G/SCM/Q2/HND/10  
18 November 2014  
(14-6747)  Page: 1/4  
Committee on Subsidies and Countervailing Measures  Original: Spanish  
 
  SUBSIDIES 
REPLIES TO QUESTIONS FROM THE EUROPEAN UNION1 REGARDING 
THE NEW AND FULL NOTIFICATION OF HONDURAS2 
The following communication, dated 3 November 2014, is being circulated at the request of the 
delegation of Honduras.  
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Under program: TEMPORARY IMPORT REGIME Question 1 
 
Please provide the eligibility criteria.  
Reply 
 
Beneficiaries of the Temporary Import Regime must meet the following eligibility criteria: 
 
 Be an industrial or agro-industrial enterprise. 
 Promote, encourage and diversify export-oriented production. 
 Increase foreign exchange earnings for the country. 
 Promote employment. 
 Stimulate investment. 
 Be environmentally friendly. 
 Help to improve the physical infrastructure of the area of operation. 
Question 2 
 
Please provide details on what are the eligible natural and legal persons under 
the regime.  Reply 
 Natural and legal persons eligible under the Temporary Import Regime are those participating in the regime who are established or due to establish themselves in Honduras with machinery, 
equipment, tools, spare parts and accessories that  are used exclusively to assemble, process or 
modify products or services to be exported in thei r entirety or, where appropriate, that are used or 
physically incorporated in such products or services. 
 
                                               
1 G/SCM/Q2/HND/9. 
2 G/SCM/N/220/HND/Rev.1. G/SCM/Q2/HND/10 
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  Question 3 
 What are the conditions/requirements for a company to operate in a Temporary Import 
Regime? In this case please explain in wh at way these exemptions are not contingent 
upon export performance. 
Reply 
 
An application containing the following information must be submitted through a legal 
representative:  
 General information concerning the company and its legal representative. 
 Legally established authority. 
 Specific information on the nature of the application. 
 Public deed of incorporation (companies) or business registration (sole traders). 
 Socio-economic study projected over three years, which should include the following 
information: o List of goods and inputs, such as machin ery, equipment and tools, that are the 
subject of the request for importation under the regime, with an indication of the 
corresponding production capacity and tariff heading and the role of these goods and inputs in the production process. 
o Description of the products to be exported , showing their volume and value, together 
with the projected volume and value for a three year period, and indicating the main 
export markets. 
o Utilization rates and estimated percentages of decreases, losses and wastage. 
o Description of the goods to be processed under complementarity and/or 
subcontracting arrangements. 
o Timetable for making and exporting the products with the imported inputs. 
o Employment structure: number of workers, estimate of annual wages, salaries and 
social benefits for the first three years of operation. 
o Estimate of the value added at factor cost  for the first three years of operation. 
o Estimate of annual net foreign currency earnings to be generated by the company's 
exports over the first three years of operation. 
o Where appropriate, an indication of the raw materials of domestic origin to be used 
by the company. 
 Brief description of the production process. 
 Financial statements. 
 Copies of the subcontracting or complementarity agreements, as appropriate. 
 Any other documents that may be required  under the laws in force in Honduras. 
Under the Agreement on Subsidies and Countervailing Measures (ASCM), Honduras is permitted to 
maintain support programmes contingent on export performance, as a WTO Member mentioned in Annex VII on "Developing country Members referred to in paragraph 2(a) of Article 27" 
(Special and Differential Treatment of Developing Country Members), until its per capita gross 
national product (GNP) reaches US$1,000 in 1990 constant dollars for three consecutive years. G/SCM/Q2/HND/10 
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  Under program: FREE ZONES 
Question 4 
 Please provide the eligibility criteria. 
 
Reply 
 
Beneficiaries of the Law on Free Zones must  meet the following eligibility criteria: 
 
 Be a commercial and/or industrial enterprise. 
 Promote employment. 
 Be an enterprise located in an area of national territory under fiscal supervision and 
without a resident population. 
 The commercial and industrial enterprises setting up in such Zones must be engaged 
primarily in export activities. 
Question 5 
 
Please provide details on what are the eligible natural and legal persons under 
the regime.  Reply 
 Natural and legal persons eligible under the Law on Free Zones are all those, whether domestic or foreign, who operate or use the free zone and receive the benefits specified in the Law. 
 
Question 6  
What are the conditions/requirements for a company to operate in Free Zones? In this 
case please explain in what way these ex emptions are not contingent upon export 
performance.  
Reply 
 
An application containing the following information must be submitted through a legal 
representative: 
 
 The main activity in which the company will be engaged. 
 Exact address, telephone number, email address and fax number. 
 The amount of the investment. 
 Employment structure: number of workers and estimate of annual wages, salaries and 
social benefits for the first three years of operation. 
 A descriptive plan of the building where the project will take place and its title deed. 
 The company's intended manufacturing output and export markets or the activities or 
services that it will provide. 
 Foreign currency to be generated. 
The following documents must be submitted with the application: 
 
 An authenticated photocopy of the public deed of incorporation of the company or an 
Individual Trader Declaration or, in the case of foreign companies, a Honduran trading authorization issued by the Ministry of Finance. 
 An authenticated photocopy of the legal authority vested in the person in charge of 
the company. 
Under the Agreement on Subsidies and Countervailing Measures (ASCM), Honduras is permitted to 
maintain support programmes contingent on export performance, as a WTO Member mentioned in 
Annex VII on "Developing country Members referred to in paragraph 2(a) of Article 27" 
(Special and Differential Treatment of Developing Country Members), until its per capita gross national product (GNP) reaches US$1,000 in 1990 constant dollars for three consecutive years. G/SCM/Q2/HND/10 
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  Under the "ENTERPRISES ELIGIBLE FOR BENEFITS UNDER THE SPECIAL REGIMES 2011" 
Question 7 
 Please provide detailed information on the type of industry of the beneficiaries that have 
been supported through these two programs in 2011. 
 Reply 
 Agricultural (tobacco, vegetables, fruit producti on (coffee, bananas, melon and  watermelon)). 
Agro-industrial (vegetable processing and fruit juices). Tilapia and shrimp farming. 
Industrial (textiles and clothing, electroconductors, wooden furniture, soap and seat belts). 
 
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