In Mexico there are regulations applying to foreign directors who enter the country to direct movies, in any format, video or film on national territory, whether the productions are foreign or domestic.
In this matter, article 7 of the Federal Labor Law protects Mexican workers and gives them preference over foreign workers. The sole exception to this is when there are no Mexican workers qualified in a particular specialist area and when it is a matter of functions carried out by Directors (understood as to refer to General Directors, Administrators and General Managers).
In the case of a specialist area, any movies made on Mexican territory must be directed solely and exclusively by Mexicans, since this is a question of functions which Mexicans qualified to perform. Furthermore, in Mexico there are two associations registered with the Ministry of Labor and Social Welfare (S.T.P.C.) which represent movie Directors in Mexico. These are the Sección de Directores del Sindicato de Trabajadores de la Producción Cinematográfica de la República Mexicana and the Sindicato Gremial de Directores de Cine y Similares de la República Mexicana.
This fact also confirms that Directors and/or Producers are considered to be unionized workers.
In addition, the General Law on Population and its Regulations establish the requirements which must be fulfilled by foreigners who enter the country with the intention of working, and also the penalties they may be liable to in the event of any contravention of the legal provisions of these statutes.
Nevertheless, according to custom, foreign or Mexican movie producers who wish to shoot in Mexico may hire foreign Directors on condition that the "transit fee" (Cuota de Tránsito o desplazamiento) is paid to the Sindicato Gremial de Directores de Cine y Similares de la R. M. Sección de Directores del S.T.P.C.de la R. M.
By paying the said fee, both foreign directors and producers will be protected and will be guaranteed the legal advice form the Sección de Directores of the S.T.P.C. for the entire time they are in the country.
If there is any contravention in connection with payment of the "Transit Fee" representatives of either of the associations mentioned above shall be free to inform the proper authorities.
In light of the above , this Labor Union (Directors Section) has determined as a way of paying the "Transfer Fee".
The amount of six hundred dollars (US$ 600) PER WEEK for the Director and two hundred dollars (US$200) for the Co-director (if applicable).
It is important to emphasize that the sums delivered to this Union to cover the "Transit Fee" are applied exclusively to the social welfare funds of Movie Directors in Mexico.