G/SCM/N/372/HND  
9 December  2021 
(21-9228) Page: 1/4 
Committee on Subsidies and  
Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
HONDURAS  
The following communication , dated and received on 6 December 2 021, is being circulated at the 
request of the delegation of Honduras.  
 
_______________  
 
 
1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy  
Temporary Import Regime (RIT), and Free Zones.  
2. Period covered by the notification  
2020 
3. Policy objective and/or purpose of the subsidy  
These incentives are designed to promote exports, attract investment, stimulate production and 
competitiveness, support human development and create jobs.  
4. Background and authority for the subsidy (including identification of the legislation under  
which it is granted ) 
The Temporary Import Regime was established for the purpose of strengthening the Honduran 
economy, boosting domestic production and increasing exports, promot ing employment  in 
combination with other domestic  and foreign resources, stimulating investment and creating  
mechanisms for the development of export industries and increasing foreign trade by fostering 
export diversification . 
 
This programme  has its legal  basis in Executive Decree No. 37 of 20  December  1984, as amended 
by Legislative Decree No. 190-86 of 3 1 October 1 986; Legislative Decree  No. 8-85 of 
7 February  1985 and Decree No. 135-94 of 2 8 October 1 994, which rescinds the exemption from 
corporate tax for enterprises covered by the Regime as from that date ; Decree No. 113-2011 of 
8 July 2011 amending Articles 1, 2 and 4 of the Law on the Temporary Import Regime ; 
Decree  No. 261-2011 amending Article 30  of Decree No. 113-2011, specifically Articles 1, 2 and 4 
of the Law on the Temporary Import Regim e; Decree  No. 124-2013 amending Article 31 of 
Decree  No. 113-2011 containing the Law on Efficiency and Public Expenditure , which concerns  the 
authorization of enterprises eligible for  benefits under special tax regimes ; Decree No. 278-2013 
containing the Law on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measures ; 
Agreement No. 704-2017 approving the Regulations on the Cust oms Procedure for the Re -Export of 
Goods under the Temporary Import Regime ; and Agreement No. 120-2019 establishing the list of 
raw materials and inputs that are necessary to produce goods or services as an instrument for G/SCM/N/372/HND  
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  resolving  applications  for exempti on from Sales Tax on local purchases by beneficiaries of the 
Temporary Import Regime . 
 
The Law on Free Zones was  established in order  to take advantage of the geographical location of 
Honduras in the Central American and Caribbean region , with a view to provid ing facilities for 
industry, trade, export and re -export of goods and/or services by domestic and foreign enterprises 
through spe cial regulations for the development of their activities, which are to be  subject to the 
provisions of the Law and its Regulations.  
 
It has its legal basis in Decree No. 356 of 1 9 July 1 976, as amended by Decree No. 131-98 
of 20 May 1998, whereby the title  of the law setting up the Free Zone of Puerto Cortés was changed 
to the Law on Free Zones and the benefits and provisions of the Law were extended to the entire 
national territory . The last amendment to the Law o n Free Zones was made by Decree No. 8-2020 
of 14 February 2 020, which amends Articles 1, 2, 3, 5, 12  and 16, adds Articles 2 -A, 2-B, 4-A, 4-B, 
4-C, 5-A, 5-B, 9-A, 10 -A, 10 -B, 10 -C, 15 -A and 15 -B, and also amends Article  31 of 
Decree  No.113 -2011 containing the Law on Efficiency in Revenue and Public Expenditure . Agreement 
No. 41-2020, published in the Official Journal,  La Gaceta , on 10 May 2 020, approves the Regulation s 
of the Law o n Free Zones.  
 
Decree No. 75-2021 of 1 0 September 2 021 interprets the second paragraph of Article 5 
of Decree  No. 8-2020 of 11 February 2 020, whereby  any unresolved processes or applications  to 
any government body  that were initiated prior to the entry into force of Decree No. 75-2021 must 
be processed in accordance with  the provisions of Legislative Decree No. 8-2020, so as to ensure 
the enjoyment of  the benefits contained therein.  
 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc .) 
The only benefits granted under the special regimes are exemptions from and suspension (in the 
case of the Temporary Imp ort Regime) of import duties, taxes and internal charges.  
6. To whom and how the subsidy is provided (whether to producers, to exporters or others ; 
through what mechanism ; whether a fixed or fluctuating amount per unit ; if the latter, how 
determined ) 
Temporary Import Regime  
 
The beneficiaries of the Temporary Import Regime are natural and legal persons eligible under the 
Regime.  
 
Benefits under the Law : 
 
Producers/exporters duly authorized under this Regime are not subject, when importing goods, to 
the payment of customs duties or any other taxes or charges, including the general sales tax on 
imports.  
 
Free Zones  
Free zone benefits are extended to all enterprises operating under the Regime  throughout the  
national territory . Enterprises with  domestic  or foreign capital , dedicated to commercial and 
industrial activities of export ing or re-export ing international services through  electronic services  
and services and related or complementary activities or any other activity not prohibited by the Law, 
may be established  and operate in free zones.  
 
Benefits under the Law : 
Goods that have been brought  into the free zone are exempt from customs duties, charges, 
surcharges and other fiscal and municipal taxes and levies at the end of the fiscal year . Similarly, 
enterprises  established in this zone are exempt from corporate tax on operating profits at the end 
of the fiscal year.  G/SCM/N/372/HND  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year) . 
Where provision of per -unit subsidy information (for the year covered by the notification, for the 
previous year, or both) is not possible, a full explanation  
The nature of the programmes makes any calculation of the amount of the subsidy per unit 
impossible . The information requested can therefore not be provided.  
8. Duration of t he subsidy and/or any other time -limits attached to it, including date of 
inception/commencement  
Enterprises operating in free zone s are eligible for tax benefits and incentives so long as  they covered 
by and operating under the aforementioned Regime, with  the exception of Income Tax and related 
tax benefits, which are granted for a period of  15 years  and may be extended , upon termination, for 
another  10 years.  
The tax benefits currently granted to enterprises under the Temporary Import Regime  may be 
enjoye d for a period of up to 12 years . 
9. Statistical data permitting an assessment of the trade effects of the subsidy . The specific 
nature and scope of such statistics is left to the judgment of the notifying Member . To the extent 
possible, relevant and/or de terminable, however, it is desirable that such information include 
statistics of production, consumption, imports and exports of the subsidized product(s) or sector(s ): 
a. for the three most recent years for which statistics are available;  
 
b. for a previous rep resentative year, which, where possible and meaningful, should be the 
latest year preceding the introduction of the subsidy or preceding the last major change 
in the subsidy.  G/SCM/N/372/HND  
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  JOBS  GENERATED BY ENTERPRISES UNDER SPECIAL REGIMES  
2020 
YEAR  NO. OF JOBS  
TEMPORARY IMPORT  
REGIME  FREE ZONES  
2020 67,847  139,555  
 
MACHINERY AND EQUIPMENT, RAW MATERIAL AND INPUTS  IMPORTED  
BY ENTERPRISES UNDER SPECIAL REGIMES  
2020  
YEAR  TOTA L IMPORTS  
TEMPORARY IMPORT  
REGIME  FREE ZONES  
2020 13,521,393,883.00  69,207,734,215.00  
 
EXPORT S, RE-EXPORTS AND  SERVICES OF ENTERPRISES  IN FREE ZONES  
2020  
YEAR  EXPORT S RE-EXPORT S SERVIC ES 
2020 121,468,045,315.00  9,882,231,701.00  11,973,794,801.00  
 
EXPORT S, TRANSFERS, COMPLEMENTA RITY  AND SUBCONTRA CTING 
BY ENTERPRISES  UNDER THE TEMPORARY IMPORT REGIME  
2020  
YEAR  EXPORTS  TRANSFERS  COMPLEMENT ARITY  SUBCONTRACTING  
2020 35,583,150,823.00  4,592,598,620.00  1,082,602,275.00  831,204,508.00  
Sourc e: Directorate -General of Productive Sectors, Secretary of State for Economic Development . 
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