Suspension of Decree that sets forth the products which import and export are subject to regulation by the Ministry of Energy

On December 26, 2020, the Decree that sets forth the products which import and export are subject to Regulation by the Ministry of Energy (Decree), became effective.

The Decree superseded the Decree that establishes the classification and codification of hydrocarbons and oil products which import and export are subject to a prior permit from the Ministry of Energy, published in the Federal Official Gazette on December 29, 2014, and its subsequent amendments published on December 30, 2015, September 8, 2017, December 4, 2017 and February 22, 2019.

Among the main changes proposed under the Decree, permits for the import and export of hydrocarbons and oil products would no longer be granted for 20 years, only for one or five years. Among other things, the Decree established that, the Ministry of Energy could discretionally deny the requested permits, in case that derived from the analysis of the energy balance, it identified an impact on the energy safety or guarantee of supply in national territory (for more information please refer to our previous update).

Notwithstanding the foregoing, on March 3, 2021, a resolution was published in the Federal Official Gazette suspending all the consequences under the Decree in terms of the resolution of the suspension procedure derived from the amparo 16/2021 (Amparo Procedure), of the Second District Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, located in Mexico City and with jurisdiction throughout the Mexican territory (Suspension Resolution).

The Suspension Resolution will become effective the day after its publication in the Federal Official Gazette and will be in force until the resolution issued in the Amparo Procedure becomes enforceable, or until the legal situation of the Decree is modified and the suspension ceases to have effect.

Finally, the Suspension Resolution establishes that until the Amparo Procedure is finally resolved, the Decree that establishes the classification and codification of hydrocarbons and oil products which import and export are subject to a prior permit from the Ministry of Energy of 2014 and its subsequent amendments, which had been superseded by the Decree, will be applicable.

For more information regarding the content of the Decree and the obligations set forth thereunder, please contact César Fernández.