Most of the information contained in this section was provided by the firm of Arthur Andersen, Ruiz, Urquizay Cia., S.C., of Mexico City. This organization handles the tax work for several Mexican mining companies. Additional legal information is given in a paper presented before the American Bar Association in 1967 by Eduardo Prieto entitled, "Legal Problems of Hard Mineral Operations in Mexico." Although Mexican tax laws are codified and published, they are complex and, in the instance of mining, are subject to a number of negotiable provisions. For a Mexican-ized mining company, there are important tax benefits, including a 50 percent automatic reduction in the federal portion of production and export taxes. There are also tax ex-emptions and incentives that can be negotiated through the Treasury Department. The principal taxes payable for Mexican mining enterprises are: 1. Production tax on metal or concentrates 2. Export tax on production 3. Income taxes 4. Commercial receipts tax 5. Concession tax Although production and export taxes on mining are imposed by the federal gov-ernment, the states where mines are located are entitled to a portion of the taxes col-lected at the federal level. Additionally, tax concessions can be obtained under special conditions as discussed later in this section. Success in obtaining tax relief depends on the experience and skill of a company's Mexican partner. New mining enterprises may qualify under tax incentive provisions, depending on the commodity, the location of the mine, and its importance to the Mexican economy. The Tax Structure Mining and Metals Taxes Production Tax The production tax is administered by the Treasury Department (Secretaria de Hacienda y Credito Publico), Office of Taxes of Natural Resources (Direccion de 24