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customs broker remitted the $3 per head of cattle fee to
petitioner. (This fee also included the cost of necessary
paperwork and feed for 1 day.) If the cattle remained overnight,
petitioner charged an additional $6 fee for each bale of hay
consumed.
Petitioner agreed to pay Union Mexico $1.50 of the $3 per head
of cattle fee as petitioner’s share of the water, electrical,
inspection, and bathing expenses. This $1.50 per head of cattle
fee was determined by estimating the costs Union Mexico incurred in
connection with crossing the cattle into the Santa Teresa facility
from the San Jeronimo facility and allocating one-half of these
costs to petitioner. The financial arrangement between petitioner
and Union Mexico was set forth in a January 2, 1993, contract4.
4 The contract, in relevant part, states:
FIRST.--Union Ganadera Regional de Chihuahua, as the
party in charge of facilitating the export of cattle to
the United States, is obligated to program deliveries
of cattle through the San Jeronimo installations so
that said cattle reach the stockyards of Union Ganadera
Regional de Chihuahua, Inc. in Santa Teresa.
SECOND.--Union Ganadera Regional de Chihuahua is also
obligated to provide Union Ganadera Regional de
Chihuahua, Inc. various services that are necessary its
[sic] effective operation and that are described as
follows: Water, by means of extraction and pumping from
a well located on the property of Union Ganadera
Regional de Chihuahua that will be delivered to the
piping to Union Ganadera Regional de Chihuahua, Inc. at
the North American border; Electrical Energy, through
adequate technical connections located in the
installations of Union Ganadera Regional de Chihuahua
Inc’s. at the North American border; Sanitary
(continued...)
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