WORLD TRADE
ORGANIZATIONG/SCM/Q2/HND/4
11 May 2004
(04-2088)
Committee on Subsidies and Countervailing Measures Original: Spanish
SUBSIDIES
Replies of Honduras to Questions from the United States1
The following communication, dated 10 May 2004, is being circulated at the request of the
delegation of Honduras.
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I. TEMPORARY IMPORT REGIME
1. With regard to the Temporary Import Regime (RIT) programme, please list the
industries that have received the greatest amount of funding through this programme.
Reply
The companies that enjoy substantial coverage under the Temporary Import Regime are
manufacturers in the textile, wearing apparel and leather sectors. Other major activities which are
covered by the Regime and in which a large number of companies are involved include the processing
of fish, shellfish and other marine products - specifically shrimp farming, the manufacture of milled
products (coffee), and the tobacco industry.
2. What are the conditions for a producer/exporter to be "duly authorized" under this
regime? Specifically, please describe the eligibility criteria that companies must meet in order
to enjoy the exemptions available under this programme.
Reply
In order to benefit from the Temporary Import Regime, natural or legal persons already
established or which may be established in the country must produce goods or services for export.
In order to receive authorization to operate under the Temporary Import Regime, enterprises
must apply through a legal representative to the Directorate General of Productive Sectors of the
Ministry of Trade and Industry (SIC). The application must provide the following information:
1. Name, business/corporate name of the enterprise, its domicile and the location of its industrial
plant, exact address and telephone number.
2. Copy of the public deed of incorporation (companies) or business registration (sole traders),
national tax registration (RTN), duly registered notary's certificate, legally established power of
attorney, all of which must be authenticated.
1G/SCM/Q2/HND/3.G/SCM/Q2/HND/4
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3. Specific information on the object of the application.
The application must be accompanied by a socio economic study which should include:
1. Description of the products to be exported, showing their volume and value, together with a
three-year projection, indicating the major markets for the exports.
2. Number of workers to be employed, giving yearly estimates of wages and salaries and social
benefits for the first three years of operation.
3. Production capacity installed and used (three-year projection).
4. Brief description or flow chart of the production process.
5. List of machinery, equipment, tools, spare parts, accessories, raw materials, semi-finished
products, containers, packaging and any other inputs to be imported with respective tariff headings.
In the case of machinery, the quantity to be imported must be included.
6. Utilization rates and estimated percentages of decreases, losses and wastage of raw materials
and inputs to be imported for each good to be produced.
7. General balance sheet and statement of earnings with breakdowns including by cost origin
(three-year projections).
8. Estimate of annual net foreign exchange earnings and value added for the first three years of
operation.
9. Description of the goods to be processed under complementarity, subcontracting and transfer
arrangements.
II. THE LAW ON EXPORT PROCESSING ZONES
1. Please list the industries that are the greatest users of these Zones.
Reply
The activities that enjoy substantial coverage under the Export Processing Zones (ZIP) regime
are those falling in Division: 32 - Textile, Wearing Apparel and Leather Industries , of the United
Nations International Standard Industrial Classification of All Economic Activities (ISIC).
2. What are the conditions for a producer company to be "duly authorized" under this
regime? Specifically, please describe the eligibility criteria that companies must meet in order
to enjoy the exemptions available under this programme.
Reply
In order to operate as ZIP user companies, natural or legal persons, whether Honduran or
foreign, must be legally constituted and established in the ZIP and conclude a contract with the ZIP
operating company. This entitles them to purchase or lease, on any legal or contractual basis, the
goods or services available in the ZIP for the purpose either of industrial processing for export or of
supplying complementary services within the zone.G/SCM/Q2/HND/4
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III. THE LAW ON FREE ZONES
1. Please provide additional information regarding the extension of benefits under this law
to the entire national territory of Honduras. Please explain whether companies must be located
in particular areas to be eligible for benefits under this programme. If not, please describe the
criteria used to define eligibility.
Reply
The adoption of the Law to Promote Production, Competitiveness and Support for Human
Development (Decree No. 131-98 of 20 May 1998) amended the Law establishing the Free Zone of
Puerto Cortés so as to allow the creation of free zones in any part of the national territory (Article 17).
All domestic or foreign enterprises that operate in a free zone must satisfy the Ministry of
Trade and Industry (SIC) that they have at least one permanent representative with broad powers to
perform all legal acts and transactions of a civil, commercial and labour-related nature which are to
take effect in the national territory.
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