 16/12/2022

CIRCULAR OFFICE by which the dependencies and their decentralized administrative bodies, the entities of the Paraestatal Public Administration, as well as the Attorney General's Office, subject to the coverage of the Free Trade Agreements indicated, are made known, the conversion to national currency for the first semester of the year 2023, with effect from January 1 to June 30, 2023.

At the margin a seal with the National Coat of Arms, which says: United Mexican States.- FINANCE.- Ministry of Finance and Public Credit.- General Comptroller's Office.- Public Procurement Normativity Unit.- Office

No. UNCP/700/TU/AD/711/2022.

SUBJECT:

Conversion

to

national

currency

of

the

thresholds

applicable

to

the

Free

Trade

Agreements

with

chapters

on government

purchases

for

the

first

semester

of

2023.

TO:

HEADS

OF

THE

UNIT

OF

ADMINISTRATION

AND

FINANCES

OR

EQUIVALENTS

IN

THE

DEPENDENCIES,

ENTITIES,

DECENTRALIZED

BODIES

OF

THE

FEDERAL

PUBLIC

ADMINISTRATION

AND

IN

THE

ATTORNEY

GENERAL'S

OFFICE,

SUBJECT

to

the

coverage

of

the

Free

Trade

Agreements

P r e s e n t.

Based on the Tenth Transitory of the Internal Regulations of the Ministry of Public Function (RISFP), published on April 16, 2020 in the Official Gazette of the Federation (DOF), in relation to article 51, fraction XIV of the repealed RISFP, published on July 19, 2017 in the DOF, in concordance with articles 31, fraction XXV of the Organic Law of the Federal Public Administration (LOAPF), First, Sixth, Seventh, Eighth and Tenth Transitory of the DECREE by which various provisions of the LOAPF are reformed, added and repealed, published on November 30, 2018 in the DOF, the following information is disseminated for its proper application as it is of interest to the dependencies, entities and decentralized administrative bodies of the Federal Public Administration, listed in the purchase chapters of the public sector of the free trade agreements related below:

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

Annex Number of the Chapter or Title Name of the Free Trade Agreement

Sections A and B of Annex 13-A List of Mexico Chapter 13 Agreement 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 (Mexico-Israel FTA)

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 (Mexico-EFTA FTA)

Sections 1 and 2 of Part A of Annex VI Title III Economic Association, 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 Joint Council EC-Mexico. (EC-Mexico FTA)

Sections 1 and 2 of Part B of Annex 11 Chapter 11 Agreement for the Strengthening of the Economic Association between the United Mexican States and Japan (Mexico-Japan FTA)

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 (Mexico-Chile FTA)

Sections A and C (Mexico lists) of Annex 8.2 Chapter 8 Additional Protocol to the Framework Agreement of the Pacific Alliance

Sections A and C of Annex 15-A List of Mexico 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 Association, 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 Joint Council EC- Mexico.

Article 3 (Incorporation of the Provisions relating to Trade of the Global Agreement), referenced mutatis mutandis to Title III of the Economic Association, 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 Joint Council EC-Mexico.

Trade Continuity Agreement between the United Mexican States and the United Kingdom of Great Britain and Northern Ireland. (ACC MX-RU)

Taking into consideration, the information provided by the Ministry of Economy, through Office No. 522/01/025/06.XII.2021 dated December 7, 2021, by which 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 is made known, Circular Office No. UNCP/700/ TU/752/2021 was published in the DOF, through which, based on the information provided by the Ministry of Economy, the updated value of the thresholds established in said chapters for their scope of application from January 1, 2022 to December 31, 2023 was informed, the conversion to national currency of the reference thresholds applicable during the first semester of 2023 is informed, as follows:

1. The annexes of the respective chapters indicated in the preceding table establish that their scope of application, among other elements to consider, will be determined by the estimated value of the contract in relation to the thresholds expressed in US dollars.

2. According to paragraph 1, subsection (b) of Section G: Formula for Adjustment of Thresholds of Chapter 13 of the USMCA, the inflation adjustment to the thresholds will be for periods of two years, according to the amounts established in Office No. 522/01/025/06.XII.2021 dated December 7, 2021 issued by the Ministry of Economy, which will be the following:

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

TYPE OF CONTRACTING AMOUNT OF THRESHOLD IN US DOLLARS PER TREATY

USMCA; MEXICO-ISRAEL FTA; MEXICO-EFTA FTA; EC-MEXICO FTA; MEXICO-JAPAN FTA; MEXICO-CHILE FTA; PACIFIC ALLIANCE; CPTPP; and ACC MX-RU

Contracts for acquisitions, leases of movable goods and services, including public works $92,319 USD (Ninety-two thousand three hundred nineteen US dollars 00/100 US)

Public works contracts $12,001,460 USD (Twelve million one thousand four hundred sixty US dollars 00/100 US)

FOR PARAESTATAL ENTITIES OF THE FEDERAL PUBLIC ADMINISTRATION LISTED IN THE CHAPTERS OR TITLES OF PURCHASES OF THE PUBLIC SECTOR

TYPE OF CONTRACTING AMOUNT OF THRESHOLD IN US DOLLARS PER TREATY

USMCA; MEXICO-ISRAEL FTA; MEXICO-EFTA FTA; EC-MEXICO FTA; MEXICO-JAPAN FTA; MEXICO-CHILE FTA; PACIFIC ALLIANCE; CPTPP and ACC MX-RU

Contracts for acquisitions, leases of movable goods and services, including public works $461,594 USD (Four hundred sixty-one thousand five hundred ninety-four US dollars 00/100 US)

Public works contracts $14,771,718 USD (Fourteen million seven hundred seventy-one thousand seven hundred eighteen US dollars 00/100 US)

3. Considering that paragraph 2, of Section G: Formula for Adjustments of Thresholds of Chapter 13 of the USMCA; Annex V, Part A, paragraph 4 of Chapter VI of the Mexico-Israel FTA; Annex XVI, Part C, paragraph 1 of Chapter V of the Mexico-EFTA FTA; Annex X, Part C, paragraph 1 of Title III, of the EC-Mexico FTA, Annex XV, Part B, paragraph 4 of Chapter 11 of the Mexico-Japan FTA; Annex 15 bis-05, Section B/ paragraph 4 of Chapter 15 bis of the Mexico-Chile FTA; Annex 8.2, Section I, Mexico Subsection 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 for semi-annual periods from December 1 and June 1 of each year or the first business day following, as applicable, using for this purpose the value of the Mexican peso in relation to the United States dollar.

4. In accordance with what is established in the preceding paragraph, for the first semester of 2023, the exchange rate for the conversion of thresholds of the Public Sector Purchases Chapter of these treaties will be that determined by the Bank of Mexico on December 01, 2022, which was published in the DOF on the 02th of the same month and year, being this of $19.1433 N.C. (nineteen pesos with one thousand four hundred thirty-three ten-thousandths national currency) per dollar.

5. According to what is stated in points 3 and 4 above, the values in national currency of the thresholds applicable to the purchase chapters of the public sector of the free trade agreements in question, for the period from January 1 to June 30, 2023, are the following:

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

TYPE OF CONTRACTING AMOUNT OF THRESHOLD IN NATIONAL CURRENCY PER TREATY

USMCA; Mexico-Israel FTA; Mexico-EFTA FTA; EC-Mexico FTA; Mexico-Japan FTA; Mexico-Chile FTA; Pacific Alliance; CPTPP and ACC MX-RU

Contracts for acquisitions, leases of movable goods and services, including public works $1,767,290.00 (one million, seven hundred sixty-seven thousand, two hundred ninety pesos 00/ 100 N.C.)

Public works contracts $229,747,549.00 (two hundred twenty-nine million, seven hundred forty-seven thousand, five hundred forty-nine pesos 00/100 N.C.)

PARAESTATAL ENTITIES OF THE FEDERAL PUBLIC ADMINISTRATION LISTED IN THE CHAPTERS OR TITLES OF PURCHASES OF THE PUBLIC SECTOR

TYPE OF CONTRACTING AMOUNT OF THRESHOLD IN NATIONAL CURRENCY PER TREATY

USMCA; Mexico-Israel FTA; Mexico-EFTA FTA; EC-Mexico FTA; Mexico-Japan FTA; Mexico-Chile FTA; Pacific Alliance; CPTPP and ACC MX-RU

Contracts for acquisitions, leases of movable goods and services, including public works $8,836,432.00 (eight million, eight hundred thirty-six thousand, four hundred thirty-two pesos 00/100 N.C.)

Public works contracts $282,779,429.00 (two hundred eighty-two million, seven hundred seventy-nine thousand, four hundred twenty-nine pesos 00/100 N.C.)

6. In order for the dependencies, entities and decentralized administrative bodies of the Federal Public Administration, subject to the coverage of the purchase chapter of the public sector of the aforementioned free trade agreements, to determine the threshold applicable to them according to the value of the contract to be awarded and the type of public contracting, they must verify in the Treaty the annex, section or subsection in which they are located.

For the above, I will appreciate that, through your kind channel, this information be extended to the administrative units responsible for carrying out public contracting procedures in the dependencies, entities, decentralized bodies and the Attorney General's Office in question.

Mexico City, December 8, 2022.- The Head of the Unit, Lic. Luz Herminia Camacho Rivera.-

Signature.

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