BINATIONAL PANEL REVIEW
PURSUANT TO
THE NORTH AMERICAN FREE TRADE AGREEMENT
Article 1904

IN THE MATTER OF:

Imports of Cut-to-Length Plate Products from the United States
(Continued)

V. COMPETENCE OF THE DGPCI AND THE DCC

The Majority of this Panel has concluded that the administrative subunits of ¹²¹ SECOFI that carried out this antidumping investigation and proceeding in its early months, particularly the DGPCI and the DCC, were incompetent to do so. These entities were not duly created and established in the manner clearly required by Mexican law and therefore their actions in this matter must, under the applicable standard of review, be "nullified." In the following portions ¹²² of this opinion, the Majority sets out its reasons for drawing this conclusion.

A. Transitional Period in Mexican Law

This case arose during a transitional period in Mexican law, a period which has seen numerous fundamental changes in Mexico’s treaty obligations, the specifics of Mexican antidumping law, and the organization of SECOFI as the "competent investigating authority." In an attachment to this opinion, the Majority provides a chronology of these important changes.(Annex I) The outcome of this case, from the point of view of this competence issue, has been significantly impacted by the changes that were made during this transitional period and, the Majority speculates, by one or more changes that were not made.¹²³

The question whether particular administrative subunits of SECOFI were competent or incompetent to act in this antidumping proceeding presents an essentially administrative law question, a question to be examined within the context of both the technical aspects of Mexican administrative law and the important constitutional imperatives flowing out of Articles 14 and 16 of the Constitution. In Mexico, as will be discussed more fully below, the organization and activities ¹²⁴ of SECOFI are prescribed and governed by several different legal norms. These include: the Constitution; the Organic Law of Federal Public Administration (Ley Orgánica de la Administración Pública Federal) ("LOAPF"); the SECOFI internal regulations (Reglamento Interior de La Secretaría de Comercio y Fomento Industrial) ("Internal Regulations"); and the SECOFI Organization Manual (Manual General de Organización de la Secretaría de Comercio y Fomento Industrial) ("Organization Manual"). In addition, various delegations of authority within SECOFI are set out in Delegation Agreements (Acuerdos Delegatorio).

During this transitional period, the LOAPF, regulations, manuals and agreements have gone through a number of changes, as illustrated in part by the following table : ¹²⁵

Document	New Version or Amendment To Old Version
LOAPF December 29, 1976	December 28, 1994
SECOFI Internal Regulations August 20, 1985	March 16, 1989 April 1, 1993 September 14, 1994
SECOFI Organization Manual October 20, 1986	September 19, 1988 June 5, 1989 July 28, 1994

B. The Administrative Structure of SECOFI for Antidumping Cases

1. Constitution

At the constitutional level, the power to determine the administrative structure of the Executive branch of government resides primarily in the President of the Republic. Article 89(I) states that:

Artículo 89.—Las facultades y obligaciones del Presidente son las siguientes:	Article 89.—The powers and duties of the President are as follows:
I. Promulgar y ejecutar las leyes que expida el Congreso de la Unión, proveyendo en las esfera administrativa a su exacta observancia; ...	I. To promulgate and execute the laws enacted by the Congress of the Union providing for their exact observance in the administrative sphere; ...

The President exercises this power, however, within the context of Article 90 of the Constitution, which provides that "Federal Public Administration shall be centralized and run by the state according to the Organic Law issued by Congress, which shall distribute the business of the administrative order of the Federal Government, which shall be under the charge of the Secretaries of State and Administrative Departments...." Thus, in enacting the LOAPF, it is the Mexican Congress that initially sets the overall framework for administrative activity in Mexico, a framework which is to be set out in greater detail by the President acting under his own constitutional authority. The Supreme Court has confirmed these principles by noting that the power to legally create or establish administrative units of government falls within the President’s "regulatory power" (facultad reglamentaria). For example, in the following case, the Supreme Court held:¹²⁶

FACULTAD REGLAMENTARIA. INCLUYE LA CREACION DE AUTORIDADES Y LA DETERMINACION DE LAS QUE ESPECIFICAMENTE EJERCITARAN LAS FACULTADES CONCEDIDAS.

REGULATORY POWER. INCLUDES THE CREATION OF AUTHORITIES AND THE DETERMINATION OF WHO SHALL EXERCISE THE POWERS GRANTED.

Está dentro de la facultad reglamentaria otorgada al Presidente de la República por el artículo 89, fracción I, de la Constitución, crear autoridades que ejerzan las atribuciones asignadas por la ley de la materia a determinado organismo de la administración pública; igualmente, se encuentra dentro de dicha facultad el determinar las dependencias u órganos internos especializados a través de los cuales se deben ejercer las facultades concedidas por la ley a un organismo público, pues ello significa proveer a la exacta observancia de la ley reglamentada. Además, al tratarse de un organismo que forma parte de la administración pública, aun cuando sea un órgano descentralizado, es precisamente el Presidente de la República, titular de esa administration, administración, quien constitucionalmente está facultado para determinar los órganos internos que ejercerán las facultades otorgadas por la ley, a efecto de hacer posible el cumplimiento de ésta.

The creation of authorities to exercise the powers assigned by the relevant law to a determined organ of the public administration is within the regulatory powers granted to the President of the Republic by Article 89, section I of the Constitution. Equally, the choice of the dependencies or specialized internal organs through which the powers granted by the law to a public organ shall be exercised is also within said power [granted to the President], since this involves decreeing the exact observance of the law under which the regulations are created. Furthermore, with respect to an organ which forms part of the public administration, including decentralized organs, it is the President of the Republic, the head of that who possesses the constitutional power to choose the internal organs which shall exercise the powers granted by the law, in order to make possible the fulfillment of the law.

Central to any analysis of competence and jurisdiction, therefore, is the issue whether a law enacted by Congress has granted competence to a particular administrative unit to take actions that affect or impact the public, or whether the President has exercised his "regulatory power" in ¹²⁷ some manner to grant such competence.

2. LOAPF

Pursuant to the cited constitutional provisions, the LOAPF was initially adopted on December 29, 1976 to create and establish the various Secretaries of State, among them the Secretary of Commerce and Industrial Development (SECOFI), granting each of these Secretaries precisely specified attributes and powers. The LOAPF also granted exclusively to the President the power to issue internal regulations for each such Secretary, the purpose of which is to set out the organic structure and powers of that Secretary, including its various administrative units and subunits. The foregoing can be seen from following provisions of the Organic Law that were in force during this proceeding, which state:

Artículo 14.—Al frente de cada Secretaría habrá un Secretario de Estado, quien para el despacho de los asuntos de su competencia, se auxiliará por los Subsecretarios, Oficial Mayor, Directores, Subdirectores, jefes y subjefes de Departamento, Oficina, sección o mesa, y por los demás funcionarios que establezca el reglamento interior respectivo y otras disposiciones legales.

Article 14.—At the head of each Secretary there shall be a Secretary of State who shall be assisted in matters under his jurisdiction by undersecretaries, a chief of staff, directors, deputy directors, and by managers and assistant managers of Departments, Offices, Sections and Subsections, and all other officials mentioned in the appropriate internal regulation and other legal provisions.

Artículo 16.—Corresponde originalmente a los titulares de las Secretarías de Estado y Departamentos Administrativos el trámite y resolución de los asuntos de su competencia, pero para la mejor organización de trabajo podrán delegar en los funcionarios a que se refieren los artículos 14 y 15, cualesquiera de sus facultades, excepto aquellas que por disposición de la ley o del reglamento interior respectivo, deban ser ejercidas precisamente por dichos titulares.... Los propios titulares de las Secretarías de Estado y Departamentos también podrán adscribir orgánicamente las unidades administrativas establecidas en el reglamento interior respectivo, a las Subsecretarías, Oficialía Mayor, y a las otras unidades de nivel administrativo equivalente que se precisen en el mismo reglamento interior. Los acuerdos por los cuales se delegan facultades o se adscriban unidades administrativas se publicarán en el "Diario Oficial" de la Federación.

Article 16.— The Secretaries of State and the heads of the Administrative Departments are responsible for the processing and resolution of matters within the jurisdiction of their respective ministries and agencies. However, in order to better organize their work, they may delegate any of their powers to the functionaries referred to in Articles 14 and 15, except for those powers that by law or in accordance with the respective internal regulation must be exercised personally by the Secretaries of State and the heads of the Administrative Departments.... The Secretaries of State and the heads of the Administrative Departments may ascribe organically the administrative units established in their respective internal regulations to the Undersecretaries, Chief of Staff, and other administrative units at an administrative level equivalent to those set out in such internal regulations. The decrees through which the powers are either delegated or granted to administrative units shall be published in the "Diario Oficial de la Federación."

Artículo 18.—En el Reglamento Interior de cada una de las Secretarías de Estado y Departamentos Adminsitrativos, que será expedido por el Presidente de la República, se determinarán las atribuciones de sus unidades administrativas, así como la forma en que los titulares podrán ser suplidos en sus ausencias.

Article 18.—The functions of the administrative units of the Ministries and administrative departments, together with the manner in which they can be substituted during absences, are determined by the internal regulations of each administrative unit, which will be issued by the President of the Republic.

Artículo 19.—El titular de cada Secretaría de Estado y Departamento Administrativo expedirá los manuales de organización, de procedimiento y de servicios al público necesarios para su funcionamiento, los que deberán contener información sobre la estructura orgánica de la dependencia y las funciones de sus unidades administrativas, así como sobre los sistemas de comunicación y coordinación y los principales procedimientos administrativos que se establezcan. Los manuales y demás instrumentos de apoyo administrativo interno, deberán mantenerse permanentemente actualizados. Los manuales de organización general deberán publicarse en el "Diario Oficial" de la Federación.

Article 19.—The Secretary of State and the head of each Administrative Department shall issue organization manuals and of proceedings and public services necessary for it to function; these shall contain information about the organic structure of the department and the functions of its administrative units, as well as the systems of communication and coordination and the principal administrative proceedings to be established. The manuals and other internal administrative tools shall be updated permanently. The organization manuals shall be published in the "Dario oficial de la Federación."

The plain meaning of the above provisions is the following: Each Secretary of State shall be assisted by the officials and administrative units set out in Article 14 itself, in the internal regulations or other bodies of law of that Secretary.

Each Secretary of State may appoint and organize the various officials and administrative units established by the internal regulations of that Secretary. In addition, each Secretary of State may, unless expressly non-delegable, delegate one or more of his powers to such officials and administrative units (Article 16). The internal regulations for each Secretary of State, issued by the President of the Republic, specify the powers and attributes to be held by each such official and administrative unit (Article 18).

Each Secretary of State must publish in the D.O. and keep current an organizational manual, setting out for the public information regarding the organic structure of the Secretary and other matters (Article 19).

Once again, central to these provisions and to Mexican law generally is the principle that only the President of the Republic, the head of the Executive branch, has the authority to issue internal regulations of a Secretary creating or establishing, and thereby giving competence to, an administrative unit. The following Thesis confirms this point: ^{128 129}

FACULTAD REGLAMENTARIA. SUS LIMITES.

REGULATORY POWER. ITS LIMITS.

Es criterio unánime, tanto de la doctrina como de la jurisprudencia, que la facultad reglamentaria, conferida en nuestro sistema constitucional únicamente al Presidente de la República y a los gobernadores de los estados, en sus respectivos ámbitos competenciales, consiste, exclusivamente, dado el principio de la división de poderes que impera en nuestro país, en la expedición de disposiciones generales abstractas e impersonales que tienen como objeto la ejecución de la ley, desarrollando y completando en detalle sus normas, pero sin que, a título de su ejercicio, pueda excederse al alcance de sus mandatos o contrariar o alterar sus disposiciones, por ser precisamente la ley su medida y justificación.

Both our jurisprudence and case law are unanimous in holding that the regulatory power conferred in our constitutional system only on the President of the Republic and on the state governors, in their respective areas of competence, consists, exclusively, under the principle of the division of powers that applies in our country, to the issuance of general, abstract and impersonal dispositions that have as their object the execution of the law, developing and completing its norms in detail, but that the regulations may not exceed the scope of the law’s commands or contradict or alter its dispositions, given that the law defines the scope [of a permissible regulation] and provides the regulations’s justification.

3. Internal Regulations and Organization Manuals Insofar as the President’s "regulatory power" is concerned, Mexican law makes a clear distinction between internal regulations and organization manuals. Internal regulations are issued by the President pursuant to the express authority granted him by the Constitution and the LOAPF. Their most basic purpose is to legally create and establish the various administrative units and subunits that are to be integrated within the Secretariat involved. Therefore, such internal regulations impart juridical competence to the designated administrative units and subunits, making their existence and competence legally and administratively unimpeachable. It is through this mechanism that the guarantee of legal security afforded the Mexican people by Article 16 of the Constitution is protected.

In contrast, organization manuals are not issued by the President, but by the Secretary himself. Organization manuals, therefore, are not an expression of the "regulatory power" granted by the Constitution to the President. As stated in Article 19 of the LOAPF, they are merely informational in character and, however accurately they may describe the internal workings of the Secretariat in question, they do not, and cannot, give existence and legal competence to the administrative units and subunits mentioned therein. These must depend, for their legal competence, upon a law or the internal regulations for that Secretariat (or other regulations or decree of the President issued pursuant to his "regulatory power"), identifying and granting them specific attributes and powers. Mexican case law clearly confirms these principles.¹³⁰

REGLAMENTO INTERIOR DE LA SECRETARIA DE COMERCIO Y FOMENTO INDUSTRIAL, NO PREVE CON CARACTER DE AUTORIDAD AL DIRECTOR DE PRODUCTOS MANUFACTURADOS E INDUSTRIA BASICA.

THE INTERNAL REGULATION OF THE MINISTRY OF COMMERCE AND INDUSTRIAL DEVELOPMENT DOES NOT PROVIDE THAT THE DIRECTOR OF MANUFACTURED PRODUCTS AND BASIC INDUSTRY IS A [LEGAL] AUTHORITY.

El Reglamento Interior de la Secretaría de Comercio y Fomento Industrial no prevé la existencia legal del Director de Productos Manufacturados e Industria Básica, y no puede considerarse que el manual general de organización a que alude el artículo 8 del reglamento citado, publicado en el Diario Oficial de la Federación el 20 de octubre de 1986, reformado por otro publicado en el mismo diario de 19 de septiembre de 1988, donde se menciona una dependencia de nombre similar a la que nos ocupa, le da vida jurídica ya que sólo tiene funciones de orientación para las dependencias en el indicadas y al público en general, de lo cual se advierte que no puede tener carácter legislativo. En consecuencia, se debe concluir que el director en comento no existe con el carácter de autoridad por lo que, con fundamento en lo dispuesto por el artículo 27, fracción VI, del Reglamento Interior de la Secretaría de Comercio y Fomento Industrial es al Director General de Precios a quien le corresponde el tramitar y dictaminar las solicitudes para fijar or modificar precios y tarifas.

The internal regulation of the Ministry of Commerce and Industrial Development does not provide for the legal existence of the Director of Manufactured Products and Basic Industry, and we cannot consider that the general organizational manual referred to in Article 8 of the aforementioned regulation, published in the Diario Oficial de la Federación on October 20, 1986, reformed by another [manual] published in the same publication on September 19, 1988, where a dependency of a similar name is mentioned, gives legal existence [to the Director of Manufactured Products and Basic Industry] since [the manual] only has the purpose of serving as a guide for the dependencies mentioned in it and for the general public, from which it is clear that it cannot have a legislative character. Consequently, it must be concluded that the director in question does not posses the attributes of an authority and that, on the basis of what is provided for by Article 27, section VI of the interior regulation of the Ministry of Commerce and Industrial Development, the General Director of Prices has the responsibility for processing and deciding applications to fix or modify prices and fares.

Accord:¹³¹

INAPLICABILIDAD DEL MANUAL GENERAL DE ORGANIZACION GENERAL DE LA SECRETARIA DEL TRABAJO Y PREVISION SOCIAL. NO PUEDE EQUIPARARSE A UN REGLAMENTO O LEY .

INAPPLICABILITY OF ORGANIZATION MANUAL OF THE MINISTRY OF LABOR AND SOCIAL WELFARE. CANNOT BE COMPARED WITH A REGULATION OR LAW.

Sub-Director "B"de Sanciones de la Dirección General de Asuntos Jurídicos de la Secretaría del Trabajo y Previsión Social no es competente para emitir actos de molestia en ausencia de los Directores General de Asuntos Jurídicos y de Sanciones de la citada dependencia, ya que en el Manual General de Organización de la Secretaría del Trabajo y Previsión Social que invoca para apoyar y justificar su competencia, este instrumento carece de toda fuerza legal pues dichos manuales de organización a que se refiere el artículo 19 de la Ley Orgánica de la Administración Pública Federal, no tienen naturaleza normativa, sino su papel simplemente es de ser una fuente de información actualizada de la organización y atribuciones de la estructura interna de cada secretaría de Estado, pero sin que dicha información que sumariamente se publica en el Diario Oficial de la Federación pueda equipararse al carácter normativo que tienen los reglamentos interiores de las secretarías, que se prevén en el artículo 18 de la Ley Orgánica de la Administración Pública Federal; pero tampoco tienen un valor regulador jurídico ya que el papel de los manuales es sólo contar con information información actualizada de tipo meramente administrativo, pues ni la pluricitada Ley de la Administración Pública Federal, Orgánica de la Administración Pública Federal, que prevé su existencia, ni ninguna otra ley dispositivo reglamentario le dan carácter normativo alguno. En consecuencia, el manual de organización que se cita no puede ser fuente de competencia de ninguna autoridad. Además, de acuerdo con el sistema legal vigente, los órganos administrativos y sus atribuciones deben recogerse en principio en los reglamentos interiores de las secretarías de Estado, y siendo en la especie que dicha Subdirección "B" de sanciones no se encuentra prevista en el artículo 3 del Reglamento Interior de la Secretaría del Trabajo y Previsión Social, el órgano en cuestión es inexistente.

Subdirector "B" of Sanctions of the General Department of Legal Affairs of the Ministry of Labor and Social Welfare is incompetent to issue acts which affect legal rights in the absence of the General Directors of Legal Affairs and of Sanctions of the aforementioned Ministry, since the General Organizational Manual of the Ministry of Labor and Social Welfare cited [by Sub-director "B" of Sanctions] to support his competence lacks all legal force since said organizational manuals referred to in Article 19 of the Organic Law for the Federal Public Administration (Ley Orgánica de la Administración Pública Federal) cannot create legal norms; rather their role is simply to be an up-to-date information source regarding the organization and internal structure of each Ministry. This information which is summarily published in the Diario Oficial de la Federación cannot be compared as to its legal force with that possessed by the internal regulations of the ministries provided by Article 18 of the Ley Orgánica de la Administración Pública Federal. [The organizational manuals] also do not create a regulatory power since the role of the manuals is only to contain up-to-date of a merely administrative nature, in that neither the aforementioned Ley Orgánica that provides for their existence, nor any other law or of regulation gives [the manuals] any sort of normative character. Consequently, the cited organizational manual cannot be a source of authority for any legal body. Furthermore, in accordance with our operative legal system, the administrative organs and their powers should be set out in the internal regulations of the ministries, and since said Sub-Department "B" of Sanctions is not provided for by Article 3 of the Internal Regulations of the Ministry of Labor and Social Welfare, the organ in question is null and void.

C. Study of DGPCI´s and DCC´s competence

Based on the foregoing, the Majority therefore analyzes whether by virtue of a law, the SECOFI Internal Regulations, or otherwise, the DGPCI and the DCC were competent to act during the period from December 4, 1992 until April 1, 1993.

1. The SECOFI Internal Regulations

a. The 1985 Regulations

The SECOFI Internal Regulations of August 20, 1985 ("the 1985 Regulations"), in ¹³² Article 2, state as follows:

Artículo 2.—Para el estudio, planeación y despacho de los asuntos que le competen, la Secretaría de Comercio y Fomento Industrial contará con los siguientes servidores públicos, áreas y unidades administrativas: Secretario Subsecretaría de Comercio Exterior Direcciones Generales de: [list omitted] Unidades de: [list omitted] Delegaciones Federales: [text omitted]

Article 2.—For the study, planning and handling of issues within its competence, the Secretary of Commerce and Industrial Development shall have the following public servants, areas and administrative units: Secretary Undersecretary of Foreign Commerce General Directorates: [list omitted] Units: [list omitted] Federal Delegations: [text omitted]

A plain reading of Article 2 suggests that its essential purpose is to list all those Subsecretarías, Direcciones Generales, Unidades, and Delegaciones Federales making up SECOFI’s organizational structure and, by so listing them, to legally create, establish and give competence to each listed administrative unit and subunit. Although the 1985 Regulations do make reference to an administrative unit which appears to have some authority concerning unfair trade practices, it is manifest that these regulations ¹³³ make no reference whatever either to the DGPCI or the DCC, in Article 2 or elsewhere. Therefore, it may be concluded that the 1985 Regulations did not legally create or establish these two administrative subunits.

b. The 1989 Regulations

The 1985 Regulations were abrogated by new internal regulations published in the D.O. ¹³⁴ on March 16, 1989 ("the 1989 Regulations"). Article 2 of the 1989 Regulations follows exactly the same format as its predecessor, listing both the Secretary and Undersecretary of Foreign Commerce. Under the Direcciones Generales, however, Article 2 also lists for the first time the Dirección General de Servicios al Comercio Exterior (DGSCE). The attibutes of the DGSCE are set out in Article 16(XII), as follows:¹³⁵

XII. Estudiar y proponer con la participación de las Direcciones Generales de Política de Comercio Exterior y de Negociaciones Comerciales Internacionales, la aplicación y monto de las cuotas compensatorias y cuotas a mercancías que se importen en condiciones de prácticas desleales de comercio internacional, así como las salvaguardias cuando procedan en los términos establecidos por la Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior.

XII. To study and propose with the participation of the Direcciones Generales de Política de Comercio Exterior and Negociaciones Comerciales Internacionales the application and amount of countervailing duties antidumping, [cuotas compensatorias] and antidumping duties [cuotas antidumping], to merchandise which is imported under conditions of unfair practices, as well as the remedies which are to be imposed pursuant to the Ley Reglamentaria del Artículo 131 de la Constitución Política de los Estados Unidos Mexicanos en Materia de Comercio Exterior.

Once again, the 1989 Regulations make no reference to either the DGPCI or the DCC; only the DGSCE is set out as the appropriate entity to "study and propose" with two other general directions, with respect to antidumping and countervailing duty matters. Therefore, it can be concluded that while the 1989 Regulations did create the DGSCE, they did not legally create or establish either the DGPCI or the DCC. The Majority notes that it was the 1989 Regulations that were in existence during the period December 4, 1992 through April 1, 1993.

c. The 1993 Regulations

The SECOFI internal regulations were not re-issued again until April 1, 1993 ("the 1993 Regulations"). The 1993 Regulations expressly abrogated the prior 1989 Regulations. ^{136 137}

Article 2, following the exact same format as both prior internal regulations, created the Secretary, a re-named Undersecretary of Foreign Commerce and Investment (Subsecretaría de Comercio Exterior e Inversión Extranjera), the DGSCE and, for the first time, a new administrative subunit entitled the Unidad de Prácticas Comerciales Internacionales (UPCI). The attributes of the DGSCE were set out in Article 13, while those of the UPCI were set out in Article 33. Once again, no reference was made to the DGPCI or the DCC. Thus, it may be concluded that while the 1993 Regulations re-established the DGSCE and established once again the UPCI, they did not legally create or establish either the DGPCI or the DCC.

2. The SECOFI Organization Manuals

As noted above, the SECOFI Organization Manuals do not, in the Majority’s view, legally establish or create administrative units and subunits, at least insofar as they affect or impact the public. The SECOFI Organizational Manuals are internal documents which, by their own terms, ¹³⁸ are intended merely to provide detailed information concerning SECOFI’s antecedents, its applicable juridical and administrative provisions, its attributes and objectives. The Organizational Manuals do not confer such attributes, however; these are conferred by means of the LOAPF, the SECOFI Internal Regulations, or perhaps some other law, regulation or Presidential decree. As was stated identically in the Introductions to the 1986 and 1988 Organization Manuals, it is their purpose, in part:¹³⁹

Precisar las funciones encomendadas a las diferentes unidades administrativas que la integran, basadas en las atribuciones conferidas por el artículo 34 de la Ley Orgánica de la Administración Pública Federal y el Reglamento Interior de la Secretaría, así como establecer las relaciones que deben existir entre las mismas.

To specify the functions entrusted to its various administrative units, based on the attributions conferred by Article 34 of the Organic Law of Federal Public Administration and the Internal Regulations of the Secretary, as well as to establish the relationships that should exist between them.

a. The 1986 SECOFI Organization Manual

The 1986 SECOFI Organization Manual was published in the D.O. on October 20 of that same year, and conforms to the 1985 Regulations in that it makes reference in the list of administrative subunits on page 30 and to the organigram on page 31 to both the Subsecretaría de Comercio Exterior and to the Dirección General de Servicios al Comercio Exterior (DGSCE). The functions of the DGSCE are set out on page 50, and the organigram of the DGSCE on page 51 shows that the DGSCE at this time was organized internally into four Direcciones, including the Dirección de Cuotas Compensatorias y Sector Público ("DCC y SP"). Other than what may be surmised by virtue of its own title, and the title of its various administrative subunits, no description is given in the 1986 Organization Manual of the specific functions and attributes of the DCC y SP. The 1986 Organization Manual makes no reference whatever to the DGPCI. ¹⁴⁰

b. The 1988 SECOFI Organizational Manual

The SECOFI Organization Manual was re-issued and published on September 19, 1988 with, for present purposes, no change in substance. The functions of the DGSCE are set out on page ¹⁴¹ 51 and the organigram on the following page makes reference to the Dirección de Cuotas Compensatorias (DCC) as one of the three Direcciones operating directly under the DGSCE. Once again, the 1988 Organization Manual contains no specific discussion of the attributes or functions of the DCC, other than what may be discerned from its title and that of its own administrative subunits. The 1988 Organization Manual makes no reference whatever to the DGPCI.

c. The 1989 SECOFI Organization Manual

The SECOFI Organization Manual was re-issued and published in the D.O. on June 5, 1989. The organic structure of SECOFI is set out on pages 20 and 21, making reference once again ¹⁴² to the Subsecretaría de Comercio Exterior and to the DGSCE. An organigram of SECOFI, showing the relationship between these two entities is contained on page 40. However, only the functions of the DGSCE are set out on pages 25 and 26, with no organigram of the DGSCE itself. Thus, the 1989 SECOFI Organization Manual makes no reference whatever to the DCC nor, of course, to the DGPCI.

d. The 1994 SECOFI Organization Manual

The SECOFI Organization Manual was not re-issued and published again until July 28, 1994. In this version of the manual, the pertinent undersecretary position is renamed the ¹⁴³ Subsecretaría de Comercio Exterior e Inversión Extranjera and under it are named two pertinent subunits, the Unidad de Prácticas Comerciales Internacionales (UPCI) and the DGSCE. The ¹⁴⁴ organigram of SECOFI on page 44 refers to both the UPCI and the DGSCE, but does not refer to any possible subunits of those entities. The 1994 Organization Manual makes no reference whatever to the DGPCI or the DCC.

3. Other Laws, Regulations, or Presidential Decrees

The Majority has not discovered, nor has it been cited by the Investigating Authority to, any other laws, regulations, or Presidential decrees which make mention of the DGPCI or the DCC.

4. Conclusion

Based upon the foregoing, the Majority concludes that neither the DGPCI nor the DCC, which carried out essentially the entirety of this antidumping proceeding between December 4, 1992 and April 1, 1993, were ever legally established or in existence. Their existence was never established in any of the SECOFI Internal Regulations, most particularly the 1989 Regulations, nor were they established in any other law, regulation, or Presidential decree. The minimal references to the DCC in the 1988 SECOFI Organization Manual cannot, in law or in fact, be considered to have legally established or created the DCC. Properly interpreted, the Majority finds that the SECOFI Organization Manuals themselves do not even purport to create or give legal competence to administrative units and subunits. By their own terms, consistent with Article 19 of the LOAPF, these manuals clearly recognize their limited informational and educational role, and that they rely for grants of competence upon Article 34 of the LOAPF and the SECOFI Internal Regulations. Sound constitutional principles, based on the legal guarantees established by Articles 14 and 16 of the Constitution, would prevent, in any event, a contrary interpretation. The Majority also notes that the 1989 SECOFI Organization Manual expressly "abrogated" the 1988 SECOFI Organization Manual which, at that time, was the only legal document even mentioning the DCC.

Between December 4, 1992 and April 1, 1993, therefore, it may be said that no law, regulation, manual, or Presidential decree in effect in Mexico even mentioned the DCC or the DGPCI. Therefore, in the Majority’s judgment, the DCC and the DGPCI were nonexistent in law and, constitutionally speaking, completely incapable of acting against the rights and interests of individuals in this antidumping proceeding.

The Majority recognizes that, internally, SECOFI had apparently organized itself during this time frame to include the entities DGPCI and the DCC. SECOFI, however, failed to arrange for the enactment of a suitable Internal Regulation that would validate this structure, giving these entities legal competence under the accepted constitutional and administrative principles. Had SECOFI undertaken this effort, most of the Complainants’ constitutional challenges with respect to the actions of the DGPCI and the DCC would be rejected by this Panel, and the Panel would be free to review the important substantive antidumping law issues raised. However, SECOFI did not undertake this effort, therefore it must be considered under NAFTA and Mexican law to have commensurate legal significance: the failure to enact a suitable Internal Regulation means that the DGPCI and the DCC were never legally competent to act and that their actions in this case must, under the applicable standard of review, now be "nullified."¹⁴⁵

Continue on to Section 5: SECOFI's Arguments

¹²¹ Panelists Ramírez, Lutz and Endsley join together as the Majority in this portion of the opinion.

¹²² The Majority agrees with Complainants that Article 238(1) is applicable to these competence issues. Applying Article 238(1), the Majority remands this proceeding back to the Investigating Authority for a finding of zero dumping margins with respect to the Complainants and termination of this proceeding. See the Panel’s final order infra.

¹²³ See discussion at infra.

¹²⁴ See discussion of the Mexican standard of review supra.

¹²⁵ Date of publication in D.O.

¹²⁶ Court: Second Chamber. Source: Semanario Judicial de la Federación. Term: 8A. Book: III First Part. Thesis: Page 277. PRECEDENTS: Amparo 6458/85. Francisco Javier Vázquez Balderas. February 1, 1989. 5 Votes. Magistrate: Manuel Gutiérrez, de Velasco. Secretary: Rosalba Becerril Velázquez. Amparo 1129/88. Compañía Mexicana de Ingeniería, S.A. June 8, 1988. Unanimous Vote. Magistrate: Atanasio González Martínez. Secretary: Alicia Rodríguez Cruz de Blanco. (8th Term, Book I First Part, Page 223). Amparo 480/84. Compañía Minera Río Colorado, S.A., August 23, 1984. Unanimous 4 votes. Absent: Santiago Rodríguez Roldán. Magistrate: Carlos del Río Rodríguez. Secretary: Diana Bernal Ladrón Guevara (7th Term, Volumes 187-192, Third Part, Page 65).

¹²⁷ See Articles 14 and 16 of the Constitution.

¹²⁸ The Mayority could not find some other decree or order issued by the President of the Republic applicable for this case, which would also be of equal dignity to an internal regulation.

¹²⁹ Court: Second Chamber. Source: Semanario Judicial de la Federación. Term: 7A. Volume: 163-168. Part: Third. Page: 77. PRECEDENTS: Fiscal appeal 5981. Playa Sol Vallarta, S.A., October 4, 1982. 5 votes. Magistrate: Carlos del Río Rodríguez. NOTE: This Thesis also appears in: Appendix, Index 1917-1985, Third Part, Second Chamber, fourth Thesis related with the jurisprudence 402, page 705.

¹³⁰ Court: Tribunales Colegiados de Circuito. Source: Semanario Judicial de la Federación. Term: 8A. Book: III, Second Part. Page 654. CUARTO TRIBUNAL COLEGIADO EN MATERIA ADMINISTRATIVA DEL PRIMER CIRCUITO. PRECEDENT: Amparo 474/89. Ciba Geigy Mexicana, S.A. de C.V., March 16, 1989. Unanimous Votes. Magistrate: Hilario Barcenas Chávez. Secretary: Emiliano Hernández Salazar.

¹³¹ Court: Tribunales Colegiados de Circuito. Source: Semanario Judicial de la Federación. Term: 8A. Book: X-October. Page 373. CUARTO TRIBUNAL COLEGIADO EN MATERIA ADMINISTRATIVA DEL PRIMER CIRCUITO. PRECEDENTS: Amparo 65492. Ganaderos y Productores de Leche Pura, S.A. de C.V., June 4, 1992. Unanimous Votes. Magistrate: José Méndez Calderón. Secretary: Silvia rtínez Saavedra.

¹³² The 1985 Regulations abrogated and superseded the previous internal regulations published in the D.O. on December 12, 1983. See Article Second, Transitory Provisions.

¹³³ Article 2 makes reference to the Dirección General de Negociaciones Económicas y Asuntos Internacionales to which Article 18(III) attributes some competence in the area of "unfair practices" (prácticas desleales de carácter comercial).

¹³⁴ See Article Second, Transitory Provisions. The Majority takes the term "abrogate" (abrogar) in its normal and plain meaning, as to" annul" or "repeal" the prior act. Clearly, the term is intended to refer to an annulment or repeal of the prior act as a whole, and not merely to a derogation in part from specific terms of that prior act. In the latter case, it is Mexican practice to utilize the verb "to derogate" (derogar). See Diccionario Jurídico Mexicano, Instituto de Investigaciones Jurídicas, U.N.A.M., Ed. Porrúa, 1992. Vol. I (A to C), "ABROGACIÓN, I. (Del latín abrogatio, del verbo abrogar, anular). Es la supresión total de la vigencia y, por lo tanto, de la obligatoriedad de una ley.... IV. En el lenguaje técnico-jurídico se sigue haciendo la distinción entre derogación y abrogación; refiriéndonos en el primer caso a la privación parcial de efectos de la ley y en el segundo a la privación total de efectos de ésta."

¹³⁵ As a matter of terminology, the Majority notes that this clause makes a clear distinction between countervailing duties [cuotas compensatorias] and antidumping duties [cuotas antidumping]. With this exception, however, and with the further exception of NAFTA Article 1904(2) which refers to "cuotas antidumping y compensatorias," the Majority has found no other provision in Mexican law which makes this terminological distinction. All other references the Panel has found appear to use the term "cuotas compensatorias" as referring generically to both countervailing duties and antidumping duties. See, for example, Article 33(XII) and 33(XXIII) of the 1993 Regulations. If such generic use is intended to eliminate the distinction, it is not clear to the Majority what term will be used to describe solely countervailing duties. This terminological confusion is not to be desired.

¹³⁶ The 1993 Regulations came into force on April 2, 1993, the day following publication in the D.O. See Article First, Transitory Provisions.

¹³⁷ Article Second, Transitory Provisions. While the 1989 Regulations were abrogated in total, this transitory provision also indicated, however, that the 1993 Regulations were to prevail over another legal provisions which may be found to be contrary ("Se abroga el Reglamento Interior [del] 16 de marzo de 1989 y se derogan todas aquellas disposiciones que se opongan al presente Reglamento").

¹³⁸ See Articles 14 and 16 of the Constitution. The Majority appreciates that SECOFI may establish or create administrative units and subunits, establishing budgets therefore and otherwise, without constitutional implication, provided that such units and subunits are limited to internal functions only and do not directly affect or impact the rights and interests of individuals.

¹³⁹ See, for example, Introduction, 1988 Organization Manual. While the more recent SECOFI Organization Manuals, for example, the 1989 Organizational Manual, do not continue this language, it is merely a recapitulation of Mexican administrative law and it must be presumed that its omission in the recent manuals does not occasion a change in substance or point of view on the part of SECOFI.

¹⁴⁰ The 1986 Organizational Manual merely describes where the DCC can be found in the organizational structure of SECOFI.

¹⁴¹ The 1988 Organizational Manual does not contain express Transitory Provisions which would indicate as a formal matter that this manual "abrogated" the 1986 Organizational Manual. Nevertheless, based on Article 19 of the LOAPF, which requires SECOFI to maintain and publish currently accurate organizational manuals, the Majority believes that the legal impact and effect of the 1988 re-issuance was to "abrogate" the 1986 Organizational Manual.

¹⁴² The 1989 Organizational Manual contains transitory provisions. Article Second of these Transitory Provisions indicates that the 1988 SECOFI Organizational Manual is "abrogated." See n.132 supra.

¹⁴³ The 1994 Organizational Manual abrogates the 1989 Organizational Manual. See Article Second, Transitory Provisions.

¹⁴⁴ See pages 25, 28-30.

¹⁴⁵ See prior discussion of the Panel’s authority to issue an order to the Investigating Authority to terminate a proceeding.