WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/HND/Rev.1
4 October 2012 
 (12-5384) 
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 
 
Revision 
   The following notification, dated 21 September 2012 , is being circulated at the request of the 
delegation of Honduras.  
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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 
2011 
 
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 r esources, stimulating investment and creating 
mechanisms for the development of export industri es and increasing foreign trade by fostering export 
diversification.  This Regime has its legal basi s 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 1985 and Decree No. 135-94 of 28 Oc tober 1994, which rescinds the exemption from 
corporate tax for enterprises covered by the regime as from that date.  G/SCM/N/220/HND/Rev.1 
Page 2  
 
   The purpose of the Law on Free Zones was to ta ke 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 intern ational trade, as well as to cr eate more employment opportunities 
through the establishment of commercial and indust rial free zones.  It has its legal basis in 
Decree No. 356 of 19 July 1976, as amended by D ecree No. 131-98 of 20 May 1998, whereby the title 
of the law setting up the Free Zone of Puerto Co rtés was changed to Law on Free Zones and the 
benefits and provisions of the law were extended to the entire national territory. 
 
5. Form of the subsidy (i.e. gran t, 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 provide d (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 Re gime are natural and le gal 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 ta xes or charges, including the general sales tax 
on imports.  
Free Zones 
 Free zone benefits are extended to all Honduran and foreign natu ral and legal pe rsons eligible 
under the regime as users or user-operators.  
Benefits under the Law: 
  Export-based commercial and industrial enterprises,  duly authorized at the time of bringing 
goods into the free zones, are exempt from the pa yment of customs duties, charges, surcharges and 
other taxes and levies directly or indir ectly related to customs import operations. 
  Sales and output in the free zone and commercia l and industrial property and establishments 
located therein are exempt from the payment of municipal taxes and charges at the end of the 
fiscal year.  Similarly, companies established in th is zone are exempt from the payment of corporate 
tax on operating 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 the notification, for the previous  year, or both) is not possible, a full 
explanation 
 The nature of the programmes makes any calcu lation of the amount of the subsidy per unit 
impossible.  The information requested can therefore not be provided. 
  G/SCM/N/220/HND/Rev.1 
 Page 3 
 
 
  8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement 
 The benefits currently granted to enterpri ses under the RIT and free zone programmes are of 
indefinite duration.  However, under the RIT, fi rms are no longer exempt from corporate tax, in 
accordance with Decree No. 135-94 of 28 October 1994. 
 
9. Statistical data permitting an assessment of th e 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 determ inable, 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 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. G/SCM/N/220/HND/Rev.1 
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  ENTERPRISES ELIGIBLE FOR BENEFITS  UNDER THE SPECIAL REGIMES 
2011 
 
Year Number of enterprises covered 
 Temporary Import Regime (RIT) Free Zones 
2011 275 261 
Source : Ministry of Industry and Trade (revised figures)/ RIT and Free Zone  data. 
 
 
EMPLOYMENT GENERATED BY ENTERPRISES COVERED BY 
THE SPECIAL REGIMES 
2011 
 
Year Number of jobs 
 Temporary Import Regime (RIT) Free Zones 
2011 48,616 113,939 
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 2011, since those which ha d been operating under that regime had aske d to be transferred to the Free Zones 
regime instead. 
 
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