WT/TPR/S/274 Trade Policy Review 
Page 34 
  
  III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) OVERVIEW  
1. Nicaragua's customs procedures are based on the Central American Uniform Customs Code 
(CAUCA IV) and its implementing regulations (RECAUCA IV).  Nicaragua made progress with 
trade facilitation during the review period, computer izing most customs procedures, with the result 
that access has been considerably improved.  It al so implemented a risk assessment system based on 
fixed rules and probabilistic and random models.  However, im provements could be made to 
streamline formalities, for example, by reducing the number of physical inspections and cutting 
clearance times.  In most cases, the services of a licensed customs broker are required to clear imports 
through customs. 
2. Nicaragua's 2012 applied tariff covers 7,359 lines;  all the rates are ad valorem .  
Some 46.4 per cent of tariff lines are duty free, as compared with 46.8 per cent in 2005 (Table III.5).  
The average tariff on lines with greater-than-zero rates rose from 10.9 per cent in 2005 to 11.6 per 
cent in 2012.  Nicaragua does not apply seasonal or variable  tariffs;  tariff quotas are maintained at 
both the bilateral and the multilateral level. 
3. Nicaragua levies Value Added Tax (VAT) at the rate of 15 per cent on the supply of goods 
and services, including imports;  exports are zero-rated for VAT. 
4. During the review period, Nicaragua did not apply any special trade measures.  
In January 2008, Nicaragua notified the WTO of the Central American Regulations on Unfair 
Business Practices, which entered into force in May 2007.  It also not ified new legislation 
on safeguards. 
5. The preparation of technical standards, both voluntary standards and technical regulations, 
is centralized and entrusted to various technical committees chaired by the representative of the 
competent authority.  Nicaragua has a list of tec hnical regulations that can be viewed online.  
In June 2012, there were 249 techni cal regulations in force.  Of these, 96 were in the food sector, 
while 25 related to the environment, 23 to agricultu re and health protection, and 20 to hydrocarbons, 
the rest covering various areas such as pestic ides, pharmaceutical products and transport. 
6. Nicaragua does not allow imports of food, plants, animals or their products unless 
accompanied by a sanitary/phytosanitary import permit or a free sale certificate (for food).  Since the 
last Review, the legal framework for sanitary and phytosanitary measures has been updated, with the 
adoption of a law establishing registration and a pe rmit system for activities involving the transit, 
import, production and export of living organisms modified by means of molecular biotechnology;  
the corresponding regulations are still in process of being approved. 
7. In 2012, Nicaragua notified the WTO that it had not granted any subsidy within the meaning 
of the Agreement on Subsidies and Countervailing Measures and that neither had it granted any 
export subsidies within the meaning of the Agre ement on Agriculture.  Nicaragua grants various 
customs duty and tax reductions and exemptions  under the free-zone regime and the temporary 
admission for inward-processing and export facilitation procedure.  The Bank for the Promotion of 
Production (PRODUZCAMOS), established in Nove mber 2007, provides financial services and 
technical assistance with a view to contribu ting to the development of domestic production, 
particularly of exportables. Nicaragua WT/TPR/S/274 
 Page 35 
 
 
  8. Nicaragua regulates the prices of pharmaceutical  products for human consumption, airport 
services and the services provided by the National Port Authority, as well as the tariffs for electricity (transmission and public consum ption), bottled LPG, sanitary sewerage services and drinking water 
for public consumption. 
9. During the review period, Nicaragua adopted a Law on the Promotion of Competition and its 
regulations, which entered into force in June 20 07 and govern anti-competitive agreements, abuse of 
dominant position and concentrations  (mergers and acquisitions).  The Law prohibits any concerted 
agreement or practice between economic operators  for the purpose of restricting competition, 
including by denying access to an economic operator or forcing it out  of the market.  The National 
Institute for the Promotion of Competition (PROCOMPETENCIA), a public-law technical 
administrative tribunal, which has been operating since May 2009, was set up to apply the new legal framework. 
10. Since its last Review, Nicaragua has mode rnized its legal framework for government 
procurement with the adoption of a Law on Government Procurement (Ley de Contrataciones 
Administrativas del Sector Público)  and its regulations, which entere d into force in February 2011, 
together with a Law on Municipal Procurement, wh ich entered into force in 2007.  The government 
procurement legislation does not contain any pr ovisions granting more favourable treatment to 
domestic suppliers of goods, services or public work s;  however, the municipal procurement regime 
does provide for a preferential margin of 10 per cent for municipal labour.  Nicaragua is not a party to 
the WTO's Plurilateral Agreemen t on Government Procurement. 
11. Nicaragua's legal framework in the area of intellectual property rights has not changed 
substantially during the review period.  The chang es introduced include the a doption in 2011 of the 
Law on Ancestral Traditional Medicine, which de fines traditional knowledge and bio-piracy and 
establishes the requirements for collective intellectua l property right patents.  Moreover, since its 
last Review, Nicaragua has acceded to the Lis bon Agreement on the Protection of Appellations of 
Origin, the Budapest Treaty on the International Recognition of the Deposit of Microorganisms for 
the Purposes of Patent Procedure and the Trademark Law Treaty. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures, registration and documentation 
12. The Nicaraguan customs regime is based on the Central American Uniform Customs Code 
(CAUCA IV) and its implementi ng regulations (RECAUCA IV)1, as well as on national legislation.  
Nicaragua is a member of the World Customs Orga nization, but is not a contracting party to the 
Revised Kyoto Convention on the Simplification a nd Harmonization of Custom s Procedures (2009).  
The customs legislation, including the instructions  issued by the Directorate-General of Customs 
(DGA), is available on the DGA's Internet site. 
13. Importers must register with the DGA by pr oducing their Single Taxpayers Registration 
(RUC) certificate issued by the Ministry of Finance and Public Credit (MHCP).2  According to the 
authorities, listing in these registers is automatic (a fter a process of verification of the information 
provided) and without registration costs or differen tial treatment for foreigners.  Since 17 April 2006, 
in order to import, every economic operator has had to submit to the DGA, on a monthly basis, evidence of fiscal good standing provided by the Directorate-General for Revenue;  this was 
                                                      
1 Both entered into force on 25 August 2008. 
2 Legal persons must have been previously enrolled as traders in the Public Register. WT/TPR/S/274 Trade Policy Review 
Page 36 
  
  previously attached to the customs declaration.3  A project to combine the RUC and registration with 
the DGA is under way. 
14. Commercial imports are cleared on the basis of the following documents:  the customs 
declaration;  the commercial invoice;  the value declaration4;  the freight invoice;  the transport 
documents;  the insurance certificate;  and, where appropriate, the certificate of origin, the 
phytosanitary certificate, or evidence of registrati on (for example, with the Ministry of Health).  
To import used motor vehicles it is necessary to  produce the vehicle manufacturing or repair 
certificate and obtain the corresponding gas emissions  certificate.  Imports from other members of 
the CACM are exempt from the requirement to pr oduce a commercial invoice, a value declaration and 
a certificate of origin.  Nicaragua does not have a system for the prior presentation of cargo manifests. 
15. In general, imports must be cleared through customs by a licensed customs broker;  the 
intervention of a broker is unnecessary in, inter alia , the following cases:  clearance 
of passengers' baggage;  importation of goods ot her than passengers' baggage with a value of 
less than CA$2,000 (Central American pesos)5;  and imports by parcels and express delivery 
companies, with a value of not more than CA$1,000 .  Natural persons who request authorization to 
act as customs brokers must have the nationality of one of the States that have signed 
the Third Protocol to the CAUCA IV;  moreover, they must pass a psychometric test and a qualifying examination.
6  The cost of accreditation (indefinite) is  US$200 per brokerage and US$5 per customs 
broker.  Customs brokers must provide an annu al (renewable) bank guarantee, depending on 
the c.i.f. amount declared to the Directorate-Ge neral of Customs Services in the previous year 
of operations (Table III.1).7 
Table III.1 
Structure of the bank guarantees required from customs brokers, 2012 
(Annual) 
Import declarations (total amount for p revious year) Amount of bank guarantee 
Up to CA$10,000,000 CA$20,000 
CA$10,000,001 - CA$20,000,000 CA$30,000 
CA$20,000,001 - CA$30,000,000 CA$40,000 
from CA$30,000,001 CA$50,000 
Source : Ministerial Decision No. 40-2006 of  the Ministry of Finance and Public Credit.  Viewed at:  
http://www.dga.gob.ni/circulare s/2006/CT-136-2006 AM-040-2006 Garant ias Agentes Aduaneros.pdf. 
16. Nicaragua has adopted the Automated System  for Customs Data (ASYCUDA) developed by 
UNCTAD for computerizing customs clearance pro cedures.  In 2009, it began the switch to the 
latest version of the system, ASYCUDA World, to prepare the ground for automating the majority of 
                                                      
3 Within the Automated System for Customs Data the authorization of the importer corresponds with 
the period of validity of fiscal clearance, namely, 30 days.  There is a charge of C$10 (approximately US$0.43) for the fiscal clearance document, pa id by affixing a revenue stamp. 
4 RECAUCA (Article 212) specifies the cases in  which a value declaration is not required. 
5 The Central American peso is the unit of account used by the member countries of the CACM.  
The Central American Monetary Council has fixed its value at the equivalent of US$1.00. 
6 CT-224-2009 of 16 November 2009. 
7 The c.i.f. amount for goods that are constitutionally exempt is not taken into account. Nicaragua WT/TPR/S/274 
 Page 37 
 
 
  customs processes and making access much easier.8  At present, 100 per cent of Nicaragua's 
foreign trade is managed in ASYCUDA World;  the previous version, ASYCUDA++, is now only 
used for operations that supplement transactions al ready registered in that version.  The Customs 
Administrations of the Central American region,  including that of Nicaragua, have begun to 
implement mechanisms for the el ectronic exchange of Central American Single Customs Form 
(FAUCA) data in order to facilitate and simplif y customs clearance for goods originating in the 
Central American countries.9  Importers may request advance tariff classification rulings from 
the DGA, whatever the or igin of the goods. 
17. The DGA may subject imported goods to physical  or documentary inspections, depending on 
the level of risk.  The risk assessment system is  based on fixed rules and on probabilistic and random 
models.  The main selection criteria are:  origin, va lue, new importers, health and public safety (arms, 
precursors), and animal and plant health;  these crit eria are reviewed monthly.  The risk assessment 
system is in operation in all Nicaraguan customs offices.  The selection channels are:  green (no inspection), amber (documentary inspection) a nd red (physical inspection).  The breakdown of 
declarations by channel is  shown in Table III.2. 
Table III.2 
Trend in customs declarations and breakdown by channel, 2008-2012 
 2008 2009 2010 2011 2012a
Total declarations 194,426 174,252 190,507 193,813 108,868
 (%) 
Green channel 82.2 74.9 68.9 67 69.6
Red channel 16.1 16.8 20 22.3 20.4
Amber channel 1.7 8.3 11.2 10.7 9.9
a Up to 31 July. 
Source : Ministerial Decision No. 40-2006 of the Mi nistry of Finance and Public Credit. 
18. The mechanism for challenging decisions of the DGA is set out in Article 127 of the CAUCA 
and Articles 623 to 629 of the RECAUCA.  An applica tion for review may be lodged, within a period 
of ten days, with the higher authority of the Customs Service;  the latter must complete the administrative enquiry within a period of 20 days following receipt of the application.  Within a period of ten days following notification of the decision, an appeal may be made to the same authority, which will simply refer the proceedings  to the Customs Tribunal within three days.  
The decision of the Customs Tribunal must be ha nded down within a period of 30 days starting from 
the day following receipt of the appeal.  The applican t or appellant must be notified of any decision 
taken during the proceedings;  notification may be  in electronic form.  According to the DGA, 
the main disputes relate to the valuation of  used vehicles and goods from China and to 
tariff classification. 
                                                      
8 ASYCUDA World users must pay CA$100 for the ri ght to use the system (per entity) and CA$20 for 
each user tag ( login ).  The electronic transmission of customs declarations is subj ect to the payment of US$5 per 
declaration (US$2.50 per additional declaration). 
9 CT/050/2011 of 31 March 2011.  Viewed at:  http://www.dga.gob.ni/circulares/2011/ 
CT-050-2011.pdf. WT/TPR/S/274 Trade Policy Review 
Page 38 
  
  19. According to World Bank data, the time need ed to import goods fell from 37 days in 2006 
to 23 days in 2012.10  Of these 23 days, seven are taken up by customs clearance.  Nicaragua 
ranks 83rd out of 183 economies in terms of the ease  and cost of completing import and export 
formalities. 
(ii) Customs valuation 
20. The customs valuation legislation currently in force in Nicaragua consists of the Agreement 
on Implementation of Article VII of the Genera l Agreement on Tariffs and Trade 1994 and the 
provisions of the Central American Uniform Customs Code (CAUCA IV ) and its regulations 
(RECAUCA IV).11  In principle, the primary method of valuation is the use of the transaction value of 
the imported goods;  where necessary, other methods are applied in the order laid down in the WTO 
Customs Valuation Agreement.  Inversion of the va luation methods described in Articles 5 and 6 of 
that Agreement is not automatic;  the importer' s request must first be accepted by Customs. 
21. Nicaragua levies customs duties on the c.i.f. value of imports, calculated as the sum of all the 
costs up to the point of entry into its customs te rritory.  If satisfactory documentary evidence relating 
to any of the transport, handling or insurance cost s is lacking, an amount which the Customs Service 
considers consistent with the tariffs normally appli cable is added.  The reference tables compiled for 
this purpose have not been updated for six years. 
22. According to the authorities, no minimum va lues are applied to any goods;  the DGA 
maintains a price database, for the purpose of investig ating values declared by importers.  In the event 
of an unavoidable delay in the definitive de termination of the customs value of the goods, 
RECAUCA IV provides for the release of the goods against security.12  The security must be 
sufficient to cover the amount of the customs duties and other taxes, determined  on the basis of values 
that satisfy the criterion of reasonable doubt. 
(iii) Rules of origin 
23. In 1996, Nicaragua notified the WTO that it did not apply any non-preferential rules 
of origin13;  it has not submitted any further notification or  clarification in this respect since then.  
Several preferential rules of origin are applied wi thin the context of trad e agreements to which 
Nicaragua is party (Table III.3).  Most of these agre ements have been notified to the WTO;  details of 
the rules are given in the factual presentations.14 
24. In addition to laying down general disciplines fo r the determination of origin, all Nicaragua's 
preferential trade agreements establish specific rules.  Goods that have not been wholly obtained or 
produced entirely in the territory of one of the signatory countries must satisfy certain substantial 
transformation criteria, mainly based on change of tariff classification.  The preferential rules of 
origin also establish regional value content criteri a, which are applied separately or in combination 
                                                      
10 Online information from the World Bank, " Doing Business:  Measuring business regulations" .  
Viewed at:  http://www.doingbusine ss.org/~/media/fpdkm/doi ng%20business/documents/profiles/country/ 
NIC.pdf. 
11 RECAUCA IV (2008) incorporates the provisio ns of the Central American Regulations on 
Customs Valuation (2004). 
12 RECAUCA, Article 202. 
13 WTO document G/RO/N/10 of 16 August 1996. 
14 The factual presentations for the trade agreem ents notified to the WTO can be viewed at:  
http://rtais.wto.org/UI/Pub licMaintainRTAHome.aspx. Nicaragua WT/TPR/S/274 
 Page 39 
 
 
  with the criterion of change in tariff classification.   Preferential tariff treat ment is conditional upon the 
production of a certificate of origin, except in the case of the CACM (see section (i) above). 
Table III.3 
Overview of preferential rules of origin, 2012 
 Specific 
rules Criteria 
Principal tolerancesb Cross-cumulationc  CTCa Value of regional content 
CAFTA-DR Yes Yes 35%, 45% or 50%, 
depending on the method of 
calculation;  other 
thresholds are applied to 
specific products 10% of the value or, where textiles 
and made-up goods are concerned, 
of the weight of the fibres or yarn  Cumulation with Mexico is 
permitted in respect of 
certain textile products for 
the production of articles of 
apparel of HS Chapter 62 
CACM Yes Yes 30% 10% of the value or, where textiles 
and made-up goods are concerned, of the weight of the fibres or yarn  No 
Mexico Yes Yes 41.66% (net cost) or 50% 
(transaction value) 7% of the value or, where textiles 
and made-up goods are concerned, 
of the weight of the fibres or yarn  Cumulation with the United 
States is permitted in respect 
of certain textile products for 
the production of articles of 
apparel of HS Chapter 62 
Panama Yes Yes 30% 10% of the value or, where textiles 
and made-up goods are concerned, of the weight of the fibres or yarn No 
Dominican 
Republic Yes Yes None 7% of the value or, where textiles 
and made-up goods are concerned, 
of the weight of the fibres or yarn  No 
Chinese 
Taipei  Yes Yes 35% to 45% 10% of the value of the goods 
(de minimis  rule) No 
a Change in tariff classification. 
b Refers to the permissible limits on the use of materials fr om non-beneficiary countries whic h otherwise would not be accepted . 
c Refers to the existence of provisions in accordance with which inputs from non-bene ficiary countries that are not parties to the 
Agreement are deemed to be originating. 
Source : WTO Secretariat, on the basis of Nicaragua's existing trade agreements. 
(iv) Tariffs 
25. Customs duties accounted for 4 per cent of Nicara gua's total receipts and 4.4 per cent of tax 
revenue in 2011, as compared with 4.9 and 5.3 per cent in 2007 (Table III.4).  VAT is still the main 
source of tax revenue. 
Table III.4  
Revenue structure, 2007-2012 
(Per cent) 
2007 2008 2009 2010 2011 2012a
Total receipts  100 100 100 100 100 100
  Tax revenue  91.9 92.3 92.7 92.6 90.9 90
     Income Tax  27.9 29.8 33 30.8 32.4 34
     Value Added Tax  39 38.4 37.3 37.5 36.8 36
     Selective Consumption Tax  19.9 19.2 18.5 20.1 17.4 16
     Import duties  4.9 4.7 3.7 4 4 4
     Other tax revenue  0.2 0.2 0.3 0.2 0.2 0
a Up to July 2012. 
Source : Directorate-General of Revenue. WT/TPR/S/274 Trade Policy Review 
Page 40 
  
   
(a) Tariff structure 
26. Nicaragua formulates its tariff policy within the framework of the CACM and applies the 
Central American Import Tariff, consisting of the Central American Tariff System (SAC) and the 
corresponding Import Duties (DAI).  The SAC is currently based on the 2012 version of the 
Harmonized Commodity Description and Coding System (HS).15  The range of applied duties, 
all ad valorem , comprises four basic rates:  0, 5, 10 and 15 per cent.  CACM member countries can 
apply different rates, which must be approved by the Council of Ministers of Economic Integration.  
At the end of 2011, the unharmonized rates corresponded to 4.3 per cent of SAC tariff lines. 
27. Nicaragua grants at least MFN tariff treatment  to WTO Members.  Since July 2003, imports 
of rice originating in countries that are not member s of the WTO have been subject to a customs duty 
of 72 per cent, as compared with MFN rates of 60 and 45 per cent.16  Nicaragua has not imported rice 
from non-WTO Member countries since 2003. 
28. Nicaragua's applied tariff covers 7,359 lines;  all of the rates are ad valorem .  Some 46.4 per 
cent of tariff lines are duty free, as compared with 46. 8 per cent in 2005 (Table III.5).  The average of 
lines with greater-than-zero rates rose from 10.9 per cent in 2005 to 11.6 per cent in 2012.  Nicaragua 
does not apply seasonal or variable tariffs;  tariff quotas are maintained at both the bilateral and the 
multilateral level (Chapter IV(2). 
Table III.5 
MFN tariff structure, 2005 and 2012 
(Per cent) 
2005 2012
Total number of lines 6,528 7,359
Non- ad valorem  tariffs (% of tariff lines) 0.0 0.0
Tariff quotas (% of tariff lines) 0.2 0.1
Duty-free tariff lines (% of tariff lines) 46.8 46.4
Average of lines greater than zero (%) 10.9 11.6
Simple average rate 5.8 6.2
  Agricultural products 11.4 11.8
  Non-agricultural products (excluding petroleum) 4.8 5.2
  Agriculture, hunting, forestry and fishing (ISIC 1) 8.5 8.4
  Mining and quarrying (ISIC 2) 2.2 1.8
  Manufacturing (ISIC 3) 5.7 6.1
  Raw materials 6.8 7.2
  Semi-manufactures 3.2 3.8
  Finished manufactures 7.1 7.4
                                                      
15 Resolution No. 263-2011(COMIECO-LX) of 27 July 2011. 
16 Refers to tariff lines 1006.10.90.00 (MFN rate 45 per cent), and 1006.20.00.00, 1006.30.00.00, 
1006.40.00.00 and 1006.40.90.00 (MFN rate 60 per cent). Nicaragua WT/TPR/S/274 
 Page 41 
 
 
  2005 2012
National tariff peaks (% of tariff lines)a 0.9 1.3
International tariff peaks (% of tariff lines)b 0.9 1.3
"Nuisance" duties applied (% of tariff lines)c 0.0 0.0
Tariff lines bound (% of tariff lines) 100.0 100.0
a National tariff peaks are duties that are higher than th ree times the simple average of the rates applied. 
b International tariff peaks are duties that exceed 15 per cent. 
c "Nuisance" duties are rates higher than zer o, but less than or equal to 2 per cent. 
Source : WTO Secretariat estimates, based on data provided by the Nicaraguan authorities. 
29. The average rate of 11.8 per cent on agricultura l products (WTO definition) is more than 
double the average for non-agricultural and non-petr oleum products (5.2 per cent).  Based on the 
ISIC (Rev. 2) definition, agriculture continues to be  the most protected sector with an average tariff 
of 8.4 per cent, followed by manufacturing (6.1 per cent) and the mining sector (1.8 per cent).  
The coefficient of variation of 1.3 (Table III.6) in dicates substantial tariff rate dispersion, with rates 
that range from 0 to 164 per cent (Chart III.1).  Am ong the non-zero rates, 15 per cent is that most 
often levied on agricultural and manufactured produc ts;  the majority of mining products are subject 
to a rate of 5 per cent (Chart III.2). 
 
 
a The total number of ad valorem  lines is 7,359. 
 
Source : WTO Secretariat calculations, based on data  provided by the Nicaraguan authorities. 
 
  
WT/TPR/S/274 Trade Policy Review 
Page 42 
  
   
 
a The figures correspond to the percentage of the total number of tariff lines, by sector. 
 
Source : WTO Secretariat calculations, based on data  provided by the Nicaraguan authorities. 
30. The Nicaraguan tariff has mixed escalation (Tab le III.6):  the average rate applied to 
semi-manufactures is lower than that for raw materi als, while finished manufactures are subject to the 
highest average applied rate.  This tariff structur e does not encourage the diversification of economic 
activity through the addition of value in the semi-m anufacturing stage, which justifies pressure for the 
granting of various tariff and tax concessions.  These concessions increase the tariff escalation and hence the effective protection of specific activities and enterprises. 
Table III.6 
Summary analysis of the MFN tariff, 2012 
Product description MFN Average 
bound 
tariffa 
(%) Number
of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) 
Total 7,359 6.2 0 - 164 1.3 40.7 
HS 01-24 1,354 12.3 0 - 164 1.0 43.3 
HS 25-97 6,005 4.8 0 - 15 1.2 40.3 
By WTO category      
Agricultural products 1,157 11.8 0 - 164 1.2 43.5 
 - Live animals and animal products 178 19.6 0 - 164 1.2 50.3 
 - Dairy products 44 25.1 0 - 60 0.7 65.7 
 - Fruit and vegetables 303 11.8 0 - 30 0.5 40.4 
 - Coffee and tea 31 13.1 0 - 15 0.3 40.0 
 - Grains and preparations 141 9.6 0 - 60 1.2 42.6 
 - Oilseeds, fats, oils and thei r products 139 7.2 0 - 15 0.8 42.0 
Nicaragua WT/TPR/S/274 
 Page 43 
 
 
  Product description MFN Average 
bound 
tariffa 
(%) Number
of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) 
 - Sugar and confectionery 22 30.9 0 - 55 0.7 55.0 
 - Beverages, spirits and t obacco 85 12.9 0 - 40 0.7 45.8 
 - Cotton 5 0.0 0 - 0 .. 40.0 
 - Other agricultural products n.e.s. 209 4.2 0 - 15 1.2 40.0 
Non-agricultural products (including petroleum) 6,202 5.2 0 - 15 1.1 40.3 
 - Non-agricultural products (excluding petroleum) 6,167 5.2 0 - 15 1.1 40.3 
  - Fish and fish products 290 11.6 0 - 15 0.4 40.0 
  - Mineral products and metals 1,107 3.4 0 - 15 1.5 40.1 
  - Chemicals and photographic supplies 1,333 2.5 0 - 15 1.8 40.0 
  - Wood, pulp, paper and furniture 478 6.2 0 - 15 0.9 40.0 
  - Textiles 708 8.1 0 - 15 0.6 41.4 
  - Clothing 236 14.8 0 - 15 0.1 60.0 
  - Leather, rubber, footwear and travel goods 224 7.3 0 - 15 0.8 41.9 
  - Non-electrical machinery 604 1.5 0 - 15 2.7 37.3 
  - Electrical machinery 343 3.6 0 - 15 1.7 30.5 
  - Transport equipment 301 6.1 0 - 15 0.7 45.2 
  - Non-agricultural products n.e.s. 543 6.9 0 - 15 1.0 36.7 
 - Petroleum 35 4.4 0 - 15 1.1 40.0 
By ISIC sectorb      
Agriculture and fishing 523 8.3 0 - 45 0.8 41.1 
Mining 113 1.8 0 - 15 1.9 40.0 
Manufacturing 6,722 6.1 0 - 164 1.3 40.7 
By HS Section      
  01 Live animals;  animal products 485 15.2 0 - 164 1.1 46.8 
  02 Vegetable products 441 9.4 0 - 60 0.9 41.2 
  03 Fats and oils 85 9.9 0 - 15 0.6 42.6 
  04 Prepared foodstuffs, etc. 343 12.8 0 - 55 0.8 42.7 
  05 Mineral products 197 2.8 0 - 15 1.5 40.6 
  06 Products of the chemical or a llied industries 1,174 2.1 0 - 15 2.1 40.0 
  07 Plastics and rubber 360 4.6 0 - 15 1.0 40.0 
  08 Raw hides and skins 111 8.1 0 - 15 0.7 40.0 
  09 Wood and articles of wood 141 7.9 0 - 15 0.6 40.0 
  10 Pulp of wood, paper, etc. 312 5.0 0 - 15 1.1 40.0 
  11 Textiles and textile ar ticles 926 9.6 0 - 15 0.5 46.5 
  12 Footwear and headgear 65 12.8 0 - 15 0.3 47.0 
  13 Articles of stone 176 6.3 0 - 15 1.1 39.9 
  14 Precious stones, etc. 54 6.9 0 - 15 0.8 40.0 
  15 Base metals and articles thereof 713 2.9 0 - 15 1.6 40.0 
  16 Machinery and mechanical appliances 996 2.5 0 - 15 2.1 34.6 
  17 Vehicles, aircraft, vessels , etc. 314 6.0 0 - 15 0.7 44.8 
  18 Precision instruments 243 3.7 0 - 15 1.5 35.6 
  19 Arms and ammunition 21 12.6 5 - 15 0.3 40.0 
  20 Miscellaneous manufactured articles 193 10.1 0 - 15 0.6 40.0 
  21 Works of art, etc. 9 7.8 5 - 10 0.3 40.0 WT/TPR/S/274 Trade Policy Review 
Page 44 
  
  Product description MFN Average 
bound 
tariffa 
(%) Number
of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) 
By stage of processing      
First stage of processing 948 7.2 0 - 60 1.1 41.0 
Semi-processed products 2,377 3.8 0 - 55 1.5 40.3 
Fully processed products 4,034 7.4 0 - 164 1.2 40.9 
a Bindings are given in the HS 96 classification and applied rate s in HS 2012;  consequently, there may be differences between the 
number of lines included in the analysis. 
b ISIC (Rev.2), excluding electricity (one line). 
Source : WTO Secretariat estimates, based on data provided by the Nicaraguan authorities. 
(b) Tariff bindings 
31. Nicaragua has bound its entire tariff at 13 rates ranging from 0 to 200 per cent.  
Around 89 per cent of tariff lines are bound at a maximum rate of 40 per cent, after a progressive 
reduction starting from a maximum rate of 60 per cen t, completed at the beginning of 2004;  the 
exceptions to the bound ceiling of 40 per cent can be found in the previous TPR.17  In its schedule of 
tariff concessions, Nicaragua left blank the column  corresponding to other duties and charges, which 
is equivalent to binding at a rate of 0 per cent.  The Secretariat has not iden tified any tariff line with 
an applied rate greater than its respective bound rate;  these rates are equal in 79 lines.18 
(c) Admission on concessionary terms 
32. During the review period, Nicaragua granted dut y and internal tax reductions or exemptions 
to imports of a number of products.  The authorities estimate that the annual value of the uncollected 
duties ranged from 0.3 to 0.4 per cent of GDP during the period 2006-2010.19 
33. Duty-free imports include:  raw materials, intermediate goods and capital goods for the 
agricultural sector, the crafts industry and small-scale fishing20;  crude or partly refined or 
reconstituted petroleum and certain petroleum products (subject to a single "lumped" tax);  machinery, 
equipment, materials and inputs to be used to  generate, transmit and distribute electricity 
(for a three-year period from the date on which concession permit was granted);  imports for the purpose of building hotels or leisure centres;  or thopaedic appliances, medicines and vaccines for 
human use, as well as inputs and raw materials u sed to produce them;  materials, equipment, 
furnishings, utensils and machinery for the buildin g and operation of hospitals  and their annexes;  
material to be used for the activities of certain e ducational and public inter est institutions;  paper, 
machinery and equipment for the mass media (pre ss, broadcasting);  books, newspapers, magazines, 
and school and scientific materials;  machinery and equipment, asphalt and vehicles purchased by 
municipal authorities for the construction, maintenan ce and cleaning of the road network;  and public 
transport vehicles and equipment im ported by transport cooperatives. 
                                                      
17 WTO document WT/TPR/S/167/Rev.1 of 26 September 2006. 
18 In making this analysis, the Secr etariat only took into account the tariff lines contained in the files 
of Nicaragua's Consolidated Tariff Schedule, wh ich are strictly comparable with the HS 2012. 
19 Ministry of Finance and Public Credit (2010). 
20 Up to 30 June 2009, spares, parts and accessories for machinery and equipmen t used in these sectors 
were also exempt.  A list of the goods exempted can be viewed online at:  http://www.magfor.gob.ni/ 
descargastlc/Avales/lstBienesExonerados.pdf. Nicaragua WT/TPR/S/274 
 Page 45 
 
 
  34. During the review period, Nicaragua also a pplied various import dut y (DAI) reductions on a 
temporary basis, mainly designed to ensure the supply of basic consumption goods irrespective of 
their origin.  The DAI on the following was reduced  to 0 per cent:  beans, wheat or meslin flour21, 
food preparations (based on soya, oats or barley), p asta (not cooked, stuffed or otherwise prepared), 
crude oil (soya, groundnut, oliv e, palm, cottonseed, sunflower, coconut, palm kernel, and maize)22, 
deodorant, lamps, toothbrushes, sardines, prepar ed soups, toilet soap, zinc-aluminium sheet, 
palm wax, and gloves and masks used in AH1N1 in fluenza prevention.  Moreover, the DAI on edible 
oil imports was reduced to 5 per cent.  Most  of these tariff reductions have been extended 
to 31 December 2012. 
(d) Tariff preferences 
35. Nicaragua grants tariff preferences under free tr ade agreements concluded bilaterally or as 
part of the CACM;  the provisions of these agreements vary with respect to the level of preferential tariff treatment and the relevant origin requirements (see section (iii) above).  Nicaragua currently has 
two preference schemes in force with the Domi nican Republic (the Dominican Republic-Central 
America FTA and the Dominican Republic-Central America-United States FTA (CAFTA-DR));  
importers can choose freely between the two schemes. 
36. The proportion of goods imported on preferential te rms as a percentage of Nicaragua's total 
imports decreased during the period 2006-2011 (Tab le III.7), although the latter increased in volume.  
According to the authorities, this trend reflects the dynamism of imports of capital goods and raw materials for which the MFN tariff in force is 0 per cent. 
Table III.7 
Trend in Nicaragua's preferential trade, 2006-2011 
(US$ million and per cent) 
 2006 2007 2008 2009 2010 2011
Total imports (US$ million) 3,002 3,626 4,345 3, 425 4,190 5,049
MFN imports (%) 42.8 41.6 47.7 48.0 49.4 50.0
Preferential imports (%) 57.2 58.4 52.3 52.0 50.6 50.0
Source : WTO Secretariat estimates, based on data provided by the Nicaraguan authorities.  
37. The great majority of products originating in the other CACM members (Costa Rica, 
El Salvador, Guatemala and Honduras) are subject to a tariff rate of 0 per cent;  nevertheless, MFN rates are still being applied to unroasted co ffee and cane sugar from any of these countries and 
roasted coffee from Costa Rica. 
38. The average tariff applied by Nicaragua under the other preferential agreements varies 
between 0.3 per cent (Mexico) and 2.8 per cent (Chinese Taipei) (Table III.8).  Likewise, the 
proportion of duty-free lines in the tariff universe app lied to each of these trading partners fluctuates 
between 62.6 per cent (Chinese Taip ei) and 96.6 per cent (Mexico). 
                                                      
21 Between March and December 2008, the reduction in DAI was limited to a maximum 
of 10,000 tonnes of wheat or meslin flour.  Since 2009 the tariff reduction has been unlimited with respect to 
import volume. 
22 Since January 2009 the tariff reduction has been applied only to crude palm and soya oils. WT/TPR/S/274 Trade Policy Review 
Page 46 
  
  Table III.8 
Summary analysis of preferential tariffs, 2012 
Product description MFN Mexi co Chinese Taipei Panama CAFTA
USA CAFTA 
Dominican Rep. Dominican 
Rep. 
Total 6.2 0.3 2.8 1.4 1.1 1.3 1.3 
HS 01-24 12.3 0.6 6.0 3.9 3.4 4.1 2.6 
HS 25-97 4.8 0.2 2.1 0.9 0.6 0.6 1.0 
By WTO category        
Agricultural products 11.8 0.8 5.8 4.5 4.0 4.9 3.0 
 - Live animals and animal products 19.6 0.0 10.4 12.8 6.2 7.3 5.7 
 - Dairy products 25.1 0.2 16.5 8.2 23.3 23.3 8.2 
 - Fruit and vegetables 11.8 0.2 5.1 1.0 1.7 2.0 0.8 
 - Coffee and tea 13.1 4.2 4.5 5.6 4.4 6.0 3.7 
 - Grains and preparations 9.6 0.3 5.1 4.2 4.5 4.6 2.1 
 - Oilseeds, fats, oils and their products 7.2 0.0 2.9 5.3 2.5 4.2 4.9 
 - Sugar and confectionery 30.9 28.2 25.4 23.9 16.1 23.1 12.5 
 - Beverages, spirits and tobacco 12.9 0.0 7.0 2.8 4.9 7.9 6.0 
 - Cotton 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 - Other agricultural products, n.e.s. 4.2 0.0 1.2 0.0 0.4 0.4 0.0 
Non-agricultural products (including petroleum) 5.2 0.2 2.2 0.9 0.6 0.6 0.9 
 - Non-agricultural products (excluding petroleum) 5.2 0.2 2.2 0.9 0.6 0.6 0.9 
  - Fish and fish products 11.6 0.0 4.8 0.2 0.0 0.0 0.0 
  - Mineral products and metals 3.4 0.0 1.1 0.1 0.5 0.5 0.3 
  - Chemicals and photographic supplies 2.5 0.0 0.7 0.1 0.3 0.3 0.0 
  - Wood, pulp, paper and furniture 6.2 0.0 1.9 0.3 1.0 1.0 0.0 
  - Textiles 8.1 1.5 2.6 1.2 0.1 0.1 2.4 
  - Clothing 14.8 0.0 13.7 11.9 0.0 0.0 14.7 
  - Leather, rubber, footwear and travel goods 7.3 0.0 2.9 0.0 1.3 1.3 0.0 
  - Non-electrical machinery 1.5 0.0 0.6 0.0 0.3 0.3 0.0 
  - Electrical machinery 3.6 0.0 1.5 0.0 0.5 0.5 0.0 
  - Transport equipment 6.1 0.1 2.6 3.8 2.1 2.1 0.0 
  - Non-agricultural products, n.e.s. 6.9 0.0 3.4 0.2 1.4 1.4 0.2 
 - Petroleum 4.4 0.0 0.4 0.0 1.3 3.7 4.4 
By ISIC sectora        
Agriculture and fishing 8.3 0.3 3.4 0.7 1.3 1.4 0.4 
Mining 1.8 0.0 0.2 0.1 0.2 0.2 0.1 
Manufacturing 6.1 0.3 2.8 1.5 1.1 1.3 1.3 
By HS Section        
  01 Live animals;  animal products 15.2 0.0 7.6 5.8 4.2 4.6 2.8 
  02 Vegetable products 9.4 0.6 4.2 1.6 2.0 2.4 1.5 
  03 Fats and oils 9.9 0.0 4.6 8.6 3.9 6.8 8.0 
  04 Prepared foodstuffs, etc. 12.8 1.8 6.2 2.9 3.9 5.1 2.3 
  05 Mineral products 2.8 0.0 0.3 0.2 0.4 0.9 0.9 
  06 Products of the chemical or allied industries 2.1 0.0 0.5 0.1 0.3 0.3 0.0 
  07 Plastics and rubber 4.6 0.0 1.2 0.0 0.5 0.5 0.0 
  08 Raw hides and skins 8.1 0.0 2.9 0.0 1.0 1.0 0.0 
  09 Wood and articles of wood 7.9 0.0 2.3 0.0 1.4 1.4 0.0 
  10 Pulp of wood, paper, etc. 5.0 0.0 1.0 0.3 0.6 0.6 0.0 
  11 Textiles and textile articles 9.6 1.1 5.3 3.9 0.0 0.0 5.6 
  12 Footwear and headgear 12.8 0.0 9.5 0.2 3.4 3.4 0.0 Nicaragua WT/TPR/S/274 
 Page 47 
 
 
  Product description MFN Mexi co Chinese Taipei Panama CAFTA
USA CAFTA 
Dominican Rep. Dominican 
Rep. 
  13 Articles of stone 6.3 0.0 1.9 0.0 1.0 1.0 0.0 
  14 Precious stones, etc. 6.9 0.0 2.4 0.0 1.0 1.0 5.4 
  15 Base metals and articles thereof 2.9 0.0 1.0 0.0 0.5 0.5 0.0 
  16 Machinery and mechanical appliances 2.5 0.0 1.0 0.0 0.4 0.4 0.0 
  17 Vehicles, aircraft, vessels, etc. 6.0 0.1 2.6 3.7 2.1 2.1 0.0 
  18 Precision instruments 3.7 0.0 1.8 0.0 0.7 0.7 0.0 
  19 Arms and ammunition 12.6 0.0 6.3 0.0 3.5 3.5 0.0 
  20 Miscellaneous manufactured articles 10.1 0.0 6.2 0.8 2.1 2.1 0.5 
  21 Works of art, etc. 7.8 0.0 2.5 0.6 0.0 0.0 0.0 
By stage of processing        
First stage of processing 7.2 0.3 3.1 0.9 1.2 1.3 0.8 
Semi-processed products 3.8 0.7 1.0 0.3 0.3 0.4 0.5 
Fully processed products 7.4 0.0 3.7 2.2 1.6 1.7 1.8 
a ISIC (Rev.2), excluding electricity (one line). 
Source : WTO Secretariat estimates, based on data provided by the Nicaraguan authorities. 
(v) Other charges affecting imports 
39. Nicaragua levies VAT at 15 per cent on the suppl y of goods and services, including imports;  
exports are zero-rated for VAT.  For calculating VAT, the tax base for imports is the c.i.f. value plus 
duties and taxes of all kinds (including the selec tive consumption tax (ISC), where applicable), with 
the exception of the VAT itself.  VAT  is applied to locally manufacture d products at the time of sale;  
in this case, the tax base is the invoice price plus any amount for other charges and taxes. 
40. The following products, inter alia , are exempt from VAT:  (i) books, pamphlets, magazines, 
school and scientific materials, ne wspapers and other periodicals, as  well as inputs and raw materials 
needed to produce them;  (ii) medicines, vaccines and serums for human use, orthotic and prosthetic 
appliances, as well as the inputs and raw materials needed to produce them;  (iii) paper, machinery 
and equipment and parts for written, broadcasting and television mass medi a;  (iv) rice, beans, sugar, 
edible oil, ground coffee, tortillas, salt and soyb eans;  (v) maize, sorghum, maize dough, wheat and 
maize flour, ordinary bread and traditional buns, live yeast exclusively for making ordinary bread and 
traditional buns, pinole and pinole mixtures;  (vi) do mestically produced plants, fresh fruit, vegetables 
and other agricultural goods not processed or packag ed, except for flowers or floral arrangements;  
(vii) eggs, processed milk, baby food preparations , infant formula, whole milk and liquid milk;  
(viii) Nicaraguan homemade cheese;  (ix) domesti cally produced toilet paper, laundry soap, 
detergents, toilet soap, toothpaste and toothbrush es, deodorants, brooms, matches, sanitary towels, 
and butane gas up to 25 lb;  (x) live animals a nd fresh fish, except for molluscs and crustaceans;  
(xi) fresh, chilled or frozen beef or pork meat, intes tines, giblets and offal, except for loins and fillets, 
whether sold separately or as an  integral part of the animal23;  (xii) domestically produced trousers, 
skirts, shirts, underpants, socks, shoes, slippers  and rubber boots, military-type boots with leather 
uppers and rubber soles for use in the field, blouses,  suits, shorts, brassieres, boys' and girls' shorts, 
vests, singlets, t-shirts, bodices, fabr ic napkins, boys' and girls' clothing24;  (xiii) crude or partly 
refined petroleum;  (xiv) molasses, feed for cattle, poultry and aquaculture animals, however put up;  
                                                      
23 Provided that they have not been processed, stuffed or packaged. 
24 If enterprises approved under the free-zone regime  sell these products on th e local market, the VAT 
must be paid. WT/TPR/S/274 Trade Policy Review 
Page 48 
  
  (xv) veterinary products, vitamins and vitamin pr emixes for veterinary use and for plant health;  
(xvi) insecticides, pesticides, fungicides, herbic ides, defoliants, manures,  fertilizers, seed and 
biotechnology products for agricultural and forestry use;  (xvii) surgical, odontological and diagnostic 
medical equipment and instruments for human medici ne;  (xviii) supply of energy and electricity 
for agricultural irrigation;  (xix) inputs physically incorporated in goods that make up the basic 
basket (53 goods) which during production are subject to industrial processing;  and (xx) vehicles and 
equipment for public transport im ported by transport cooperatives. 
41. With respect to imports, the goods subject to general exemption from VAT represent 
about 8 per cent of Nicaragua's tariff lines.  Th e Law on Incentives for the Tourism Industry and the 
Law on Fiscal and Business Equity contain provisions on specific VAT exemptions. 
42. The following services are exempt from VAT:  (i) human health services;  (ii) premiums 
under insurance policies against agriculture-rela ted risks or risks prescribed by the State25;  (iii) events 
organized by non-professional sportspe rsons or promoted by religious bodies provided that they are 
intended to fulfil the purpose for which they have b een set up;  (iv) internal, air, lake, river and 
maritime transport;  (v) teaching services provided by bodies or organizations whose main purpose is 
educational;  (vi) supply of energy and electricity fo r agricultural irrigation;  (vii) invoicing related to 
the supply of energy for domestic use up to 300 kW/h a month26;  (viii) supply of drinking water, 
except for ice and bottled water;  (ix) interest on loans granted by authorized financing institutions, 
profit or non-profit-making civil associations or  foundations, whether or not subject to the 
supervision of the Banking Supervis ory Authority or other financial in stitutions;  (x) contracts for the 
building of social housing up to 60m2;  (xi) leasing of buildings intended for housing unless furnished;  
and (xii) leasing of land, machinery or equipment fo r use in agriculture, forestry or fish farming. 
43. According to the authorities, most exempti ons from VAT are granted for social purposes, 
or to promote the development of  small and medium-sized enterprises.  The available estimates 
for 2006-2010 ascribe an annual fiscal cost of between 0.8 and 1.2 per cent of GDP to VAT not collected on imports and between 5.9 and 8.9 per cent of GDP to VAT not collected on the 
domestic market.
27 
44. Nicaragua levies a selective consumption tax (IS C) on a series of domestically produced and 
imported goods.  The goods subject to this ta x represent 1,033 tariff lines (14 per cent of the 
tariff universe).  According to the information provide d by the authorities, the ISC is levied at 22 rates 
ranging from 2 per cent to 100 per cent, plus a non- ad valorem  rate on cigarettes (Chart III.3).28  
Domestic manufacturers and importers of eligible goods are subject to the tax.  The ISC is applied to 
imports on the basis of the customs value, plus duties and other import costs, except for VAT.  
The tax base for domestic products is the price char ged to the retailer or, in the case of non-fiscal 
industry goods29, the price charged to the wholesaler or distributor.  The ISC on petroleum products 
                                                      
25 Law No. 431, Law on the Traffic Regime and Traffic Offences, published in Official Journal No. 15 
of 22 January 2003. 
26 Domestic electricity consumption of more than 300 and less than 1,000 kWh is subject to a rate 
of 7 per cent. 
27 Ministry of Finance and Public Credit (2010). 
28 The rates of ISC on motor vehicles are 10 per cent (up to 1,600 cc), 15 per cent (1,601-2,600 cc), 
20 per cent (2,601-3,000 cc), 25 per cent (3,001-4,000 cc) and 30 per cent (more than 4,001 cc).  
Since January 2012, the ISC on cigarettes has been C$255.03 per thousand or fraction thereof. 
29 The "fiscal industry" is the group of economic units engaged in producing or processing goods 
such as alcoholic beverages and tobacco and petroleum products (48 tariff lines).  DGI online information.  
Viewed at:  http://www.dgi.gob.ni/interna.php?sec=109. Nicaragua WT/TPR/S/274 
 Page 49 
 
 
  is a single ("lumped") tax which replaces all other taxes and is collected at the time of sale to 
the retailer.30 
45. Imports of goods for consumption are also s ubject to a customs charge, the import service 
fee (TSIM), of US$0.5 per tonne or fraction thereof.31  The absence of a ceiling on the amount of 
TSIM that traders have to pay seems hard to reconc ile with the real cost of the services provided by 
the DGA. 
 
a The bar scale has been adjusted to improve the visibility of the lower-frequency distribution. 
b Non- ad valorem  rate. 
Source : WTO Secretariat calculations, based on data  provided by the Nicaraguan authorities. 
(vi) Import prohibitions, restrictions and licensing 
46. Nicaragua prohibits the importation of certain  products for essential health, environmental 
protection or security reasons, in conformity with  its legislation or international commitments.  
Since April 2005, the prohibited products have include d used motor vehicles more than ten years old;  
in 2007, the prohibition was restricted to vehicl es for transporting passengers, to the exclusion of 
                                                      
30 The basis for the assessment of ISC on petroleum products is the US gallon (3.785 litres). 
31 Decree No. 192 of 14 May 1986. 
WT/TPR/S/274 Trade Policy Review 
Page 50 
  
  those for the transport of goods.32  According to the authorities, the purpose of this prohibition is to 
modernize the vehicle fleet for land passenger transport. 
47. Nicaragua has notified the WTO Committee on Import Licensing of the licensing system in 
use for the administration of its import tariff quotas;  its latest notification does not mention any other 
cases in which import licences are required.33  However, imports of some categories of products are 
subject to a licensing/prior authorization regime  applied for the purpose of protecting the public 
and/or national interest, or for health or public secu rity reasons.  In this connection, special permits 
are required to import chemicals for industrial use, raw materials and animal feed, and pesticides and 
fertilizers (Ministry of Agriculture and Forestry);  fi rearms and explosives (Ministry of the Interior);  
foodstuffs and medicines (Ministry of Health );  and X-ray equipment (National Atomic 
Energy Commission).  Since 2010, the importation of c itrus planting material that could harbour the 
bacterium Candidatus Liberibacter spp. has had to be approved by the official responsible for 
quarantine control at the border post at which the material is cleared through customs. 
48. Telecommunications equipment entering Nicara gua must be cleared through customs solely 
and exclusively in the customs warehouses authori zed by the DGA in Managua, for prior inspection 
and approval by the Nicaraguan Institute of Tele communications and Postal Services (TELCOR).  
The list of the items in question includes 152 groups of equipment and accessories. 
(vii) Contingency measures 
49. In January 2008, Nicaragua notified the WTO of  the Central American Regulations on Unfair 
Business Practices, which was updated in April 2 007 by Resolution No. 193-2007 (COMIECO-LIV) 
and entered into force on 24 May 2007.34  The Committee on Anti-Dumping Practices and the 
Committee on Subsidies and Countervailing Measur es examined this notification in April and 
June 2008.35  According to Nicaragua's re plies, these Regulations constitute the procedural rules for 
the application of anti-dumping and countervailing measures, while the substantive rules are the 
Agreement on Implementation of Article VI of the GATT 1994 and the WTO Agreement on 
Subsidies and Countervailing Measures, which also  form part of the national legislation.  
Nicaragua did not impose any anti-dumping or counterv ailing measures or initiate any investigations 
for this purpose during the review period.  No trading partner is exempt from the application of anti-dumping or countervailing measures under the preferential trade agreements signed by Nicaragua. 
50. Nicaragua also notified the WTO of the Ce ntral American Regul ations on Safeguard 
Measures, which were updated in April 2007 by Resolution No. 194-2007 (COMIECO-XLIV) 
and entered into force on 24 May 2007.  The WTO Committee on Safeguards examined this 
notification in April and June 2008.
36  In the event of a conflict, the WTO Safeguards Agreement, 
which also forms part of the Nicaraguan legi slation, would prevail over these Regulations. 
                                                      
32 Law No. 524 of 14 April 2005 as amended by Law No. 616 of 20 March 2007. 
33 WTO document G/LIC/N/1/NIC/2 of 23 March 2012. 
34 WTO document G/ADP/N/1/NIC/2 and G/ SCM/N/1/NIC/2 of 23 January 2008. 
35 WTO documents G/ADP/Q1/NIC/1 and G/SCM/Q1/NIC/1 of 9 April 2008;  G/ADP/Q1/NIC/2 and 
G/SCM/Q1/NIC/2, G/ADP/Q1/NIC/3 and G/SCM/Q1/NIC /3 of 10 April 2008;  G/ADP/Q1/NIC/4 and 
G/SCM/Q1/NIC/4, G/ADP/Q1/NIC/5 and G/SCM/Q1/N IC/5, and G/ADP/Q1/NIC/6  and G/SCM/Q1/NIC/6 
of 20 June 2008. 
36 WTO documents G/SG/Q1/NIC/1 and G/SG/Q1/NIC/2 of 9 April 2008, and G/SG/Q1/NIC/3 and 
G/SG/Q1/NIC/4 of 17 June 2008. Nicaragua WT/TPR/S/274 
 Page 51 
 
 
  51. The Central American Regulations on Safeguard  Measures develop the provisions for the 
application of Article XIX of the GATT 1994 and the WTO Safeguards Agreement and the provisions 
of the Guatemala Protocol and the Convention on the Central American Tariff and Customs Regime 
and its Protocols.  They apply to imports from third countries.  According to the authorities, 
no safeguard measures have been imposed on impor ts from third countries and no investigations 
pertaining to such measures have b een initiated since the last Review. 
52. Nicaragua exempts the other members of the CACM from the application of safeguard 
measures.37  Moreover, subject to certain conditions, Nicar agua exempts most of its other preferential 
trading partners from safeguard measures applie d within the context of the WTO provisions.  
In general, the requirements are that the preferentia l trading partner's imports are not "substantial" and 
do not make a significant contribution to the injury. 
53. Nicaragua did not make any use of the special  safeguard provisions in Article 5 of the 
Agreement on Agriculture during the period 2 005-2011.  Under these provisions, Nicaragua can 
impose additional duties on nine 4 or 8-digit HS head ings (meat and dairy products);  some of these 
headings are subject to tariff quotas (Chapter IV(2)). 
(viii) Standards and technical regulations 
54. The legal and institutional framework for st andardization has not changed much since 
Nicaragua's last TPR.  The most important laws in  this area are the Law on Technical Standardization 
and Quality and its regulations and the Metrology Law and its regulations38;  the CACM framework 
for the development of Central American technical regulations is also applied.39  
Between January 2006 and March 2012, Nicaragua  adopted 51 standards (voluntary) and 107 
technical regulations (mandatory standards), in cluding technical regulations harmonized at CACM 
level;  some of these measures deal with conformity assessment procedures.40  During the same 
period, Nicaragua notified the WTO Committee on Tec hnical Barriers to Trade of 60 draft technical 
regulations relating to international trade, while  70 notifications were made to the Committee on 
Sanitary and Phytosanitary Measures. 
55. The Ministry of Development, Industry and Trade (MIFIC) chairs the National Commission 
on Technical Standardization and Quality (CNNTC), as the coordinating body and highest authority at national level in the area of standardizati on, both voluntary and mandatory.  The Commission 
has 15 members who represent the private sector, the scientific and technical sector, consumers and public institutions.  The Information Cent re on Technical Barriers to Trade, under 
the MIFIC's Directorate of Standardization and Metr ology (DNM), is the enquiry point envisaged in 
the TBT Agreement and is also responsible for implementing the notification provisions of that 
Agreement.
41  The National Accreditation Office (ONA), attached to MIFIC, is a non-profit public 
entity that administers the national system of accreditation of conformity assessment bodies.  
At present, the bodies accredited in Nicaragua include eight testing laboratories, one calibration 
                                                      
37 Article 3 of the Central American Regulations on Safeguard Measures. 
38 Laws No. 219 of 2 July 1996 and No. 225 of 18 July 1996. 
39 This framework was extended by Resolution No. 162-2006 (COMIECO-XXXVI) on the Procedure 
for Preparing, Adopting and Approving Technical Regulations and Central American Conformity Assessment 
Procedures. 
40 The catalogue of technical regulations in fo rce can be viewed at:  http://www.mific.gob.ni/ 
QUEESELSISTEMANACIONALDELACALIDAD/SISTEMANACIONALDENORMALIZACION/CATALO
GODENORMAS/tabid/311/language/en-US/Default.aspx. 
41 WTO document G/TBT/2/Add.82 of 25 October 2004. WT/TPR/S/274 Trade Policy Review 
Page 52 
  
  laboratory, and one inspection organization.42  Controls on conformity with technical regulations are 
carried out by the respective competent authority at the point of entry into Nicaragua and by means of 
on-the-spot inspections. 
56. The DNM centralizes the preparation of technical standards, both voluntary (NTN) 
and Nicaraguan Mandatory Technical Standards (N TON, or technical regulations as understood by 
the WTO), through a range of technical committees.  The technical committees work in the different 
areas of standardization (NTN and NTON), depending on their sphere of competence;  they are made up of professional and technical personnel from the public and private bodies and entities in the sectors with an interest in standardization and are entrusted with the drafting and review of technical 
standards.  At present, there are 30 of these technical committees.
43  The committees are chaired by 
the representative of the public en tity competent in the field. 
57. A list of Nicaragua's mandatory technical regulations can be viewed on the DNM's 
internet site.  In June 2012, there were 249 NTONs in force.  Of these, 96 were in the food sector, 
while 25 related to the environment, 23 to agricultu re and health protection, and 20 to hydrocarbons, 
the rest covering various areas such as pesticid es, pharmaceutical products, transport, etc. 
58. Standardization activities are governed by the provisions of the Law on Technical 
Standardization and Quality (Law No. 219, Official  Journal of 2 July 1996) and the Regulations 
implementing the Law on Technical Standardizati on and Quality (Decree No. 71-97).  The explicit 
purpose of the Law is to order and integrate th e activities of the public, private, scientific and 
technical sectors, and consumers for the prep aration, adoption, adaptation and review of 
technical standards.  The Law establishes a unifo rm procedure for the preparation of technical 
standards similar to that used internationall y and creates the National Commission on Technical 
Standardization and Quality, composed of represe ntatives of the public, private, scientific and 
technical sectors, and consumers, as the body r esponsible for coordinati ng the relevant policies 
and programmes. 
59. Under this Law, all products, processes, met hods, installations, services or activities whose 
use or consumption is affected by NTONs must co mply with the relevant standards and those who 
produce or offer them in the national territory must  ensure compliance with those standards by means 
of the appropriate certification.  Where a product su bject to compliance with a particular NTON fails 
to meet all the corresponding specifications, its mark eting or supply is prohibited forthwith.  The Law 
allows imported products to comply with a standa rd in force in the country of origin or an 
international standard in place of the NTON, provided such compliance is certified before and 
during marketing. 
60. The procedure for preparing technical regula tions in Nicaragua is laid down in the 
Regulations for the Preparation and Approval of  Nicaraguan Mandatory and Voluntary Technical 
Standards and summarized in Table III.9. 
                                                      
42 The list of accredited conformity assessment bodi es can be viewed at:  http://www.mific.gob.ni/ 
QUEESELSYSTEMNATIONALDELACALIDAD/SYSTEMNATIONALDEACREDITACION/ORGANISO 
DEEVALUACIONDELACONFORMIDAD/tabid/172/language/en-US/Default.aspx. 
43 MIFIC online information.  Viewed at:  http://www.mific.gob.ni/QUEESELSYSTEMNATIONAL 
DELACALIDAD/SYSTEMNATIONALDENORMALIZA CION/MARCOREGULATORIO/tabid/127/languag
e/en-US/Default.aspx. Nicaragua WT/TPR/S/274 
 Page 53 
 
 
  Table III.9  
Procedure for the preparation and appr oval of Technical Regulations (NTON) 
(1) The public institutions competen t in the field will, in accord ance with their functions and in  their capacity of Chairman o f the 
appropriate Technical Standardization Comm ittee, be responsible for formulating and presenting preliminary drafts and submittin g 
for public consultation the draft standards that fall within their competence, as we ll as for issuing the definitive standards and 
monitoring compliance. 
(2) The NTON it is intended to prepare must  be included in the annual National Standa rdization Plan drawn up and approved by th e 
National Commission on Technical Standardiza tion and Quality (CNNTC).  The interest ed entities must submit the subject for 
standardization to the Executive Secretariat of the CNNTC at the latest by 30 Novemb er of the year prior to the introduction of  the 
programme under the Plan.  The proposal may come from any intere sted party, but must be cha nnelled through a public institution . 
(3) The Executive Secretariat must forward the programme to the CNNTC Subcommission se t up to examine it by 15 December at 
the latest. 
(4) The Subcommission examines the programme and makes a recomm endation to the Commission concerning its approval, in whole 
or in part. 
(5) The National Plan is presented to the plenary meeting of the Commission at its firs t annual session, for approval. 
(6) In order to prepare preliminary draft standards a search mu st be made for other related st andards, both Nicaraguan and inte rnational, 
and if there are no such standards, then re ference may be made to the provisions cont ained in regional or foreign standards or 
guidelines or in other technical specifications, provided they constitute an effective means of  achieving the objectives establ ished in 
the Agreement on Technical Barriers to Trade. 
(7) The Chairman of the corresponding Technical Committee presents  the preliminary draft standard  for its approval and attaches  the 
Regulatory Impact Statement (MIR).  The MIR must contain a succi nct explanation of the purpose of  the standard, of the measures  
proposed, of the alternatives considered and the reasons for re jecting them, a comparison of the measures with any existing 
regulatory antecedents, and a gene ral description of the advantages  and disadvantages of the standard and the technical feasibi lity 
of verifying it. 
(8) The Technical Committee examines  the technical content of the preliminary draf t and its regulatory impact and makes any rel evant 
comments on the draft prior to its  approval.  The draft must be approved by cons ensus or, failing that, by  a majority of the me mbers 
of the Committee voting in favour. 
(9) Once the Technical Committee has approve d the document, it is published for public consultation in a national newspaper and  the 
preliminary draft must be notifie d to the WTO and opened for comment by Members.   This must be done within a period of not 
more than 15 working days following the approval of the document. 
(10) The consultation period lasts 60 calendar days.  During this  period any interested party may comment on the draft standard .  
The Technical Committee that prepared the st andard is responsible for replying to th e comments received as a result of the publ ic 
consultation on the standard. 
(11) At the end of the public consultation the Technical Committe e studies the comments received and, where justified, amends t he 
draft accordingly. 
(12) Once this has been done, the Chairman  of the Committee submits the final documen t for the Committee's approval and, if it is 
found satisfactory, forwards it to the CNNT C for approval as a definitive standard. 
(13) If approved, the corre sponding Ministry will order that it be pub lished in full in the Official Journal  as a Nicaraguan Mandatory 
Technical Standard. 
(14) The date of entry into force indicated  in the standards may not be less than 60 calendar days from their date of publicati on.  
Sanitary, zoosanitary and phytosanitary st andards form an exception to this rule. 
(15) If two or more public institutions ar e competent to regulate a good, service, pro cess, activity or matter, the NTON must b e 
issued jointly.  
Source :  Regulations for the Preparation and Approval of Nica raguan Mandatory and Voluntary Technical Standards. 
61. In the event of a national emergency, the competent public institution may prepare and issue 
an emergency NTON, jointly MIFIC and the other ministries involved, without going through the ordinary drafting procedure, and order its publica tion in the Official Journal.  Emergency NTONs 
may not remain in force for more than six months  after publication.  If the emergency continues for 
more than six months, the NTON may be extended for a further six months, in which case a 
regulatory impact statement indicating the need fo r an extension must be submitted.  MIFIC must 
justify the extension in coordination with the govern ment entity which, as appropriate, participated in 
the preparation of the standard. 
62. The amendment of a NTON follows the same  procedure as that followed during its 
preparation, unless the specifications are obsolete or  inapplicable or it is intended to deregulate 
provisions contained in the standard, in whic h case, on its own initiative or at the request WT/TPR/S/274 Trade Policy Review 
Page 54 
  
  of the CNNTC, the public institution that issu ed the standard may amend or cancel it without 
following the same procedure as that used for its preparation. 
63. The Code of Good Practice annexed to the TBT Agreement has been accepted by 
the MIFIC's DNM, the Nicaraguan Institute of Wa ter Supply and Sewage Systems (INAA) and the 
Nicaraguan Energy Institute (INE).44  The authorities have pointed out that no mutual recognition 
agreement concerning technical regulations or analytical and accreditation procedures has been 
concluded between the competent entities in Nicaragua  and their foreign counterparts.  Within the 
context of Central American integration, mutual re cognition exists only in the field of registration;  
technical regulations harmonized at CACM leve l (foodstuffs, medicines, hygiene products and 
cosmetics)45 are applied by the member countries, except Co sta Rica.  Nicaragua is not a party to the 
Mutual Recognition Arrangement of the Internati onal Laboratory Accreditation Cooperation (ILAC);  
however, it has begun the process leading to the si gnature of a Multilateral Recognition Agreement on 
testing laboratories with the Inter-American Accreditation Cooperation (IAAC). 
64. Nicaragua participates in the activities of the In ternational Organization for Standardization, 
the International Organization of Legal Metrolog y, the International Electrotechnical Commission, 
the IAAC, the Pan American Standards Commission, the Central American and Caribbean 
Standardization Commission and the Inter-American Metrology System. 
65. Within the context of the CACM, the request fo r the preparation of new technical regulations 
and conformity assessment procedures or for the revisi on of those already in force must be submitted 
by a member State.46  Requests accepted by the Directors of Economic Integration are forwarded to 
working subgroups composed of technical represen tatives of the member countries for examination 
and the preparation of draft regulations.  In  principle, the WTO public consultation period 
is 60 calendar days from publication of the notification by the WTO47;  the internal consultation must 
be carried out in accordance with each member's ow n legislation, but the comments received must be 
examined before the end of the WTO public consul tation period.  The draft technical regulation or 
conformity assessment procedure prepared in th e working subgroup is submitted to the Council 
of Ministers of Economic Integration (COMIECO) fo r approval.  Each member country must publish 
and incorporate the approved text in accordance with its national legislation. 
66. The Consumer Protection Law stipulates that  any product marketed unlabelled must 
nevertheless indicate the following:  the name of the product, net content, composition, date of manufacture and expiry date, in structions for use and warnings.
48  Nicaragua has notified the WTO 
of the labelling requirements for:  pre-packaged food products;  animal feed and feed products;  
veterinary products;  pharmaceutical products for human use;  alcoholic beverages (fermented and 
distilled);  cosmetic products, hygiene products and natural medi cinal products;  AC motors 
(three-phase induction);  compact fluorescent lamps;  incandescent lamps;  commercial refrigeration 
equipment;  domestic refrigerators and freezers;  ai r conditioners;  and pesticides for domestic use.  
Moreover, since December 2006, rice and rice produc ts, however put up, have had to be labelled 
in order to be imported into Nicaragua.  The label mu st mention at least the true nature of the product, 
                                                      
44 WTO documents G/TBT/CS/N/133 and G/TBT/CS/N/134 of 1 November 2001, and 
G/TBT/CS/N/157 of 12 October 2004. 
45 Other products may be subject to inspection at the border between two Ce ntral American countries. 
46 Resolution No. 162-2006 (COMIECO-XXXVI) of 16 June 2006. 
47 Before the 60 days in question have expired, a third country may request an extension of the public 
consultation period;  this extensio n may not exceed 30 calendar days. 
48 Law No. 182-1994 of 14 November 1994. Nicaragua WT/TPR/S/274 
 Page 55 
 
 
  its quality, the net content, the name and address of the processor and/or packer, the country of origin, 
and instructions and warnings for its use.49 
(ix) Sanitary and phytosanitary measures 
67. The Ministry of Agriculture and Forestry (M AGFOR), through its Directorate-General of 
Agricultural and Livestock Protection and Health (DGPSA), is the institution responsible for 
sanitary and phytosanitary measures related with the production, import and export of seed, plants, 
animals and their products, while the Ministry of He alth (MINSA) is in charge of sanitary measures 
applied to food imports.  The Ministry of th e Environment and Natural Resources, through its 
Directorate-General of Biodiversity and Natural Resources, is the authority competent for the 
preservation of biological diversity. 
68. Since the last Review, the corresponding legal framework has been updated with the adoption 
of the Law on Prevention of Risks from Living Organisms Modified by Means of Molecular Biotechnology
50, which established a register and a licence system for, among other things, the transit, 
importation, production and export of these organisms;   the corresponding regulations are still in the 
process of being approved.  Nicaragua also appli es the Central American Regulations on Sanitary 
and Phytosanitary Measures and Procedures, aimed at  preventing the introduc tion of possible barriers 
to intraregional trade.  In 2007, the Council of  Ministers of Economic Integration (COMIECO) 
extended to 515 the number of pro ducts and byproducts of plant or igin exempt from the formalities 
for obtaining import authorization and a phytosanitary export certificate.51  These products may only 
be subjected to random inspection at the point of entr y into CACM territory, if their nature needs to be 
physically verified. 
69. Nicaragua has designated MAGFOR's DGPSA as the national enquiry point;  the institution 
entrusted with notifications under the SPS Agr eement is MIFIC's Directorate of Technology, 
Standardization and Metrology (DTNM).52  Nicaragua is a member of  the Codex Alimentarius and 
the World Organisation for Animal Health (OIE),  and a contracting party to the International 
Plant Protection Convention.  Between July 2006 and August 2012 Nicaragua notified the WTO 
of 48 sanitary and phytosanitary measures and draf t measures, of which 12 relate to a standard 
of one of the three standardization organizations  explicitly mentioned in the SPS Agreement.  The 
great majority of notifications allow a period of 60 days for making comments.  In general, the 
drafting and review of SPS measures follow a proce dure similar to that for NTONs.  However, 
SPS measures may also be issued as Ministerial D ecisions drawn up by the competent authorities;  
these measures are not subject to a centralized review procedure. 
70. No Member has resorted to th e WTO's formal dispute settlement procedure to deal with 
questions relating to sanitary or phytosanitary measu res applied by Nicaragua.  Within the context of 
the CACM, El Salvador expressed concern about Ni caraguan sanitary measures that restricted the 
entry of Salvadoran poultry products;  this matter was settled in 2005.  During the period 2006-2012 
Nicaragua resorted to the CACM trade dispute settle ment mechanism six times to deal with questions 
                                                      
49 MIFIC-MAGFOR Interministerial Decision No. 074-2006 of 1 December 2006.  Viewed at:  
http://legislacion.asamblea.gob.ni/Normaweb.nsf/ ($All)/EE3BA8133F6C7FD70625728E005D2E1B?Open 
Document. 
50 Law No. 705 of 13 April 2010. 
51 Resolution No. 175-2006 (COMIECO-XXXVIII) of 5 October 2006.  Viewed at:  
http://www.dga.gob.ni/circulares/2007/CT-034- 2007%20RES-175-2006%20 COMIECO%20X XXVIII.pdf. 
52 WTO document G/SPS/NNA/8 of 20 December 2004. WT/TPR/S/274 Trade Policy Review 
Page 56 
  
  relating to SPS measures applied by regional partners  that were having adverse effects on imports of 
Nicaraguan beef and dairy products. 
71. Nicaragua has not provided the WTO with any notifications concerning recognition of the 
equivalence of SPS measures.  The CACM member countries, apart from Costa Rica, recognize their 
respective health registers for food for human consump tion.  Importers of chemicals for industrial use, 
raw materials and animal feed require licences is sued by the DGPSA;  importers of pesticides, 
fertilizers, and any product or byproduct of animal or plant origin must apply for registration as a 
handler of these products.  The corresponding  application forms are available online53;  registration is 
granted automatically once the requirements have been met. 
72. Moreover, Nicaragua does not permit imports of  food, plants, animals or derived products 
unless MAGFOR's DGPSA or MINSA, whichever is competent, has issued a sanitary/phytosanitary 
import permit or free sale certificate (for food);  for this purpose, it is necessary to submit a phytozoosanitary certificate and a certificate of or igin.  The DGPSA maintains a database which can 
be used to make searches for the sanitary and ph ytosanitary requirements with which products of 
animal or plant origin must comply.
54  Pharmaceutical products, medical devices, machinery, 
equipment, spare parts, inputs and raw materials used  in the preparation of pharmaceutical products 
are subject to registration requirements and to impor t authorization by MINSA;  importers must also 
comply with registration and sanitary licensing requirements. 
73. According to the authorities, in determini ng sanitary or phytosanitary requirements as a 
condition for permitting imports, risks are assessed on th e basis of the health status of the exporting 
country and the goods to be imported, in accordance with OIE, Codex Alimentarius 
and IPPC recommendations.  In 2008,  the DGPSA lacked the operating capacity to cover the whole of 
production at national level, as well as to regist er agricultural inputs and the establishments that 
market them.55  Although, since then, progress has been ma de with computerization and registration, 
the technical personnel is still not adequate to meet the growing needs. 
(x) Other measures 
74. Nicaragua applies trade sanctions decided upon within the context of the United Nations 
or the regional organizations to which it belongs .  According to the authorities, no agreement to 
influence the quantity or value of goods and ser vices exported to Nicaragua has been signed.  
Nicaragua does not have any provisions relating to domestic content.  The Nicaraguan Basic Foods 
Enterprise (ENABAS), a public company, maintains a reserve stock of basic food products (purchased 
on the local market) in order to be able to  cope with national emergency situations. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures, documentation and registration 
75. Exports are subject to customs clearance pro cedures similar to those applying to imports 
(section (1)(i)).  The Exporters Register is ma intained by the Centre for Export Formalities 
                                                      
53 MAGFOR online information.  Viewed a t:  http://www.magfor.gob.ni/servicios.html. 
54 MAGFOR online information.  Viewed at:  http://190.212.165 .220/cuarentena/siauicltini/ 
wfinicio.aspx. 
55 MAGFOR (2008b). Nicaragua WT/TPR/S/274 
 Page 57 
 
 
  (CETREX), whose objective, as a single window, is to centralize and simplify export formalities.56  
Export formalities can be completed in CETREX's  various local offices or, since May 2006, 
online via the Integrated Export Formalities System (S iTrade).  The use of a customs broker to handle 
these formalities is optional;  in th is case, a notarized power of attorney from the exporter must be 
submitted to CETREX.57 
76. The documentation required for exports compri ses the customs declaration, the commercial 
invoice, the transport documents, and, where appr opriate, any special certificates and permits 
(see section (iv) below).  CETREX makes a charge for the services provided, depending on the f.o.b. value of the goods, with a minimum of  C$50 (exports valued at less than US$2,000.01) and 
a maximum of C$500 (exports from US$25,000.01).  This charge includes the costs of issuing the 
export declaration/FAUCA
58, the phytosanitary/zoosanitary expo rt certificate and the certificate 
of origin. 
(ii) Export taxes, levies and other charges 
77. Nicaragua does not apply duties, taxes or minimum prices to exports.  Exports are zero-rated 
for VAT, which enables exporters to obtain a refund of VAT paid on inputs and services incorporated 
in their production. 
(iii) Goods in transit 
78. International land transit within the CACM a nd between the member countries and Panama is 
governed by Resolution No. 65-2001 (COMRIEDRE ) of 16 March 2001, which establishes a full 
freedom of transit regime, with national treat ment in contracting for international land 
freight transport.  This Resolution amended the previous Regulations on the International Customs 
Transit Regime, together with their declaration fo rm (DTI) and instructions.  Since November 2010, 
SIECA has maintained a regional database on carriers and means of transport authorized for international customs transit by land.  The la ck or suspension of registration results in the 
disqualification of the carrier and/or means of transport.  The States parties have also begun 
to implement a regional land transit control system for the purpose of simplifying the 
corresponding formalities. 
79. Nicaragua has entrusted the preparation, printing and electronic transmission of the DTI to the 
Freight Transport Cooperative (COOTRACAR).  The tota l cost of this service and the customs seal 
is CA$13.50.
59  In addition to the DTI, goods not originati ng in States parties to the Central American 
Economic Integration Treaty must be accompanied by the export declaration (previously, 
FUE document), the commercial invoice, the tr ansport document and the cargo manifest;  
for Central American goods the FAUCA is required (see section (i) above). 
                                                      
56 The registration requirements are available on the CETREX Internet site.  Viewed at:  
http://www.cetrex.gob.ni/website /servicios/inscripcion.jsp. 
57 Optionally, CETREX may also deal with exports as a customs broker.  In this case, in addition to the 
tariff for the usual services, the exporter must pay US$10.00, as well as for the safety data sheets used for printing the customs declaration (C$5 per sheet). 
58 The FAUCA serves as a certificat e of origin, commercial invoice an d customs declaration for exports 
to CACM countries (section (1)(i)). 
59 CT-254-2009 of 29 D ecember 2009.  Viewed a t:  http://www.dga .gob.ni/circulare s/2009/CT-254-
2009%20-%20Auto.%20Elaborar%20Declaracion%20para%20transito%20aduaneroa%20internacional%20 
terrestre%20a%20COOTRACAR,%20R.L.pdf. WT/TPR/S/274 Trade Policy Review 
Page 58 
  
  (iv) Export prohibitions, restrictions and licensing regimes 
80. Nicaragua prohibits exports of:  roundw ood of forest species, timber and sawn wood60;  
lobsters during their reproductive phase or when m oulting or spawning (with eggs), Caribbean spiny 
lobsters ( Panulirus argus ) less than 4.5 inches in size and Pacific spiny lobsters (Palinuridae) less 
than 3.5 inches in size;  estuary shrimps in the larval or juvenile phase;  and sawfish and bull shark 
(Carcharhinus leucas ).  In accordance with its international environmental and public health 
commitments, Nicaragua prohibits the export of hazardous and other wastes.61 
81. In 2007, Nicaragua fixed the minimum weight  for the exportation of live bovine animals 
(HS 0102.90.00.00) at 350 kg and prohibited the e xport of female bovine animals suitable for 
breeding purposes;  it also established a quantita tive annual export quota for 35,000 head of cattle 
with a minimum weight of 250 kg per head, allocated on a first-come, first-served basis.62  
Moreover, exports of leather and raw hides and skin s of bovine animals (HS 41.01) were suspended 
for one year and exports of leather and semi-process ed hides (HS 41.04 and 41.07) were regulated in 
such a way that at least 20 per cent of the domes tic production of these products is earmarked for the 
Nicaraguan processing industry.63 
82. Exports of a number of goods require prior au thorization and/or controls.  Green coffee 
exporters must register their contracts in advance and submit a Coffee Quality Export Certificate (issued by the National Coffee Council (CONACAFE)), together with a certificate of origin from the 
International Coffee Organization.  CETREX main tains a database which can be used to make 
searches for export requirements by product.
64  According to the notification made by the authorities 
to the WTO, Nicaragua does not issue export licences w ithin the context of free trade agreements that 
stipulate bilateral tariff quotas.65 
(v) Subsidies and tariff and tax concessions 
83. In 2012, Nicaragua notified the WTO that it had not granted any subsidies within the meaning 
of the Agreement on Subsidies and Countervailing Measures and that neither had it granted any 
export subsidies within the meaning of the Agreement on Agriculture.66  Nicaragua grants various 
duty and tax reductions and exemptions under the fr ee zone regime and the temporary admission for 
inward-processing and export facilitation procedure (Chapter II(4)). 
84. Under the Fiscal Equity Law67, between 2003 and 2010 producers were eligible for 
a tax credit of 1.5 per cent of the f.o.b. value of  their exports, which was deducted from the exporter's 
annual income tax, subject to proof that the benefit had been passed on to the producers. 
                                                      
60 With the exception of wood from plantations and pine trees ( Pinus sp ) and in special cases such as 
the damage caused by Hurricane Felix (Law No. 585 of 21 June 2006 and Presidential Decree No. 81-2009). 
61 Law No. 217 of 6 June 1996, as amended by Law No. 647 of 3 April 2008. 
62 Ministerial Decision MIFIC No. 029-2007 of 6 July 2007, amending Decision MIFIC No. 63-2001 
of 20 December 2001.  Viewed a t:  http://www.dga .gob.ni/circulare s/2007/CT-085-20 07%20ACUERDO%20 
MIFIC-029-2007%20EXPORT-GANADO%20EN%20PIE.pdf. 
63 Ministerial Decision MIFIC No. 030-2007 of 11 July 2007. 
64 CETREX online information.  Viewed at:  http://www.cetrex.gob.n i/website/institucion/ 
reqexpproducto.jsp. 
65 WTO document G/LIC/N/3/NIC/2 of 19 July 2010. 
66 WTO documents G/SCM/N/220/NIC of 13 June 2012 and G/AG/N/NIC/29 of 10 May 2012. 
67 Law No. 453 of 29 April 2003. Nicaragua WT/TPR/S/274 
 Page 59 
 
 
  (vi) Export promotion, financing, insurance and guarantees 
85. The National Committee for the Promotion of Exports (CNPE), created in 1991, 
is responsible for export pr omotion and facilitation policy.68  Its functions include the administration 
of the temporary admission fo r inward-processing procedure (Chapter II(4)) and the definition 
of CETREX's general policy.  The CNPE is comp osed of four Ministers (Development, Industry 
and Trade;  Finance and Public Credit;  Agriculture  and Forestry;  and the Environment and Natural 
Resources) and five representatives of th e private-sector exporters associations. 
86. The Nicaragua Centre for Export and Investment  (CEI) is a private non-profit company that 
promotes the integration of micro, small and medi um-sized businesses into international markets.  
The CEI provides various services in the following strategic areas:  competitive intelligence;  business 
development;  merchandizing and promotion;  in ternational marketing;  and joint ventures and 
strategic alliances.69  The CEI does not receive any budgetary support from the State. 
87. One of the tasks of the Association of Pr oducers and Exporters of Nicaragua (APEN), 
a non-profit organization, is to support Nicaraguan producers with a view to making them stronger 
and promoting their internationalization.  The servi ces offered by the APEN include the facilitation of 
business meetings;  training;  commercial intellig ence;  assistance with export formalities;  
and technical assistance with the implementation of cattle traceability and management systems.  
APEN does not receive any budgetary support from the State. 
88. Created in November 2007, the Bank for the Promotion of Production (PRODUZCAMOS) 
provides financial services and technical assistance with  a view to contributing to the development of 
domestic production, with the focus on production for export.70  PRODUZCAMOS manages 
resources that come from the Treasury, financial in stitutions and international cooperation bodies and 
can carry out ordinary banking operations, apart from taking deposits from the public.  
On 30 June 2012, the funds under its manageme nt amounted to C$1.37 million (around US$57,800), 
of which almost half was for agricultural project s.  In addition to various credit programmes, 
PRODUZCAMOS offers financial services, such as leasing and factoring. 
(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
89. In addition to export incentives (see section (2 )(iv) above), Nicaragua maintains various 
sectoral incentives.  The Law on Incentives for th e Tourism Industry provides for exemptions from 
import duties and taxes and VAT in connection with the local purchase of materials, equipment 
and vehicles, as well as exemptions from income tax and real-estate tax for a period of ten years.71  
Eligible tourism activities include:  hotel industry services;  duly authorized investment in protected areas of touristic, ecological or cultural interest;  air and water transport and public land transport for 
tourists;  food, drink and entertainment services;  renting of land and water vehicles to tourists;  and 
investment (direct or indirect) in the developm ent of tourism activities a nd Nicaraguan handicrafts. 
                                                      
68 Decree No. 37-91 of 26 August 1991. 
69 Online information from the CE I.  Viewed at:  http://www.cei.org.ni/contenido.php?lvl=15&lvl2= 
21&lvl3=55. 
70 Law No. 640 of 20 November 2007, as amended by Law No. 684 of 2 May 2009. 
71 Law No. 306 of 2 September 1999.  Viewed at:  http://www.intur.gob.ni/DOCS/inversiones/ 
ley_306.pdf. WT/TPR/S/274 Trade Policy Review 
Page 60 
  
  (ii) Price controls and competition policy 
(a) Price controls 
90. Nicaragua continues to regulate the prices of pharmaceutical products for human 
consumption, airport services and the services provided by the National Port Authority 
(see section (i) below), as well as electricity  rates (transmission and public consumption)72 and the 
prices of bottled LPG, sanitary sewerage services a nd drinking water for public consumption. 
91. MIFIC's Consumer Protection Directorate sets the maximum selling prices for pharmaceutical 
products.  For imported branded pr oducts, the maximum wholesale price is based on the c.i.f. value 
plus 3 per cent for "clearance costs" and a marg in of 34 per cent;  to obtain the cap for the 
corresponding retail price, a margin of 30 per cent is added to the maximum wholesale price.73  
Wholesalers may adjust the maximum prices within the crawling peg band established by the Central 
Bank of Nicaragua, provided MIFIC is given one week's notice. 
92. The Nicaraguan Energy Institute (INE) sets th e maximum price of bottled LPG with respect 
to the international price, making a crawling peg adjustment every 28 days.  The INE can sanction 
traders who sell above that price. 
(b) Competition policy 
93. At the end of 2006, Nicaragua adopted th e Law on the Promotion of Competition and 
its regulations, which entered into force on 25 June 2007.74  The Nicaraguan legislation governs 
the following areas:  anti-competitive agreements;  abuse of dominant position;  and concentrations 
(mergers and acquisitions).75  Generally speaking, Nicaragua pr ohibits any agreement or concerted 
practice between economic operators for the purpose of  restricting competition, including by denying 
access to an economic operator or forcing it out of the market.  The Law on the Promotion of Competition contains an illustrative list of prohib ited behaviour and practices, which are summarized 
in Table III.10. 
Table III.10 
Definitions of anti-competitive behaviour and corresponding sanctions 
Description of behaviour Details 
Practices between competing economic operators :  fixing the price 
or other conditions of sale or purchase of goods or services (or 
exchanging information for the same purpose or with the same 
effect);  dividing up an existing or potential market for goods and 
services;  working together to drive other companies out of the market or limit market access;  limiting output or the number, 
volume or frequency of services;  and coordinating bids in any form 
of tender proceedings (except in  the case of a joint bid).  May be sanctioned with a fine of 100 to 10,500 minimum wages or, 
if particularly serious, 1 to 10 per cent of the annual sales of the 
offender during the previous tax year. 
                                                      
72 Large consumers (1 MW of demand) can negotiate supply contracts freely with the generating 
companies. 
73 In the case of products classified as generic by the Ministry of Health, 28 per cent (wholesaler's 
margin) is added to the base (c.i.f. value plus 3 per cent);  the retail price is the maximum wholesale price plus 32 per cent (Ministerial Decision No. 029-2009 of 24 June 2009). 
74 Law No. 601 of 28 September 2006, as amended by Law No. 773 of 24 October 2011, and Decree 
No. 79-2006 of 21 December 2006. 
75 The practices of public entities are covered by the Law on the Promotion of Competition.  However, 
with respect to public aid, the competition authority can only give opinions on the formulation of sectoral laws 
and make policy proposals. Nicaragua WT/TPR/S/274 
 Page 61 
 
 
  Description of behaviour Details 
Practices between non-competing economic operators :  
concluding agreements with cond itions that exclude commercial 
relations with the competition, or  unjustified exclusive distribution 
agreements;  imposing prices and/or other conditions on a 
distributor or retailer;  selling or providing services on condition 
that another good or service is purchased;  purchase or sale subject to the requirement not to purchase or sell third-party goods or 
services;  discriminating against a particular economic operator 
(except where justified by breach  of contractual obligations), 
by refusing to do business when there are no alternative suppliers 
in the relevant market;  imposi ng unequal conditions for equivalent 
services and thus placing some competitors at a disadvantage as compared with others;  agreeing to exert pressure on a customer or 
supplier, for the purpose of taking reprisals or forcing him to act in 
a particular way;  and predatory practices. These practices are prohibited when :  they are engaged in within 
the context of a dominant position in the relevant market;  and/or 
prevent or limit access by compe titors or force them out of the 
market;  and/or have the effect  of harming the interests of 
the consumers.  They may be sanctioned with a fine of 25 
to 8,000 minimum wages or, if particularly serious, 1 to 6 per cent of the annual sales of the offende r during the previous tax year. 
Unfair competition :  any act carried out by economic operators in 
the exercise of a trading activity that is contrary to honest commercial usage and practice and that causes actual injury or 
proven threat of injury.  A non-exha ustive list includes:  deception;  
trade libel;  arbitrary comparison or misrepresentation;  conspiring to steal trade secrets or blackmail employees of competitors;  
attempts to mislead;  fraud;  inducement to infringe contractual 
obligations undertaken with comp etitors;  and imitation (in the 
case of an exclusive right recognized by the Law). May be sanctioned with a fine of 25 to 8,000 minimum wages or, 
if particularly serious, 1 to 6 per cent of the annual sales of the 
offender during the previous tax year. 
Concentration :  merger of businesses, which then cease to be 
independent;  act of transferring to one economic operator the 
assets of, or control over, another economic operator.  Concentrations whose effect is or could be to restrict free business 
competition are prohibited (except in the case of an economic 
operator in a state of insolvency).  The penalty for not having 
notified a concentration subject to the notification obligation 
is 100 to 600 minimum wages. 
Source : Law on the Promotion of Competition and its regulations (Article 46), 2006. 
94. The National Institute for the Promotion of  Competition (PROCOMPETENCIA), a technical 
public-law administrative tribunal with administra tive and budgetary autonomy, was set up to apply 
the new legal framework and has been operati onal since May 2009.  PROCOMPETENCIA can act 
ex officio or on receipt of a complaint, which may be lodged by any econom ic operator or legally 
constituted organization with a leg itimate interest;  in cases of unfair competition (Table III.10) it acts 
only on receiving a complaint.76  In all proceedings concerning the application of the Law on the 
Promotion of Competition, the burden of proof rests with the complainant.  After a period for lodging 
claims and producing evidence (130 days in total), the case file is forwarded to the President of 
PROCOMPETENCIA for a reasoned ruling, which must  be handed down within a period of 60 days, 
which can be extended once for a further 30 days.  Th e Law provides for an application for review to 
the President of PROCOMPETENCIA and an appeal  to its Executive Council.  The ruling on the 
appeal exhausts the administrative proceedings;  the ne xt step is an amparo application to the Supreme 
Court of Justice.  PROCOMPETENCIA does not de termine damages;  the economic operators 
affected (including third parties) can br ing an action for damages in the courts. 
95. Nicaragua's competition regime follows the doctrine of effects on the domestic market, 
common in many jurisdictions;  export-oriented anti-competitive practices (including cartels) which 
have no effect on the Nicaraguan market are excl uded from its scope.  Insofar as they do not involve 
anti-competitive practices, the exercise of intell ectual property rights and acts aimed at improving 
production and/or marketing efficiency are exempt ed.  Actions undertaken by the State for the 
purpose of safeguarding the health and food and nutritional security of the Nicaraguan population 
also fall outside the scope of the Law.  Moreover, anti-competitive practices that have their origin in 
                                                      
76 PROCOMPETENCIA can make ex officio assessmen ts of competition in whole sectors and is 
authorized to seek information of all kinds, provided that constitutional guarantees are respected. WT/TPR/S/274 Trade Policy Review 
Page 62 
  
  regulations issued by regulatory entities must be resolved by those entities, after obtaining 
PROCOMPETENCIA's opinion;  in this case the publication of the opinion must act as a moral sanction, since the Nicaraguan legislation does not pr ovide for any remedy if this opinion is not taken 
satisfactorily into consideration. 
96. Concentrations which result in a share equal to  or greater than 25 per cent of the "relevant 
market", or which exceed the threshold of 642,85 7 minimum wages with respect to the combined 
gross incomes of the economic operators to be  merged are subject to prior notification.
77  
PROCOMPETENCIA must examine the proposed concen tration within a period of 30 working days 
for the purpose of determining whether it would result in a significant limitation of competition;  if an 
investigation is deemed necessary, its maximum dur ation will be 180 days.  Ho wever, concentrations 
may not be rejected if there is a potential for signifi cant gains in efficiency an d direct benefits for the 
consumer, provided it can be shown that these gains cannot be achieved by other means and that the 
concentration will not result in a reduction in supply on the market. 
97. The first economic operator to report to PR OCOMPETENCIA anti-competitive behaviour of 
which PROCOMPETENCIA was not previously aware w ill be exempted from any pecuniary sanction 
imposed on the other participants in that activ ity.  The Nicaraguan regime does not include a 
programme of leniency for a possible second pa rticipant that cooperates with PROCOMPETENCIA 
in the investigation of the behaviour in questi on.  In addition to the sanctions summarized in 
Table III.10, PROCOMPETENCIA may sanction ec onomic operators for unfounded complaints 
intended to limit competition;  the maximum amount is that which would have been imposed if the 
offence had been proved.  PROCOMPETENCIA can also impose sanctions, of 15 minimum wages, 
for each day of delay, on economic operators that do  not satisfactorily comply with its requirements 
for the provision of information;  natural persons who participate directly as secondary parties or 
accessories after the fact may receive a fine of between 15 and 100 minimum wages.  The Law on the 
Promotion of Competition does not provide for criminal sanctions. 
98. Despite the fact that it has been in opera tion for less than three years, PROCOMPETENCIA 
has dealt with a number of cases (Table III.11);  the complaints received most often relate to the 
telecommunications market and banking services.  PROCOMPETENCIA has also carried out an ex officio investigation into an unnotified economic concentration in the telecommunications 
market.  PROCOMPETENCIA has signed cooperation ag reements with the competition authorities of 
El Salvador, Costa Rica, Panama, Mexico and Sp ain.  These are goodwill agreements, with certain 
restrictions where confidential information is concerned. 
Table III.11 
Enforcement of the Law on the Promotion of Competition, 2009-2012 
 2009 2010 2011 2012a
Total complaints/applications, of which 1 13 6 5 
Concentration notifications 0 1 3 1 
Proceedings and investigations initiated, of which 1 13 6 5 
Practices between competing economic operators 0 10  0 
Practices between non-competing economic operators 0 0 1 1 
Unfair competition 0 2 2 3 
Concentrations 0 1 3 1 
                                                      
77 In both cases, the cost of notification depends on the amount of the assets to be merged:  
up to US$20 million (US$20,000), more than US$20 million and up to US$35 million (US$35,000);  and 
more than US$35 million (US$45,000). Nicaragua WT/TPR/S/274 
 Page 63 
 
 
   2009 2010 2011 2012a
Completed proceedings and inves tigations, of which 1 12 4 2 
Practices between competing economic operators 1 10 0 0 
Practices between non-competing economic operators 0 0 0 0 
Unfair competition  0 2 2 2 
Concentrations, of which 0 1 0 .. 
  Rejected/abandoned 0 0 0 .. 
  Authorized with corrective measures 0 1 2 .. 
Advisory opinions (all areas) 0 0 0 .. 
Total amount of fines and pecuniary sanctions (US$) 0 13,846 22,985 .. 
Appeals and applications for review 0 11 3 .. 
Decisions rescinded/ame nded on appeal 0 0 0 .. 
.. Not available. 
a Up to August. 
Source : Data provided by PROCOMPETENCIA. 
(iii) State participation in the economy and State-owned enterprises 
99. Nicaragua has not made any notification to th e WTO concerning the activities of state trading 
enterprises within the meaning of Article XVII of the GATT. 
100. State participation in the economy remains reduc ed, since most of the privatizations took 
place prior to the period under review.  The State continues to intervene to safeguard or support 
certain important and/or strategic activities, such as the supply of water and the administration of 
ports and airports (Table III.12). 
Table III.12 
State participation in the economy, 2006 and 2012 
Enterprise State participation 
Area(s) of activity Prerogatives 
2006 2012 
International Airports Management 
Company (EAAI) 100% 100% Nicaragua's international 
airports operator.  Collects 
taxes generated by tourists entering the country Enjoys the incentives granted by 
Law No. 303 (Law on Incentives 
for the Tourism Industry), including exemption from the payment of 
duties and taxes on imports of airport 
beacon equipment, ramp equipment and radio aids.  
Nicaraguan Water Supply and Sewage Company (ENACAL) 100% 100% Drinking water and 
sanitary sewerage services Exempt from the payment of VAT 
and import duties  
National Lottery 100% 100% Non-profit entity that 
manages the sale of lottery 
tickets to generate financial resources 
for government 
social projects  .. 
Nicaraguan Basic Foods Company 
(ENABAS) 100% 100% Building up of stocks, 
storage and distribution 
of basic foods for coping with national 
emergency situations;  
cannot carry out import or export operations  Exempt from the payment of 
income tax  WT/TPR/S/274 Trade Policy Review 
Page 64 
  
  Enterprise State participation 
Area(s) of activity Prerogatives 
2006 2012 
National Port Authority (EPN) 100% 100% Provision of port services 
in maritime, river and lake port facilities owned by 
the EPN  So far, only EPN manages 
Nicaragua's international ports (these can be allocated to private 
operators on concession).  
Stevedoring services are provided by three private concessionaires 
(their tariffs are not regulated).  
National Electricity Transmission 
Company (ENATREL) 100% 100% Electricity transmission 
and related activities;  
marketing of surplus optic 
fibre communications capacity (without last mile service) Monopoly on electricity 
transmission.  Exempt from the 
payment of duties and taxes of any 
kind, including those levied on the importation or local purchase of machinery and inputs for its activities
Nicaraguan Electricity Company (ENEL) 100% 100% Electricity generation and 
marketing;  distribution of electricity in 
non-concession areas. Enjoys the incentives granted by Law 
No. 272 (Law on the Electricity Industry) - the assets of any 
enterprise (public or private) are 
exempt from the payment of duties and taxes of any kind, including 
those levied on the importation or 
local purchase of machinery and inputs for its activities. 
Hydroelectric Generation Company, S.A. (HIDROGESA) 100% Liquidated, 
assets absorbed 
by ENEL Electricity generation 
and marketing   
Momotombo Generating Company, 
S.A. (GEMOSA) 100% Liquidated, 
assets absorbed 
by ENEL Electricity generation 
and marketing   
Central Generating Company, S.A. 
(GECSA) 100% Liquidated, 
assets absorbed 
by ENEL Electricity generation 
and marketing   
Nicaraguan Import Company 
(ENIMPORT) 100%  100%  Public bonded 
warehousing 
 .. 
Regional Construction Enterprises 
Corporation (COERCO) 100%  100%  Construction  .. 
.. Not available. 
Source : Information provided by the Nicaraguan authorities. 
(iv) Government procurement 
101. Since its last Review, Nicaragua has moderni zed its legislative framework for government 
procurement by adopting the Law on Gove rnment Procurement and its regulations78, which entered 
into force on 9 February 2011, and the Law on Municipal Procurement and its regulations, which 
entered into force in September 2007.79  Nicaragua is not a party to the WTO's Plurilateral Agreement 
on Government Procurement. 
102. From the operational standpoint, government pr ocurement in Nicaragua is decentralized, 
although the broad rules laid down in the general le gislation must be followed.  Each contracting 
                                                      
78 Law No. 737 of 19 October 2010, which replaced Law No. 323 on Government Procurement 
of 4 January 2000. 
79 Law No. 622 of 16 May 2007. Nicaragua WT/TPR/S/274 
 Page 65 
 
 
  entity is responsible for its own planning and makes purchases on the basis of that planning and the 
financial resources available.  The governing body  for government and municipal procurement, the 
Directorate-General of Government Procurement ( DGCE) of the Ministry of Finance and Public 
Credit, is responsible for creating the relevant me chanisms, rules and procedures, as well as for the 
management of the Electronic Government Proc urement System (SISCAE) and its register.80 
103. The Law on Government Procurement applies to all State bodies, including the autonomous 
entities, the funds from the General Budget of th e Republic administered by the universities, 
the State-owned enterprises (ex cept when exposed to competition)81 and any institution in which the 
State has a majority interest.  The provisions of this Law do not apply to public contracts entered into 
in the following circumstances:  international cont racts concluded by the Executive that require the 
approval of the National Assembly;  procurement fi nanced with international funds;  procurement 
abroad exclusively for the use of  the institution providing the service in question outside the country;  
and public services provided for indeterminate users in  exchange for a tariff of general application 
(including transport).  Purch ases and procurement by the municipalities and the municipal sector 
(municipal enterprises, partnerships and cons ortia) are governed by the Law on Municipal 
Procurement.  Procurement covered by the free trade agreements signed by Nicaragua is subject to the 
procedures stipulated therein. 
104. The procurement procedures employed in the public sector are as follows:  open tendering 
(amounts greater than C$3 million);  selective tendering (competition among at least five suppliers, amounts greater than C$500,000 and up to C$3 million);  minor procurement (competition among at 
least three suppliers, amounts up to C$ 500,000);  simplified procurement
82;  and competition for the 
selection of consultants (award determined by techni cal qualifications rather than price).  Under the 
selective tendering, minor procurement, simplified procurement and competition procedures, the fact 
of not having been invited does not preclude a possi ble supplier from participating.  With respect to 
municipal procurement, the procedures applicab le are:  open tendering (amounts greater than 
C$2.2 million);  register-based tendering (suppliers en rolled in the municipality's register of suppliers 
are invited, amounts greater than C$990,000 and l ess than C$2.2 million);  and quotation-based 
purchase (amounts not greater than C$990,000).  Any natural or legal person wishing to submit a bid 
must be enrolled in the register of public sector suppliers or the register of suppliers of the 
municipality concerned, as appropriate.83 
105. The government procurement legislation does not contain any provisions granting more 
favourable treatment to domestic suppliers of goods, services or public works.  The municipal 
procurement regime provides for a preferential margin of 10 per cent for municipal labour, granted in 
accordance with the following criteria:  the per centage of human resources from the municipality 
(public works);  goods produced in the municipality , except for inputs (supply of goods);  and bidders 
legally domiciled in the municipality (services and advice, leasing of movable property).  
                                                      
80 The SISCAE is being extended to include purchases made by municipalities;  this process is not 
yet complete. 
81 Every State enterprise must produce a procuremen t manual and submit it to the DGCE for approval. 
82 The use of simplified procurement must be approved by the highest authority and is permitted only 
in the following specific cases:  procurement exclusively for police or military purposes;  emergency situations that totally interrupt the operations of the procuring entity;  only one supplier in the market;  purchase of 
supplies for the operation of the contracting entity, with out commercial intent;  purchases made using the petty 
cash fund;  and inter-administrative c ontracts between public-sector bodies or entities.  All the publication and 
evaluation requirements must also be met. 
83 One and the same supplier may be enrolled in the registers of several municipalities and may only 
participate in the tendering procedures of those municipalities. WT/TPR/S/274 Trade Policy Review 
Page 66 
  
  Foreigners may participate in any tender proceedi ngs, provided that they comply with all the 
requirements laid down. 
106. Invitations to tender or compete must be pub lished in the SISCAE, without prejudice to the 
use of other publication mechanisms;  municipal proc urement is subject to compulsory publication in 
the Official Journal.  Bids may be submitted in writing or in electronic form, provided they cannot 
be altered;  the period for submitting bids may not be less than 30 calendar days.  Once the invitation 
has been duly published, an award may be made if  a single bid is submitted, provided that that bid 
meets the stipulated requirements.  The contracting entity makes the award by means of a reasoned decision, which must be notified to the bidders within a maximum of two working days;  if the 
bidders do not challenge the decision, it is published in the SISCAE. 
107. Bidders must lodge their appeals at the corre ct stage of the administrative procurement 
process;  transition, without objections, to the ne xt stage presupposes the waiver of any claim based 
on alleged irregularities in the previous stage.  In the case of government procurement, these stages 
are:  remedy of objection (in open tendering, prior to the submission of bids);  petition for clarification 
(three days before the expiration of the period for th e evaluation of bids);  le gal challenge (filed with 
the Office of the Procurator General of the Republic , with copy to the highest administrative authority 
of the contracting entity, within three working days of the notification of the award);  and remedy of 
annulment (appeal for annulment to the Office of  the Comptroller General of the Republic during 
the ten working days following notification rejecting th e challenge, or if the Office of the Procurator 
General of the Republic has not ruled within a peri od of ten working days).  The stages are the same 
for remedies envisaged in the Law on Municipal Proc urement but with some differences with respect 
to time limits:  petition for clarification/objection to  the terms and conditions (within the first half 
of the period stipulated for submitting bids);  lega l challenge (must filed with  the Mayor (Alcalde) of 
the municipality within three days of notification of the recommendation issued by the Tender Committee);  and appeal for annulment (mus t be filed with the Office of the Comptroller 
General of the Republic within ten calenda r days of notification of the award). 
108. Without prejudice to the penalties laid down in the criminal law, violation of the government 
procurement regulations may give rise, dependi ng on the circumstances, to disciplinary or 
administrative sanctions.  Depending on the serious ness of their misconduct, the civil servants of a 
procuring entity or municipal officials are liable to dismissal, suspension without pay or a written 
warning.  A contractor in breach of contract may be suspended from the corresponding register of 
suppliers for up to one year;  serious offen ces are punished with suspension for a period of 
from one to three years.
84  Where there is prima facie evidence of a criminal offence, the case is 
referred to the Office of the Procurator General of  the Republic;  various te rms of imprisonment may 
be imposed, depending on the seriousness of the offence. 
109. According to the authorities, Nicaragua gran ts national treatment within the context 
of government procurement to all its trading pa rtners.  The purpose of the relevant provisions85 
contained in the free trade agreements to which Nica ragua is party is to open up foreign markets and 
to ensure certainty in th e dispute settlement process. 
                                                      
84 The sanctions imposed on contractors do not ha ve retroactive effect and therefore will not 
affect contracts that are still running when the sanctions are applied.  Sanctions may not be imposed more than 
one year after the date of the offence. 
85 Chapter XII of the Free Trade Agreement betwee n Central America and the Dominican Republic;  
Chapter 16 of the Free Trad e Agreement between Central America and Ch ile;  and Chapter 16 of the Free Trade 
Agreement between Central America and Panama. Nicaragua WT/TPR/S/274 
 Page 67 
 
 
  (v) Protection of intellectual property 
110. Nicaragua's legal framework in the area of in tellectual property rights (IPR) did not change 
much during the review period.  The Law on Ancestral Traditional Medicine86, adopted in 2011, 
defines traditional knowledge and bio-piracy, as well as the requirements for collective IPR patents.  
Since its last Review, Nicaragua has also acceded  to the Lisbon Agreement on the Protection of 
Appellations of Origin (in force in its territory  since 15 June 2006), the Budapest Treaty on the 
International Recognition of the Deposit of Microor ganisms for the Purposes of Patent Procedure 
(in force since 10 August 2006) and the Trademark Law Treaty (in force since 22 September 2009).  Nicaragua has notified the WTO of its IPR laws and regulations (Table III.13);  the Council for 
TRIPS examined the Nicaraguan IPR legislation in 2001.
87 
111. Nicaragua has entered into commitments on IP Rs under several free trade agreements to 
which it is party, in particular the FTA between  the Dominican Republic, Central America and the 
United States (CAFTA-DR), the FTA between Cent ral America and the Dominican Republic, the 
FTA between Central America and Panama, the FTA between Central America and the Republic of 
Chile, the FTA between Mexico and Nicaragua, and the FTA between Chinese Taipei and Nicaragua.  
The Association Agreement between Central Ameri ca and the European Union, which has not yet 
entered into force, also contains provisions relating to IPRs. 
Table III.13 
Outline of IPR protection, 2012 
Legislation Coverage Term of protection Sanctions 
Copyright and related rights   
Law No. 312 of 
1 September 1999;  
Decree No. 22-2000 
of 5 May 2000;  Law No. 577 of 
16 March 2006 Literary, artistic and scientific 
works (including databases which, 
by reason of the selection or 
arrangement of their contents constitute intellectual creations);  
computer programs;  and the rights 
of performing artists, phonogram producers and broadcasting 
organizations Copyright, entire life of the author 
plus 70 years after his/her death 
Rights of the performer, the 
phonogram producer or broadcasting organization, 70 years 
from 1 of January of the year 
following that of first publication, broadcasting or performance 90 to 150-day fine or imprisonment 
for 6 months to 2 years and specific 
disqualification for unauthorized 
exercise of copyright and related rights;  300 to 500-day fine or 
imprisonment for 1 to 3 years and 
specific disqualification for unlawful reproduction  
Law No. 322 of 16 December 1999;  Decree No. 44-2000 
of 6 October 2000;  
Law No. 578 of 24 March 2006 Wire-borne or wireless 
programme-carrying signals, including broadcasts going to or 
passing through a satellite Protection of programme-carrying 
satellite signals, 50 years from the first of January of the year following 
that of broadcasting 300 to 500-day fine or 
imprisonment for 1 to 3 years and specific disqualification 
                                                      
86 Law No. 759 of 4 July 2011. 
87 WTO document IP/Q/NIC/1 of 13 February 2002. WT/TPR/S/274 Trade Policy Review 
Page 68 
  
  Legislation Coverage Term of protection Sanctions 
Patents, utility models and industrial designs   
Law No. 354 of 
25 September 2000;  
Decree No. 88-2001 of 28 September 2001;  
Law No. 579 of 
21 March 2006;  Law No. 634 of 
13 September 2007;  
Decree No. 16-2006 of 9 March 2006 Inventions;  utility models and 
designs;  and industrial designs 
The following are excluded from 
protection by patents for invention 
or utility models:  animal breeds;  
therapeutic, surgical or diagnostic methods for the treatment of 
humans or animals;  inventions 
whose commercial exploitation must be prevented to protect public 
order, morality, or human, animal or 
plant health or life, or to preserve the environment;  processes (no 
protection by patents for utility 
models) and chemical, metallurgical or any other substances or 
compositions (no protection by 
patents for utility models) Patent, 20 years non-renewable, 
utility model, 10 years 
non-renewable;  industrial design, three years of protection without 
formalities and 5 years by 
registering the design (renewable for 2 additional 5-year periods) 300 to 500-day fine or 
imprisonment for 1 to 2 years and 
specific disqualification for the same period in the case of patent, 
utility model or industrial design 
fraud;  300 to 500-day fine or imprisonment for 1 to 3 years 
and specific disqualification for 
infringement of patent, utility model or industrial design rights 
Law No. 324 of 
1 February 2000;  
Decree No. 38-2001 of 18 April 2001 Integrated circuit layout-designs 
or topographies Registration of an integrated 
circuit layout-design, 10 years 
non-renewable 
 300 to 500-day fine or 
imprisonment for 1 to 3 years 
and specific disqualification for the same period 
Trademarks and other distinctive signs   
Law No. 380 of 
16 April 2001;  Decree No. 83-2001 
of 27 September 2001;  
Law No. 580 of 21 March 2006 Trademarks (including collective 
and certification marks), distinctive signs (logos, emblems, geographical 
indications, designations of origin), 
trade names, domain names  Registration of a trademark, 
10 years (renewable indefinitely for periods of 10 years and subject 
to cancellation if the trademark is 
not used for a continuous period of 3 years) 
Trade names (including logos and 
emblems), the exclusive right is acquired when the name is first 
used in trade and ends when the user 
abandons it or ceases activities 
Registration of a designation of 
origin, indefinite duration 300 to 500-day fine or 
imprisonment for 1 to 3 years and specific disqualification for 
the same period 
New plant varieties   
Law No. 318 of 
29 November 1999;  
Decree No. 37-2000 of 31 May 2000 All genera and species that meet 
the requirements of novelty, 
distinctiveness, uniformity, stability and acceptable denomination Registration of the breeder's right, 
20 years non-renewable  300 to 500-day fine or 
imprisonment for 1 to 3 years 
and specific disqualification for the same period 
Source : Information provided by the Nicaraguan authorities. 
112. Nicaragua's patent legislation provides for the granting of compulsory licences for reasons of 
public interest or national emergency, or to control any anti-competitive practice.88  These licences are 
non-transferable and are granted by the Intellectua l Property Registry mainly to supply the domestic 
market and provide for adequate remuneration according to the circumstances of each particular case.  Where the patent protects any kind of semiconductor technology, a compulsory licence may be granted only for non-commercial public use, or to c ontrol a practice declared to be anti-competitive.  
A person who requests a compulsory licence must show that he has been unable to obtain a 
contractual licence from the owner of the patent w ith a reasonable term a nd on reasonable commercial 
conditions.  This requirement need not be met in cases of extreme urgency, non-commercial use of the 
invention by a public body or cont rol of an anti-competitive practice. 
                                                      
88 The lawful exercise of a patent right does not in clude practices that unduly affect free competition or 
constitute an abuse of dominant market position. Nicaragua WT/TPR/S/274 
 Page 69 
 
 
  113. In general, a right holder protected by the Law on Trademarks and Other Distinctive Signs, 
who has valid grounds for suspecting that preparati ons are being made to import or export products 
which infringe that right, may apply to the competen t court to order the customs authority to suspend 
the importation or exportation of the products at the time of clearance.  The person applying for 
border measures must supply the customs authorities with the necessary information and a description 
of the goods sufficiently detailed and precise as to make them readily identifiable and recognizable. 
114. With respect to parallel imports of goods pr otected by IPRs, the Nicaraguan legislation 
stipulates that the owner of a patent or register ed trademark does not have the right to prohibit 
a third party from engaging in commercial acts in re lation to a protected product that has been brought 
onto the market in any country by the owner him self or by another person who has the owner's 
consent or is economically connected with him, provided that the product has not undergone any 
change.89 
 
                                                      
89 Law No. 380 (Article 29) and Law No. 354 (Article 47).