G/SCM/N/253/HND
17 October 2013
(13-5709)  Page: 1/3
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 14 October 2013, 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 
2012 
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 (RIT) was established for the purpose of strengthening the 
Honduran economy, boosting domestic production  and increasing exports, promoting employment 
in combination with other national and foreign resources, stimulating investment and creating 
mechanisms for the development of export indust ries and increasing foreign trade by fostering 
export diversification. This Regime has its legal basis in Executive Decree No. 37 of 20 December 1984, as amended by Legislative Decree No. 190-86 of 31 October 1986, Legislative Decree No. 8-85 of 7 February 198 5 and Decree No. 135-94 of 28 October 1994, 
which rescinds the exemption from corporate tax for enterprises covered by the regime as 
from that date. 
 The purpose of the Law on Free Zones was to take advantage of the geographical location 
of Honduras in the Central American and Caribbean region in order to provide opportunities for the 
development of domestic and international trade, as well as to create more employment opportunities through the establishment of commercial and industrial free zones. It has its legal 
basis in Decree No. 356 of 19 July 1976, 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 Law on Free 
Zones and the benefits and provisions of the law were extended to the entire national territory. G/SCM/N/253/HND 
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  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 Import Regime) of import duties, taxes and internal charges. 
6. To whom and how the subsidy is provid ed (whether to producers, to exporters 
or others; through what mechanism; wh ether 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 th is 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 Honduran and foreign natural and legal persons 
eligible under the regime as users or user-operators. 
Benefits under the Law: 
 Export-based commercial and industrial enterprise s, duly authorized at the time of bringing 
goods into the free zones, are exempt from the payment of customs duties, charges, surcharges and other taxes and levies directly or indirectly related to customs import operations. 
 Sales and output in the free zone and commercial and industrial property 
and establishments located therein are exempt fr om the payment of municipal taxes and charges 
at the end of the fiscal year. Similarly, compan ies established in this zone are exempt from 
the payment of corporate tax on operatin g profits at the end of the fiscal year. 
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 th e 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 the subsidy and/or any other time-limits attached to it, including date 
of inception/commencement 
 The benefits currently granted to enterprises under the RIT and Free Zone programmes are 
of indefinite duration. However, under the RIT, firms are no longer exempt from corporate tax, 
in accordance with Decree No. 135-94 of 28 October 1994. 
9. Statistical data permitting an assessm ent of the trade effects of the subsidy. 
The specific nature and scope of such st atistics is left to the judgment of the 
notifying Member. To the extent possi ble, relevant and/or determinable, 
however, it is desirable that such info rmation 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; G/SCM/N/253/HND 
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  (b)  for a previous representative 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. 
ENTERPRISES ELIGIBLE FOR BENEFITS UNDER THE SPECIAL REGIMES 
2012 
YEAR NUMBER OF ENTERPRISES COVERED  
TEMPORARY IMPORT REGIME (RIT) FREE ZONES 
2012 278 371 
Source: Ministry of Industry and Trade (revised figures)/ RIT and Free Zone  data. 
EMPLOYMENT GENERATED BY ENTERPRISES COVERED BY 
THE SPECIAL REGIMES 
2012 
YEAR NUMBER OF JOBS  
TEMPORARY IMPORT REGIME (RIT) FREE ZONES 
2012 75,383 99,277 
Source: Ministry of Industry and Trade (revised figures)/ RIT, ZIP and Free Zone  data. 
Note: Although the Law on Export Processing Zones (ZIP)  is still in force, there were no enterprises 
operating under the ZIP regime in 2012, since those which had been operating under that regime had 
asked to be transferred to th e Free Zones regime instead. 
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