February 16, 2018

MEXPORT is a premier cross-border business expo promoting trade and business opportunities in the Cali-Baja region. The expo will take place in San Diego on April 26^th. With over 180 booths, it provides a space for executives and business owners to showcase their components, products, and services to major manufacturers in San Diego and Baja California.

Attendance is complimentary, though registration is strongly encouraged to guarantee access to an expedited line at the expo. A diverse group of industrial suppliers and service providers participate in this trade show every year, making MEXPORT a great opportunity for business owners to explore and expand their Cali-Baja market.

For event details, booth or attendance registration, please visit: http://mexport.org/

February 16, 2018

Kenia Zamarripa, Director of International Business Affairs, met with delegates from the Barranquilla Chamber of Commerce on February 9^th. The Barranquilla Chamber, comprised by over 63,000 business members in northern Colombia, expressed their interest in understanding the role of the Chamber in the Cali-Baja region, particularly in the innovation industry. In Barranquilla, the Chamber is a private entity in charge of legally incorporating merchant organizations and businesses and promote and manage business growth.

Delegates shared their concern for the delay of technology advances and knowledge arriving to Colombia’s business culture and are committed to decreasing the delay through the adoption of initiatives that impact business development.

San Diego organizations thriving in artificial intelligence, advanced analytics, robotics, virtual reality, 3D printing, big data, and wearables (biometric analysis and A.I.) are encouraged to contact the Barranquilla Chamber as the first step to expand their business and export products and services to Colombia.

Click here for more information, and please contact Kenia Zamarripa at kzamarripa@sdchamber.org to connect with the Barranquilla Chamber of Commerce.

February 16, 2018

On March 1-2^nd , 2018, Tijuana’s Customs Secretariat (SAT) will be hosting the first Competitiveness in Foreign Trade and Customs Fair at their headquarters. The Chamber, along other organizations, has partnered with SAT to promote the fair in joint efforts to promote and facilitate cross-border commerce.

One of the event’s goals is to unite regional supply (suppliers of services and products) and demand (buyers and consumers), and to link the public and private sectors in order to strengthen our binational region’s supply chain. Businesses can participate through three different dynamics:

1. B2B meetings. Interested companies must fill out a form providing a list of production needs in order to be matched with potential suppliers. Please send this form to earciniega@dimbc.com to register.
2. Conferences and workshops about relevant subjects (NAFTA, customs processing updates, etc.) – Translators available depending on the topic.
3. Tabletops to promote products and services (participation fee).

February 16, 2018

On February 15^th, the Chamber hosted a Cross-Border Business Forum focusing on San Diego and Baja, California Norte as a binational tourist destination. A panel of experts answered key questions such as what are the benefits and challenges of promoting and supporting cross-border tourism in the region, shared statistics on the economic impact of a “two-nation vacation”, and discussed the growth potential of joint strategies to promote cross-border tourism.

Panelists shared existing ongoing collaboration between tourism organizations on both sides of the border and shared efforts towards sustainable tourism in the region. One of the biggest challenges mentioned was border wait northbound, which becomes a barrier for binational tourism. Closing remarks looked into the future of cross-border tourism and determined that more investment is needed to promote visiting both countries in one stop, incorporating nautical tourism which already represents a significant income for San Diego and Baja California, and the expansion and promotion of the Trusted Traveler Program to facilitate crossings from tourists visiting from northern California.

The forum welcomed stakeholders from both sides of the border including service providers, government representatives, promoters, and media.

February 16, 2018

Last December, the U.S. Congress voted to enact the Tax Cuts and Jobs Act which reduces business tax rates and revamps the U.S. international tax system. As a result, the reforms will have important consequences for companies and markets all around the world, including the taxation of U.S. corporations’ foreign subsidiaries. These subsidiaries pay corporate tax at their host country and are free to reinvest the after-tax profit locally or in operating businesses in any other country except the U.S.

The Tijuana Economic Development Council recently hosted a conference by Procopio, Cory, Hargreaves & Savitch, in which the international implications of the U.S. tax reform where briefly explained and include:

• S. corporations are not required to pay taxes on dividends received from foreign subsidiaries in which there is a participation of at least 10 percent.
• As part of the transitional regime for the exemption of foreign dividends, profit held in foreign subsidiaries is considered ficta repatriation (distribution is unnecessary).
• Base Erosion Anti-Abuse tax establishes a taxation of 10 percent on payment from U.S. corporations to foreign related parties that is applied to corporations with annual gross receipts of $500 million, whose payments to foreign related parties are greater than 3 percent of their deductions.
• Global Intangible Low-Taxed Income – a 10.5 percent tax on “income from foreign intangibles” exceeding an annual return of 10 percent of the fiscal cost of tangible assets abroad.
• Foreign Derived Intangible Income – a deduction established for U.S. corporations with income from abroad attributable to intangibles. In general terms, this applies to income from the sale of goods abroad; license for intellectual property abroad; and services provided abroad.
• No deduction of interest payments and royalties (“hybrids”) made to foreign related parties.
• Contributions to foreign companies for “active business” will cease to be “tax-free”.
• Sales of partnership participation (shares) will be taxed 10 percent of selling price when purchased from a foreign vendor.
• The participation of non-resident foreigners is allowed for “S” corporations in the U.S. through a trust.

Procopio further shared that the Act imposes additional restrictions to anti-inversion rules previously adopted by the previous administration. Incentives are provided for U.S. corporations to remain in the United States, reduce their business abroad (and bring it back), and penalize those who look to exit by way of inversions. Both U.S.-parented and foreign-parented global organizations face a more complicated picture.

The changes, along with a 35 percent reduction of corporate-tax rate, could encourage another round of tax reforms at developed countries seeking to improve their competitiveness to internationally movable capital.

Detailed information of Procopio’s tax reform analysis is available here (in Spanish).