On 30 October 1999, the Mexican and US tax authorities jointly announced new rules for participants in the maquiladora program which are expected to be in force between 1 January 2000 and 31 December 2002. Under these rules, maquiladora operations do not constitute a permanent establishment of a US company in Mexico and are considered to comply with transfer pricing rules if they elect under the new safe harbor test or negotiate a modified APA. Comments based on the press release of the Ministry of Finance and the rules published in the Miscellaneous Resolution of 28 December 1999.