2. Comments about the NEW RULES for the General Law of Prevention and Management of Hazardous Waste. A special presentation for the WMTA By: Mariano Esparza

3. Introduction The New RULES for the General Law for the Prevention and Management of Hazardouz Waste where published on NOVEMBER 30, 2006, enforzable since DECEMBER 31, 2006

4. MEXICAN CONSTITUTION Art. 4.-Every person has the right to have an adequate environment for its development and well being (DOF: 28/Jun/99) INTERNATIONAL TREATIES MAIN LAWS * Ley General del Equilibrio Ecológico * General Law of the Environmental Equilibrium y Protección al Ambiente and Protection * Ley General para la Prevención * General Law for the Prevention y Gestión Integral de Residuos and Management of Hazardouz Waste (10/8/03) RULES ( Hazardous Waste, emissions to the atmosphere, noise, environmental impact, etc) Mexican Official Norms

5. Hazardous Waste : OLDER RULES:NEW RULES (In force): Rules for the General Law of Equilibrium and Environmental Protection for Hazardous Waste Matters Rules for the General Law for the Prevention and Management of Hazardous Waste Reglamento de la Ley General del Equilibrio Ecológico y Protección al Ambiente en Materia de Residuos Peligrosos Reglamento de la Ley General para la Prevención y Gestión Integral de los Residuos

6. Common questions about the NEW RULES: (Currently in force) Reglamento de la Ley General del Equilibrio Ecológico y Protección al Ambiente en Materia de Residuos Peligrosos 1.- Are these NEW RULES going to TOTALLY SUBSTITUTE to the older rule known as Reglamento de la Ley General del Equilibrio Ecológico y Protección al Ambiente en Materia de Residuos Peligrosos? Response: Yes, HOWEVER, please be advised that many basic rules are going to be the same, such as the provisions that states obligations to maintain and construct a Hazardous Waste Warehouse and the provisions that states obligations to transport, manage and identify such hazardous waste. 2.- Are there RADICAL CHANGES for the management of Hazardous Waste within the New Rules? Response: Not for the Maquiladora, in fact, many provisions of the new draft of rules are a confirmation of many other obligations that Maquiladoras currently follows pursuant to official norms, such as the “Cédula de Operación Annual”, forms of classification of hazardous waste, etc.

7. Common questions about the NEW RULES: (Currently in force) 3.- What are the NEW elements we can find within the new RULES for a MAQUILADORA: a) For those companies that are registered as Generators of Hazardous Waste, are going to have to classify its maquiladora as: I.- BIG GENERATOR if generates 10 Tons or more per year; II.- LITTLE GENERATOR is generates Less than 10 Tons or more than 400 Kg per year, or as III.- MICRO-GENERATOR if generates Less than 400 Kg. b) THE PROCEDURE TO AUTOCLASSIFY a company's registry has to be done BEFORE JANUARY 29, 2007.

8. …Common questions about the NEW RULES: (Currently in force) c) Therefore, it is confirmed that those companies already registered, are NOT GOING TO HAVE TO BE REGISTERED AGAIN as generators of hazardous waste, but are going to have to be auto-classify its company pursuant to the volumes of hazardous waste generated during 2004 and 2005. 4.- How do I have to auto classify my MAQUILADORA: a)Present the auto-classification in written before the SEMARNAT. b)Prepare the auto-classification pursuant to the volumes of hazardous waste generated during 2004 and 2005. c)After the above, the SEMARNAT will register the classification as presented by the Company which means that the auto-classification will be valid, HOWEVER, the SEMARNAT will have a 1 year term to verify the company's FILES in order to determine if the auto-classification was OK or not.

9. …. Questions about the NEW RULES: 5.- What is going to happen with the registries or permits that my company currently has? Response: Any registry and / or permit is going to be valid until its expiration date. Anyway, depending on the specific field of the company, requirements to renew registries and / or permits might not change. Consult with your external advisor.

10. …. Questions about the NEW RULES: 6.- Is the Recycling activity allowed? a) It is confirmed that, through such RULES, RECICLING will be allowed to companies that temporary import its raw materials under certain conditions (If the hazardous waste is subject to be recycled and if there is infrastructure in the Country). b) Likewise, the RECICLING activity might be allowed within the premises of the company and the Recycling activity will have to be done through an authorized company. Additional Note: There are other special provisions for the mining industry.

11. A special presentation for the WMTA By: Mariano Esparza mev@nafta-law.com