. /.WORLD TRADE
ORGANIZATIONG/SCM/N/74/HND
4 December 2001
(01-6164)
Committee on Subsidies and
Countervailing MeasuresOriginal:  Spanish
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement on
Subsidies and Countervailing Measures
Requests Pursuant to the Procedure in document G/SCM/39
HONDURAS
The following communication, dated 20 November 2001, has been received from the
Permanent Mission of Honduras.
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In accordance with the Decision on implementation-related issues and concerns
(WT/MIN(01)/17, paragraph 10.6) and with refere nce to document G/SCM/39, adopted by the Fourth
WTO Ministerial Conference, held from 9 to 14 November 2001 in Doha (Qatar), the Government of
Honduras wishes to reserve its right to use the pro cedures established in document G/SCM/39 in order
to request an extension under Article 27.4 of the Agreement on Subsidies and Countervailing
Measures.
This reservation is in response to the economic, financial and development needs of the
Government of Honduras.
In accordance with the provisions of paragraph 1(a) of document G/SCM/39, this request is
accompanied by a brief identification of the programmes that will be covered by this extension (see
annex attached).
This reservation is without prejudice to the rights and obligations of the Republic of Honduras
under the Agreement on Subsidies and Countervailing Measures and other Agreements.G/SCM/N/74/HND
Page 2
As a country listed in Annex VII(B) of the Agreement on Subsidies and Countervailing
Measures I have pleasure in transmitting to you herewith the initial documentation in accordance with
the provisions of paragraph 1(a) of document G/SCM/39.
The documents attached refer to the following laws:1. Law on the Free Trade Zone of Puerto Cortés (ZOLI)2. Law on Export Processing Zones (ZIP)3. Temporary Import Regime (RIT)
1. Law on the Free Trade Zone of Puerto Cortés (ZOLI)
This Law is intended to facilitate trade by both national and foreign industries.  This regime
allows for goods to be imported into Honduras exempt from the payment of customs duties, charges
and surcharges, consular fees, municipal and district taxes, consumption taxes and other taxes and
duties relating to the import and export of goods.
In addition, the profits of the enterprises established under the auspices of the free trade zone
regime are exempt from the payment of income tax.
It was decided by Decree No. 131-98 to extend the benefits and provisions of the Law on the
Free Trade Zone of Puerto Cortés (ZOLI) to the whole country.
2. Law on Export Processing Zones (ZIP)
With a view to attracting foreign investment, the executive branch of the Government of
Honduras adopted the above-mentioned Law.  The enterprises established under the auspices of thisregime are privately owned and administered, located in geographical zones authorized by the State,
which are uninhabited, and are subject to fiscal supervision.
Under the terms of this Law imports and exports of goods into and out of the ZIP enjoy total
exemption from the payment of customs duties, consular fees, charges and surcharges, municipal
taxes, consumption, sales and other taxes, duties and dues;  in addition, its profits are exempt from the
payment of income tax.
3. Temporary Import Regime (RIT)
This Regime establishes exemptions to customs duties, consular fees, sales and other taxes
and also surcharges on imports of raw materials, machinery, equipment, tools, spare parts and
accessories.
The profits on exports under this regime enjoy exemption from income tax for a period of
ten years, provided that the enterprise is of an industrial or agro-industrial nature, creates employment
and exports the whole of its production to countries outside the Central American area.
It is important to point out that the RIT enables the companies that operate under this regime
to be the recipient of subcontracts by the enterprise s of the ZOLI and the ZIP, thereby raising the level
of economic activity.
We are at your disposal to provide any additional information that you may require.
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