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164C H A P T E R V I I Ia final good produced in Mexico, when such a final good is considered as originating fromMexico. The intention is to prevent companies registered in a program from importinginto the country, temporarily and without payment of tariffs, raw materials not originatingfrom the NAFTA free trade zone to produce a final good which is subsequently exportedto the United States of America or Canada with a preferential tariff treatment.In this manner, the internal law provides a formula to ensure payment of the generalimport tax corresponding to the inputs not originating from the NAFTA zone fromwhich a final product qualifying as an originating good is produced and exported to acountry party to NAFTA with a preferential tariff treatment. The general import tax to bepaid in Mexico corresponding to the inputs that are not originating goods may bedecreased with the tariff to be paid for the importation of the final good into the countryof destination (the United States or Canada). If the import into the country of destinationis exempt, the general import tax to be paid in the country may not bedecreaced.It is important to specify that a provision similar to Article 303 of NAFTA has beenincorporated into other free trade agreements executed by Mexico, as is the case ofthose executed with the European Union and with the States of the European FreeTrade Association. Under such similar provisions, the above-mentioned comments areapplicable.The scenario derived from Article 303 of NAFTA and from similar provisions containedin other treaties does not apply when inputs originating from the same commercial zoneas that of the destination of the final product are imported into the country. They are alsonot applicable when, among other situations, the final product manufactured or assembledin Mexico is exported to a country that has not executed a free trade agreement withMexico, or if such treaty does not expressly provide for its application.Similarly, there will be no disadvantage for companies registered in a program if theytemporarily bring into the country inputs covered by a preferential tariff treatment (forexample, from the European Union) to produce a final good that will be exported to acountry belonging to another free trade zone (for example, United States of America).However, in these situations it must be verified that the importation into the country of thenon-originating input of the same free trade zone is exempt from the general import tax.It is important to clarify that there are certain programs to promote exports thatattempt to reduce the impact of Article 303 of NAFTA and other similar provisions on thenational producers of export merchandise, which programs are mentioned below.4.1. Sectorial Promotion Programs (Programas de Promoción Sectorial, PROSEC)PROSEC are instruments created in order to counteract the effects of Article 303 of NAFTA.They are instruments directed at national producers of certain goods grouped by sectors

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