Manufacturing in Mexico: A Guide to EHS Regulation

Manufacturers around the globe are increasingly exploring Mexico as a strategic location for their operations. The country offers a compelling mix of skilled labor, proximity to major markets, and a favorable cost structure. However, navigating the environmental regulatory landscape is crucial for sustainable operations and compliance. This post dives into the key aspects of environmental regulation in Mexico, offering valuable insights for global manufacturers looking to establish or expand their presence south of the U.S. border.

Mexican federal laws dictate the Environmental Health & Safety (EHS) regulatory practices in Mexico, with individual states responsible for implementation. This framework ensures a baseline level of environmental protection across the country, while also allowing states to tailor regulations to their specific needs. Employers have a responsibility to uphold these regulations, protecting not only the environment but also the wellbeing of their employees. These responsibilities include:

• Safety and health in the workplace
• Substance controls
• Training
• Communication and reporting

There are various federal, state and municipal agencies that are involved in the compliance and regulation of Environmental Health and Safety procedures for a manufacturing facility in Mexico. A few comparisons are shown below.

Environmental Regulation in Mexico

Included in the USMCA agreement, Mexico has agreed to reduce its carbon footprint and the government is taking steps to regulate emissions and wastes, as well as protect and conserve the wild flora and fauna. The Federal Congress provides authority to the federal, state and municipal governments which regulate within their own jurisdictions:

• protection of the environment
• preservation and restoration of the ecological balance
• environmental damage, repaid and compensation.

The environmental material is based on the following bodies:

Political Constitution

It is the charter and fundamental rule, established to legally govern the country. It sets the limits and defines the relations between the powers of the federation: legislative, executive and judicial power among the three differentiated orders of the government: federal, state and municipal, and among all those, the citizens.

Organic Law of the Federal Public Administration

Based on the Political Constitution of the United States of Mexico, this body organizes, coordinates and controls the processes of the public administration aimed at achieving social outcomes.

General Law on Regulatory Improvement

Its purpose is to establish the principles and bases to which the orders of government, within the scope of their respective competencies in the field of regulatory improvement should be subject.

Federal Environmental Laws & Regulations

These include the General Law of Ecological Equilibrium and Environmental Protection, Law of National Waters, General Law of Sustainable Forestry, General Law of Forest Life, Law of Rural Sustainable Development, Law of Biosecurity of GMO's, Law of Organic Products, Federal Law for the Control of Chemical Substances, Federal Law for Environmental Responsibility, General Law of Fish & Sustainable Ecosystems, Regulation of the Law of Energy Transition, and General Law of Climate Change, each with their own regulations.

Mexican NOMs

The Official Mexican Standards (NOMs in Spanish) are mandatory technical regulations defined and enforced by the Secretariat of the Environment and Natural Resources (SEMARNAT). They regulate products, processes and services when these may constitute risk to people, animals, vegetables and the environmental in general, among others.

Treaties & International Conventions

In addition to federal and local regulation, there are a number of treaties and international conventions that dictate environmental compliance in Mexico.

Environmental Regulatory Authorities

The Secretariat of the Environment and Natural Resources (SEMARNAT in Spanish) is the main governmental agency in charge or enacting and enforcing environmental regulation at the federal level. SEMARNAT oversees various agencies associated with policy or law enforcement: National Water Commission, Office of the Federal Prosecutor for Environmental Protection (PROFEPA), National Commission for Natural Protected Areas (CONANP), and the Security Energy and Environmental Agency (ASEA).

The consequences of non-compliance of environmental laws in Mexico depend on a number of factors. General sanctions include: fines, partial or definite closure of the work activity in question, administrative arrest, personnel dismissal, among other more specific sanctions depending on the authority.

It is important to understand where the different authorities intersect. Regulation and best practices for manufacturing in Mexico evolve, influenced by things like: climate change protocols, trade agreements and governmental reforms, among others.

Health & Safety Regulation in Mexico

Health & Safety is also very important and the governmental legislation is predominately concerned that all workers benefit from "dignified work". These established guidelines aim to protect the wellbeing of the workers with the burden of the implementation falling on the employer. The Health & Safety material is based on the following regulatory bodies:

Political Constitution

It is the charter and fundamental rule, established to legally govern the country. It sets the limits and defines the relations between the powers of the federation: legislative, executive and judicial power among the three differentiated orders of the government: federal, state and municipal, and among all those, the citizens.

Organic Law of the Federal Public Administration

Based on the Political Constitution of the United States of Mexico, this body organizes, coordinates and controls the processes of the public administration aimed at achieving social outcomes.

Federal Labor Law

The Federal Labor Law regulates the rights and obligations of employees and employers. The purpose is to protect employees by providing a safe work environment.

Mexico's Social Security Law

In addition to employment and compensation-specific guidelines, the Social Security Law protects employees with specific guidelines for work-related risks, insurance, disability proceedings, and other benefits.

Federal Regulation of Health & Safety in the Workplace

The purpose of this regulation is to establish provisions on the Health & Safety to be observed in the workplace, in order to ensure the conditions to prevent risks and guarantee workers the right to carry out their specific activities in environments that protect their lives and health.

Federal Law on Metrology and Standardization

It is a foundation for trade. The law establishes the general systems of unit and measurement, the instruments to measure, the obligatory measurement of transactions. In Health & Safety material, it aims to define thresholds in order to avoid risks in the workplace.

Mexican NOMs

The Official Mexican Standards (NOMs in Spanish) are mandatory technical regulations defined and enforced by the Secretary of Labor and Social Welfare. They regulate products, processes and services when these may constitute risk to people, animals, vegetables and the environmental in general, among others.

Treaties & International Conventions

In addition to federal and local regulation, there are a number of treaties and international conventions that dictate environmental compliance in Mexico.

Office of Labor Inspection

The Office of Labor Inspection, part of the Federal STPS, is responsible for the enforcement of the Health & Safety Regulations in Mexico. Employers found in non-compliance are subject to fines up to 5,000 UMAs, with the eventual shut down of the facility if violations persist. Employers have the right to respond to notifications and violations, and penalties and fines are often imposed after repeated offenses or ongoing issues.

Ministry of Health

The Federal Commission for the Prevention of Health Risks (COFEPRIS) is the administrative authority responsible for regulating the activities carried out by employers, which involve obtaining, processing, preparing, preserving, mixing, packaging, handling distribution and/or distribution of food products, food supplements, herbal remedies, beverages with or without alcohol, cosmetic products, cleaning and toilet products, medical devices, medicines, chemicals and more.

It also regulates commercial establishments that offer services related to the physical and mental health of persons, such as medical offices of any specialty, laboratories, tattoos, perforations, rehabilitation, and/or marketing health-related products.

All the activities highlighted above require one or more notices to be submitted to COFEPRIS, and in some cases it will also be necessary for a Health Officer to have the verifiable knowledge of the activity for which they will be responsible. Failure to do so could cause closure of the facility or incur a fine or sanction.

Manufacturing Operational Compliance

The operative compliance of a manufacturing facility in Mexico is dictated by the Mexican NOMs, outlined by the federal STPS. Some of the most important and applicable operational requirements include:

EHS Personnel & Safety Procedures

There are several Mexican NOMs with objectives to establish functions, activities and prevention services for health and safety in the workplace to prevent accidents and illnesses. This may include having a dedicated EHS personnel on-site for facilities over 100 employees, commissions for health and safety and emergency brigades with designed and trained procedures. Employees must be informed of their workplace risks and trained, if required. These NOMs also outline the accident reporting requirements and followup procedures.

Workplace Health Studies

There are multiple Mexican NOMs that outline the requirements of lighting, noise, temperature, and ergonomics health studies in the workplace. These establish the health and safety conditions, maximum permissible levels, the implementation of controls, prevention and follow-up.

Emergency Response Systems

All facilities should be adequately equipped with emergency response systems including fire combat (detection, alarms, combat), evacuation routes, exits, first aid, and response plans.

Hygiene in Food Systems

Applicable to all areas where food is prepared. It outlines cleaning procedures, the prohibition of sick workers in the preparation of food as well as annual training in food hygiene. There are also requirements for potable water as well as water management system.

Waste, Materials & Management

There are several NOMs that dictate the types of materials and waste and their special handling including labeling, transportation, usage and disposal. There are requirements for management plans, reporting, inspection and follow-up.

Monitoring of Emissions

The NOMs outline various areas in which emissions (water, air quality, noise, etc) must be tested, monitored and reported to the appropriate authorities. They also include the requirements for annual reports and record keeping.

Maintenance & Operational Safety

Multiple Mexican NOMs outline the safety of installations and processes as well as maintenance requirements. They also include specific requirements for Personal Protection Equipment, their usage, stock and replacement.

Psychosocial Risk Factors

One of the newest Mexican NOMs to be adopted, the employer is responsible for the detection and management of psychosocial risk factors in the workplace. This may include excessive workloads, lack of control over workdays, work that upsets family and personal time, and negative or toxic work relationships, to name a few.

Safety Conditions in the Workplace

These are additional requirements for the safety conditions in the workplace, for specific types of environmental conditions (heights, confined places, etc) as well as vulnerable populations.

Manufacturing in Mexico: Pre-Operative EHS

During the pre-operative phase of any major manufacturing project, it is important to be extremely organized with timelines, as many permits or studies may have multiple steps, long wait times, or secondary and unforeseen consequences.

The below graphic depicts the general Environmental Regulation required by a manufacturing operation in Mexico. In red are the pre-operative requirements, and blue are operative compliance requirements for manufacturing in Mexico.

Environmental License is one of the most important things to consider when starting an operation in Mexico. The submitted study will basically define the environmental impact your operation will have on the air, water, land, etc. based on your process residues, and will determine your obligations with the different levels of authorities (county, state, federal). Not complying with this might result in fines in addition to the suspension of your manufacturing operation.

Facility-Related & Construction Permits

When building or altering a manufacturing facility, there is some important due diligence for the construction and environmental agencies that must be addressed in a timely matter.

Construction License

It is necessary to process different Construction Licenses when it is required to modify, repair, remodel, expand or construct a building, plot, warehouse, house, premise as well as for works such as sidewalks or construction materials (cement, gravel, sand, etc) in a public via. The risk of not doing so can manifest in fines, suspension or closure or even demolition.

Construction Environmental Impact Study

Previous to the construction of any facility, it is important to have an EIS for the Construction. This evaluation is the procedure to establish the conditions that will be subject to the works and activities that could cause ecological damage or exceed the limits and conditions established to protect the environment and preserve and restore the ecosystems. Its purpose is to avoid or reduce the negative affects to the environment in the construction of new works.

Documentation

The main studies required for the evaluation include the topography land survey, soil mechanics study and hydrological study. A summarized list of documents for both facility-related and construction permits can be found below. Most of the associated processes must be presented in person, in Spanish, and in come cases by someone with a tax identification number in Mexico.

Other documentation includes the official identification, proof of tax payments, project description & Gantt, blueprints, property and deed/title, site photos, building layout including process areas, structural calculations, Land Use Permit, EIS of the Industrial Park, flora/fauna reconciliation, traffic and parking study, electricity/gas contract or feasibility, materials list, machinery and equipment list, emissions summary, waste materials generation, safety plan, sign-off from Civil Protection.

Environmental Impact Assessments

The aim of EIAs at a federal level is to regulate activities and works both in certain sectors that imply more environmental risk and environmentally sensitive areas such as coast, mangroves or naturally protected areas. The due diligence for an acquisition or start up of a manufacturing facility is an important pre-operative step to overall compliance in the operation. This includes validation of environmental liability, administrative legal procedures on the property, and assessment of environmental factors.

Environmental Impact & Risk Study

The evaluation of the environmental impact is an instrument of the political environment, whose objective is to prevent, mitigate and restore the environmental damages as well as regulate works or activities in order to avoid or reduce the negative environmental affects. The goal is sustainability, and should take into consideration the economic feasibility, societal benefit, and the reasonable use of natural resources.

The process requires the presentation of a Preventative Report and/or Environmental Impact Manifestation. It is required to present technical studies and describe the environmental conditions before realizing the project. The goal is to evaluate the potential impacts of the construction and operation or activities that could cause harm to the environment and propose the necessary measures to prevent, mitigate or compensate the alterations.

The Declaration of Environmental Impact is elaborated by a competent authority, such as the Ministry of the Environment, and presented to the corresponding authorities. It includes documentation and records that accredit the applicable compliance, permits, policies, plans, programs and other voluntary commitments.

Land Use/Change Permit

The SEMARNAT defines land change as a transformation of the original vegetation in order to convert it for other uses and degrade the quality of the vegetation modifying the density and composition of the present species. Some factors that cause the land change are agriculture, stockbreeding and infrastructure expansions. Among the most important consequences of land change is the loss of biodiversity and environmental services.

A license, or permit, is required in Mexico for the land use or change and can be solicited directly from the government. It is necessary to prove proper ownership, show plans with photographs, be present for the license payment, provide official identification including tax ID, provide current contract of waste removal, among other specific requirements.

Fire Risk Assessment

In order to comply with NOM-002-STPS-2010 a study must be performed to determine the risk of fire. It aims to classify the fire risk of the workplace, including inventories of combustible solids or liquids. It allows the determination of the most effective extinction method for the existing type of fire risk.

Hazardous & Non-Hazardous Waste Permit

Industrial processes generate a variety of wastes (solid, paste, liquid or gas) that can be corrosive, reactive, explosive, or toxic, that can present risks to the human health and to the environment. The Official Mexican Norm NOM-052-SEMARNAT-2005 outlines the list of hazardous wastes.

For companies that generate waste, they will require a special permit to comply with federal and local laws. Various documentation is required regarding the identification and legal registration of the company, location, operational license, flow diagram of the process, type and quantity of wastes, laboratory analysis, service contacts, waste water study, and payment of services.

For the transportation of hazardous waste, an authorization must be granted for the recollection and transportation, outlining the previously obtained federal permit, vehicle registration, waste registration and all transportation requirements that pertain to the operation of the vehicle on public property.

Service Contracts (Gas, Electricity, Water, Sewer)

When seeking to set up utility service contracts, it will be required to submit a feasibility process, including the location, type of service required, characteristics, etc. The appropriate authorities respond with the corresponding price according to the current and available infrastructure. If infrastructure improvements are required, these proceedings may end up elongating the timeline.

General Pre-Operative Timeline

The following graphic shows the critical path for EHS compliance in a pre-operative phase of manufacturing in Mexico.

Manufacturing in Mexico: Operative EHS

During the operation, there are various reporting requirements, policies and procedures, deviation detection, corrective actions development, implementation, mandatory periodic inspections and audits. It is important to design an Environmental Health and Safety Management System according to quality systems ISO 14001 & 45001, providing systemic compliance with the applicable legal requirements on the EHS matter.

• Establish safety and hygiene mixed commission
• Training and materials handling procedures
• Monthly inspection / audit visit report
• Detect areas of potential risk to the environmental and plant personnel
• Monthly compliance report to authorities
• Execute reporting requirements based on pre-operations permits
• Deploy corrective actions
  

The operative compliance of the manufacturing facility in Mexico is dictated by the Mexican NOMs, outlined in the federal STPS. Some of the most applicable operational requirements for manufacturers include:

Waste, Materials & Management

There are several Mexican NOMs that dictate the type of materials and waste and their special handling including labeling, transportation, usage and disposal. There are requirements for management plans, reporting, inspection and followup.

Monitoring of Emissions

The Mexican NOMs outline various ares in which emissions (water, air quality, noise, etc) must be tested, monitored and reported to the appropriate authorities. They also include the requirements for annual reports and record-keeping.

Maintenance and Operational Safety

Multiple Mexican NOMs outline the safety of installations and processes as well as maintenance requirements. They also include specific requirements for Personal Protection Equipment, their usage, stock and replacement.

Safety Conditions in the Workplace

There are additional requirements for the safety conditions in the workplace in relation to working at heights or confined spaces, as well as vulnerable populations.

Navigating Compliance Challenges

For global manufacturers, understanding and complying with Mexico's environmental regulations can be daunting. However, it’s essential for legal operation, corporate social responsibility, and sustainability. Manufacturers are encouraged to:

• Conduct thorough due diligence before launching operations.
• Engage with local experts and consultants familiar with Mexican environmental laws.
• Invest in environmental management systems to monitor and improve compliance.
• Foster a culture of sustainability and compliance within their organizations.

Conclusion

Manufacturing in Mexico offers numerous advantages, but it also requires a deep understanding of the environmental regulatory framework. By prioritizing compliance and sustainability, manufacturers can not only avoid legal pitfalls but also contribute positively to Mexico’s environmental preservation and social well-being. As the world moves towards a more sustainable future, aligning manufacturing practices with environmental regulations is not just good for business—it's essential for the planet.