WT/TPR/S/336/Rev.1  
1 August  2016 
(16-4080) Page: 1/116 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
HONDURAS  
Revision  
This report, prepared for the third Trade Policy Review of Honduras, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
estab lishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Honduras on its trade policies 
and practices.  
 
Any technical questions arising from this report may be addre ssed to Mr Angelo Silvy 
(022 739 52 49) and Mrs Eugenia Lizano (022 739 65 78).  
 
Document WT/TPR/G/336  contains the policy statement submitted by Honduras.  
 
 
Note: This report was drafted in Spanish.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  11 
1.1   Economic structure and structural adjustment  ................................ ..............................  11 
1.2   Production and employment  ................................ ................................ .......................  14 
1.3   Fiscal policy  ................................ ................................ ................................ .............  14 
1.4   Mone tary and exchange -rate policy and prices  ................................ ..............................  17 
1.5   Balance of payments and external debt  ................................ ................................ ....... 18 
1.6   Goods trade and investment flow s ................................ ................................ ..............  20 
1.6.1   Composition of trade  ................................ ................................ ..............................  20 
1.6.2   Geographical distribution  ................................ ................................ ........................  21 
1.6.3   Trade in services  ................................ ................................ ................................ ... 24 
1.6.4   Foreign direct investment ................................ ................................ ........................  25 
1.7   Outlook  ................................ ................................ ................................ ...................  27 
2   TRADE AND INVESTMENT  REGIME  ................................ ................................ ............  28 
2.1   General framework  ................................ ................................ ................................ ... 28 
2.2   Trade policy objectives  ................................ ................................ ..............................  31 
2.3   Trade agreements and arrangements  ................................ ................................ ..........  32 
2.3.1   WTO ................................ ................................ ................................ ....................  32 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 33 
2.3.2.1    Regional trade agreements  ................................ ................................ ...................  33 
2.3.2.1.1    Central American economic integration a nd trade relations with Panama  ..................  34 
2.3.2.1.2    Association Agreement with the European Union  ................................ ...................  35 
2.3.2.1.3    Free Trade Agreement with Mexico  ................................ ................................ ..... 35 
2.3.2.1.4    Free Trade Agreement with Canada ................................ ................................ ..... 36 
2.3.2.2    Other agreements and preferential arrangements  ................................ ....................  36 
2.4   Investment regime  ................................ ................................ ................................ ... 36 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  41 
3.1   Measures directly affecting imports  ................................ ................................ .............  41 
3.1.1   Procedures, documents and registration  ................................ ................................ .... 41 
3.1.2   Customs valuation  ................................ ................................ ................................ . 42 
3.1.3   Rules of origin  ................................ ................................ ................................ ....... 42 
3.1.4   Tariffs  ................................ ................................ ................................ ..................  43 
3.1.4.1    Structu re and levels  ................................ ................................ ............................  43 
3.1.4.2    Price band system  ................................ ................................ ...............................  45 
3.1.4.3    Preferential tariffs  ................................ ................................ ...............................  46 
3.1.4.4    Tariff concessions  ................................ ................................ ................................  47 
3.1.5   Other charges affecting imports  ................................ ................................ ...............  47 
3.1.6   Prohibitions, licensing and  other restrictions  ................................ ..............................  48 
3.1.7   Contingency measures  ................................ ................................ ...........................  50 WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.1.7.1    Anti-dumping and countervailing measures  ................................ .............................  50 
3.1.7.2    Safeguard measures  ................................ ................................ ............................  52 
3.1.8   Standards and technical regulations  ................................ ................................ .........  53 
3.1.9   Sanitary and phytosanitary measures  ................................ ................................ ....... 55 
3.2   Measures directly affecting exports  ................................ ................................ .............  60 
3.2.1   Procedures, documents and regist ration  ................................ ................................ .... 60 
3.2.2   Export taxes and charges  ................................ ................................ ........................  60 
3.2.3   Prohibitions, licensing and other restrictions  ................................ ..............................  61 
3.2.4   Export support  ................................ ................................ ................................ ...... 61 
3.2.5   Export promotion  ................................ ................................ ................................ ... 63 
3.2.6   Financing, insurance and g uarantees  ................................ ................................ ........  64 
3.3   Measures affecting production and trade  ................................ ................................ ...... 64 
3.3.1   Incentives  ................................ ................................ ................................ ............  64 
3.3.1.1    Employment and Economic Development Zones  ................................ ......................  65 
3.3.1.2    Financing of production sectors and MSMEs  ................................ ............................  65 
3.3.2   Competition policy and price controls  ................................ ................................ ........  66 
3.3.2.1    Competition policy and consumer protection  ................................ ...........................  66 
3.3.2.1.1    Competiti on policy  ................................ ................................ ............................  66 
3.3.2.1.2    Protection of consumers  ................................ ................................ ....................  69 
3.3.2.2    Price controls  ................................ ................................ ................................ ..... 69 
3.3.3   State trading and State -owned enterprises  ................................ ................................  70 
3.3.4   Government procurement  ................................ ................................ .......................  71 
3.3.5   Intellectual prop erty rights  ................................ ................................ ......................  74 
3.3.5.1    New varieties of plants  ................................ ................................ .........................  75 
3.3.5.2    Other industrial property rights  ................................ ................................ .............  75 
3.3.5.3    Copyright and related rights  ................................ ................................ .................  76 
3.3.5.4    Enforcement  ................................ ................................ ................................ ....... 77 
4   TRADE POLICIES BY SE CTOR ................................ ................................ .....................  78 
4.1   Agriculture  ................................ ................................ ................................ ..............  78 
4.1.1   Main features  ................................ ................................ ................................ ........  78 
4.1.2   Agricultural policy  ................................ ................................ ................................ .. 79 
4.1.2.1    General policies  ................................ ................................ ................................ .. 79 
4.1.2.2    Measures affecting imports  ................................ ................................ ...................  82 
4.1.2.3    Domestic support  ................................ ................................ ................................  83 
4.1.2.4    Measures affecting exports  ................................ ................................ ...................  88 
4.2   Electricity  ................................ ................................ ................................ ................  89 
4.2.1   General features  ................................ ................................ ................................ .... 89 
4.2.2   Legal and institutional framework  ................................ ................................ .............  90 
4.3   Services  ................................ ................................ ................................ ..................  93 
4.3.1   Financial services  ................................ ................................ ................................ ... 93 WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.3.1.1    Banking  ................................ ................................ ................................ .............  93 
4.3.1.2    Insurance  ................................ ................................ ................................ ..........  97 
4.3.2   Telecommunications  ................................ ................................ ...............................  99 
4.3.3   Transport  ................................ ................................ ................................ ...........  101 
4.3.3.1    Air transport  ................................ ................................ ................................ ..... 101 
4.3.3.2    Maritime transport  ................................ ................................ ............................  103 
4.3.4   Tourism  ................................ ................................ ................................ ..............  105 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 107  
 
CHARTS  
 
Chart 1.1 General merchandise trade by main products, 2010 and 2014  ................................ .. 22 
Chart 1.2 Trade in goods for processing ( maquila ), 2010 and 2014  ................................ .........  23 
Chart 1.3 Merchandise trade by trading partner, 2010 and 2014  ................................ .............  24 
Chart 2.1 Participation in regional trade agreements as of December  2015 ...............................  34 
Chart 3.1 Distribution of tariff rates, 2015  ................................ ................................ ...........  44 
Chart 3.2 Procedure for dumping and subsidy investigations, 2015  ................................ .........  51 
Chart 3.3 Procedure for preparing Honduran standards  ................................ .........................  54 
Chart 3.4 Procedure for preparing technical regulations  ................................ .........................  54 
Chart 4.1 Private banking indicators, 2010 -2014 ................................ ................................ .. 94 
Chart 4.2 Insurance subsector indicators, 2010 -2014 ................................ ............................  98 
Chart 4.3 Telecommunications services penetration rate, 2010 -2015 ................................ ....... 99 
 
TABLES  
 
Table 1.1 Structure of the economy, 2010 -2015 ................................ ................................ ... 11 
Table 1.2 Financial accounts of the central government, 2009 -2014 ................................ ........  15 
Table 1.3 Main taxes applied in 2015  ................................ ................................ ..................  16 
Table 1.4 Balance of payments, 2010 -2015 ................................ ................................ .........  19 
Table 1.5 Balan ce of trade in services, 2010 -2015 ................................ ................................  25 
Table 1.6 Foreign direct investment flows by economic activity, 2010 -2015 ..............................  26 
Table 1.7 For eign direct investment flows by country of origin, 2010 -2015 ...............................  26 
Table 2.1 Main trade -related legislation  ................................ ................................ ...............  29 
Table 2.2 Some State  Secretariats involved in trade policy formulation  ................................ .... 32 
Table 2.3 Disputes in which Honduras participated, 2010 -2015 (to 31  December  2015)  .............  33 
Table 2.4 Tariff reduction programmes adopted by Honduras since 2010  ................................ . 34 
Table 2.5 Guarantees offered under the Investment Promotion and Protection Law  ....................  37 
Table 2.6 Activities reserved to the State, 2015 ................................ ................................ .... 37 
Table 2.7 Investment guarantees stipulated under the Investment Promotion and 
Protection Law  ................................ ................................ ................................ .................  38 
Table 3.1 Registration of importers, 2015  ................................ ................................ ............  41 WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 3.2 Principal provisions on preferential rules of origin applied since 2010  .........................  43 
Table 3.3 Structure of MFN tariffs, 2010 and 2015  ................................ ................................  44 
Table 3.4 Products with applied tariffs higher than the bound rates, 2010 -2015 ........................  45 
Table 3.5 Lines subject to the price band system, 2010 and 2015  ................................ ...........  46 
Table 3.6 Analysis of applied tariffs for countries with w hich trade agreements have been 
negotiated, 2015  ................................ ................................ ................................ .............  46 
Table 3.7 Other import charges in 2015  ................................ ................................ ..............  47 
Table 3.8 Details concerning impor t licences in 2015  ................................ .............................  49 
Table 3.9 Principal legal instruments regulating the sanitary and phytosanitary system, 
2015 ................................ ................................ ................................ ..............................  56 
Table 3.10  Entry requirements based on the sanitary and phytosanitary risk analysis  ................  58 
Table 3.11 Export taxes in 2015  ................................ ................................ .........................  61 
Table 3.12 Expor t subsidy schemes in 2015  ................................ ................................ .........  62 
Table 3.13 Export promotion programmes  ................................ ................................ ...........  63 
Table 3.14 Incentives  ................................ ................................ ................................ ....... 64 
Table 3.15 Thresholds for business mergers, 2010 and 2015  ................................ ..................  68 
Table 3.16 Activities of the Commission for the Defence and Promotion of Competition, 
2010-2014 ................................ ................................ ................................ ......................  68 
Table 3.17 Thresholds for the application of government procurement procedures, 2015  ............  73 
Table 4.1 Main indicators for the agricu ltural sector, 2010 -2014 ................................ .............  78 
Table 4.2 Summary of agricultural measures  ................................ ................................ ....... 79 
Table 4.3 Products subject to price bands, 2015  ................................ ................................ ... 83 
Table 4.4 Domestic support measures implemented by Honduras in 2009 -2014 (June -May) ....... 84 
Table 4.5 BANDES funds for micro, small and medium -sized arable, livestock and industrial 
producers, 2015  ................................ ................................ ................................ ..............  87 
Table 4.6 Main electricity subsector indicators, 2010 -2015 ................................ .....................  89 
Table 4.7 Minimum fixed capital for the establishment of insurance companies, 2010 
and 2015 ................................ ................................ ................................ ........................  98 
Table 4.8 Types of authorization for the provision of public telecommunications services  ..........  101 
Table 4.9 Requirements for the provision of air transport services  ................................ .........  102 
Table 4.10 Modalities of the bilateral agreements on air trans port services  .............................  103 
Table 4.11 Port operations, 2010 -2014 ................................ ................................ .............  104 
Table 4.12 International tourism indicators, 2010 -2013 ................................ .......................  105 
Table 4.13 Tourism incentive regimes  ................................ ................................ ...............  106 
 
BOXES  
 
Box 2.1 Employment and Economic Development Zones (ZEDE)  ................................ .............  31 
Box 3.1 Sanitary measures relating to Newcastle disease  ................................ ......................  58 
Box 4.1 Composition of the Honduran electricity subsector  ................................ .....................  89 
 WT/TPR/S/336 /Rev.1  • Honduras  
 
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  APPENDIX TABLES  
 
Table A1.1 General merchandise exports by main products, 2010 -2015 ................................ . 107 
Table A1.2 Exports of g oods for processing (maquila), 2010 -2015 ................................ ........  107 
Table A1.3 General merchandise imports (c.i.f.) by main products of the Central American 
Tariff System (SAC), 2010 -2015 ................................ ................................ ......................  108 
Table A1.4 Imports (c.i.f.) of goods for processing (maquila), 2010 -2014 ..............................  109 
Table A1.5 General merchandise exports by trading partner, 2010 -2015 ................................  110 
Table A1.6 General merchandise imports (c.i.f.) by trading partner, 2009 -2015 ......................  111 
 
 
Table A2.1 Notif ications to the WTO, 1  January  2010 to 31  December  2015 ...........................  112 
 
 
Table A3.1 Analysis of the MFN tariff, 2014  ................................ ................................ ........  114 
Table A3.2 Conditions for loans granted by BANHPROVI  ................................ ......................  115 
 
 
Table A4.1 Import quotas applied by Honduras in 2015  ................................ .......................  116 
 WT/TPR/S/336 /Rev.1  • Honduras  
 
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  SUMMARY  
1. The Honduran  economy suffered from  the global financial crisis and the slump  in external 
demand and in the price of its main exports, in particular coffee and bananas. Although it has 
recovered since, its average annual GDP growth rate of 2.5 % betwee n 2009 and 2014 has not 
been sufficient to improve living conditions or reduce poverty. In fact, GDP per  capita remained 
practically at a standstill during that period, reaching US$2,236 in 2014, one of the lowest in 
Latin America. For  2015, the estimated GDP growth rate is 3.5 %. Although the economic outlook 
is positive, Honduras is faced with the highest level of economic inequality in Latin  America and is 
vulnerable to external shocks. The country's economic structure has not changed substantially 
since the last review in 2010, although the GDP share of the manufacturing industry , including the 
maquila industry, has declined  slightly. The agricultural sector continues to play a major  role as a 
source of employment.  
2. During the review  period, Honduras gener ally kept its inflation rate within the fluctuation 
band established by the Central  Bank. The average  annual inflation rate in 2010-2014 was 5.6 %, 
while for the third quarter of 2015 the rate was 3.2%. This was thanks to a cautious monetary 
policy coupled with lower  prices for oil and other raw materials. Honduras applies a crawling band 
exchange rate system, the rate being determined daily in auctions. The real effective exchange 
rate depreciated  between 2010 and 2015.  
3. In 2013, Honduras introduced a tax re form aimed at reducing the fiscal deficit and boosting  
tax revenue. This involved eliminating a number of exemptions  and duty free arrangements and  
reducing certain expenditures . In spite of this, the central government deficit remained high during 
the rev iew period, fluctuating between 4.4 % and 7.9 % of GDP. The 2014 -2017 Reform 
Programme seeks  to restore fiscal discipline and put the public debt onto a sustainable  path. 
The current account of the balance of payments continued to post a large deficit during  the review 
period. Although it fell from 9.5 % of GDP in 2013 to 7.4 % in 2014 as a result of fiscal 
consolidation, improved terms of trade and a marked increase in remittances, it remained well 
above the 4.3 % recorded in  2010. The Honduran economy continue s to depend heavily on family 
remittances from abroad, which accounted for 17.2 % of GDP in 2014 and played a key role in 
sustaining domestic demand.  
4. The Honduran economy  is largely dependent  on international trade. The ratio of trade 
(exports and imports) to GDP increased during the review period from 99.6 % in 2010 to 103%  
in 2014. In  spite of policies aimed at promoting exports and diversifying markets for Honduran 
products, neither the composition of Honduran exports nor the markets have varied substantia lly 
since 2010. Honduras continues to be an exporter of agricultural products and clothing 
manufactured under the maquila regime. Its main agricultural exports remain coffee (20.6 % of the 
total), bananas (11.2 %), palm oil (7.6 %), and shrimp and lobster (7. 1%). From 2010  to 2014 
exports, excluding the maquila industry, grew at an annual average rate of 9.6 %, while the rate 
for maquila exports was 3.8 %. Honduras'  main export market  continues to be the United States - 
as has been the case since the entry into force of CAFTA -DR - followed by Central  America 
(especially El Salvador, Guatemala and Nicaragua) thanks  to the strengthening of the CACM , and 
the European  Union, in particular  Germany.  
5. As with exports, th e composition of imports remained  stable between 20 10 and 2014, and 
they grew  at an annual average rate of 8.9 %. Imports consist mainly of manufactures, 
in particular machinery and equipment  and mineral products. As in the case of exports, t he 
United  States is also the main source of Honduras' imports , followed  by the countries of the 
region, in particular Guatemala and El  Salvador.  
6. During the review  period, Honduras introduced reforms to  increase the transparency of  the 
civil service. As part of the process, it implemented a system for evaluating governmen t bodies, 
and some State  Secretariats were regrouped  while others were created. In the trade sphere, 
as of 2013 the State  Secretariat for Economic Development (PROHONDURAS) replaced the 
State  Secretariat for Trade and Industry, and is now responsible for f ormulating and implementing 
Honduras' trade policy. At the same time, efforts were made to enhance citizen participation in 
public management and in the legislative process by allowing citizens to file complaints regarding 
poor performance of a public duty , and since 2011, they have been able to submit draft laws.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  7. Honduras also introduced a number of amendments to the Constitution during the review 
period, notably the amendment providing for the creation of Employment and Economic 
Development Zones (ZEDE). These are considered to be extraterritorial fiscal  and customs zones, 
and may develop their own internal policies and regulations, including fiscal and monetary policies. 
The ZEDE would apparently replace the Free Zones and other fiscal regimes currently a vailable 
in Honduras. At the same time, Honduras enacted and amended other trade -related laws during 
the review period, including the Law on Fiscal Consolidation , the new Investment Law, the new 
Law on the P rotection of Plant V arieties and the Law on the E nergy Sector. These and  other 
reforms were introduced to modernize the legislative  system. However, there have been a number 
of obstacles  and delays in implementing some laws, for example the new Energy Sector L aw. 
8. Honduran trade policy is largely determin ed by the commitments made  in the framework 
of the Central American Common Market (CACM), and more r ecently by those arising from the 
CAFTA -DR negotiations. The main objectives include: boosting Honduras' share in international 
trade; increasing its export  supply ; and forging strategic alliances with trading  partners in order to  
promote innovation and production chains.  
9. Although trade agreements are important in determining the country's trade policy and 
trade flows, Honduras is particularly keen to partici pate in the multilateral trading system, which it 
considers to be fundamental to the small and vulnerable economies. Under the Doha Development 
Agenda (DDA), Honduras has advocated  the implementation of special and differential treatment 
provisions along w ith other flexibilities that help  to protect the most sensitive sectors of developing 
economies. Under the DDA, it has also supported the elimination of agricultural distortions.  
10. Honduras participates in a number of regional trade agreements (RTAs).  Togeth er with the 
other members of the CACM  Honduras  signed an agreement with the European Union in 2010 , and 
also signed a bilateral agreement with Canada. During the period  under  review, the 
Central  American integration process was further deepened . In 2011, CACM members signed 
a second Protocol to the Treaty on Investment and Trade in Services (T ICS), and Honduras signed 
an agreement with Guat emala creating a customs union that is currently being implemented. 
Moreover, the Central American countries and Mexico  renegotiated and consolidated three old 
agreements into one. Together with the other Members of the CACM, Honduras is currently 
negotiating an agreement with the Republic of Korea as well as a Partial -Scope Economic 
Complementarity Agreement with Ecuador.  
11. During the period under review, Honduras enacted the Investment Promotion and Protection 
Law, which repealed  the 1992 Investment Law , and introduced new guarantees for investors, such 
as stability contracts and property protection regimes. Certain require ments were also eliminated, 
such as prior authorization for investment in Honduras. The main limits on investment relate to the 
State's reserving the exclusive right to operate certain basic industries and public services for 
reasons of public order or public interest. No new restrictions or prohibitions were imposed on 
foreign investors during the review period. Honduras maintains special regimes to promote  both 
domestic and foreign investment. Most of these programmes apply across the board, though some 
of the incentives target specific sectors, especially  the promotion and development of clean energy 
and tourism. To simplify  investment formalities, Honduras is setting up a single window for 
investment, and has streamlined and digitalized a number of forma lities.  
12. Honduras has a relatively open trade regime, as evidenced by the high foreign trade to GDP 
ratio. While there have been no major changes to the regime since 2010, a number of measures 
have been introduced to facilitate trade. Honduras has streamlin ed its customs procedures by 
introducing a variety of electronic systems, particularly for exports. However, the single window 
has yet to be fully implemented. Honduras has notified the WTO of its Category A commitments 
under the Agreement on Trade Facilit ation ( TFA) and has begun the formalities for ratifying 
the TFA. 
13. The average MFN applied tariff rate in 2015 was 5.9%, virtually the same as the rate 
recorded in the last Honduran review (6% in 2010). However, the revenue collected from customs 
duties repr esented only 1.5% of goods imports, reflecting the fact that 48.1% of MFN tariff lines 
have a zero tariff, and that Honduras has preferential agreements with its main trading partners. 
Applied tariffs vary from 0 to 164%, the most common rate being 0%. Agr icultural products 
(WTO  definition) were subject to an average tariff of 10.7% (11.1% in 2010) while the average 
rate for non -agricultural products was 5.1% (the same as in 2010). The highest tariff rate WT/TPR/S/336 /Rev.1  • Honduras  
 
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  continues to be applied to imports of certain poultr y meat, followed by cigarettes at 55%. 
Honduras has bound its entire tariff in the WTO. About 85% of its tariff universe is bound at 35%, 
with less than 1% bound at higher levels and the rest at levels below 35%. As in 2010, 
the Secretariat identified seve n tariff lines whose applied rate exceeds the bound rate.  
14. Honduras has a price band system for imports of yellow maize, grain sorghum, maize flour 
and other worked grains. The authorities pointed out that in practice, the mechanism was not used 
during the period under review, and that the applied tariff for these products was 15%. 
In August  2015 the system was modified and the price bands were no longer used for imports of 
white maize: the applied tariff for white maize was raised from 15% under the price b and to 50%, 
the bound rate.  
15. Honduras makes little use of non -tariff barriers. Certain imports are prohibited in order to 
protect public health, morals, animal and plant health, the environment and national security, and 
in order to comply with internationa l commitments. For the same reasons, both automatic and 
non-automatic import licensing have been maintained. The licensing regime, which applies to all 
imports regardless of their origin, has not changed substantially since 2010, and is not designed to 
restrict the volume or value of imports. The list of goods requiring import licences is the same as 
in 2010.  
16. Honduras did not impose any anti -dumping or countervailing duties during the period under 
review. However, it did impose a safeguard measure in Februa ry 2015 to tackle "disruption" in the 
domestic market for iron and steel  products. As a result, the tariffs on certain iron and steel 
products increased to 35%. This measure was not notified to the WTO.  
17. The development of technical s tandards  and regulation s and sanitary and phytosanitary 
measures is governed by  the principles of consensus and transparency, and generally follow s 
international standards . During the review period, Honduras also set up new institutions for the 
development of these measures in o rder to enhance  cooperation and the transparency. In view of 
the importance of the agricultural sector for the country, Honduras has maintained strict sanitary 
controls which apply both to domestic production and  to imports. Non -automatic licences are 
required to import plant and animal products and by products  as well as inputs for agricultural or 
veterinary use. Honduras also reserves the right to ban the import or transit of goods from 
countries deemed  to be affected by epidemics that could impact animal or plant health in the 
country.  
18. Honduras has notified the WTO of a number of programmes under which it continues to 
grant tariff and tax concessions, namely the Temporary Import Procedure , the Free Zones and the 
Industrial Export Processing Zones  (ZIP). These schemes  were already running in 2010, and the 
ZIP scheme is no longer operating . The aim of the concessions granted through these programmes 
is to promote exports, attract investment and create jobs. In addition to these general 
programmes, Honduras al so operates a number of sectoral programmes: t he Agricultural Export 
Zones regime  which, although suspended, continue s to grant retroactive benefits, and 
two programmes for the promotion of tourism. Under the fiscal reform of 2013, some of the tax 
benefits  that had been granted under the various programmes were eliminated. However, since 
the reform was not retroactive, those who received benefits prior to the reform continued to 
receive them. One of the more significant changes in trade policy since the las t Review was the 
introduction, in 2013, of a new incentive scheme , the Employment and Economic Development 
Zones (ZEDE), although no ZEDE is  in operation to date. Honduras does not currently have any 
official programmes to finance or i nsure its exports.  
19. The regulatory framework for government procurement underwent a number of changes  
during the review period. A new electronic government procurement system was introduced 
in 2014 to streamline  procedures and foster  transparency and economies . Honduras continu es to 
maintain measures to encourage  Honduran companies and professionals to participate in 
government procurement procedures . 
20. The main change in the legal framework for the protection of intellectual property rights has 
been the enactment of a Law on the Protection of New V arieties  of Plants . There have been  no 
major  changes to the provisions on other industrial property rights and copyright and related 
rights. Honduras is continuing  its efforts to improve  compliance with intellectual property rights WT/TPR/S/336 /Rev.1  • Honduras  
 
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  both at the border and within the country. To that end, it has revised the legal framework in order 
to impose more severe  penalties, and has organized campaigns to promote  awareness among  civil 
society and to train government  officials.  
21. Agriculture in Honduras is relatively concentrated: coffee and bananas accounted for more 
than 40 % of agricultural production in 2014. Other leading  products are vegetables and fruit, palm 
oil and livestock products. Agriculture continues to be a major  source of foreign exchange : in 
2014, agriculture accounted for  33.8% of foreign exchange generated by merchandise  exports. 
In recent  years, the objective of Honduran agricultural policy has been to increase productivity and 
promote exports without neglecting production for the domes tic markets , with a view  to ensuring  
food security. The authorities have tried to reduce the distortions in the domestic market by 
introducing a price stabilization mechanism and measures to improve food safety. To promote 
agricultural exports, Honduras ha s continued to adopt a strategy aimed at opening up new or 
niche markets. Tariff protection in the agricultural sector continues to be greater  than in the 
manufacturing sector. The price band system has also been maintained, as well as the "absorption 
agreements" under which certain grains can be imported at preferential rates if the processers 
purchase a specific percentage of the domestic production of those grains.  
22. State involvement in the services and public services sector continues to be significant, 
particularly in the electricity, telecommunications and maritime transport subsectors. However, a  
number of measures have been taken to increase private sector  participation . In 2013, for the first 
time, a concession was granted for the operation, expansio n and modernization of the country's 
biggest port (Puerto Cortes). A new General Law on the Electricity Industry abolishing  the State's 
exclusive transmission rights and liberalizing the electricity market was enacted in 2014 . At the 
same time, in order to  promote tourism , foreigners were allowed to carry out  projects throughout 
the country , including in the areas  reserved for the exclusive use of Hondurans. In the other 
services subsectors, market access conditions are similar to what they were  in 2010. Fo r example, 
cabotage services are still reserved for  national operators in the case of  both air  transport and 
maritime transport.  
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  1  ECONOMIC ENVIRONMENT  
1.1  Economic structure and structural adjustment  
1.1.  With a population of around 8.7  million and still growing b y about 2.5% per year, Honduras' 
per capita GDP of some US$2,236 in 2014 remains one of Latin America's lowest. Per capita 
national income in that year was US$1,798. According to the World Bank, the country's 
development indicators have worsened in the per iod reviewed, as a result of the slow growth and 
stagnation of per capita GDP; 64.5% of the population were living below the poverty line in 2013, 
compared to 60% in 2010.1 As was identified in previous reports and is reaffirmed in the 
Government's 2014 -2018 Strategic Plan, the causes of poverty are a lacklustre rate of economic 
growth, a low level of social inclusion measured by a skewed income distribution, a low level of 
schooling, inadequate coverage of health services, infrastructure shortcomings, and low labour 
productivity. The Government has proposed implementing policies to address the challenges on all 
of these fronts (see below).  
1.2.  The agriculture sector's contribution to GDP stayed broadly constant in real terms during the 
period under review, acco unting for 13.9% in 2014 (Table 1.1), or 15.2% of gross value added at 
basic prices. Agriculture remains a very important job creator in Honduras, since a high 
percentage of the active labour force is employed in farming or related activities, mainly raisi ng 
livestock and growing coffee, basic grains, pulses, vegetables  and fruit.  
1.3.  The GDP share of the manufacturing sector, including maquila  industry, declined slightly 
during the reporting period, from 19.8% in 2010 to 19.3% in 2014. This represented 21.1% o f 
gross value added at basic prices. Services accounted for 63.3% of GDP in the same year 
(or 72.5% of gross value added at basic prices). Among these, financial intermediation, 
communications and trade each represented over 10% of GDP at market prices in 2014.  
Table 1.1 Structure of the economy, 2010 -2015  
 2010  2011  2012  2013  2014a 2015  
Q3a 
Gross domestic product (GDP)  
GDP at current prices (market prices, L  million)  299,286  335,028  361,349  376,539  409,612  n.a. 
GDP at current prices (market prices, US$  million  15,839  17,703  18,514  18,498  19,506  n.a. 
Real GDP (L  million at 2000 constant prices)  159,828  165,958  172,810  177,634  183,115  141,492  
Real GDP (annual percentage change)  3.7 3.8 4.1 2.8 3.1 3.0b 
Per capita GDP (current US$)  1,969  2,155  2,208  2,162  2,236  n.a. 
Per capita GDP (current L)  37,197  40,782  43,094  44,013  46,946  n.a. 
Share of GDP by activity (% of GDP at constant prices)  
Crop farming, livestock breeding , hunting, forestry 
and fishing  12.7 13.0 13.8 13.9 13.9 13.9 
Mining and quarrying  0.3 0.2 0.2 0.2 0.2 0.2 
Manufacturing  19.8 19.9 19.5 19.6 19.3 19.3 
Electricity and water supply  2.6 2.6 2.6 2.4 2.4 2.5 
Construction  3.5 3.5 3.4 3.2 2.9 2.7 
Commerce, repair of motor vehicles, motorcycles,  and 
personal and household goods  9.8 9.8 9.8 9.8 9.7 11.8 
Hotels and restaurants  2.2 2.2 2.2 2.2 2.2 0.0 
Transport, storage  3.9 3.9 4.0 3.9 3.9 3.9 
Communications  9.1 9.5 9.7 9.9 10.1 10.2 
Financial intermediation  14.1 14.7 15.1 15.5 16.3 16.8 
Housin g 4.5 4.4 4.3 4.3 4.2 8.2 
Real estate and business activities  4.2 4.1 4.1 4.0 4.0 0.0 
Public administration and defence; compulsory social 
security  5.9 5.6 5.5 5.6 5.5 5.4 
Education services  5.2 5.0 5.0 5.0 4.9 7.7 
Social services and health  3.1 3.1 3.0 3.0 3.0 0.0 
Community, social and personal services  2.6 2.5 2.5 2.5 2.5 2.5 
Less: financial intermediation services indirectly 
measured  11.3 12.2 12.6 12.8 13.4 14.1 
Gross value added at basic prices  92.0 91.9 92.0 92.2 91.4 90.9 
Plus: taxes net of p roduction and import subsidies  8.0 8.1 8.0 7.8 8.6 9.1 
Real growth rates (%)  
Crop farming, livestock breeding, hunting, forestry 
and fishing  1.8 6.5 10.7 3.4 2.7 3.8 
Mining and quarrying  -4.0 -10.6 -3.2 -6.8 -5.1 -7.4 
Manufacturing  4.5 4.4 1.8 3.4 1.5 3.3 
Electricity and water supply  -0.2 3.6 2.9 -2.5 1.3 10.0 
                                               
1 Online information from the World Bank. Viewed at: http://data.worldbank.or g/country/honduras . WT/TPR/S/336 /Rev.1  • Honduras  
 
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   2010  2011  2012  2013  2014a 2015  
Q3a 
Construction  -2.4 4.4 2.4 -2.5 -8.2 -4.1 
Trade, repair of motor vehicles, motorcycles, and 
personal and household goods  3.3 4.3 4.1 2.3 2.0 2.8c 
Hotels and restaurants  3.6 3.8 2.3 1.6 2.1 n.a. 
Transport, storage  5.7 4.4 4.4 2.5 2.1 3.4 
Communications  8.2 7.6 6.5 5.6 5.2 -73.8 
Financial intermediation  8.3 8.7 6.7 5.3 8.3 8.7 
Housing  1.9 1.7 1.9 2.0 2.1 2.9d 
Real estate and business activities  1.8 2.5 2.9 2.3 2.2 n.a. 
Public administration and defence; compulsory social 
security  3.8 -1.1 2.5 3.9 1.3 1.2 
Education services  0.9 1.1 2.4 2.8 1.9 1.3e 
Social services and health  5.8 1.6 3.2 2.8 1.2 n.a. 
Community, social and personal services  3.4 1.9 2.4 2.9 2.2 2.7 
Less: financial intermediat ion services indirectly 
measured  7.1 11.7 7.2 4.4 8.3 9.6 
Gross value added at basic prices  3.7 3.7 4.2 3.0 2.1 3.0 
Plus: taxes net of production and import subsidies  4.3 4.9 3.1 -0.1 14.9 9.5 
GDP by expenditure category (% of GDP at constant prices)  
Final consumption expenditure  89.0 88.1 87.9 88.7 87.8 87.4 
Private sector  73.7 73.5 73.6 74.3 74.0 74.0 
Public sector  15.3 14.6 14.3 14.4 13.8 13.4 
Gross fixed capital formation  19.6 22.1 22.0 21.0 20.0 22.8f 
Private sector  16.6 19.0 19.3 17.9 17.9 n.a. 
Public sector  3.0 3.1 2.6 3.0 2.1 n.a. 
Variation in inventories  0.3 1.7 0.2 -1.8 -0.2 n.a. 
Exports of goods and services, f.o.b.  54.6 56.9 60.1 57.7 56.8 57.2 
Less: imports of goods and services, c.i.f.  63.4 68.8 70.2 65.5 64.5 67.4 
GDP by expenditu re category (real growth rate)  
Final consumption expenditure  2.8 2.8 4.0 3.7 2.1 3.0 
Private sector  3.6 3.6 4.3 3.8 2.7 3.4 
Public sector  -1.0 -1.0 2.3 3.2 -1.1 0.3 
Gross fixed capital formation  1.4 16.9 3.7 -1.9 -1.4 23.7f 
Private sector  4.7 19.0 6.0 -4.7 2.9 n.a. 
Public sector  -13.6 5.1 -10.3 18.8 -27.1 n.a. 
Variation in inventories  -118.6  509.8  -85.3 -877.6  -87.8 n.a. 
Exports of goods and services, f.o.b.  15.7 8.4 9.8 -1.3 1.6 4.0 
Less: imports of goods and services, c.i.f.  15.2 12.7 6.3 -4.1 1.5 9.2 
Monetary indicators  
Consumer price index (annual average, 1999=100)  4.7 6.8 5.2 5.2 6.1 3.2g 
Consumer price index (end of period, 1999=100)  6.5 5.6 5.4 4.9 5.8 2.4g 
Exchange rate (L per US$, annual average)  19.0 19.0 19.6 20.5 21.1 22.1g 
Real ef fective exchange rate (index 2009=100), end 
of period  103.8  104.7  103.4  103.0  104.8  105.2h 
Real effective exchange rate, annual variation, end of 
period  3.8 0.9 -1.2 -0.4 1.7 0.8b 
Interest rate on loans in national currency, end of period  19.0 18.1 19.2 20.3 20.7 20.7 
Interest rate on deposits in national currency, end of period  8.7 7.9 10.5 11.3 10.5 9.2 
Monetary base, broad definition (net foreign assets + 
domestic assets), L  million  63,648  69,033  68,731  76,106  88,491  n.a. 
Monetary base, narrow defin ition, L  million  31,993  34,280  36,053  39,694  45,450  n.a. 
Employment  
Employed labour force ('000 persons)i 3,254  3,226  3,244  3,487  3,461  n.a. 
Open unemployment rate (%)  3.9 4.3 3.6 3.6 5.3 n.a. 
Other economic indicators  
Current account balance (% of GD P) -4.3 -8.0 -8.6 -9.6 -7.5 n.a. 
Family remittances (US$  million)  2,609  2,798  2,892  3,083  3,353  2,718  
Total external debt (US$  million)  3,785  4,208  4,861  6,709  7,180  7,193  
Total external debt (% of GDP)  24.1 23.9 26.4 36.5 37.0 n.a. 
Net international r eserves of the BCH (L  million)  51,382  53,730  51,322  62,945  75,648  n.a. 
Net international reserves of the BCH (US$  million)  2,701  2,821  2,613  3,071  3,579  n.a. 
Population ('000)  8,046  8,215  8,385  8,555  8,725  n.a. 
n.a. Not available.  
a Preliminary figures.  
b Variation  between the current quarter and the same quarter of the previous year.  
c Includes  hotels and restaurants.  
d Includes real estate activities.  
e Includes social services and health.  
f Includes variation in inventories.  
g 2015 data.  
h June 2015.  
i The total employed labour force declined in 2014 due to adjustments made by the National Institute 
of Statistics (INE ). 
Source:  Central Bank of Honduras and INE.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  1.4.  The Government's 2014 -2018 Strategic Plan is targeted on improving welfare and social 
inclus ion levels, modernizing and simplifying the State, and fostering competitiveness and 
sustainable use of the country's human and material resources. The Plan aims to reduce extreme 
poverty through conditional monetary transfers and improvements to basic hou sing conditions and 
the quality of education and health services. It also seeks to increase employment and reduce 
poverty by promoting investment and competitiveness, stimulating external trade and supporting 
the development of small urban and rural enterp rises.  
1.5.  The Plan contains a medium -term economic programme that aims to consolidate the 
country's public finances, boost economic growth and invest in programmes to reduce and 
alleviate poverty. It also aims to strengthen the country's infrastructure and lo gistics development, 
through public and private investment in transport projects that facilitate more streamlined and 
lower -cost connection at the regional and international levels, and the development of renewable 
energy and telecommunications projects th at reduce business costs in Honduras. To achieve all of 
this, 14 global strategic goals have been defined, which include the following: the reduction of 
poverty by 1% per year; progressive implementation of a universal social security system; an 
expanded a nd better quality education coverage; universal and free coverage of health services to 
be achieved gradually; faster growth of GDP and per capita GDP than in the previous five years; a 
reduction in underemployment; improved competitiveness; a reduction of  the fiscal deficit to 2.9% 
of GDP by 2018; infrastructure improvements; reduction of insecurity and corruption; and 
modernization of the Government.2 
1.6.  Following the general guidelines of the Government's Strategic Plan, the authorities designed 
the 2014 -2017 Economic Programme, for which it sought support from the International Monetary 
Fund (IMF). This programme aims to conserve macroeconomic stability, strengthen the confidence 
of investors and bolster the fiscal and external positions, while at the same time improving the 
conditions needed for sustainable inclusive growth. The Government has endeavoured to achieve 
this by reducing the fiscal deficit. In this connection, a set of fiscal measures was approved in 
December  2013, mainly aimed at boosting reven ue (see below).  
1.7.  In December  2014, the Executive Board of the IMF approved a Standby Arrangement for 
Honduras of US$113.2  million, and an agreement under the Standby Credit Facility amounting to 
US$75.4  million.3 These agreements, which the Honduran authori ties view as precautionary, aim 
to provide backing to the aforementioned economic programme.  
1.8.  In the fiscal domain, the 2014 -2017 economic programme seeks to restore discipline and 
contain the growth of the public debt, which would mean reducing the consoli dated public -sector 
deficit from about 7.5% of GDP in 2013 to around 2% of GDP by 2017. To that end, the authorities 
announced their intention to reduce the share of wages in GDP in 2014 -2017, while maintaining 
the same level of expenditure on key social p rogrammes. The authorities also undertook to 
introduce structural reforms, including improvements in tax administration and reforms to the 
electricity sector, including the National Electricity Company (ENEE); the Honduran 
Telecommunications Company (HONDU TEL); and the Honduran Social Security Institute.4 
1.9.  In relation to the programme implemented by Honduras, the IMF considers that "[s]ustained 
fiscal consolidation will be necessary to reduce the country's large fiscal deficit and contain public 
debt". The a ctions undertaken by the authorities thus far are aimed in this direction. Nonetheless, 
additional efforts will be needed to further reduce current expenditure, improve tax administration 
and bolster the finances of the electricity company. The IMF also st resses that "structural reforms 
are an essential component of the authorities' programme".5 In a July  2015 review of the 
implementation of that programme, the IMF noted that the Honduran economy had continued to 
strengthen in that year, expanding at a soli d pace with real GDP posting a growth rate of 4% in 
                                               
2 Government of the Republic of Honduras, State Secretariat for Finance (2015), Lineamientos de 
Política Presupuestaria 2016. Viewed at: http://www.sefin.gob.hn/wp -
content/uploads/2015/07/Lineamientos_de_Politica_Presupuestaria_2016_junio_2015.pdf . 
3 IMF (2014), Press Release No.  14/545 , 4 December  2014. Viewed at: 
http://www.imf.org/external/spanish/np/sec/pr/2014/pr14545s.htm . 
4 IMF (2014), Honduras: Letter of Intent, Memorandum of Economic and Financial Policies, and 
Technical Memorandum of Understanding , 19 November  2014. Viewed a t: 
http://www.imf.org/external/np/loi/2014/hnd/111914.pdf . 
5 IMF (2014), Press Release No.  14/545 , 4 December  2014. Viewed at: 
http://www.imf.org/external/spanish/np/sec/pr/2014/pr14545s.htm . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  the first quarter. At the same time, inflation remained on the low side, at 3.6% in June, supported 
by declining fuel prices and sound macroeconomic policy management. The solid growth of exports 
and remi ttances had enabled the authorities to meet the June target for net international reserves 
(NIR) by a wide margin, and to increase reserve coverage to 4.5 months of imports. The Fund 
further noted that fiscal performance had also continued strengthening, a s had tax administration, 
thus contributing to the growth in revenue and the improvement in the fiscal accounts.6 
1.10.  Since 1999, Honduras has been among the 39 countries officially included by the 
World  Bank and the IMF in the Heavily Indebted Poor Countries (HIPC) Initiative. Honduras is one 
of the 35 countries to have attained the completion point and is now eligible for debt reduction 
through the Multilateral Debt Relief Initiative (MDRI).7 
1.2  Production and employment  
1.11.  The Honduran GDP grew at an average annua l rate of 2.5% between 2009 and 2014, which 
means that per capita income flatlined during the period. The domestic economy was hard hit by 
the global crisis and the slump in external demand. At the same time, the delay in the structural 
reform process prev ented growth from quickening until the country's main trading partners, 
particularly the United States, started to recover. Despite the structural reform effort, the growth 
of the Honduran economy has been ponderous and unstable in recent years, largely ow ing to the 
effects of natural disasters. These made themselves felt particularly in 2013, when GDP growth 
slowed because of a fall in goods and services exports and the substantial cutback in public 
investment that occurred in that year.  
1.12.  Macroeconomic cond itions improved in 2014 and 2015. GDP expanded by 3.1% in 2014 and 
at a year -on-year rate of 3.0% in the first half of 2015, with growth of between 3.0% and 3.5% 
expected for the year as a whole. Private investment was up by 22% in the first half of 2015, 
mainly owing to an increase in capital goods imports. The authorities expect growth to consolidate 
on the back of favourable external conditions, greater confidence and recovery in the coffee 
sector  — factors that will counteract the recessionary effects o f the fiscal adjustment.  
1.13.  The expenditure composition of Honduran GDP reveals a relatively high level of private 
consumption, financed partly by remittances from abroad (Table 1.1). In 2014, final consumption 
absorbed 87.8% of GDP, with private consumption accounting for 74.0%. Gross capital formation 
behaved erratically during the period and its GDP share has not regained the levels attained prior to 
the global crisis: gross fixed capital formation represented 19.8% of GDP in 2014, down from 32.2% 
in 2008. After surpassing 60% in 2012, exports of goods and services saw their GDP share decline in 
2013 and 2014, owing to a reduction in coffee exports. The behaviour of imports was similar.  
1.14.  According to the INE, total employment grew from 3.25  million in 2010 to  3.46 million in 
2014. The open unemployment rate rose from 5.1% to 5.4%, although this partly reflects the 
adjustments made by the INE in 2014. Levels of visible and invisible underemployment have 
stayed high, with estimated rates above 30%. The informal economy continues to play a 
preponderant role in Honduras, owing to its size and employment effects.  
1.3  Fiscal policy  
1.15.  The State Secretariat for Finance continues to have responsibility for formulating and 
implementing fiscal policy in Honduras. The aim of cur rent fiscal policy, according to the 
authorities, is to keep the public finances in balance, rationalizing current expenditure in 
non-priority areas and increasing it in domains such as education, health, social security, and 
economic and social infrastruc ture. The authorities have stressed that, in keeping with the 
2010-2014 Government Plan ( Plan de Todos Para Una Vida Mejor  – the "Everyone for a Better 
Life" plan), Honduran fiscal policy aims to ensure that the country has the resources needed to 
finance the social and investment expenditure that is prioritized in the National Plan; and to fulfil 
                                               
6 IMF (2015), Press Release No.  15/339 , 16 July 2015. Viewed at: 
http://www.imf.org/extern al/spanish/np/sec/pr/2015/pr15339s.htm . 
7 Under HIPC rules, debt relief is assigned as a proportion of annual debt service over a period of between 
eight and 15 years, depending on the creditor. The resources made available each year by this reduction in debt 
service must be used to finance programmes and projects included in the Poverty Reduction Strategy.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  obligations arising from the public debt, ensuring that the available resources are invested 
efficiently and transparently, while underpinning fiscal sustainabili ty.8 
1.16.  The central government accounts are traditionally in deficit (Table 1.2), which has led the 
Government to implement a fiscal consolidation programme for which it requested support from 
the IMF. The remainder of the public sector generally posts a surp lus, fuelled above all by the 
earnings of the social security institutes. The central government deficit fluctuated between 4.4% 
and 7.9% of GDP during the review period, attaining a peak in 2013, after gathering pace in 2012 
and 2013 particularly. Partly as a result of the programme of expenditure cuts, the central 
government deficit shrank to 4.4% of GDP in 2014.  
Table 1.2 Financial accounts of the central government, 2009 -2014  
(L million and  % of GDP)  
 2009  2010  2011  2012  2013  2014  
Total income  17.1 16.9 17.0 16.7 17.0 18.7 
Current income  15.2 15.5 15.9 15.7 16.3 18.0 
Tax revenues  14.2 14.4 14.8 14.5 14.8 16.3 
Income tax  4.1 4.3 5.0 4.8 5.1 5.5 
Sales tax  6.3 5.5 5.9 5.7 5.6 6.9 
Production and consumptio n tax 0.7 0.3 0.4 0.4 0.4 0.4 
Selective consumption tax  0.6 0.2 0.2 0.2 0.2 0.2 
Import duties  1.1 0.8 0.8 0.8 0.7 0.7 
Nontax income  0.8 1.0 1.0 1.1 1.5 1.6 
Current transfers  0.3 0.1 0.1 0.1 0.0 0.0 
Capital income  1.8 1.4 1.1 1.0 0.8 0.8 
Transfers (gr ants) 1.8 1.4 1.1 1.0 0.8 0.8 
Current expenditure  18.6 17.9 16.9 18.3 19.8 17.9 
Consumption expenditure  13.8 13.1 12.0 12.3 12.7 11.5 
Remunerations  10.9 10.7 9.6 9.6 9.7 9.1 
Goods and services  3.0 2.5 2.4 2.7 3.0 2.5 
Interest and commissions  0.7 1.0 1.3 1.7 2.3 2.5 
External  0.3 0.7 0.3 0.3 0.5 0.9 
Internal  0.4 0.2 1.1 1.3 1.7 1.6 
Current transfers  4.1 3.8 3.6 4.3 4.9 3.9 
Current account saving  -3.4 -2.4 -1.1 -2.6 -3.5 0.0 
Capital expenditure and net lending  4.5 3.6 4.6 4.4 5.1 5.2 
Real investment  2.8 2.0 1.7 1.6 2.5 2.1 
Capital transfers  2.4 1.7 3.0 2.7 2.7 3.1 
Net lending  -0.7 -0.1 0.0 0.1 -0.1 0.0 
Total net expenditure  23.1 21.5 21.6 22.7 24.9 23.1 
Surplus (+) deficit ( -) -6.0 -4.7 -4.6 -6.0 -7.9 -4.4 
Financing  6.0 4.7 4.6 6.0 7.9 4.4 
Net external financing  0.9 2.9 2.7 3.0 8.3 2.5 
Net external credit  1.1 2.6 2.7 2.5 8.3 2.5 
Other  -0.2 0.3 0.0 0.5 0.0 0.0 
Net domestic financing  5.1 1.8 1.9 3.0 -0.4 1.9 
Overall balance of the public sector  -4.5 -2.8 -2.8 -4.2 -7.6 -5.9 
Public -sector debt  n.a. 29.8 32.1 34.4 45.1 47.8 
Of which: external debt  n.a. 18.0 18.1 19.7 28.1 29.7 
Public external debt service (% of exports excluding maquila ) n.a. 3.9 4.4 3.0 2.8 7.3 
n.a. Not available.  
Note:  The sum of the parts is not necessarily equal to the to tal, owing to rounding.  
Source:  Government of the Republic of Honduras, State Secretariat for Finance (2015), Memoria Institucional 
2012. Viewed at: http://www.sefin.gob.hn/?p=49716 , Central Bank of Honduras  and IMF.  
1.17.  Total income held steady around 17% of GDP in 2010 -2013, but expanded to 18.7% in 
2014 as a reflection of the fiscal adjustments made towards the end of the previous year 
(see below), which generated additional revenue. Income tax and sales tax a re the predominant 
revenue categories, accounting for about 5.5% and 6.9% of GDP respectively in 2014. Revenue 
obtained from customs duties represented just 3.7% of current income and 0.7% of GDP in the 
same year. The revenue obtained from customs duties r epresented 1.5% of goods imports, 
compared to an average most -favoured -nation (MFN) tariff of 6%. Table 1.3 summarizes the main 
taxes applied in 2015.  
                                               
8 Government of the Republic of Honduras, State Secretariat for Finance (2015), Lineamientos de 
Política Presupuestaria 2016. Viewed at: http://www.sefin.gob.hn/wp -
content/uploads/2015/07/Lineamientos_de_Politica_Presupuestaria_2016_junio_2015.pdf . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 1.3 Main taxes applied in 2015  
Description  Tax base  
Direct taxes  
Income tax  Income from capital, work, or a combination thereof, whether the income source is 
located in the country or outside it, and irrespective of where the income is 
distributed or paid.  
Solidarity contribution  A 5% income tax surcharg e, paid on income above L 1  million.  
Net assets tax  Assets less reserves in respect of accounts receivable, cumulative depreciations 
allowed by the Income Tax Law.  
Indirect taxes  
Sales tax  All sales made in Honduras; applied cumulatively to imports and at each stage of 
the sale.  
In the case of beer, carbonated water and soft drinks, it is levied on the selling 
price at the distributor stage, either at the time of importation or at the domestic 
production level. In the case of cigarettes and other tobacco  products, the tax is 
calculated in relation to the wholesale price.  
Production and 
consumption tax  Applied per litre in the case of domestic or imported carbonated, alcoholic and 
other prepared or fermented beverages, including the domestic production a nd 
importation of undenatured ethyl alcohol with an alcohol content of at least 80% 
by volume, and ethyl alcohol and denatured alcohol of any degree.  
In the case of cigarettes, a fixed and single amount is set on the basis of every 
1,000 cigarettes sold or  imported, or fraction thereof.  
Contribution for road 
maintenance, social 
programmes and tourism  Applied per gallon of fuel or equivalent, in US$ (1.4089 premium -grade gasoline; 
1.2416 regular -grade gasoline; 0.8606 diesel; 0.4267 fuel oil; 0.15  kerosene and 
LPG; 0.03 AvJet).  
Selective consumption tax  Applied ad valorem  to all products in general.  
Eco-tax Fixed, single, and definitive amount depending on the c.i.f. value of each used 
vehicle.  
Forestry production tax  Board feet recorded in the previous y ear, or else establishment capacity in the 
case of a new establishment.  
Import duties  C.i.f. value  
Charges and contributions  
Tourist services charge  Daily price of a hotel room, rental of vehicles for tourism purposes, and services 
provided by tourist a gencies.  
Administrative 
instruments  Issuance of administrative permits.  
Special contribution levied 
on the financial system  Levied on all withdrawals in national and foreign currency, from demand deposits 
or checking accounts held in financial instituti ons by natural or legal persons, with 
a monthly average balance in the previous month greater than L 120,000, or the 
foreign currency equivalent thereof.  
Special mobile telephony 
contribution  Monthly gross revenue from mobile phone calls (airtime) recei ved by firms 
operating in the sector.  
Special contribution levied 
on the mining sector  Industrial mining of non -metal ores and gemstone/precious stone mining: 1% on 
the f.o.b. value or on the basis of the plant or ex -factory value.  
Mining of metal ores,  oxides and sulphides (non -metal) from which metals are 
extracted: 2% on the f.o.b. sale or export value.  
Special contribution levied 
on the food and drinks 
sector  Monthly gross revenue received by commercial companies selling food and drinks 
in Honduras u nder international franchises that are governed by any special 
regime.  
Special contribution levied 
on casinos and slot 
machines  Monthly gross revenue from the activities of casinos and slot machines.  
Special contribution levied 
on the cooperative sector  Annual net surpluses equivalent to income less expenses from cooperative activity.  
Source:  Information provided by the authorities.  
1.18.  On the other side of the equation, expenditure grew between 2011 and 2013, to reach a 
maximum share of 19.8% of GDP in the latter year, before slipping back to 17.9% in 2014, 
despite attempts to boost revenue. The fiscal deficit was mostly financed through borrowing, both 
external and domestic; most external financing was obtained under preferential conditions, while 
domestic borrowing was mainly funded through bond issues, generally at market interest rates. 
As a result of financing the deficit by borrowing, the public debt (external and domestic) rose 
during the period from 29.8% of GDP in 2010 to 47.8% in 2014.  
1.19.  In December  2013, Honduras approved the implementation of a tax reform through the Law 
on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measures (Decree No.  278-2013). 
The law aims to reduce the fiscal deficit and boost revenue, for which purpose: it eli minated WT/TPR/S/336 /Rev.1  • Honduras  
 
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  a number of exemptions and duty -free arrangements; set a 10% tax on increases in property 
values, which was later repealed by Article 1 of Decree No.  65-2014; and it amended the general 
rate of sales tax to 15% and to 18% for alcoholic beverages, b eer, cigarettes, and executive -class 
airline tickets. At the same time, it exempted goods in the basic shopping basket from this tax.9 
Measures were also introduced to rationalize expenditure, control the management of the public 
debt, and improve tax admi nistration.  
1.20.  In the framework of its 2014 -2017 Reform Programme, aimed at restoring fiscal discipline 
and putting the public debt onto a sustainable path, Honduras adopted a fiscal strategy to stabilize 
the public debt ratios for 2017 -2018, and reduce them thereafter. To achieve this, the programme 
has sought to reduce the general public sector deficit to 1.8% of GDP by 2017, for which it sees 
tax revenue growing by about 2% of GDP in 2014 -2017. It aims to fulfil this objective through an 
expansion of the ta x base; an increase in the number of taxpayers; and improvements to speed up 
customs clearance. The government programme also includes public expenditure cuts, by reducing 
payroll expenses and cutting expenditure on goods and services by 0.5% of GDP, while  prioritizing 
capital spending. In this connection, it was decided to freeze the nominal wages of public -sector 
employees in 2014 -2015. The programme also provides for the adoption of measures to bolster 
the ENEE, which posted a deficit equivalent to 1.8% of GDP in 2013. This will be done by raising 
rates and reducing the high levels of operating losses, and by promoting private -sector 
participation in the transmission and distribution segments. The goal is to eliminate the ENEE 
deficit by 2018.  
1.21.  The 2016 bu dget seeks to grow tax revenue through more efficient management and 
greater geographical coverage and fiscal presence; and to expand the base of potential taxpayers 
by supporting census programmes and arresting taxpayers who fail to declare. The total pub lic 
debt stock (external and domestic) should not exceed 52.5% of GDP in nominal terms by late 
2019. In addition, a deficit of 3% of GDP is projected for central government, and 1.7% for the 
consolidated public sector.10 
1.4  Monetary and exchange -rate policy an d prices  
1.22.  The institutional framework for the formulation and implementation of monetary policy in 
Honduras has not changed since the previous review. In practice, the objective established in the 
Law on the Central Bank of Honduras (BCH) is to obtain price  stability under an annual monetary 
programme with specific targets for inflation and for the level of net international reserves. 
The BCH monitors the behaviour of the exchange rate without setting targets.  
1.23.  The main monetary policy tools deployed by the B CH are open -market operations and its 
management of required reserves. Open -market operations consist mainly of selling Central Bank 
Bills (LBCH) in competitive auctions. In its conduct of monetary policy, the BCH uses short -term 
interest rates as an opera tional variable, while the monetary aggregates serve as indicative 
targets. The policy instrument is the Monetary Policy Rate (TPM), which sets the maximum interest 
rate permitted for bids to purchase government securities at 1 - to 14 -day maturities in BCH  
auctions, aimed exclusively at financial entities. In that connection, daily LBCH auctions have been 
held since 19  October  2015, with a view to improving market signalling and optimizing monetary 
policy transmission channels. The legal reserve is calculat ed on the average of deposit obligations 
in the immediately preceding fortnight; it must be fully constituted in demand deposits at the BCH, 
and a minimum daily amount equivalent to 80% of the deposit must be held.  
1.24.  The authorities' strategy is to maintain an adequate level of liquidity. To regulate the daily 
liquidity of commercial banks, it uses permanent investment and credit facilities (both overnight). 
In May  2013, Primary Investment Certificates (CIP) were created as short -term investment 
instruments t hat can be purchased directly by private individuals and private legal entities, other 
than banks. Their aim is monetary absorption and stabilization. The BCH is authorized to extend 
credit to banks, saving and loan associations, and financial corporations  to meet their temporary 
                                               
9 These goods are listed in Ann ex I to the Law and cover 75 eight -digit tariff subheadings. They include 
certain types of meat, milk, cheese, potatoes, green vegetables, beans, certain fruits, maize, sugar, coffee, 
bread, and salt, among others.  
10 Government of the Republic of Honduras,  State Secretariat for Finance (2015), Lineamientos de 
Política Presupuestaria 2016. Viewed at: http://www.sefin.gob.hn/wp -
content /uploads/2015/07/Lineamientos_de_Politica_Presupuestaria_2016_junio_2015.pdf . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  liquidity shortages, subject to prior certification of their compliance with current capital adequacy 
requirements issued by the National Banking and Insurance Commission (CNBS). Financial entities 
may also avail themselves of the permanent credit facilities (FPC) and repurchase agreements 
(repos), by signing a specific agreement with the BCH.  
1.25.  During the review period, BCH monetary policy continued to be targeted on controlling 
inflation and maintaining an adequate level of internat ional reserves. The 2015 -2016 Monetary 
Programme forecasts year -on-year inflation at the end of 2015 and 2016 at 5.5% with a 
fluctuation range of ± 1% for both years, based on current projections for the international prices 
of oil and imported raw materia ls, and the implementation of an active monetary policy. However, 
this forecast was revised in July  2015 to a range of 4.75% ± 1.0 percentage points (pp) for 2015, 
and 5.5% ± 1.0% pp for 2016. The BCH estimates that economic growth is likely to be in a ran ge 
of 3.0% -3.5% for the two years in question, given current levels of investment and of domestic 
and external demand.  
1.26.  The Monetary Programme proposes the following policy measures to achieve the objectives 
of price stability and protection of the country' s external position: (a)  continuing to use the TPM as 
the benchmark operational variable, keeping it positive in real terms; (b)  maintaining liquidity 
levels consistent with the goal of price stability and strengthening the country's external position; 
(c) continuing to manage liquidity in the banking system by providing the FPC service; 
(d) maintaining the exchange rate band mechanism and online auction of foreign exchange 
dealing; (e)  maintaining a level of international reserves that provide coverage for  at least 
3.5 months of imports; (f)  stimulating economic activity in priority productive sectors by making 
efficient use of the funds held in the BCH - BANHPROVI Trust Fund11; (g) improving coordination 
between monetary and fiscal policies; and (h)  strength ening oversight of the financial system.12 
1.27.  The BCH has kept inflation generally within the established fluctuation band. The average 
annual inflation rate in 2010 -2014, measured by the consumer price index (CPI), was 5.6%, 
compared to 7.4% in 2003 -2009. Thi s reduction has been possible thanks to a cautious monetary 
policy and the effect of lower prices for oil and other raw materials. The year -on-year inflation rate 
in September  2015 fell to 2.76%, the lowest level for more than 25 years. In 2015, given lowe r 
inflation risk, moderate growth in the monetary aggregates together with still contained economic 
growth, the BCH decided to ease monetary conditions by lowering the TPM on three occasions 
(February, March and July  2015), which dropped from 7.00% to 6.25 %. Rates on LBCH 
placements were also lowered.  
1.28.  Honduras applies a crawling band exchange rate system. The BCH maintains an online 
system for currency transactions (SENDI), as an instrument for allocating the foreign exchange 
needed by economic operators. T he exchange rate is determined in daily auctions, but may not 
deviate by more than 7.0% from the base exchange rate, which is adjusted every five auctions 
according to the spread between Honduras' inflation rate and the rates estimated in its main 
trading partners, while also taking account of the trend of the exchange rate of those countries 
with respect to the United States dollar and the behaviour of official reserve assets. 
The weighted -average exchange rate of successful auctions is used as the benchma rk (official) 
exchange rate for the following day. The real effective exchange rate depreciated by 5.2% 
between 2009 and June  2015. All transactions in foreign currency, both inside Honduras and 
abroad, must be channelled through the BCH or through authori zed foreign exchange dealers. 
The banks and foreign exchange bureaus are required to surrender 100% of their daily foreign 
exchange purchases to the BCH at the benchmark foreign exchange market rate prevailing on the 
day of purchase. The BCH must offer at least 60% of the average of its foreign exchange 
purchases over the previous five days.  
1.5  Balance of payments and external debt  
1.29.  The current account of the balance of payments continued to post large deficits during the 
review period, with a US$1,444  million gap in 2014, equivalent to 7.4% of GDP. This was below 
the 9.5% recorded in 2013, but well above the 4.3% of 2010 (Tables 1.1 and 1.4).  
                                               
11 Legislative Decree No.  91-2013 authorized an increase in funding to L 13  billion.  
12 Central Bank of Honduras (2015), Programa Monetario 2015 -2016. Viewed at:  
www.bch.hn/programa_monetario.php . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  1.30.  Goods imports grew vigorously between 2009 and 2012, before declining somewhat. 
However, the average annual rate of grow th of imports between 2010 and 2014 was 5.6%, 
whereas exports grew by an average of 6.5% per year. The export figures include the earnings of 
the maquila  industry, which are recorded as part of merchandise exports (see below).  
1.31.  Net transfers from abroad con tinued to grow on a sustained basis in the most recent years 
of the review period, rising to US$3,572  million in 2014 (Table 1.4), equivalent to 18.3% of GDP. 
Family remittances are particularly important in this category — totalling US$3,353  million, or 
17.2% of GDP in 2014, up by nearly 36% on the 2009 figure. Private transfers are essential for 
sustaining domestic demand and particularly for financing much of domestic consumption.  
1.32.  The financial account of the balance of payments is generally in surplus, and it recorded net 
income of US$1,651  million in 2014 (8.5% of GDP), largely owing to direct capital investment 
flows for private investment and loans to general government and the financial sector. 
Net international reserves held in the financial system stood at US$3,517  million in late 2014 — 
equivalent to 4.0 months of imports. The level of reserves rose in October  2015, to represent an 
estimated 4.3 months of imports .13 
Table 1.4 Balance of payments, 2010 -2015 
(US$ million)  
 2010  2011  2012  2013  2014a 2015 T3a 
I. Current accountb -682 -1,409  -1,581  -1,763  -1,444  -875 
Balance of goods  -2,643  -3,149  -3,012  -3,147  -2,998  -2,194  
Exports (f.o.b.)  6,264  7,977  8,359  7,806  8,072  6,223  
General goods  2,735  3,866  4,295 3,788  3,958  3,020  
Goods for processing  3,432  3,999  3,939  3,890  3,980  3,103  
Other goods  98 111 125 128 135 100 
Imports (f.o.b.)  8,907  11,126  11,371  10,953  11,070  8,417  
General goods  6,606  8,356  8,620  8,385  8,500  6,495  
Goods for processing  2,301  2,769 2,748  2,560  2,561  1,915  
Other goods  1 2 3 9 9 7 
Balance of services  -193 -423 -591 -668 -698 -545 
Revenue  976 1,023  1,056  1,013  1,087  851 
Transport  57 80 79 102 98 71 
Travel  626 637 679 608 630 510 
Other services  293 307 298 303 359 270 
Expenditu re 1,169  1,446  1,647  1,681  1,784  1,397  
Transport  588 796 903 902 956 762 
Travel  321 354 454 404 412 331 
Other services  261 296 290 374 417 304 
Balance of goods and services  -2,836  -3,572  -3,603  -3,815  -3,695  -2,739  
Balance of income  -727 -974 -1,266  -1,353  -1,322  -976 
Revenue  54 59 62 48 47 47 
Interest  45 46 34 33 30 35 
Other income  9 13 29 16 16 12 
Payments  781 1,033  1,328  1,401  1,368  1,022  
Interest  73 90 99 153 198 149 
Direct investment  681 910 1,192  1,208  1,129  839 
Other income  27 33 36 41 42 35 
Balance of goods, services and income  -3,563  -4,546  -4,869  -5,168  -5,017  -3,715  
Balance of transfers  2,882  3,138  3,288  3,405  3,572  2,840  
Income from family remittances  2,609  2,798  2,892  3,083  3,353  2,718  
II. Capital account 85 166 101 133 145 104 
Credit  85 166 101 133 145 104 
Capital transfers  85 166 101 133 145 104 
Debit  0 0 0 0 0 0 
III. Financial accountc 1,463  1,143  1,426  2,495  1,651  838 
Direct investmentd 971 1,012  851 992 1,120  759 
Direct investment abroad  1 -2 -208 -68 -24 -89 
Direct in vestment in Honduras  969 1,014  1,059  1,060  1,144  848 
Portfolio investment  -41 88 1 1.007  41 -22 
Assets  -19 46 -12 0 20 -21 
Liabilities  -22 42 13 1.007  20 -1 
                                               
13 IMF (2015), "IMF Staff Concludes Visit to Honduras", Press Release No.  15/339,  16 July 2015. Viewed 
at: http://www.imf.org/external/english/np/sec/pr/2015/pr15339e.htm . WT/TPR/S/336 /Rev.1  • Honduras  
 
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   2010  2011  2012  2013  2014a 2015 T3a 
Other investment  534 43 574 497 491 102 
Assets  66 -437 217 -79 38 -93 
Commercial credit  -4 -3 -31 44 13 55 
Loans  23 1 -3 -4 -18 2 
Currency and deposits  54 -427 260 -90 53 -140 
Other assets  -7 -8 -8 -28 -10 -9 
Liabilities  468 480 357 575 453 194 
Commercial credit  -11 18 -247 -85 -89 164 
Loans  491 443 588 665 548 38 
Currency and deposits  -10 25 22 3 10 -13 
Other assets  -2 -7 -6 -8 -16 6 
IV. Net errors and omissionse -300 179 -237 -393 108 80 
Overall balance  567 80 -291 473 459 147 
V. Reserves and related headings  -567 -80 291 -473 -459 -147 
BCH reserve assetsf -592 -86 283 -485 -459 -152 
Special financing  25 6 8 12 -1 5 
a Preliminary figures.  
b A positive (negative) sign means an inflow (outflow) of capital for the country.  
c Net variation in assets: a positive (negative) sign means a reduction (increase) in claims on 
non-residents. Exam ple: Reduction in deposits by residents abroad (positive sign). Net variation in 
liabilities: a positive (negative) sign means an increase (reduction) in liabilities to non -residents. 
Example: Increase in deposits by non -residents in the country (positive sign).  
d Includes shares and capital participations, profits, and reinvested dividends or other capital.  
e A positive (negative) sign means an inflow (outflow) not recorded in the balance of payments.  
f A positive (negative) sign means a reduction (increas e) in claims on non -residents.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding.  
Source:  Central Bank of Honduras.  
1.33.  The country's public external debt reached a level of US$5,564  million in 2014, equivalent 
to 28.5% of GDP . Of Honduras' total external debt in that year, about 63.8% was owed to 
multilaterals, 13.0% to bilateral organizations, and the rest to commercial entities. All of the debt 
is medium - to long -term. Public external debt service in 2014 was equivalent to 7 .6 months of 
export earnings, including maquila . The public external debt balance rose during the review period 
even though Honduras benefited from the HIPC and MIDR initiatives, which enabled it to reduce its 
external debt with the Paris Club, the IMF, th e Inter -American Development Bank (IDB) and the 
World  Bank. The total external debt (both public and private) represented 37% of GDP in 2015.  
1.6  Goods trade and investment flows  
1.6.1   Composition of trade  
1.34.  The composition of Honduran exports varies considerably betw een exports from national 
territory and those emanating from the maquila  sector. In the first case, they are mostly 
agricultural products, whereas in the maquila  sector, they are manufactures, mainly clothing. 
In 2010-2014, general exports were more dynami c than maquila  exports, growing at an average 
annual rate of 9.6%, while maquila  exports grew by an average of 3.8% per year.  
1.35.  General exports from Honduras in 2014 (excluding maquila ) totalled US$4,070  million, 
compared to US$2,819  million in 2010. The mai n export products were: coffee (20.6% of the 
total), bananas (11.2%), palm oil (7.6%) and shrimp and lobster (7.1%) (Table  A1.1 and 
Chart  1.1). 
1.36.  Maquila  exports totalled US$3,980  million in 2014, compared to US$3,432  million in 2010. 
The main export product s were made -up articles (64.1% of the total), machinery and electrical 
appliances (15.6%) (Table A1.2 and Chart 1.2).  
1.37.  Honduran imports, which amounted to US$9,311  million in c.i.f. terms in 2014, consist 
mainly of manufactures, particularly machinery and e quipment and mineral products (Table  A1.3 
and Chart 1.1). Import patterns remained broadly stable between 2010 and 2014, growing at an 
average annual rate of 8.9%. Imports for processing ( maquila ) totalled US$2,738  million in 2014, 
over 75% of which consis ted of textile materials (Table A1.4 and Chart 1.2).  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  1.6.2   Geographical distribution  
1.38.  The main market for Honduran exports is the United States, which absorbed 34.8% of the 
total (excluding maquila ) in 2014 — slightly down from the 36.5% recorded in 2010 (Table  A1.5 
and Chart 1.3). The next most important export market is Central America, accounting for 22.9% 
of the total, led by El Salvador, Guatemala and Nicaragua. Exports to Europe represented 22.1% 
of the total in 2014, the leading country being Germany, which  absorbed 8.4% of the total.  
1.39.  The United States are also the main source of imports, accounting for 43.2% of total 
imports in 2014, again excluding imports for use in the maquila  industry. This percentage is above 
the 40.5% recorded in 2010. Among Central A merican countries, El Salvador and Guatemala 
increased their share of total imports (Table A1.6 and Chart 1.3). Other major trading partners on 
the import side are the countries of the European Union, along with China and Mexico.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Chart 1.1 General merchandise trade by main products, 2010 and 2014  
2010 2014
(a)    Exports 
Total: US$2,819  million
(b)    Imports
Total: US$7,128 million Total: US$9,311 millionTotal: US$4,070 millionPaper and 
paperboard
2.5%Bananas
11.9%
Cigars 
and 
cigarettes
2.6%Other
41.2%Palm oil
5.9%
Soaps
2.1%Shrimp and 
lobster
6.3% Plastics
1.9%Other
44.4%
Mineral 
products
21.3%Coffee
25.6%Palm oil
7.6%
Bananas
11.2%
Coffee
20.6%
Shrimp and 
lobster
7.1%
Soaps
2.2%Paper and 
paperboard
2.6%Plastics
2.2%Cigars and 
cigarettes
2.1%
Vegetable 
products
4.2% Food industry 
products
9.7%
Chemicals
14.5% Plastics
6.1%Machinery 
and electrical 
appliances
16.1%Other
16.4%Vegetable 
products
4.4%
Mineral 
products
22.8%
Chemicals
12.4%Plastics
5.9%Base metals
6.7%Machinery 
and electrical 
appliances
17.1%Other
15.1%
Base metals
6.0%Transport 
equipment
5.8%Food industry 
products
10.6%
Transport 
equipment
5.0%
 
Source:  Central Bank of Honduras.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Chart 1.2 Trade in goods for processing ( maquila ), 2010 and 2014  
2010 2014
(a)    Exports
Total: US$3,432 million
(b)    Imports
Total: US$2,393 million Total: US$2,738 millionTotal: US$3,980 millionYarns, thread
10.3%
Machinery 
and electrical 
appliances
10.8%Other
3.8%Textile 
articles
1.5%
Plastics
4.0%Other
2.4%
Clothing
58.1%Textile 
articles
1.7%Yarns, thread
4.4%
Machinery and 
electrical 
appliances
15.6%
Clothing
64.1%Knitwear
11.8%
Chemicals
4.6%
Textile fabrics
78.7%Machinery 
and electrical 
appliances
4.9%Other
7.7%
Plastics
3.0%Chemicals
5.4%
Textile fabrics
76.0%Machinery 
and electrical 
appliances
11.7%Other
3.8%Knitwear
15.5%
 
Source:  Central B ank of Honduras.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Chart 1.3 Merchandise trade by trading partner, 2010 and 2014  
2010 2014
(a)    Exports
Total: US$2,819 million
(b)    Imports
Total: US$7,128 million Total: US$9,311 millionTotal: US$4,070 millionGuatemala
7.1%Other
0.9%
United 
States
36.5%
Germany
8.4%
Other 
America
10.3%Germany
7.2%
Mexico
7.5%America
70.4%United 
States
34.8%
Other  
America
11.0%Other  
Europe
13.7%Other
2.4%Asia
5.2%
America
69.7%Asia
6.6%
United 
States
40.5%
Other 
America
13.7%Germany
1.5%Other  
Europe
5.6%Japan
2.0%
China
7.6%Other 
Asia
3.9%Other
1.6%
United 
States
43.2%
Mexico
5.6%Other 
America
11.5%Germany
1.9%Other 
Europe
5.7%China
7.6%Other 
Asia
4.1%Other
1.4%
America
77.8%America
78.4%Europe
7.1%Europe
7.6%Asia
13.4%Asia
12.7%Japan
1.0%Europe
22.8%Europe
22.1%Other Europe
15.6%
El Salvador
8.0%
Guatemala
7.8%Guatemala
9.4%Nicaragua
4.4%Guatemala
6.3%
El Salvador
4.4%El Salvador
5.1%Nicaragua
5.9%Mexico
4.4%Mexico
3.3%El Salvador
8.0%
Costa Rica
4.0%Costa Rica
3.5%
 
Source:  Central Bank of Honduras.  
1.6.3   Trade in services  
1.40.  The services trade balance in Honduras is normally in deficit; and the gap w idened 
substantially in the review period, from US$193.3  million in 2010 to US$697.5  million in 2014 
(Table 1.5). The categories posting the largest deficit are transport, royalties and insurance, while 
the travel sector is in surplus.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 1.5 Balance of trade in services, 2010 -2015  
(US$ million)  
 2010  2011  2012  2013  2014a 2015  
T3a 
Balance of services  -193.3  -423.3  -591.2  -667.7  -697.5  -545.4  
Credit  975.6  1,023.0  1,055.9  1,012.9  1,086.9  851.2  
1. Transport  56.9 79.6 78.9 101.8  98.3 71.0 
Maritime  40.3 61.7 48.8 61.3 62.6 48.7 
Air 6.6 12.6 19.1 32.7 33.8 17.8 
Other transportb 10.0 5.3 11.0 7.8 2.0 4.6 
2. Travel  625.5  636.7  679.0  608.2  629.5  510.0  
Business  227.7  218.4  n.a n.a n.a 96.8 
Personal  397.8  418.3  n.a n.a n.a 413.2  
3. Other services  293.1  306.7  298.1  302.9  359.1  270.2  
Communication  208.7  214.3  223.0  222.4  230.0  179.2  
Construction  0.0 0.0 0.0 1.2 0.0 0.0 
Insurance services  25.0 20.0 0.0 0.0 15.1 0.0 
Financial services  0.0 0.3 0.1 0.5 3.1 2.7 
Computer and information 
services 4.5 9.4 8.1 8.4 8.5 6.4 
Royalties and licence fees  0.0 0.0 0.0 0.0 2.2 0.9 
Other business services  11.4 24.0 22.6 24.4 52.2 47.7 
Personal, cultural and 
recreational services  11.7 6.0 6.6 7.0 7.2 5.4 
Government services  31.8 32.7 37.6 39.1 40.9 27.9 
Debit  1,168.9  1,446.2  1,647.1  1,680.6  1,784.5  1,396.6  
1. Transport  587.6  796.4  903.1  902.4  955.7  761.7  
Maritime  327.8  492.9  492.8  500.8  568.7  460.8  
Air 115.5  142,8  152.2  162.5  154.5  108.9  
Other transport  144.4  160,6  258.1  239.1  232.5  191.8  
2. Travel  320.7  354,4  454.2  404.0  412.2  331.1  
Business  129.5  100.3  n.a n.a n.a 59.6 
Personal  191.2  254.1  n.a n.a n.a 271.5  
3. Other services  260.5  295,4  289.8  374.2  416.6  303.9  
Communication  41.8 53,1 61.3 64.3 68.7 50.8 
Constructi on 3.1 9,5 10.0 2.5 0.0 0.0 
Insurance services  90.5 90,8 72.1 99.7 107.2  92.1 
Financial services  17.5 12,8 10.6 20.0 15.4 12.3 
Computer and information 
services 3.2 8,2 9.0 9.6 15.0 11.4 
Royalties and licence fees  30.4 35,2 38.7 85.3 91.5 36.0 
Other b usiness services  41.9 49,7 47.4 47.3 70.8 55.0 
Personal, cultural and 
recreational services  6.0 6,8 7.6 8.2 8.7 8.0 
Government services  26.2 29,4 33.1 37.3 39.3 38.3 
n.a Not available.  
a Preliminary figures.  
b Includes road transport.  
Source:  Central Ba nk of Honduras, Macroeconomic Statistics Department, Foreign Trade in Services.  
1.6.4   Foreign direct investment  
1.41.  Foreign direct investment flows increased during the review period, from US$969.2  million 
in 2010 to US$1,144  million in 2014 (Table 1.6). Between 201 0 and 2015, the transport, storage 
and telecommunications sector and the manufacturing sector (including maquila ) received the 
largest volumes of investment (30% of the total each), followed by the services sector (commerce, 
hotels and restaurants).  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 1.6 Foreign direct investment flows by economic activity, 2010 -2015  
(US$ million)  
 2010  2011  2012  2013  2014a 2015  
T3a 
Transport, storage and 
telecommunications  260.0  316.9  295.4  358.9  361.1  245.1  
Goods proce ssing industry ( maquila )  214.1  148.4  164.3  173.2  178.5  159.6  
Servicesb 136.1  90.5 103.0  97.2 199.0  158.6  
Commerce, restaurants and hotels  136.2  103.1  142.4  118.9  109.2  103.6  
Manufacturing  126.8  243.4  273.9  152.1  168.0  88.8 
Electricity, gas and water  12.6 44.8 33.3 73.8 61.5 43.2 
Mining and quarrying  62.4 45.6 23.0 50.9 45.3 33.0 
Agriculture, forestry, hunting and 
fishing  21.1 16.6 18.0 18.9 19.8 14.5 
Construction  -0.2 5.0 5.1 15.8 1.7 1.2 
Total  969.2  1,014.4  1,058.5  1,059.7  1,144.1  847.7  
a Prelim inary figures.  
b Includes financial institutions, insurance, real estate and business services.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding. Negative values mean 
disinvestment, owing mainly to acquisitions of busines ses or a decrease in liabilities.  
Source:  Central Bank of Honduras, Macroeconomic Statistics Department, Balance of Payments Section.  
1.42.  Mexico and the United States are the leading sources of foreign investment in Honduras, 
accounting for 13.4% of total FDI inflows in 2014. These countries are followed by Luxembourg 
and Canada, with just over 10% each, and then by Panama, Guatemala, and Costa Rica. 
Other  major investors are El Salvador and Colombia (Table 1.7).  
Table 1.7 Foreign direct investment flows by country of origin, 2010 -2015  
(US$ million)  
 2010  2011  2012  2013  2014a 2015  
T3a 
Total  969.2  1,014.4  1,058.5  1,059.7  1,144.1  847.7  
America  598.2  658.5  684.1  720.4  837.0  692.7  
North America  467.7  482.2  496.8  507.5 469.1  409.3  
United States  181.9  141.4  173.2  127.5  153.5  159.9  
Canada  158.9  186.9  132.1  114.3  114.7  101.9  
Mexico  123.8  153.9  191.5  265.7  200.8  147.6  
Latin America  130.6  176.3  187.2  213.0  367.9  283.4  
Central America  98.2 120.0  116.7  109.5  167.4  128.8  
Guatemala  60.7 43.7 51.5 37.1 73.2 60.9 
El Salvador  17.4 20.9 24.8 26.2 28.8 22.8 
Nicaragua  3.7 10.3 2.9 3.9 10.7 8.4 
Costa Rica  16.5 45.0 37.6 42.3 54.6 36.8 
Caribbean  18.2 20.9 27.3 4.9 23.5 19.9 
Bermuda  11.2 12.3 15.2 16.0 15.2 12.3 
Bahamas  7.0 8.5 9.2 10.4 4.9 5.2 
British Virgin Islands  0.0 0.0 2.8 -21.7 2.3 1.9 
Dominican Republic  0.0 0.1 0.1 0.1 1.1 0.6 
Rest of Latin America  14.1 35.4 43.2 98.6 177.1  134.7  
Panama  14.1 15.9 21.7 63.3 109.0  68.0 
Colombia  0.0 19.5 21.5 31.4 63.5 59.1 
Argentin a 0.0 0.0 0.0 1.9 1.0 0.7 
Brazil  0.0 0.0 0.0 1.9 3.6 6.8 
Europe  336.0  376.7  369.2  325.7  275.3  139.9  
Germany  19.0 29.2 32.3 -5.0 38.2 27.8 
Italy 14.5 5.0 11.7 28.4 13.4 8.1 
Netherlands  2.8 5.5 7.4 0.4 6.2 5.7 
Switzerland  24.9 68.1 85.7 2.6 30.7 -24.6 
France  11.7 11.7 12.2 6.5 n.a. n.a. 
United Kingdom  109.1  84.6 93.5 97.3 33.5 19.3 
Spain  -0.7 1.9 2.0 4.0 3.4 5.0 
Luxembourg  132.5  149.2  124.4  150.2  147.3  96.6 
Finland  n.a n.a 0.0 41.3 2.7 2.0 
Ireland  22.2 21.5 n.a n.a n.a n.a WT/TPR/S/336 /Rev.1  • Honduras  
 
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   2010  2011  2012  2013  2014a 2015  
T3a 
Asia 13.2 -21.5 5.2 13.5 31.6 14.8 
Republic of Korea  3.1 -21.5 5.2 13.5 -2.6 -3.7 
Philippines  n.a n.a n.a n.a 34.2 18.4 
Other countries  21.8 0.6 0.0 0.1 0.1 0.3 
n.a. Not available.  
a Preliminary figures.  
Note:  The sum of the parts is not necessarily equal to the total, owing  to rounding. Negative values mean 
disinvestment, owing mainly to acquisitions of businesses or a decrease in liabilities.  
Source:  Central Bank of Honduras, Macroeconomic Statistics Department.  
1.7  Outlook  
1.43.  In July  2015, the BCH revised its 2015 -2016 Monetary P rogramme, downgrading the 
year-on-year projection for the CPI to a range of 4.75% ± 1.0 pp for 2015 and 5.5% ± 1.0 pp for 
2016, but reaffirming the GDP growth projection of between 3.0% and 3.5% for both years.14 
For 2016, the IMF is forecasting GDP growth of 3.6%, inflation around 5%, and a smaller 
balance -of-payments current account deficit.15 
 
 
                                               
14 Central Bank of Honduras (2015), Revisión del Programa Monetario 2015 -2016. Viewed at: 
http://www.bch.hn/download/programa_monetario/revision_programa_monetario_2015_2016.pdf . 
15 IMF (2015),  "IMF Staff Completes Review Mission to Honduras", Press Release No.  15/462 , 
5 October  2015. Viewed at: http://www.imf.org/external/spanish/np/sec/pr/2015/pr15462s.htm . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  2  TRADE AND INVESTMENT  REGIME  
2.1  General framework  
2.1.  The Honduran Constitution was amended during the period under review. The constitutional 
reforms introduced changes r elating to the composition of the Judiciary, the powers of the 
Legislature, the law -making process, mechanisms for citizen participation, and the administrative 
division of the territory. The Constitution was also amended to allow for the creation of 
Emplo yment and Economic Development Zones (ZEDE).1 
2.2.  The President of the Republic is the head of the Executive Branch. In his absence, his 
functions are discharged by an appointee of the Office of the President. The presidential term of 
office is four years, wit hout the possibility of re -election. The Council of Ministers, comprising the 
State Secretaries, is also part of the Executive Branch. The powers of the State Secretariats were 
reorganized during the review period in order to enhance their performance and promote 
transparency. Accordingly, 2013 witnessed the creation of the State Secretariat for Economic 
Development (PROHONDURAS) which replaced the State Secretariat for Industry and Trade.2 
2.3.  The Legislature is unicameral. The members of the National Congress  are elected by direct 
suffrage.3 The Judiciary consists of the Supreme Court of Justice, courts of appeal and lower 
courts. During the review period, courts with exclusive jurisdiction in the ZEDE s (see below) were 
added to the Judiciary.4 
2.4.  Reforms were in troduced during the review period to increase the transparency of the civil 
service. Thus, in 2012 Honduras introduced the notion of "impeachment" into the Constitution, 
a mechanism through which to monitor top government officials and other senior civil s ervants 
of the Republic. The introduction of "impeachment" enables the National Congress, the Executive 
Branch, the Supreme Court, the Supreme Electoral Tribunal and citizens to file complaints 
regarding poor performance in office. It falls to the National  Congress to investigate and rule on 
such complaints.5 
2.5.  The Constitution is the supreme law of the Republic, followed, by order of importance, by 
international treaties, laws (decrees) and their implementing regulations (executive decisions), 
executive decr ees, and lastly, agreements and other resolutions issued by the State Secretariats. 
International treaties become part of domestic law once they have been approved by Congress 
and ratified by the Executive Branch.  
2.6.  Draft laws are discussed and approved by t he National Congress, and once approved, are 
submitted to the Executive Branch, which sanctions, promulgates or objects to them.6 Draft laws 
may be initiated in the National Congress or introduced into the Congress by the Executive Branch, 
the Supreme  Court of Justice, the Supreme Electoral Tribunal or by citizens. As from 2011, 
a number of initiatives were implemented in order to raise citizen participation in the legislative 
                                               
1 The 1982 Constitution is contained in Decree No.  131-1982 of 11  January  1982 and amendments 
thereto. During the period under review, the Constitution wa s amended through Decrees No.  273-2010, 
No. 275-2010, No.  282-2010, No.  283-2010, No.  106-2011, No.  269-2011, No.  270-2011, No.  273-2011, 
No. 231-2012, No.  234-2012, No.  235-2012, No.  236-2012, No.  237-2012 and No.  283-2013. Consolidated 
version of the Con stitution, as at December  2014, viewed at: 
http://www.poderjudicial.gob.hn/CEDIJ/Leyes/Document s/Constituci%c3%b3n%20de%20la%20Rep%c3%bab
lica%20de%20Honduras%20%28Actualizada%202014%29.pdf . 
2 Article 29 of the General Law on Public Administration (Decree No.  146-86) of 27  October  1986, 
as amended by Decrees No.  31-2010, No.  177-2010, No.  78-2011 an d No.  266-2013.  
3 Article 189 of the Constitution , as amended by Decree No.  235-2012.  
4 Article 303 of the Constitution , as amended by Decree No.  236-2012.  
5 Articles 205 and 234 of the Constitution , as amended by Decree No.  231-2012. See also the Special 
Law on Impeachment (Decree No.  51-2013) of 5  April 2013.  
6 Under Articles 214 -216 of the Constitution, a draft law to which the Executive Branch has objected 
must again be debated by the Congress. If it receives renewed congressional approval, the Executiv e Branch 
may not object to it and must publish it "without delay". If the objection is made on grounds of 
unconstitutionality, the Supreme Court of Justice will be requested to rule on the matter.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  process. Since 2011, for example, citizens have been able to submit draft laws if  they are able to 
collect at least 3,000  signatures.7 
2.7.  Congressional approval is required for some measures directly affecting international trade, 
such as the imposition of taxes and other duties; the approval of tax incentives, exemptions and 
concessions;  the opening of ports; the opening and closing of customs offices and free zones; the 
regulation of maritime, air and overland commerce; and the creation of Employment and Economic 
Development Zones (ZEDE).  
2.8.  Honduras does not have a foreign trade law per se . There are, however, a number of laws 
that contain elements relating to international trade (Table 2.1). Several laws have been enacted 
since the preceding review, including the new investment law, the new law on the energy sector, 
the law on fiscal conso lidation, the law on quality control, and the Organic Law on Employment and 
Economic Development Zones. Other laws have been  substantially amended, for example, the law 
regulating government procurement. Despite efforts by Honduras to modernize its legisla tive 
system, there appear to be obstacles to and delays in the implementation of some laws, and it is 
therefore not clear in some instances what law is in force or applicable and which institution 
implements it.  
Table 2.1 Main trade -related legislation  
Law Decree No.a 
Investment  
Investment Promotion and Protection Lawb 51-2011 
Incentives  
Law establishing Industrial Export Processing Zones  
Law establishing Agricultural Export Zones  
Law on Financial Support f or Production Sectors in Honduras  
Law on the Promotion of Call Centres and Outsourcing of Business Services  
Law on the Promotion of Sustainable Rural Tourism  
Law on Tourism Incentives  
Law on the Tourism Free Zone in the Bahía Islands Department  
Law on the Promotion of Electricity Generation from Renewable Resources  
Law on Free Zones  
Law on the Honduran Production and Housing Bank  
Law on the National Agricultural Development Bank  
Law on the Temporary Importation Procedure  
Law on the System of Mutual Guarante e Funds for the Promotion of MSMEs, Social 
Housing and Technical/Vocational Education  
Organic Law on Employment and Economic Development Zones  
Law on the Production and Consumption of Biofuels  
Law on the Promotion and Development of the Competitiveness of Micro, Small and 
Medium -Sized Enterprises  
Law on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measures  37-1987 
233-2001 
175-2008 
90-2012 
126-2011 
314-98 
181-2006 
70-2007 
356-1976 
5-2005 
903-1980 
37-1984 
205-2011 
 
120-2013 
144-2007 
135-2008 
 
278-2013 
Customs and foreign trade  
Central American Uniform Customs Code  
Customs Law  Decision No.  023-2003 
212-1987 
Anti-dumping, countervailing and safeguard measures  
Central American Regulations on Safeguard Measures  
Central American Regulations on Unfair Business Practices  Resolution No.  194-07 
Resolution No.  193-07 
Sanitary and phytosanitary measures  
Central American Sanitary and Phytosanitary Directive on Trade Facilitation in 
Respect of Shipments and Goods   
Law on Plant and Animal Health  
Centra l American Regulations on Sanitary and Phytosanitary Measures and 
Procedures  
Regulations on Agricultural Quarantine  
Regulations on the Sanitary Control of Health Products, Services and Establishments  
Regulations on Wood Packaging Material in International Trade  Resolution No.  175-2006 
157-94 
Resolution No.  37-99 
Decision No.  1.618 -97 
Decision No.  06-2005 
Resolution No.  175-2006 
Technical barriers to trade  
Central American Regulations on Standardization Measures, Metrology and 
Authorization Procedures  
Law on the National Quality System  Resolution No.  7-99 
29-2011 
                                               
7 Article 213 , as amended by Decree No.  275-2010.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Law Decree No.a 
Government procurement  
Government Procurement Law  
Law on Efficient and Transparent Procurement using Electronic Means  74-2001 
36-2013 
Competition and consumer protection  
Consumer Protection La w 
Law on the Defence and Promotion of Competition  24-2008 
357-2005 
Intellectual property rights  
Industrial Property Law  
Law on Copyright and Related Rights  
Law on the Protection of New Varieties of Plants  12-99-E 
4-99-E 
21-2012 
Agriculture, fishing, for estry   
Law on Fishingc 
Law on the Protection of the Coffee Industry  
Law on Forestry, Protected Areas and Wildlife  154-1959 
199-95 
98-2007 
Energy  
Law on Biofuels  
Law on Hydrocarbons  
General Law on the Electricity Industryd 
General Law on Mininge 144-2007 
194-84 
404-2013 
238-2012 
Financial services  
Law on Insurance and Reinsurance Institutions  
Stock Market Law  
Law on the Financial System  22-2001 
8-2001 
129-2004 
Telecommunications  
Framework Law on the Telecommunications Sector  185-95 
Transport  
Civil Aviation  Law 
Organic Law o f the National Merchant Marine  55-2004 
167-94 
Tourism  
Law on the Honduran Tourism Institute  103-93 
a Unless otherwise indicated.  
b Repeals the Investment Law (Decree No.  80-1992).  
c According to the authorities, the Congress a pproved the new law on fishing and aquaculture in 
September  2015. At the end of 2015, its submission to the Executive was still pending and its 
implementing regulations were being prepared.  
d Repeals the Framework Law on the Electricity Subsector (Decree N o. 158-94). 
e Repeals the General Law on Mining (Decree No.  292-98). 
Source:  WTO Secretariat, based on the Virtual Library of the High Court of Auditors . Viewed at:  
http://www.tsc.gob.hn/biblioteca . 
2.9.   The Co nstitution was amended during the period under review so as to establish 
Employment and Economic Development Zones (ZEDE) (Section 3.3.1.2). According to the 
authorities, constitutional change was required in order to lend legal predictability to the proje ct. 
Following the 2012 constitutional amendment, the Law on Employment and Economic 
Development Zones (ZEDE) (Decree No.  120-2013) was enacted.8 The creation of a ZEDE must be 
approved by the National Congress, provided that the following requirements are met: The ZEDE 
may be established in areas of low population density if this is approved by the National Institute 
of Statistics, or in areas of high population density if it is approved by referendum.9 
Like departments and municipalities, ZEDE s represent a n administrative subdivision in Honduran 
national territory.10 ZEDE s will be governed by the provisions of the Constitution and the laws of 
the Republic on national sovereignty, justice, national defence, foreign affairs, elections and the 
issuance of ident ity documents and passports.11 They will nonetheless be set up under a special 
regime that will allow them a degree of autonomy, as they are considered as extraterritorial fiscal 
                                               
8 Any ame ndment to the law on Employment and Economic Development Zones requires a qualified 
majority in Congress and a referendum in areas with more than 100,000 inhabitants.  
9 According to authorities, at the end of 2015 the National Institute of Statistics had n ot yet established 
the method for determining areas of high and low population density (Article 38 of Decree No.  120-2013).  
10 Article 294 , as amended by Decree No.  236-2012 and online information  on the ZEDE s. Viewed at: 
http://zede.gob.hn/?page_id=18 . 
11 Article 329 , as amended by Decrees No.  283-2010, No.  236-2012 and No.  283-2013, and Article 1 of 
Decree No.  120-2013 of 12  June 2013.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  and customs zones and may formulate their own internal regulations (Box 2.1).12 No ZEDE had yet 
been established as of the end of 2015 (Section 3.3.1.1).  
Box 2.1 Employment and Economic Development Zones (ZEDE)  
Under the Law, ZEDE s: 
 Are subject to the provisions of the Constitution, intern ational treaties, and the Organic Law on 
Employment and Development  Zones (ZEDE ), in that order, and to some domestic laws.a They are 
nevertheless empowered to formulate their own policies and regulations.  
 Are operationally and administratively autonomous.  
 Have independent autonomous courts with exclusive jurisdiction in each ZEDE. These courts apply 
ordinary law. The Council of the Judiciary and the Judicial Careerb is empowered to set up these courts 
and appoint judges as proposed by the ZEDE's Committee on the Adoption of Best Practices (CAMP).c 
ZEDE courts may turn to courts of others jurisdictions, including foreign ones, when a ruling must be 
executed outside the Zone.  
 Operate in accordance with a policy of free trade and competition that guarantees th e free movement 
of goods, intangible assets and capital.  
 Have an independent financial regime and are permitted to use their income as they deem necessary 
but must be financially self -sustaining.  
 Benefit from an independent tax regime based on "a low -tax policy". The Law sets ceilings on the taxes 
that may apply. The ZEDEs administer and collect their own taxes.  
 May incur obligations in Honduras and abroad, provided that no government guarantee is required.  
 Must not apply exchange controls.  
 Are authorized t o limit the use of means of payment and to have an independent monetary policy.  
 May regulate maritime shipping and air traffic as well as control ports and airports within their 
jurisdiction.  
 Are authorized to manage the use of the radio spectrum tha t is w ithin their jurisdiction.  
a For further information, see Articles 8 and 41 of the Organic Law on Employment and Economic 
Development Zones (ZEDE).  
b A constitutional organ of the Judiciary (Law on the Council of the Judiciary and the Judicial Career 
(Decr ee No.  219-2011) of 17  November  2011, as amended by Decree No.  291-2013).  
c The institutions that manage the ZEDE s are the CAMP and the Technical Secretariat. The CAMP will 
comprise 21 members from the private and public sectors and academics of "recognize d integrity, 
leadership and international prestige".  
Note:  According to the authorities, provision is made for annual audits in each ZEDE, to be entrusted by 
the CAMP to entities of international renown.  
Source:  Article  329, as amended by Decrees No.  283-2010, No.  236-2012 and No.  283-2013, and the 
Organic Law on Employment and Economic Development Zones (Decree No.  120-2013) of 
12 June 2013.  
2.2  Trade policy objectives  
2.10.  The State Secretariat for Economic Development (PROHONDURAS), which replaced the 
State Secr etariat for Trade and Industry (SIC) in 2013, is responsible for laying out and 
implementing trade policy. PROHONDURAS is also tasked with export and investment promotion. 
Through the Under -Secretariat for Economic Integration and Foreign Trade, PROHONDURA S 
formulates, coordinates, implements and evaluates economic integration policy, including the 
negotiation, signing and implementation of regional and multilateral trade agreements. 
PROHONDURAS represents Honduras before the WTO and other bilateral and mul tilateral trade 
agencies.13 
                                               
12 Article 32 of Decree No.  120-2013.  
13 Online information from PROHONDURAS . Viewed at: http://www.prohonduras.hn , Article 29 of the 
General Law on Public Administration (Decree No.  146-86) of 27  October  1986, as amended by 
Decree  No. 266-2013, and Article 4 of Executive Decree No.  PCM-018-2014 of 22  April 2014.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  2.11.  In framing trade policy, PROHONDURAS coordinates with the other State Secretariats and 
other institutions such as the Central Bank of Honduras (BCH), the National Banking and Insurance 
Commission (CNBS) and the National Telecommu nications Commission (CONATEL) (Table  2.2). 
The private sector also takes part in trade policy formulation through the various professional 
bodies and chambers.  The main partner for dialogue between the public and private sectors is the 
Honduran Private En terprise Council (COHEP), which brings together  the chambers of commerce 
and business associations.  These institutions and associations also assist PROHONDURAS in trade 
negotiations.14 
Table 2.2 Some State Secr etariats involved in trade policy formulation  
State Secretariat  Functions  
Foreign Affairs and 
International Cooperation  To formulate, coordinate, implement and evaluate foreign policy  
To monitor foreign trade operations through the Research Centre  
Finance To formulate, coordinate, implement and evaluate public finance policy  
Agriculture and Livestock  To formulate, coordinate, implement and evaluate policy on: (a)  food 
production, preservation and marketing; and (b)  promotion and modernization 
of agric ulture and animal and plant health  
Energy, Natural Resources 
and the Environment  To formulate, coordinate, implement and evaluate policy on: (a) protection and 
harnessing of energy resources;  (b) energy generation, transmission, 
distribution, and  (c) mini ng and hydrocarbons  
Infrastructure and Public 
Services  To formulate, coordinate, implement and evaluate transport policy  
Health  To formulate, coordinate, implement and evaluate health, phytosanitary and 
food safety policy  
Source:  WTO Secretariat.  
2.12.  PROHONDURAS is also responsible for regulating tariffs in accordance with the law.15 
2.13.  The 2010 -2038 Country Vision and  the various National Plans and Government Plans16 
lay out Honduran trade policy, which is still oriented towards greater integration in world t rade. 
Trade policy continues to be of paramount importance in fostering the development of sectors with 
high production potential, technology transfer and job creation.17 The main objectives of Honduran 
trade policy include: boosting the participation of Ho nduras in international trade; increasing 
export supply; providing logistical and trade facilitation services; and forging strategic alliances 
with trading partners in order to promote innovation and production chains.  
2.14.  According to the authorities, there i s no formal trade policy monitoring mechanism, but 
there is a results -based system for the evaluation and management and follow -up of the targets 
set by government bodies under the National and Government Plans.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.15.  Hondur as is an original WTO Member and accords at least most -favoured -nation (MFN) 
treatment to all its trading partners. The WTO has conducted two reviews of Honduran trade 
policy, the most recent being in 2010.  
2.16.  Honduras participates in the Information Technolo gy Agreement. It is not an observer in the 
Committee on Government Procurement, and is not considering accession to the Agreement. 
Neither is it party to the plurilateral Civil Aircraft Agreement. In 2011 Honduras accepted the 2005 
Protocol amending the WT O Agreement on Trade -Related Aspects of Intellectual Property Rights.  
                                               
14 Article 4 of Executive Decree No.  PCM-018-2014 and online information from COHEP. Viewed at: 
http://www.cohep.com . 
15 Article 245 of the Constitution.  
16 The National Plan is formulated for succ essive 12 -year periods. The Government Plan extends over 
four years. Law for the Establishment of a Country Vision and the Adoption of a National Plan for Honduras 
(Decree No.  286-2009) of 13  January  2010.  
17 Government Plan 2010 -2014. Viewed at: http://www.redeplan.info/documents/10157/da90cced -
9067-4ffd-a900-9e9d3f0116d5 . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  2.17.  During the review period Honduras submitted a number of notifications under the 
WTO Agreements. It has notified its category A commitments under the Trade Facilitation 
Agreement (TFA) (T able A2.1) and has begun the formalities for ratifying the TFA.18 
2.18.  Since 2010 Honduras has participated in two disputes as a complainant and in nine cases as 
a third party (Table  2.3). Honduran trade practices have not been the subject of any dispute 
settlem ent procedures.  
Table 2.3 Disputes in which Honduras participated, 2010 -2015 (to 31  December  2015)  
Defendant  Complainant  Subject of dispute  Current situation (as of 
January  2015)  WTO 
document 
series  
Dominican  
Republic  Honduras  Safeguard measures on imports 
of polypropylene bags and 
tubular fabric  Report(s) adopted with the 
recommendation to bring 
measure(s) into conformity 
no later than 
22 February  2012 WT/DS417  
Australia  Honduras  Certain measures concerning 
trademarks and  other plain 
packaging requirements 
applicable to tobacco products 
and packaging  Panel constituted on 
5 May 2014 WT/DS435  
Source:  WTO Secretariat.  
2.19.  In the framework of the Doha Round negotiations, Honduras is a member of the group of 
Small, V ulnerable Economies and of the G33 (agriculture). Honduras advocates the 
implementation of provisions on special and differential treatment along with other flexibilities 
making it possible to protect the most sensitive sectors of developing economies. Hon duras 
furthermore supports the elimination of agricultural distortions and calls for the continuation of 
negotiations on the special agricultural safeguard mechanism, bearing in mind the food security 
and well -being of farmers.  
2.3.2   Regional and preferential ag reements  
2.3.2.1   Regional trade agreements  
2.20.  Honduras maintains a number of regional trade agreements (RTAs), most of which are 
multi-party agreements (Chart 2.1). The RTAs in which Honduras participates encompass trade in 
both goods and services and include provisi ons on foreign investment and non -tariff measures, 
such as customs procedures, trade defence, government procurement and competition.19 These  
agreements have been notified to the WTO.20 
                                               
18 Online information from the Office of the President of the Republic. Viewed at: 
http://www.presidencia.gob.hn/?p=5846 . 
19 As pertains to Central American integration, trade in services and investment were not covered by the 
General Treaty on Central American Economic Integration but were the s ubject of subsequent negotiations 
culminating in the 2002 Treaty on Investment and Trade in Services.  
20 For further  information, see the WTO's RTA database. Viewed at: 
http://rtais.wto.org/U I/PublicMaintainRTAHome.aspx . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Chart 2.1 Participation i n regional trade agreements as of December  2015  
(Date of entry into force of the RTA in Honduras)  
 Mexico 
(2013)  EU 
(2013)  Chile 
(2008)  Chinese 
Taipei 
(2008)  El Salvador  
Guatemala  
Colombia 
(2010)  Costa Rica  
Nicaragua  
Panama Honduras  
CAFTA -DR 
(2006)  Dominican  Republic  
(2001)  
General Treaty 
on Central 
American 
Economic 
Integration  
(CACM) (1962)  Peru 
(not in force ) Canada 
(2014)  
 
Source:  WTO Secretariat.  
2.21.  The preferential agreements negotiated by Honduras with Canada, Mexico and the EU 
(Table  2.4) took effect during the review period.  The process of integration between the countries 
of Central America and Panama continued to move forward and Honduras signed a free trade 
agreement with Peru (2015). At the end of 2015, Honduras was negotiating a bilateral agreement 
with Ecuador (in the L AIA framework) and a trade agreement with the Republic of Korea, together 
with other countries of the region.  
Table 2.4 Tariff reduction programmes adopted by Honduras since 2010  
 Canada  Mexico  EU 
Signing of the Agreement  05.11.2013  22.11.2011  29.06.2012  
Effective date  01.10.2014  01.01.2013  01.08.2013  
Coverage     
 Goods  Yes Yes Yes 
 Services  Yes Yes Yes 
End of tariff reduction period  2028 2022 2027 
(% of tariff lines)  
Lines with zero tariff     
 Immedia te access  68.2 94.8 47.9 
 Less than ten years  8.1 0.07 7.4 
 Ten years  13.1 1.1 36.3 
 More than ten years  8.0 N/A 4.2 
Lines with preferential tariff higher than zero  N/A 0.3 N/A 
Lines excluded from preferential treatment  2.14 3.57 3.8 
Preferential qu otas  0.2 0.01 0.3 
N/A Not applicable.  
Source:  WTO Secretariat, based on online information from PROHONDURAS. Viewed at: 
http://www.prohonduras.hn/dgiepc , and information provided by the authorities.  
2.3.2.1.1   Centr al American economic integration and trade relations with Panama  
2.22.  The Central American integration process was further deepened during the period under 
review.21 
2.23.  In 2007, the members of the Central American Common Market (CACM) signed the 
Framework Agreement  Establishing the Central American Customs Union, which became effective 
in 2011.22 Accordingly, in 2015 Honduras and Guatemala signed an agreement to establish 
                                               
21 For further  information on the CACM, see WTO document WT/TPR/S/234/Rev.1 of 15  October  2010.  
22 Online information from SIECA. Viewed at: 
http://www.sieca.int/Documentos/DocumentosMostrar.aspx?SegmentoId=2&DocumentoId=2357 . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  a customs union; it has not been implemented. The customs union will allow for the free 
movement  of goods and persons. However, a total of 38 products, including sugar, coffee and 
fuels, were excluded from the union.23 
2.24.  In 2011 the CACM members signed a second Protocol to the Treaty on Investment and 
Trade in Services (TICS), also incorporating provisi ons on electronic commerce . The Protocol is 
now in the process of ratification.24 
2.25.  Since 2013 when Panama adopted the General Treaty on Central American Economic 
Integration (TGIEC), trade between Honduras and Panama has been governed by the TGIEC and 
the Pr otocol to the Free Trade Agreement between Panama and Central America of 2002.25 
With the entry into force of the TGIEC, tariffs on Panamanian goods were eliminated immediately, 
with some agreed exceptions.26 
2.3.2.1.2   Association Agreement with the European Union  
2.26.  The Association Agreement between Central America (Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama) and the European Union was signed in 2012. The Agreement 
consists of three pillars: trade, political dialogue and cooperation. The Agreement  guarantees 
better access to the European market for Honduran products while consolidating and improving 
the unilateral preferences that were already being granted by the EU. In the negotiations the EU 
undertook to reduce tariffs on Honduran products inclu ded in the GSP+ to 0 % as soon as the 
Agreement entered into effect.27 
2.27.  The Central American countries for their part undertook to eliminate tariffs on 95.8 % of the 
tariff universe at the end of the tariff reduction period (Table  2.4). Some 47.9 % of all tarif f lines 
will remain duty free when the Agreement takes effect. The Agreement allows Honduras to 
continue applying the price band system (Section 4.1). Preferential tariff quotas have also been 
negotiated for agricultural products; Honduras negotiated  quota s for powdered milk and cheese.28 
2.3.2.1.3   Free Trade Agreement with Mexico  
2.28.  During the period under review, the Central American countries and Mexico renegotiated 
and consolidated three old agreements into a single free trade agreement (Free Trade Agreement 
between Central America and Mexico).29 For Honduras, the Agreement between Central America 
and Mexico took effect on 1  January  2013, repealing the Agreement between Mexico and the 
Northern Triangle as far as Honduras is concerned, except for some transitional provi sions.30 As of 
the entry into force of the Agreement, with some exceptions, all tariffs were eliminated on 
                                               
23 For further information on the functioning of the customs union, see the enabling protocol for the 
process of deep integration towards  the free movement of goods and natural persons between the Republics of 
Guatemala and Honduras.  
24 SIECA (2014), Estado de Situación de la Integración Económica Centroamericana , March . Viewed at: 
http://www.sieca.int/Documentos/DocumentosMostrar.aspx?SegmentoId=2&DocumentoId=3325 . 
25 This treaty contains a bilateral protocol on tariff reduction for each of the countries. The protocol 
between Honduras and Panama was signed in 20 07 and took effect in 2009.  
26 Article 4 of the Protocol Incorporating the Republic of Panama into the Economic Integration 
Subsystem of the Central American Integration System.  
27 Online information from the European Commission. Viewed  at: 
http://exporthelp.europa.eu/thdapp/display.htm?page=cd/cd_AmericaCentral.html&docType=main&languageI
d=ES&newLanguageId=EN , and State Se cretariat for Industry and Trade  (2013), Acuerdo de Asociación entre 
Centroamérica y la Unión Europea, Documento Explicativo de los Resultados de la Negociación del Pilar 
Comercial (Parte IV Comercio) . Viewed at: http://www.prohonduras.hn/dgiepc/files/DOCUMENTO -
EXPLICATIVO -ADA-CA-UE-Rev5-ACTUALIZADO -22-AGOSTO -2013.pdf . 
28 Section B of Annex I and Appendix 1 to Annex I of the Association Agreement between Central 
America and the  EU. 
29 The agreements were: Mexico and Costa Rica; Mexico and Nicaragua; and Mexico and the Northern 
Triangle (El  Salvador, Guatemala and Honduras) (Fact sheet from the Ministry of the Economy of Mexico, 
November  2011. Viewed at: 
http://www.economia.gob.mx/files/comunidad_negocios/comercio_exterior/TLC_Unico_ficha.pdf ). 
30 WTO document WT/REG/GEN/N/7 of 29  January  2014. For further  information on the transitional 
provisions, see Article 21.8 of Free Trade Agreement between Central America and Mexico.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  originating goods. Some 94.8 % of tariff lines enjoy a 0 % preferential tariff. Honduras negotiated 
preferential tariff quotas for cigars and cigarettes .31 
2.3.2.1.4   Free Trade Agreement with Canada  
2.29.  The Free Trade Agreement between Honduras and Canada became effective on 
1 October  2014. T his Agreement is the first bilateral trade agreement signed by Honduras and also 
includes cooperation commitments relating to labo ur and the environment.  
2.30.  Under the Agreement, Honduras will eliminate tariffs affecting 97.4 % of the tariff universe 
at the end of the tariff reduction period (Table 2.4). Preferences will also be granted for goods 
produced in free zones. Some agricultural products are subject to tariff quotas. Honduras 
negotiated preferential quotas for sugar, beef and pork. Under the Agreement, Honduras may 
make use of the special safeguard for certain agricultural goods (namely vegetable oil, onions, 
pork, and some dairy products).32 
2.3.2.2   Other agreements and preferential arrangements  
2.31.  In the context of this review, the authorities stated that Honduras is negotiating a 
Partial -Scope Economic Complementarity Agreement with Ecuador.  
2.4  Investment regime  
2.32.  During the review period, Hondu ras modified its investment regime in order to meet the 
objectives of the 2010 -2014 National Investment Promotion Programme. Noteworthy among them 
are the modernization of the regulatory and legal system governing investment and the creation of 
new investm ent promotion and protection institutions.33 The new reforms include the enactment of 
a new law, the creation of a new institution to promote investment, and the establishment of 
a single window for investment.  
2.33.  The National Investment Council (CNI), a publi c-private entity created in 2014 under the 
Investment Promotion and Protection Law, is tasked with promoting investment.34 The CNI is 
drawing up the National Investment Promotion Policy, the National Investment Promotion Plan and 
the National Investment Pro motion Strategy.35 PROHONDURAS is responsible for implementing the 
investment policy formulated by the CNI. The Directorate -General for Investment Promotion,  
which is attached to the State Secretariat for Foreign Affairs and Cooperation, is responsible for 
coordinating investment policy.  
2.34.  In 2011 Honduras promulgated the Investment Promotion and Protection Law, which 
repealed the 1992 Investment Law.36 In that same year Honduras approved the Law on the 
Promotion of Public -Private Partnerships in order to promo te private -sector cooperation in the 
execution, development and management of major infrastructure and services projects.37 
2.35.  The 2011 Investment Promotion and Protection Law provides some of the same guarantees 
granted to domestic and foreign investors under  the old investment regime and introduced new 
guarantees such as stability contracts and protection regimes (Table  2.5). The rights accorded 
                                               
31 Annex 3.4 of the Free Trade Agreement between Central America and Mexico.  
32 Annex 3.15 of the Agreement.  
33 The 201 0-2014 National Investment Promotion Programme can be viewed at: 
http://www.hondurasopenforbusiness.com/SITEv2/flv/pnpi.pdf . 
34 Article 43 of Decree No.  51-2011, as amended by Articl e 26 of Decree No.  284-2013.  
35 Ibid., Article 42.  
36 Investment Promotion and Protection Law (Decree No.  51-2011) of 3  May 2011, as amended by 
Decree No.  284-2013. See also the Regulations implementing the Investment Promotion and Protection Law 
(Executive Decision No.  22-DGTC -2014) of 22  October  2014.  
37 Law on the Promotion of Public -Private Partnerships (Decree No.  143-2010) of 11  August  2011, and 
General Regulations implementing the Law on the Promotion of Public -Private Partnerships (Executive Decision 
No. 02073 -2010) of 21  December  2010.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  under the previous regime will be guaranteed up to the end of 2016, as of which time the new 
investment regime will  automatically take effect.38 
Table 2.5 Guarantees offered under the Investment Promotion and Protection Law  
Domestic and foreign investment  
Unrestricted access to foreign exchange  
Right to open bank accounts  and to withdraw deposits in freely usable currency  
Protection of intellectual property rights  
Protection of ownership rights  
Right to repatriate all of the compensation for expropriation  
Freedom of production and marketing  
Right to take out insuranc e in Honduras and abroad  
Foreign investment  
National treatment  
Unrestricted market access  
Free repatriation of invested capital, earnings, royalties and considerations  
Access to credit in the national financial system  
Freedom to hold company shares  
Commercial presence through branches, subsidiaries, representative offices and joint ventures  
Source:  Article 4 of Decree No.  51-2011 and information provided by the authorities.  
2.36.  Domestic and foreign investors should be registered in the PROHONDURAS Nat ional 
Investment Register; registration is not mandatory but does facilitate the requisite investment 
formalities. For statistical purposes, there is also an Investors' Register managed by the 
Public -Private Partnership Promotion Agency (COALIANZA).39 
2.37.  As of 2011, prior authorization was no longer required in order to invest in Honduras. This 
had previously been compulsory for investment in projects in the agricultural and agro -industrial 
sector which exceeded the "limits of a large estate ( latifundio )"; hunt ing, fishing and aquaculture; 
electricity generation; mining; hydrocarbons; and financial intermediation services and insurance, 
telecommunications, air transport and tourism, as well as in education and health.  
2.38.  The State reserves the right to the exclusiv e operation of certain basic industries and public 
services for reasons of public order or public interest.40 Private investment is therefore not allowed 
in some sectors, though concessions may be granted to private entities (Table  2.6), and the 
service lin ked to the investment may be put out to concession. For example, although private 
investment in drinking water supply is not allowed, the private sector does participate under 
concessions (Section 3.3.3). Similarly, as of 2014 the private sector has been p ermitted to take 
part in electricity transmission41; the State nevertheless continues to be the sole provider of the 
service (Section 4.2).  
Table 2.6 Activities reserved to the State, 2015  
Activity  Legal framew ork 
Activities relating to public health  Article 3 of Decree No.  51-2011 
Manufacture, import, distribution and sale of arms 
and ammunition  Article 292 of the Constitution  
Article 3 of Decree No.  51-2011 
Lottery  Article 5 of Decree No.  438 of 1977  
Manag ement of dangerous or toxic waste  Article 3 of Decree No.  51-2011 
Auxiliary air navigation services  Article  95 of Decree No.  55-2004 
Postal services  Articles 3 -4 of Decree No.  120-93 
Public drinking water su pply, waste management , 
sanitation and hygien e services  Articles 13 of Decree No.  134-90 and 29 and 67 of 
Decree No.  104-93 
Source:  WTO Secretariat.  
2.39.  In addition to the aforementioned restrictions, Honduras continues to maintain other 
limitations on foreign participation. Foreigners are not allowed t o engage in retailing or in 
small -scale industrial activities.42 Similarly, only Hondurans by birth may hold senior positions in 
                                               
38 Articles 60 -61 of Decree No.  51-2011.  
39 Online information from COALIANZA. Viewed at: http://www.coalianza.gob.hn/en . 
40 Article 332 of the Constitution.  
41 General Law on the Electricity Industry (Decree No.  404-2013) of 20  January  2014.  
42 Article 337 of the Constitution and Article 3 of Decree No.  51-2011.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  the mass media. There are restrictions on the participation of foreign capital in local companies 
engaged, for example, in the d istribution of petroleum products, commercial fishing and the 
provision of air and maritime services (Section  4.3.3). Honduras permits foreign investment in 
public telecommunications services but does not allow direct participation by foreign State -owned 
enterprises.43 
2.40.  Honduras guarantees the right of ownership, unless there are public interest reasons to the 
contrary or if there is a need for land reform or to create tourist zones or Employment and 
Economic Development Zones (ZEDE).44 Indirect expropriations  of investments under the 
Investment Promotion and Protection Law must be decided by the courts.45 According to the 
authorities, no expropriations have taken place since 2010.  
2.41.  Generally, foreigners are not allowed to purchase rural or urban real estate loca ted less 
than 40 km from the border or the coast.46 Nevertheless, the purchase or renting of urban real 
estate is allowed if it is intended for tourism projects. Foreigners may purchase urban real estate 
inside the prohibited zone only if it will be used fo r housing projects.47 
2.42.  To encourage investment, more particularly in priority sectors48, the Investment Promotion 
and Protection Law introduced a number of guarantees, chief among which are : (a) legal stability 
contracts; (b)  fiscal incentives; and (c)  protec tion regimes in the case of disputes over ownership 
rights (Table  2.7). Originally, the fiscal incentives accorded under the Law included partial 
exemption from income tax, though the authorities have indicated that this was discontinued in 
2014.49 Stabilit y contracts are offered only to investors that commit to investing upwards of 
US$2  million in Honduras. In addition to the incentives envisaged under the new law, Honduras 
maintains other special regimes to promote both domestic and foreign investment (Sec tion 3). 
Most of these programmes apply generally, though some incentives are maintained in order to 
promote investment in specific sectors, especially in clean energy generation50 and tourism 
(Section  4.3.4).  
Table 2.7 Investment guarantees stipulated under the Investment Promotion and 
Protection Law  
Guarantee  Description  
Stability 
contract  It ensures that the legal and tax conditions in force at the time of investing in Honduras remain 
unchanged for a period  of 15 years. The contract may be extended to 25 yea rs for investments 
in forestry.  
Fiscal 
incentives  Amortization of pre -operational expenditure (maximum of five years).  
Possibility of using various depreciation methods.  
Partial exemption from income ta x for a period o f 15 years (abolished in 2014).  
                                               
43 Article 26 of the Framework Law on the Telecommunications Sector (Decree No.  185-95) 
of 5 December  1995.  
44 Articles 103 and 106 of the Constitution, Article 1 of the Special Regulations for the Transfer of Titles 
to the State or Expropriation of Real Estate in Tourist Areas (Decision No.  236-81) of 26  March  1981 and 
Articles 25 -26 of the Organic Law on Employment and Ec onomic Development Zones (Decree No.  120-2013) 
of 12 June 2013.  
45 The Investment Promotion and Protection Law distinguishes between direct and indirect 
expropriation. Direct expropriation occurs when an investment is nationalized directly through the forma l 
transfer of the right of ownership to the State. Indirect expropriation occurs when State actions have an effect 
equivalent to direct expropriation without formal transfer of the right of ownership to the State (Articles 33 -36 
of Executive Decision No.  22-DGTC -2014).  
46 Article 107 of the Constitution.  
47 Articles 4 -5 of the Law on the Purchase of Urban Property in the Areas Delimited by Article 107 of  the 
Constitution of the Republic (Decree No.  90-90) of 14  August  1990, and Article 16 of the Law on the 
Identification, Planning and Development of Tourism Areas (Decree Law No.  968) of 14  July 1980.  
48 Article 13 of Executive Decree No.  PCM-018-2014 of 22  April 2014.  
49 Article 38 of the Law on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measur es 
(Decree No.  284-2013) of 21  December  2013.  
50 Law on the Promotion of Electricity Generation from Renewable Resources (Decree No.  70-2007) 
of 2 October  2007, as amended by Decree No.  138-2013.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Guarantee  Description  
Protection 
regimes  The Dispute Prevention Regime enables an investor to register as the owner of real estate so 
that third parties may not file ownership claims.  
The Guarantee Regime for the Completion of P rojects on Disputed Real Estate protects investors 
aggrieved by a judicial or administrative action initiated by third parties, which could affect the 
right of ownership of the property.  
Source:  Decree No.  51-2011, as amended by Decree No.  284-2013, Execu tive Decision No.  22-DGTC -2014 
and Decree No.  284-2013.  
2.43.  Honduras is setting up a single window for investment, which will be managed by 
PROHONDURAS. The first stage consists of the National Investment Register, which began 
operating in 2015. Furthermore, t he CNI and the Foundation for Investment and Development of 
Exports (FIDE), a private non -profit entity, provide assistance to investors in completing the 
formalities.51 
2.44.  Reforms were also adopted during the review period to simplify company incorporation 
procedures.52 Currently, the special single form (FUE) is in use. This form consolidated several 
formalities into a single one, including  the incorporation and registration of companies in the 
Business  Register, registration with the Chamber of Commerce and I ndustry, registration in the 
National Tax Register and obtaining the municipal operating permit. The FUE is processed on the 
MiEmpresaEnLínea website. Investment projects deemed to be "of national interest" are exempt 
from a series of company incorporation  procedures. In these cases, the President of the Republic 
issues a certificate of incorporation and feasibility, which includes all the permits and licenses 
required under Honduran law. This procedure takes a maximum of 30 days and is known as the 
"expedi ted procedure".53 The establishment of companies in state -regulated and supervised 
sectors (namely financial services, telecommunications, security and the exploitation of natural 
resources)54, and enterprises for the specific purpose of executing a public -private partnership 
contract are governed by other provisions.55 
2.45.  Foreign -incorporated companies wishing to operate in Honduras must comply with the 
provisions of the Commercial Code.56 Honduras allows cooperatives set up abroad to operate in the 
country with prior authorization from the National Council for the Supervision of Cooperatives 
(CONSUCOOP).57 
2.46.  Honduran legislation promotes the hiring of Honduran workers. Consequently, the number 
of foreign workers that may be hired is capped at 10 % of the total workfo rce or 15 % of the total 
wage bill.58 This restriction also applies to managers when more than two of them are foreigners.59 
2.47.  Honduras is a member of the Multilateral Investment Guarantee Agency (MIGA) and of the 
International Centre for Settlement of Investme nt Disputes (ICSID). Moreover, Honduras applies 
the New York Convention (recognition and enforcement of foreign arbitral awards) and the 
Inter-American Convention on International Commercial Arbitration. Honduras is party to 
                                               
51 Article 42 of Decree No.  51-2011, as amended by Article  26 of Decree No.  284-2013. See FIDE's 
Invest in Honduras Programme. Viewed at: http://www.investinhonduras.hn . 
52 Law on Employment Generation, Promotion of Entrepreneurship, Business Formalization and 
Protection  of Investors' Rights (Decree No.  284-2013) of 8  January  2014, and Regulations implementing 
Legislative Decree No.  284-2013 (Executive Decision No.  679-2014) of 23  October  2014.  
53 The expedited procedure was initially intended for national interest project s worth more than 
US$50  million. The minimum amount requirement was eliminated in 2013 (Articles 40 (as amended by 
Article  26 of Decree No.  284-2013) and 41 of Decree No.  51-2011).  
54 Article 4 of Executive Decision No.  679-2014.  
55 The provisions governing public -private partnership contracts are contained in the Law on the 
Promotion of Public -Private Partnerships (Decree No.  143-2010) of 11  August  2010 and in the General 
Regulations implementing the Law on the Promotion of Public -Private Partnerships (Execu tive Decision 
No. 02073 -2010) of 21  December  2010.  
56 Articles 308 -310 of the Commercial Code and amendments thereto.  
57 Article 19 of the Law on Cooperatives (Decree No.  65-87) of 30  April 1987, as amended by Decree 
No. 174-2003.  
58 The Executive Branch may even exclude foreign worker participation when the circumstances so 
warrant.  
59 Article 137 of the Constitution and Article 11 of the Labour Code.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  nine bilateral investment agree ments.60 According to the authorities, Honduras has not signed any 
agreements for the avoidance of double taxation, though it has signed agreements on the 
exchange of tax information. Honduras has two agreements of this kind, one with Central America 
and th e other with the United States.  
 
 
                                               
60 Chile; France; Germany; Republic of Korea; Netherlands; Spain; Switzerland; United States; and 
United Kingdo m. Two agreements (Cuba and Chinese Taipei) have not entered into force.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Procedures, documents and registration  
3.1.  There were no major changes to import procedures and requirements during the period 
under review. The cust oms regulations comprise the 1987 Customs Law, which was revised in 
2010, and the Central American Uniform Customs Code (CAUCA IV) and its implementing 
regulations (RECAUCA  IV).1 Where it is not contrary to the Central American regulations or in 
areas not covered by them, the Customs Law still applies. The Executive Directorate of Revenue 
(DEI), through the customs service, is in charge of overseeing customs administration  and issuing 
the regulations governing customs clearance and tariffs.2 
3.2.  Importers must be registered in order to import certain goods (Table 3.1).3 
Table 3.1 Registration of importers, 2015  
Goods  Registration  
Alcohol; cigarettes  State Secretariat for Finance/DEI  
Methyl bromide; seeds; dairy produce; agricultural 
chemicals, medicines and veterinary products, and 
feed concentrates for animal feed. In the case of 
products for human consumption (meat, dairy 
produce, shellfish, etc.), only the importer has to be 
registered, except for those goods which, because of 
their nature, must be registered with the State 
Secretariat for Public Health. Foreign natural and legal 
persons must be registered with the SENASA's various 
departments.  State Secretariat for Agriculture and Livestock  
Refrigerants  State Secretariat for Energy, Natural Resources, the 
Environment and Mining  
Cosmetics; medicines; food products; toxic chemicals  State Secretariat for Health  
Source:  WTO Secretariat.  
3.3.  The documents to be forwarded for imports vary depending on the origin of  the import. 
The Central American single customs form (FAUCA) is used for goods imported from other 
CACM  countries. It serves as both the commercial invoice and the certificate of origin. The single 
customs declaration (DUA) applies to other imports, inclu ding those of Central American origin 
which do not enjoy preferential treatment. The DUA is submitted electronically and must be 
accompanied by: the commercial invoice, the bill of lading, a declaration of the goods' value, as 
well as other documents, for example, a certificate of origin, a phytosanitary or animal health 
permit, an import licence (Section  3.2.3), or documents attesting to the exemption regime.4 
This procedure may be undertaken prior to arrival of the goods. The goods are cleared according 
to the channel assigned to the DUA: green channel (immediate clearance), yellow channel 
(inspection of documents) and red channel (inspection of documents plus physical inspection).5 
                                               
1 The CAUCA is set out in Resolution No.  223-2008 (COMIECO -XLIX) of 25  April 2008. The RECAUCA IV 
can be found in Resolution No.  224-2008 (COMIECO -XLIX) of 25  April 2008, as amended b y 
Resolution  No. 306 2013 (COMIECO -EX) of 15  May 2013. The amendment concerns the submission of 
documents accompanying the single customs declaration for definitive exports, temporary exports and 
re-exports.  
2 Technical Secretariat for Planning and Externa l Cooperation (2013), Agenda Digital Honduras 
2014-2018. Viewed at: 
http://www.scgg.gob.hn/sites/default/files/Agenda%20Digital%20de%20Honduras%20201 4-2018.pdf . 
3 Articles 30 and 39 of the Law on Revenue Enhancement, Social Equity and Rationalization of Public 
Expenditure (Decree No.  17-2010) of 28  March  2010, as amended by Decrees No.  71-2010, No.  205-2010 and 
No. 281-2013.  
4 Articles 78 and 80 of th e CAUCA and Articles 317 -318, 321 and 330 of the RECAUCA.  
5 DEI, Manual de Procedimientos Aduaneros CAUCA IV – RECAUCA IV , of 1  February  2010. Viewed at: 
http://www.dei.g ob.hn/website/uploaded/content/category/1268580696.pdf . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.4.  The automated customs revenue system of Honduras (SARAH) has been in opera tion 
since 2009 and is still used for online payment of customs duties, for which the import declaration 
has to be submitted electronically. The SARAH was modified during the review period. Previously, 
only the import declaration could be submitted electro nically, but since 2010 it has also been 
possible to forward the cargo manifest electronically and the system also allows importers to 
obtain information on goods in transit to free zones. At the regional level, the SARAH has been 
interconnected to the Unified Customs Information System for Central America  (SIAUCA), thus 
enabling the FAUCA to be forwarded electronically.6 In 2014, an agreement was reached among 
various agencies to introduce Honduras' single window for foreign trade (VUCEH), but by 
January  2016 it had not yet started to operate.7 
3.5.  The regional regulations contain provisions regarding authorized economic operators (AEOs).8 
In December  2015, however, the Honduran regulations needed for their implementation were still 
being prepared so at present  there are no AEOs in Honduras. Once the domestic legislation has 
been adopted, the DEI will be entrusted with approving AEOs.  
3.6.  According to the authorities, there have been no changes to the import regimes since 2010. 
They remain: (a) definitive importatio n; (b) customs transit; (c) temporary importation for 
re-exportation in the same state; (d) temporary admission for inward processing; (e) customs 
warehousing; (f) re -importation; and (g) free zones.9 
3.7.  Customs agents must be Honduran citizens by birth or na tionals of other Central American 
countries. It is usually compulsory to use the services of a customs agent to clear goods.10 
Customs carriers have to be approved by the DEI and, according to the authorities, the 
requirements for approval are the same for national and for foreign carriers.11 
3.8.  Honduras has notified the WTO of its category A commitments, provisions which will be 
implemented when the WTO Agreement on Trade Facilitation comes into force, and the procedure 
for ratifying the Agreement has been init iated (Section 2.3.1).12 
3.9.  Appeals against decisions by the customs service may be made either by requesting the DEI 
for a review or by lodging an appeal with the State Secretariat for Finance.13 If there is an 
objection to the decision taken through administr ative channels, an appeal may be made to  the 
administrative litigation courts . According to the authorities, appeals against the rulings  handed 
down by these courts  may be made to a higher court.  
3.1.2   Customs valuation  
3.10.  Goods continue to be valued in accordance with the WTO Customs Valuation Agreement and 
the RECAUCA. The authorities have indicated that the RECAUCA provisions on customs valuation 
follow the lines of the WTO Agreement.  
3.11.  Honduras still makes use of price guides, irrespective of the origin of the goo ds imported, 
for the purpose of determining value if there is any "reasonable" doubt regarding it.14 
3.1.3   Rules of origin  
3.12.  Honduras does not apply any non -preferential rules of origin.  
                                               
6 DEI (2011), Boletín Informativo de la Dirección Adjunta de Rentas Aduaneras , Volume 1, No.  1, 
December. Viewed at: http://www.dei.gob.hn/website/uploaded/content/article/1694470821.pdf . 
7 Executive Decree No.  PCM 002 -2014 of 6  January  2014.  
8 Article 28 of the CAUCA and Articles 159 -166 of the RECAUCA.  
9 Title VI, Chapter II, of the CAUCA and Title VI of the RECAUC A. 
10 A customs agent is not required for cross -border trade or for travellers' luggage ( CAUCA, 
Articles  87 and 88).  
11 Decision No.  1959 of the State Secretariat for Finance of 24  May 2007.  
12 WTO document WT/PCTF/N/HND/1 of 18  July 2014.  
13 Articles 623 and 625 of the RECAUCA.  
14 Article 205 of the RECAUCA.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.13.  Since 2010, Honduras has signed trade agreements with Canada, Mexico and the 
European  Union and therefore applies the preferential rules of origin contained therein; it has 
started to implement the Central American Regulations on the Origin of Goods for products 
originating from Panama (Table 3.2).15 According to the preferential rul es agreed, for those goods 
not subject to specific rules of origin, the criteria conferring origin are a change in tariff heading or 
the regional value content. The use of non -originating materials that do not result in a change in 
heading is also allowed provided that they do not exceed a percentage of the good's total cost or 
weight. Diagonal cumulation of origin allows inputs from non -party States to be considered as 
originating.  
Table 3.2 Principal provisio ns on preferential rules of origin applied since 2010  
 Canada  Panama  EU Mexico  
Criteria  Change in tariff heading or regional content value (RVC)  
RVCa 25% or  
35% 41.66% or  
50% 20% to 50%  30% 
Tolerance rule  10% of the value or weight of fibres or yarn in the case of 
textiles and made -up articles  10% of the value or weight 
of fibres or yarn in the case 
of textiles and made -up 
articles, except for 
elastomeric materials (7%)  
Bilateral or full 
cumulation  Yes 
Diagonal cumulation 
of originb United States 
and M exico in 
respect of yarn  No Allowed for the Plurilateral 
State of Bolivia; Colombia; 
Ecuador; Peru; the 
Bolivarian Republic of 
Venezuela for any productc United States in the case of 
textiles (HS Chapter  62) 
a The RCV may vary depending on the calculation  method used.  
b WTO document WT/REG/W/45 of 5  April 2002.  
c Materials originating from Mexico, South America or Caribbean countries are also considered as 
originating from Central America if preferential agreements between them are in force.  
Source:  WTO Se cretariat, based on information provided by the authorities and online information from 
PROHONDURAS. Viewed at: http://www.prohonduras.hn/dgiepc . 
3.14.  The other trading partners to which Honduras continues to ap ply preferential rules of origin 
are: Chile; Chinese Taipei; Colombia; Costa Rica; Dominican Republic; El Salvador; Guatemala; 
Nicaragua; and the United States.  
3.1.4   Tariffs  
3.1.4.1   Structure and levels  
3.15.  In 2015, Honduras' tariff contained 6,974 eight -digit lines of the  2012 HS. In general, 
Honduras only applies ad valorem  tariffs, except for tariffs applicable to products subject to the 
price band, namely: yellow maize, white maize, grain sorghum, corn flour and other processed 
grains. The average MFN applied rate was 5 .9% in 2015, virtually the same as that in 2010 (6%) 
(Table  3.3). Applied tariffs range from 0 to 164%. The most common rate is 0%, which applies to 
48.1% of tariff lines (47.2% in 2010) (Chart 3.1). Rates of 5%, 10% and 15% apply to the 
majority of goods (99.2% of all tariffs). The maximum rate of 164% still applies to imports of 
poultry meat of subheadings HS 02.07.13, HS 02.07.14 and HS 16.02.32.10, while the second 
highest rate of 55% still applies to cigarettes (HS 24.02.20.00.00).  
                                               
15 WTO documents G/RO/N/134 of 2  October  2015, G/RO/N/93 of 9  April 2013 and G/RO/N/114 of 
2 April 2014.  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 44 - 
 
  Table 3.3 Structure of MFN tariffs, 2010 and 2015  
(%) 
 2010  2015  
(HS07)  (HS12)  
1. Total number of lines  6,566  6,974  
2. Non-ad valorem tariffs (% of all tariff lines)  0.1a 0.1a 
3. Non-ad valorem tariffs with no AVEs (% of al l tariff lines)  0.1a 0.1a 
4. Tariff quotas (% of all tariff lines)  0.0 0.0 
5. Duty-free tariff lines (% of all tariff lines)  47.2 48.1 
6. Average of lines exceeding zero (%)  11.3 11.4 
7. Arithmetic average  6.0 5.9 
8. Agricultural products (WTO defi nition)  11.1 10.7 
9. Non-agricultural products (including petroleum, WTO definition)  5.1 5.1 
10. National  tariff "peaks" (% of all tariff lines)b 0.8 0.8 
11. International tariff "peaks" (% of all tariff lines)c 0.8 0.8 
12. Overall standard deviation o f applied rates  7.9 7.8 
13. Bound tariff lines (% of all tariff lines)  100.0  100.0  
a Corresponds to lines subject to the price band.  
b National  tariff peaks are defined as rates exceeding three times the overall simple average applied 
rate. 
c Internation al tariff peaks are defined as rates exceeding 15%.  
Source:  WTO Secretariat estimates, based on data provided by the Honduran authorities.  
Chart 3.1 Distribution of tariff rates, 2015  
(48.1%)
(12.9%)(15.8%)(22.4%)
(0.2%) (0.6%)
0102030405060708090100
05001,0001,5002,0002,5003,0003,5004,000
0 5 10 15 20 >20Number of linesa%
Cumulative %
Number of lines (% of total)
 
a The total number of l ines is 6,974.  
Source:  WTO Secretariat calculations, based on data provided by the Honduran authorities.  
3.16.  In Honduras, the protection given to agricultural products (WTO definition) remains higher 
than that for non -agricultural products. In 2015, an average  tariff of 10.7% applied to the former, 
lower than that in 2010 (11.1%), whereas an average rate of 5.1% applied to non -agricultural 
products. The highest average tariff by WTO category was applied on agricultural products, 
specifically animals and animal products and dairy produce, with rates of 18.4% (20.2% in 2010) 
and 22% (21% in 2010), respectively (Table A3.1).  
3.17.  Honduras bound all its tariff lines during the Uruguay Round, with around 85% bound at 
35%, 1% bound at higher rates and the remaining lines a t levels below 35%.  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 45 - 
 
  3.18.  For the purpose of this review, the Secretariat identified seven tariff lines whose applied 
rate exceeds the bound rate (Table 3.4).16 These products had already been identified as having 
an applied tariff above the bound rate at the tim e of the previous review in 2010.  
Table 3.4 Products with applied tariffs higher than the bound rates, 2010 -2015  
Eight -digit 
HS Number  Description  Applied tariff 
% Bound tariff 
% 
2010  2015  
04051000  Butter  20 20 8 
04062090  Other cheese  35 35 20 
04063000  Processed cheese, not grated or powdered  35 35 20 
04069020  Cheddar -type cheese, in blocks or slabs  35 35 20 
72106110  Flat-rolled products of aluminium of a thickness of 0.16 mm 
or more but less than or e qual to 2  mm 15 15 8 
72106910  Flat-rolled products of aluminium of a thickness of 0.16 mm 
or more but less than or equal to 2  mm 15 15 8 
85299010  Furniture and casings (cabinets) of wood  15 15 0 
Note:  Only lines that are identical in HS2007 and HS2012 w ere compared.  
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
3.19.  Pursuant to Article XXVIII:5 of the GATT 1994, Honduras reserved the right to modify its 
bound tariffs for a period of three years as of 1  January  2015.17 
3.1.4.2   Price band  system  
3.20.  Honduras continues to implement a price band system based on international benchmark 
prices. Until August  2015, the system applied to imports of yellow maize, white maize, grain 
sorghum, maize  flour and other worked grains (Table 3.5). In August  2015, white maize was 
removed from the system and its applied tariff was raised from 15% (under the price band) to 
50%.18 The price band system operates as a variable tariff that changes according to international 
benchmark  prices.19 Its main purpose  is to cus hion the domestic -market impact of international 
price fluctuation s. Each year, before the first harvest, the Honduran Agricultural Marketing 
Institute (IHMA) sets the band's floor and ceiling prices on the basis of world prices for the product 
in question  over the previous 60 months. If the world price falls below the floor benchmark price, 
the MFN applied  import tariff of 15% is raised ad valorem  by the percentage difference between 
the two prices. The sum of the MFN applied tariff and the surcharge may n ot exceed the bound 
tariff rate. It would  appear that during the review period the price band system was not used for 
most of the products concerned as the applied tariff for all products, except other worked grains, 
was 15% over this period.  
                                               
16 In undertaking this analysis, the Secretariat only took into account those tariff lines in 
Schedule  LXXXVIII - HS1996 that are strictly comparable to those in HS2007 and HS2012.  
17 WTO document G/MA/305 of 21  November  2014.  
18 Decision No.  089-2015 of 6  August  2015.  
19 Regulations on the Marketing of Agricultural Products, Decision No.  0105-93 of 26  Februar y 1993.  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 46 - 
 
  Table 3.5 Lines subject to the price band system, 2010 and 2015  
Code  Description  MFN %  Bound rate 
(%) 2010  2015  
1005.90.20  Yellow maize  15 15 45 
1005.90.30  White maizea  15 15b 50 
1007.90.00  Other grain sorghum  15 15 45 
1102.20.00  Maize  flour 15 15 35 
1103.13.10  Pre-gelatinized maize flour  (for example: used as an additive 
in breweries)  15 15 35 
1103.13.90  Other groats  15 15 35 
1104.23.00  Other grains of maize, worked  5 5 35 
a White maize was removed from the s ystem in August  2015. 
b Since 6 August 2015 the tariff rate applied to white maize has been 50%.  
Source:  WTO Secretariat estimates , based on data provided by the authorities.  
3.21.  Some of the products subject to price bands are also subject to "absorption agree ments"  
(Section 4.1).  
3.1.4.3   Preferential tariffs  
3.22.  Honduras grants preferential tariff treatment to imports from other CACM members. Most 
products of Central American origin enter duty -free, with the exception of sugar, unroasted coffee, 
petroleum products, ethyl alcohol and distilled alcoholic beverages from El  Salvador, and roasted 
coffee from Costa Rica.  
3.23.  Honduras also extends preferential treatment to imports from countries with which it has 
preferential agreements: Canada; Chile; Chinese Taipei; Colombia; D ominican Republic 
(Central  America – Dominican Republic FTA); Mexico; Panama; and the CAFTA -DR 
(Central  America, United States and Dominican Republic FTA) (Table 3.6).  
3.24.  The average preferential tariffs in the agreements negotiated by Honduras are all well below  
the average MFN rate. Preferential tariffs range from 0.3% to 4.2% and are lower for 
non-agricultural products, between 0% and 2.4%. Duty -free entry under the CAFTA -DR FTA and 
the agreement with Mexico account for over 95% of the tariff universe (Table 3. 6). 
Table 3.6 Analysis of applied tariffs for countries with which trade agreements have 
been negotiated, 2015  
 
Nomenclature  
No. of 
lines  Total  WTO categories  
Agricultural products  Non-agricultural 
produc ts 
(excluding  petroleum)  
Average 
(%) Duty -free 
lines (%)  Average 
(%) Duty -free 
lines (%)  Average 
(%) Duty -free 
lines (%)  
CAFTA  HS12  6,974  0.3 97.1 2.1 80.6 0.0 100.0  
Canada  HS12  6,974  2.9 69.4 7.7 43.0 2.1 74.1 
Chile HS12  6,974  0.8 89.2 3.6 71.7 0.4 92.2 
Colombia  HS12  6,974  2.2 75.4 6.7 49.8 1.5 79.8 
Mexico  HS12  6,974  0.7 95.6 3.4 84.5 0.2 97.7 
Panama  HS12  6,974  2.0 81.5 3.9 75.4 1.7 82.4 
Chinese Taipei  HS12  6,974  3.1 65.9 7.3 46.0 2.4 69.1 
European Union  HS07  6,561  4.2 49.8 8.4 36.6 3.5 52.0 
Note: In this analysis, where the preferential tariff exceeds the MFN tariff, the latter has been used to 
calculate the average.  
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
3.25.   Honduras also applies preferential tariff quotas under certain regional agreements.  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 47 - 
 
  3.1.4.4   Tariff concessions  
3.26.  In general, import duty has to be paid on all goods imported into Honduras, with the 
exception of goods specifically declared exempt by law. Exemptions apply to imports of goods for 
use by, inter alia, public bodies, foreign service officials, international organizations, teaching and 
social welfare institutions, religious communities and air and maritime transport companies, as 
well as to donations and samples of goods of no commercial value.  
3.27.  Honduras a lso continues to grant tariff concessions under various export promotion 
programmes: the Temporary Importation Procedure (RIT), Free Zones (ZOLI) and Agricultural 
Export Zones (ZADE) (see below).  
3.28.  Under the " Purchase and Sale Agreement" (an agreement betwee n staple grain  producers 
and processors), staple grains may be imported at a tariff below the MFN, which may be as low as 
0% if the processor purchases a certain quantity of grain on the domestic market (Section  4.1). 
Moreover, in order to be eligible for this exemption, the products imported must be processed by 
an industry that is party to the agreement. The preferential import terms do not extend to 
products intended for direct sale on the domestic market such as whole grain for human 
consumption.  
3.29.  Hondur as does not have any data on fiscal revenue foregone as a result of its tariff concessions.  
3.1.5   Other charges affecting imports  
3.30.  Both imported and domestic goods are subject to a number of internal taxes, namely: the 
sales tax, the production and consumption ta x, the selective consumption tax and the tax on 
petroleum products (Table 3.7). Since May  2010, an eco -tax that varies according to the vehicle's 
price has been levied on imports of used vehicles.  
Table 3.7 Other import charges in 2015  
Tax and goods  Rate in 2015  
Sales tax   
General rate  15% 
Beer, spirits (" aguardiente" ), blended spirits and other alcoholic beverages, 
cigarettes  18% 
Production and consumption tax   
Carbonated and other prepared beverages, ex cluding natural juices  L 0.6787/litre  
Beer  L 4.8214/litre  
Wine L 6.0500/litre  
Brandy, cognac, vermouth and whisky  L 32.6725/litre  
Aged rum 36º  
Aged rum 38º  
Aged rum 40º  L 17.9043/litre  
L 18.8990/litre  
L 19.8937/litre  
Spirits (" aguardiente ") 30º  
Spirits ("aguardiente ") 38º  
Spirits (" aguardiente ") 40º  
Spirits (" aguardiente ") 45º  L 7.0213/litre  
L 9.7830/litre  
L 11.7022/litre  
L 14.2182/litre  
Gin and Geneva, vodka, tequila and ready -made spirits and creams  L 32.6725/litre  
Cigarettes  L 409.58 per  thousand  or 
fraction thereof  
Selective consumption taxa  
Aquarium fish; chewing gum; coffee; tea; alcoholic beverages (excluding 
beer, " aguardiente " and rum); olive oil; perfumery and cosmetic products; 
jewellery; toys; lighters; perfume atomizers  10% 
Vehicles  10% to 60%  
Tax on petroleum products   
Premium -grade gasoline  US$1. 4089 
Regular -grade gasoline  US$1. 2416 
Diesel  US$0. 8606 
Fuel oil  (Bunker C)  US$0. 4267 
Kerosene  US$0. 1500 
LPG US$0. 1500 
AvJet  US$0. 0300 WT/TPR/S/336 /Rev.1  • Honduras  
 
- 48 - 
 
  Tax and goods  Rate in 2015  
Eco-tax on used vehicles   
≤ US$15, 000 L 5,000  
US$15,001 -25,000 L 7,000  
> US$25,001  L 10,000  
a This tax applies to some 50 products.  
Source:  Information provided by the authorities.  
3.31.  The general rate of sales tax rose from 12% to 15% over the review period. For beer, spirits 
("aguardiente "), blended  spirits and other alcoholic beverages, as well as cigarettes, it increased 
from 15% to 18%. Some goods and services are exempt from sales tax. In 2015, the list of goods 
exempt included: goods and services that form part of the basic shopping basket20; inputs such as 
fertilizers, pesticides, tools and seeds used in the agricultural sector; milk and milk products; 
manufactured goods such as pharmaceuticals, and machinery and equipment used to generate 
energy; services such as electric power, drinking water, construction, health, passenger land 
transport and financial services; hydrocarbons; and inputs and equipment used in industry. 
According to the authorities, these exemptions apply to both domestic and imported goods.  
3.1.6   Prohibitions, licensing and other rest rictions21 
3.32.  Honduras continues to apply import prohibitions and a licensing regime to protect public 
health, animal and plant health, the environment and national security, and in order to comply 
with international agreements and conventions. Since 2010, Hon duras has banned the import of 
incandescent lamps, methyl bromide for agricultural use, and air -conditioning or refrigeration 
systems which employ CFCs. It also continues to ban the import of products such as: aerosols 
containing CFCs, with the exception o f the pharmaceutical products authorized by the 
State Secretariat for Health; asbestos; anti -personnel mines and anti -detection devices or parts 
thereof; and motor vehicles over 10 or 13 years old.22 
3.33.  There were no major changes to Honduras' import licensing  regime during the review 
period.23 Import licensing is not designed to restrict the volume or value of imports and applies to 
all imports irrespective of origin. Import licences may be either automatic or non -automatic. 
The list of goods requiring import l icences has not changed since 2010 and includes: arms and 
ammunition and explosive materials; medicines and chemical precursors; dairy produce; plant and 
animal products and by -products; inputs for agricultural or veterinary use; and methyl bromide 
and ref rigerants.  
3.34.  In order to request an automatic or non -automatic import licence, importers usually have to 
be registered with the competent State Secretariat (Table 3.8). The time required for granting a 
licence is between 24 hours (for import licences for pro ducts of plant origin) to 30  days 
(for firearms, ammunition and explosive materials). Nevertheless, in special cases, for example, 
dairy produce, licences may be granted immediately. Licences may only be used for a single 
shipment and are usually valid for  a set period which may not be extended. If the licence is not 
utilized within its period of validity, a new licence has to be requested. There are no financial 
penalties for failing to use a licence, but there is a cost for issuing a licence, determined b y the 
competent State  Secretariat. Licences may be transferred. The Executive may modify the list of 
products subject to import licences without the need for authorization from the National Congress. 
An appeal may be made against a decision to refuse a lic ence.  
                                               
20 In 2015, the basic shopping basket consisted of 271 goods and two services. The goods included: 
meat, fish, milk, eggs, fruit and vegetables, coffee, staple grains (rice, beans, maize and wheat) and sugar 
(information provided by the authorities) . 
21 This section is based on WTO documents G/LIC/N/3/HND/1 of 12  November  2007; 
G/LIC/N/3/HND/1/Add.1 of 26  March  2010; G/LIC/N/3/HND/8 of 10  December  2013; G/LIC/N/3/HND/9 
of 12 August  2014 and WT/TPR/S/234/Rev.1 of 15  October  2010.  
22 Information provided  by the authorities.  
23 According to the authorities, the word "licence" is used in Honduras to refer to the import certificate 
or sanitary registration or permit, depending on the issuing body.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 3.8 Details concerning import licences in 2015  
Description  Type of licence  Special 
requirement  Time 
required  Cost Period of 
validity  State 
Secretariat  
Firearms and 
ammunition  Automatic  n.a. 5 day s n.a. 
1 year  National 
Defence  Explosives and 
pyrotechnic devices  Non-automatic  Application  30 days  L 500 
(for each 
consignment 
of 
pyrotechnical 
devices)  
L 1,000 
(for each 
consignment 
of explosive 
materials)  
Psychotropic 
medicines and 
narcotics and 
chemical precursors  Non-automatic  Registration  15 days  L 155  150 days  Health  
Dairy produce  Automatic  Registration  5 days  US$10a 60 days  PROHONDURAS  
Plant products and 
by-products and 
inputs for agricultural 
use  Non-automatic  Registration 
(only for seeds 
and veterinary 
inputs)  24- 
72 hours  
L 250  30 days 
(renewable)  Agriculture and 
Livestock  Animal products and 
by-products and 
inputs for veterinary 
use  72 hours 
-15 days 
Methyl bromide  
Non-automatic  Registration  5 days  Free Reasonable 
period  
(3-6 months)  Agriculture and 
Livestock  
Natural and artificial 
refrigerants  n.a Variable 
(15-30 days)  Energy, Natural 
Resources, the 
Environment 
and Mining  
a Since 2010; previously the licence was free of charge.  
n.a. Not available.  
Source:  WTO documents G/LI C/N/3/HND/1 of 12  November  2007, G/LIC/N/3/HND/1/Add.1 
of 26 March  2010 and G/LIC/N/2/HND/1 -3 of 12  November  2007 and information provided by the 
authorities.  
3.35.   Two types of licence apply to the import of arms, ammunition and explosive materials. 
Automatic licences are required if the goods are imported by the Armoury or the two other firms 
authorized to import firearms and ammunition for distribution or sale in the domestic market.24 
Non-automatic licences must be requested by other importers seeking to impo rt explosive 
materials or pyrotechnic devices.  
3.36.  Non-automatic licences are needed to import medicines and chemical precursors in order to 
comply with the international commitments laid down in various United Nations conventions. 
The licences are used to adm inister quotas for the import of narcotics. The import of methyl 
bromide and refrigerants is also subject to non -automatic licensing in order to comply with 
Honduras'  Montreal Protocol commitments. There has been no major change to the procedure for 
obtain ing such licences since 2010. Licences must be issued before the goods arrive, although 
a licence may be granted when the goods arrive if the quantity lies within the permitted limits. 
The validity of licences for the import of refrigerants varies dependin g on the distance from the 
country of origin, the means of transport and the port of entry, and are granted for the import 
of a specific quantity. Licences for the import of methyl  bromide are usually valid for three to six  
months because of the product's properties. If the importer does not import the goods within the 
time limit and requests a new licence, he has to explain the reasons for which the original import 
did not take place. A  licence may be refused if the quota attributed to the importer has bee n 
                                               
24 The Armoury is a unit of the Military Provident Institute an d its main activities are the manufacture, 
import, distribution, purchase and sale of arms and ammunition.  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 50 - 
 
  exhausted and sufficient technical information to enable a new substance to be identified and 
classified is unavailable.  
3.1.7   Contingency measures  
3.1.7.1   Anti-dumping and countervailing measures  
3.37.  The Central American Regulations on Unfair Business Practices date back  to 2007 and have 
not undergone any important changes since then. They still regulate the provisions on 
anti-dumping and countervailing measures.25 The competent authority is the State Secretariat for 
Economic Development (PROHONDURAS), notably the Under -Secretariat for Economic Integration 
and Foreign Trade. There has been no change to the procedures for conducting dumping or 
subsidy investigations since the time of the previous Trade Policy Review in 2010 (Chart  3.2). 
3.38.  During the period under review, Hondur as notified the WTO of the initiation of an 
investigation in order to impose anti -dumping duties on imports of aqueous and non -aqueous paint 
produced in El Salvador, the United States and Guatemala. The investigation was requested by the 
firm KATIVO de Hon duras S.A. and ended in 2011 following the preliminary technical report issued 
on 20  October  2011, with no measure being imposed. According to the authorities, other requests 
have been made but no investigations have been initiated as the complaints were u nfounded.  
3.39.  Honduras did not initiate any subsidy investigation during the review period.  
                                               
25 Resolution No.  193-2007 (COMIECO -XLIV).  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 51 - 
 
  Chart 3.2 Procedure for dumping and subsidy investigations, 2015  
 
The Under -Secretariat receives a request to investigate alleged dumping or subsidization . 
In both cases, the Director ate-General of Economic Integration and Trade Policy ( DGIEPC ) 
may initiate an investigation ex officio  
The Under -Secretariat request s authorization from the firms to conduct onsite  inspections 
to verify the information  provided in the questionnaires  The Under -Secretariat notifies the governments of the  interested  parties that it has 
received a properly documented request  
For subsidies, before initiating an investigation, the investigating authority gives the 
parties an opportunity to reach a mutually ag reed solution  
The Under -Secretariat issues a resolution initiating an investigation and notifie s this to the 
governments of the interested parties  
The Under -Secretariat requests informa tion by means of questionnaires  
The Under -Secretariat receives repl ies to the questionnaires  
The Under -Secretariat undertakes a legal and economic examination of the information  
provided in the questionnaires  
The Under -Secretariat prepares the decision for the Minister recommending whether or 
not to impose provisional  measures  
The investigation continues throughout the period during which p rovisional  
measures are imposed  
Definitive measures are imposed by means of a resolution published in the Official Journal 
(La Gaceta ) and another national new spaper, which  is forwarded to the interested parties, 
the DEI, the SIECA and the WTO  
Las medidas definitivas se imponen mediante resolución que se publica en La Gaceta  y 
otro diario nacional, y se comunica a las partes interesadas, la DEI, la SIECA y la OMC  Provisional measures are imposed by means of a resolution published in the Official 
Journal ( La Gaceta ) and another national new spaper, which  is forwarded to the interested 
parties, the DEI, the SIECA and the WTO.  
Provisional mea sures are applied for 4 months, in the c ase of dumping, up to 6 monthsa, b Period of investigation: 12 months up to 18 months in special  cases or in cases of force majeure   
 
a In the case of dumping, the period may be extended b y means of a decision by the 
Under -Secretariat and at the request of a group of exporters representing a significant percentage 
of trade in the goods concerned.  
b If the Under -Secretariat considers during an investigation that a duty lower than the margin 
of dumping would suffice to remedy the injury, these periods may be six and nine months, 
respectively.  
Source:  Online information from PROHONDURAS. Viewed at: 
http://www.prohonduras.hn/dg iepc/files/Flujograma.pdf ; and information provided by the 
authorities.  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 52 - 
 
  3.1.7.2   Safeguard measures  
3.40.   The procedure for imposing safeguard measures on imports from countries outside the 
CACM is governed by the Central American Regulations on Safeguard M easures 
(Resolution  No. 194-2007 (COMIECO -XLIV)).26 The Under -Secretariat for Economic Integration 
and Foreign Trade is empowered to conduct safeguard investigations, whose purpose is to 
determine whether or not safeguard measures need to be applied. The period of inve stigation is 
three years, although the investigating authority may extend or shorten this period.  
3.41.  Initiation of an investigation must be requested by representatives of the domestic industry 
suffering injury as a result of the imports. After it has receive d a request, the investigating 
authority has no more than 30 days in which to examine it and decide: whether to accept it, if it 
complies with the requirements in the Regulations, and to declare the initiation of an investigation; 
to request further inform ation if the application is incomplete; or to reject it in the form 
of a reasoned decision if the request does not contain sufficient evidence justifying the initiation 
of an investigation or if it has not been made on behalf of a domestic industry. The de cision 
rejecting the request must be notified within ten days following the date of its issue.  
3.42.  An investigation must be concluded within six months, except in special cases decided by 
the investigating authority, in which case the maximum period is 12 mont hs from the date 
of initiation. Provisional measures may be imposed during the investigation period in the form 
of tariff increases, guaranteed by means of a bond. The maximum period for provisional measures 
is 200 days. The amounts received as a result of  provisional measures must be returned if the 
investigation fails to determine that the increased imports have caused or threaten to cause 
serious injury to a domestic industry. The Regulations provide that the WTO Committee on 
Safeguards must be notified before a provisional measure is adopted and, after it has been 
imposed, Honduras must hold consultations with other WTO Members having a substantial interest 
in the measure. The decision adopting a provisional measure must be notified to interested parties  
within ten days of its publication.  
3.43.  The investigating authority must forward a copy of the decisions to apply provisional and 
definitive safeguard measures to the SIECA if they consist of tariff increases, as well as decisions 
modifying the measures, with in a period of not more than ten days after their publication so that 
the SIECA can convene the Council of Ministers to allow it to examine and approve the measures 
adopted.  
3.44.  Definitive measures must be of "an exceptional and temporary nature", and only rem ain in 
force for as long as necessary to prevent or remedy the serious injury caused and to facilitate 
adjustment. The measures may not be applied for more than four years, unless they are extended 
in accordance with the provisions in the WTO Agreement on Safeguards.  
3.45.  Special safeguard measures may also be imposed if Honduras finds itself facing: serious 
balance -of-payments difficulties; repeated and generalized shortages of raw materials and basic 
finished goods; market disruption; unfair trade practices; o r any other situation that may turn into 
a national emergency. In such cases, the measure may be imposed for a maximum period 
of 30 days. The situation is reviewed during this period in order to determine whether the measure 
should be suspended, modified o r extended. If the imports come from CACM member countries, 
requests are forwarded to the SIECA's Executive Committee, which examines them and makes the 
relevant recommendations.  
3.46.  In February  2015, Honduras issued Decision No.  030-2015, imposing a "safeguar d" 
measure to tackle "disruption" in the domestic market for iron and steel products, with Honduras 
unilaterally increasing tariffs on some iron or steel products to 35%. This measure was not notified 
to the WTO.  
                                               
26 WTO document G/SG/N/1/HND/3 of 16  March  2009.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.1.8   Standards and technical regulations  
3.47.  In 2010 , Honduras adopted the Law on the National Quality System, the only specific law on 
standardization, metrology, certification and verification.27 The WTO Agreement on Technical 
Barriers to Trade (TBT), together with the Central American Regulations on Stand ardization 
Measures, Metrology and Authorization Procedures of 1999, form an integral part of Honduras' 
domestic legislation.28 In addition, in 2013 the Interinstitutional Technical Regulation Council 
(CIRT) was set up to coordinate the preparation of techn ical regulations.  
3.48.  The Standardization and Metrology Department of the Directorate -General of Consumer 
Protection in the State Secretariat for Industry and Trade, and the Sanitary and Environmental 
Regulation Unit in the State Secretariat for Health are Hon duras' national enquiry points for 
matters relating to technical barriers to trade. The State Secretariat for Industry and Trade has 
accepted the TBT Agreement's Code of Good Practice for the Preparation, Adoption and Application 
of Standards.29 
3.49.  Honduras no tified 29 measures to the WTO Committee on Technical Barriers to Trade 
between 1  January  2010 and 31  December  2015, covering areas such as environmental 
protection, consumer protection and labelling, inter alia .30 
3.50.  The Law on the National Quality System crea ted the National Quality System as the 
technical body responsible for promoting the use of conformity assessment and demonstration 
mechanisms, the adoption of quality management practices and training, as well as for fostering 
public and private coordinati on among the competent entities. The Law also set up the National 
Quality Council, which proposes quality policies.31 
3.51.  The Honduran Standardization Agency (OHN) was also established during the review period 
as the technical arm of the National Quality System . The OHN represents Honduras in regional and 
international standardization organizations such as the ISO, the IEC and the Pan  American 
Standards Commission (COPANT). It follows international standards and is responsible for 
preparing, approving, publishin g and disseminating standards. During the review period, the OHN 
published 44 standards regulating various areas.32 The OHN publishes an annual national 
standardization work programme, which identifies areas in which new standards are required. 
According to  this programme, Honduras is currently preparing standards in the following areas: 
general vocabulary, laws, organic chemicals, energy efficiency, lighting, melons, toys and 
conformity assessment.33 
3.52.  The procedure for preparation of OHN standards is governed  by the principles of consensus 
and transparency and comprises various stages (Chart 3.3). The public and private sectors, 
consumers and members of academia all take part in drafting standards. To guarantee 
transparency, the procedure involves a 60 -day con sultation stage. During this period, a notice is 
put on the OHN's website and in one or more national newspapers so that all those interested may 
comment on the document. Honduran standards are periodically reviewed. According to 
information provided by th e authorities, standards are reviewed every five years, although they 
may be revised sooner if circumstances change. Revision may be ex officio or following a request.  
                                               
27 Decree No.  29-2011 of 29  March  2011.  
28 Resolution No.  3799 (COMIECO -XII) of 17  September  1999.  
29 WTO document G/TBT/CS/N/165 of 27  March  2006.  
30 WTO documents G/TBT/H/HND/61 of 19  May 2010 - G/TBT/H/HND/86 of 4  February  2015.  
31 More specifically, the Council recommends the conclusion of bilateral or multilateral  agreements or 
conventions in areas within its sphere of competence; advises the Office of the President of the Republic, the 
official in charge of the Technical Secretariat for Planning and External Cooperation, and other bodies belonging 
to the National Quality System; it proposes quality policies and defines the general guidelines needed for 
compliance with the Law on the National Quality System.  
32 These standards concern: the environment; coffee; quality; jams, jellies and marmalades; energy; 
gender equ ality; conformity assessment; beans; hotels; toys; dairy produce; melons; plastics; social 
responsibility; doughnuts; and tour operators. Information viewed at: 
http://ohn.h ondurascalidad.org/117_normas_publicadas_2015 -03-12.pdf . 
33 The national standardization work programme for 2015 can be viewed at: 
http://ohn.hondurascalidad.org/ptnn/OHN -PTNN-2015-II_2015 -08-19.pdf . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Chart 3.3 Procedure for preparing Hondura n standards  
 
 
Stage  0 
Preliminary stage  
Stage  4 
Public consultat ion stage  Stage  1 
Proposal stage  Stage  2 
Preparatory stage  
Stage  5 
Approval stage  Stage  3 
Committee stage  
Stage  6 
Publication stage  Stage  7 
Revision stage  Stage  8 
Revocation stage  
 
Source:  Information provided by the Honduran authorities.  
3.53.  Honduras' legislation distinguishes between standards and technical regulations.34 
The State  Secretariats and other government authorities are responsible for issuing technical 
regulati ons within their spheres of competence. The CIRT was set up in 2013 to coordinate the 
preparation of technical regulations and started operating in 2015. The procedure for preparing 
technical regulations is similar to that used to prepare standards (Chart  3.4), the only difference 
being that technical regulations are mandatory and are implemented by means of a decision. They 
are reviewed every two years and not five years, as is the case for standards. By the end of 2015, 
the CIRT had issued two technical r egulations concerning tourism and health.35 
Chart 3.4 Procedure for preparing technical regulations  
 
Source:  Information provided by the authorities.  
3.54.  The Law on the National Quality System created the Honduran Metrology Centre (CEHM) as 
the national body responsible for metrology. The CEHM prepares, maintains and keeps the national 
standard units of measurement. It has to promote the use, calibration, verification and adjustment 
of me asuring instruments, as well as the traceability of the standards of the international unit 
system and ensure the traceability of measuring instruments. The CEHM currently has several 
laboratories dealing with specific areas, namely, chemicals, temperature  and small and large 
masses.36 The Centre also represents Honduras in international and regional organizations. 
In carrying out its work, the CEHM abides by the international criteria and standards defined by 
the International Bureau of Weights and Measures  (BIPM).  
                                               
34 For further information, see: http://ohn.hondurascalidad.org/mas_info_general.html . 
35 Information provided by the authorities.  
36 Online i nformation  viewed at : http://cehm.hondurascalidad.org/laboratorios.html . 5 Review of the public consultation te xt with 
the technical committee  7 Approval by the CIRT  
10 Updating or revocation  9 Adjustment of the sector  8 Publication of the Honduran technical 
regulation  6 Approval of the Honduran draft technical 
regulation by the techn ical committee  
2 Invitation to attend the technical 
committee with CIRT representatives  
4 National  and international public 
consultation  3 Working meetings wi th various technical 
committ ees 1 Need for a technical regulation  
Request to the CIRT  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.55.  The Law on the National Quality System also created the Honduran Accreditation Agency 
(OHA), which is responsible for voluntary accreditation activities.37 The OHA observes the 
international criteria established in the international standards, guid es and guidelines for 
accreditation bodies. The OHA is the only Honduran institution that may accredit testing and 
calibration laboratories, inspection and control entities, certification and other such bodies, 
according to international standards, guides and guidelines. Its responsibilities also include 
developing and maintaining relations with regional and international accreditation organizations.  
3.56.  The Law determines that all public institutions requiring laboratory services in order to 
obtain an accredit ation must use accredited laboratories or those recognized under recognition 
agreements between the OHA and equivalent international bodies. It also provides for the creation 
of a network of inspection, testing, analysis, calibration and certification bodi es, composed of 
public and/or private entities, to determine conformity with standards or technical regulations.  
3.57.  The general accreditation procedure defines the stages to be followed by each institution in order 
to be accredited as a conformity assessment body.38 Once accredited, however, conformity assessment 
bodies are subject to ongoing evaluation and supervision in order to ensure that they maintain the 
necessary technical skills to remain accredited. They may request renewal of accreditation. 
The accred itation granted by the OHA is valid indefinitely, but is subject to annual visits to monitor the 
institutions accredited and to evaluation of the accredited body within five  years following accreditation.  
3.58.  Honduras does not have any special law on labelling , although the Consumer Protection Law 
defines general labelling requirements.39 The authority responsible for implementing the Consumer 
Protection Law proposes to government bodies the adoption of the technical regulations required 
to protect consumers' ri ghts with regard to the labelling of goods for consumption or those with a 
potential impact on health that are marketed in Honduras. It should also be emphasized that some 
Central American sanitary and phytosanitary technical regulations also include provi sions on 
labelling.40 
3.1.9   Sanitary and phytosanitary measures  
3.59.  In Honduras, the 1994 Law on Plant and Animal Health and the 1991 Health Code constitute 
the key legislation in the area of sanitary and phytosanitary (SPS) measures.41 The 2005 revision 
of the Law al so forms part of Honduras' SPS legal framework, together with the applicable CACM 
legislation, notably the Central American Regulations on Sanitary and Phytosanitary Measures and 
Procedures, revised in 201142, which harmonize SPS measures at the Central Ame rican level. 
Under these Regulations, SPS measures must be based on technical and scientific principles and 
must not have the objective or effect of creating unnecessary obstacles to trade.43 Honduras also 
has other legal instruments for the implementation of special sanitary and phytosanitary measures 
in relation to animal health, plant health and food safety (Table 3.9).  
                                               
37 Prior to the establishment of the Honduran Accreditation Agency, Honduras had an agreement with 
Costa  Rica's accreditation body, dating  back to 2005, for the joint accreditation of conformity assessment 
bodies. The list of bodies accredited under this agreement can be viewed at: 
http://oha.h ondurascalidad.org/oec_acreditados_oha -eca/oec_acreditados_oha -eca.html . 
38 For further details, see: 
http://oha.hondurascalidad.org/servicios_ac reditacion/Procedimiento_General_de_Acreditacion.pdf . 
39 Under this Law, prepackaged or wrapped goods for consumption or those with a potential impact on 
health must show the following on the final packaging: name or designation; origin or source; net cont ents, 
quantity or specification of measurements; date of manufacture and expiry or recommended time -limit for use 
or consumption if so required; and nutritional information if appropriate, together with instructions, warnings 
and contraindications  relating  to their use or consumption (Article 23, Decree No.  24-2008).  
40 See: RTCA 65.05.51:08, RTCA 65.05.52:11, RTCA 65.05.61:11, RTCA 65.05.54:09 and 
RTCA  65.05.53:10.  
41 Law on Plant and Animal Health (Decree No.  157-94) of 4  November  1994, as amended by 
Decree  No. 344-05, and the Health Code (Decree No.  65-91) of 28  May 1991, as amended by 
Decrees  No. 191-91 and No.  194-96. 
42 Resolution No.  271-2011 (COMIECO -LXI). 
43 An exception may be made if a State party needs a higher level of protection. The Regulations al so 
stipulate that, where a sanitary or phytosanitary measure is not underpinned by an international reference 
standard, it must be founded on a risk -based analysis. This risk analysis must be conducted in accordance with 
the WTO Agreement on the Applicatio n of Sanitary and Phytosanitary Measures, the standards, directives and 
recommendations of the OIE, the IPPC and the Codex Alimentarius, as well as the relevant regional regulations 
(Article 4 of Resolution No.  271-2011 (COMIECO -LXI)).  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 3.9 Principal legal instruments regulating the sanitary and phytosanitary system, 20 15 
Animal health  Legal framework  
Sanitary regulations for the operation of poultry -fattening farms at the national 
level  Decision No.  894-01 (SAG)  
Sanitary regulations for the operation of egg -producing poultry farms at the 
national level  Decision No . 916-13 (SAG)  
Regulations on controlling the eradication of brucellosis and bovine tuberculosis  Decision No.  1735-97 (SAG)  
Regulations on fishing and aquaculture health  Decision No.  1418-00 (SAG)  
Regulations on epidemiological animal health surveilla nce Decision No.  1419-00 (SAG)  
Regulations on the control of veterinary products  Executive Decision No.  08-96 
Regulations on application of the Convention on International Trade in 
Endangered Species of Wild Faun a and Flora  Decision No.  966-03 (SAG)  
Regulations on the prevention, control and e radication of Newcastle disease  Decision No.  403-13 (SAG)  
Regulations on the prevention, control and era dication of avian salmonellosis  Decision No.  402-13 (SAG)  
Regulations on epidemiological surveillance, preven tion and control of bovine 
spongiform encephalopathy (BSE) and other transmissible spo ngiform 
encephalopathies (TSEs)  Decision No.  401-13 (SAG)  
Central American sanitary and phytosanitary directive on trade facilitation in  
respect of shipments and goods  Resolution No.  338-2014 
(COMIECO -EX) 
Procedure for recognition of sanitary registration of products used in animal 
feed Resolution No.  304-2013 
(COMIECO -EX) 
Central American regulations on sanitary and phytos anitary measures and 
procedures  Resolution No.  271-2011 
(COMIECO -LXI) 
Central American Technical Regulations (RTCA) on veterinary and related 
products: sanitary registration and control requirements  RTCA 65.05.51:08  
RTCA on products used in animal feed and facilities: sanitary registration and 
contro l requirements  RTCA 65.05.52:11  
RTCA on products used in animal feed: good manufacturing practices  RTCA 65.05.63:22  
 
Plant health  Legal framework  
Law on Seeds and its implementing regulations  Decree No.  1046 of 198 0 and 
Decision No.  1942 of 1982  
Biosa fety regulations wit h emphasis on transgenic plants  Decision No.  1570-98 (SAG)  
Regulat ions on agricultural quarantine  Decision No.  1618-97 (SAG)  
Regulations on diagnosis, surveillance and phytosanitary campaigns  Decision No.  002-98 (SAG)  
Regulation on t he inspec tion and certification of fruit  Decision No.  256-2014 (SAG)  
Regulations on wood packaging material in international trade  Decision No.  487-05 (SAG)  
Regulations on organic farming  Decision No.  163-03 (SAG)  
Regulations on the registration, use an d control of pe sticides and related 
substances  Decision No.  642-98 (SAG)  
Technical regulations on the production, impor t and marketing of potato seeds  Decision No.  873-2009 
Regulations on the registration, use and control o f fertilizers and raw materials  Decision No.  002-02 (SAG)  
RTCA  on agricultural inputs: requirements for the production and marketing 
of certifi ed staple grains and soya seeds  RTCA 65.05.53:10  
RTCA  on fertilizers and soil improvers for agricultural  use: registration 
requirements  RTCA 6 5.05.54:09  
RTCA  on microbiological pesticides for agricultural  use: registration 
requirements  RTCA 65.05.61:11  
RTCA  on commercial  varieties: listing requirement  RTCA 65 -05-34:06  
 
Food safety  Legal framework  
Regulations on fishing and aquaculture healt h  Decision No.  1418-00 (SAG)  
Regulations on the inspection and safety of fruit and  fresh and processed 
vegetables  Decision No.  632-03 (SAG)  
Regulations on the inspection and health certification of milk and dairy produce  Decision No.  656-01 (SAG)  
Regul ations on the inspection and animal health certification of f ishery and 
aquaculture products  Decision No.  728-08 (SAG)  
Regulations on the inspe ction of meat and meat products  Decision No.  078-00 (SAG)  
Regulations on the inspection, approval and health ce rtification of fruit and 
fresh and processed garden produce  Decision No.  256-14 (SAG)  
Source:  WTO Secretariat, based on online information from the SENASA. Viewed at:  
http://www.s enasa -sag.gob.hn/reglamentos -vigentes -en-senasa ; and on the basis of information 
provided by the authorities.  WT/TPR/S/336 /Rev.1  • Honduras  
 
- 57 - 
 
  3.60.  The State Secretariat for Agriculture and Livestock (SAG), through the National Agricultural 
Health Service (SENASA), is responsible for developi ng and implementing Honduras' sanitary and 
phytosanitary policy. Honduran legislation, however, provides for close cooperation between the 
public and private sectors. The SENASA is in charge of planning and coordinating the 
implementation of animal and pla nt health and food safety programmes. It also decides on the 
standards and sanitary procedures for the import and export of agricultural products, such as: 
diagnosis and epidemiological surveillance of pests and diseases, quarantine control of imported 
and exported products, and programme coordination.44 It acts as the government's contact point 
with international organizations, and is one of the three enquiry points designated by Honduras in 
the context of the WTO Agreement on the Application of Sanitary an d Phytosanitary Measures 
(SPS Agreement). The others are: the National Enquiry Point in the Directorate -General 
of Consumer Protection in PROHONDURAS for technical regulations, and the Directorate for 
Monitoring the Regulatory Framework in the State Secret ariat for Health.45 
3.61.  Honduras is a member of the Codex Alimentarius and the World Organisation for Animal 
Health (OIE), and is a contracting party to the International Plant Protection Convention (IPPC). 
According to the authorities, the sanitary and phytosa nitary measures applicable in Honduras 
follow the guidelines and recommendations of the OIE International Health Code, the IPPC and the 
Codex  Alimentarius, in accordance with the SPS Agreement.  
3.62.  Between 1  January  2010 and 30  June 2015, Honduras notified the  WTO of 20 sanitary and 
phytosanitary measures, all of which were regular notifications.46 Most of these (14) were 
measures adopted to protect human health (in areas such as the use of additives in food and the 
use of pesticides) or measures relating to mar king and labelling.  
3.63.  The basic objectives of Honduras' sanitary and phytosanitary policy include: protecting 
human health and life, as well as Honduran territory, from the introduction and/or propagation of 
diseases and pests affecting animals, plants, thei r products and by -products, thus providing the 
sanitary, phytosanitary and safety conditions necessary for the production and marketing of 
Honduras' agricultural products.  
3.64.  Honduras reserves the right to ban the import or transit through its territory of go ods 
coming from countries deemed to be affected by epidemics that may have an impact on plant or 
animal health in Honduras. Non -automatic licences are required for the import of plant and animal 
products and by -products and inputs for agricultural or veter inary use. The aim is to ensure that 
these products do not constitute a potential risk to plant or animal health. Importers must be 
registered with the SAG before they can apply for an import licence. In special cases, import 
licences for plant products ma y be issued immediately if the goods are at the port and their 
condition and phytosanitary certification has been verified. Depending on the plant or animal 
health situation in the country of origin, licences may be modified or cancelled.47 
3.65.  Microbiological pesticides for agricultural use, fertilizers and soil improvers for agricultural 
use have to be registered with the SENASA before being imported. A certification procedure with 
the SENASA applies to seeds used to produce staple grains (rice, beans, sorghum  and maize) and 
soya before they can be imported.48 
3.66.  With the aim of facilitating regional trade, Honduras adopted the Central American Sanitary 
and Phytosanitary Directive, which governs trade in "shipments" and "goods".49 This determines a 
series of procedu res to streamline the entry and exit of these products, based on a risk analysis 
concerning both the product and the systems and facilities used to process it. Shipments and 
                                               
44 Online information  from the SENASA. Viewed at: http://www.senasa -sag.gob.hn/que -es-senasa . 
45 WTO document G/SPS/ENQ/26 of 11  March  2011 and information provided by the authorities.  
46 WTO documents G/SPS/N/HND/33 of  31 May 2010 and G/SPS/N/HND/52 of 6  May 2014.  
47 WTO document G/LIC/N/3/HND/1  of 12 November  2007.  
48 RTCA 65.05.61:11, Annex to Resolution No.  297-2012 (COMIECO -LXIV); RTCA 65.05.54:69, Annex to 
Resolution No.  314-2013 (COMIECO -EX) and RTCA 65.05.53:10, An nex to Resolution No.  259-2010 
(COMIECO -LIX). 
49 Shipments are: plants and plant products and/or other articles transported from one country to 
another and covered by a single phytosanitary certificate. A shipment may comprise one or more products or 
batche s (Annex to Resolution No.  338-2014 (COMIECO -EX)). Goods are: live animals, products and by products 
of animal origin, genetic material of animals, biological products, animal feed and pathological material 
(Annex  to Resolution No.  338-2014 (COMIECO -EX)). WT/TPR/S/336 /Rev.1  • Honduras  
 
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  goods are divided into three categories depending on the risk analysis, which serv e as the basis for 
defining the entry requirements (Table 3.10).  
Table 3.10 Entry requirements based on the sanitary and phytosanitary risk analysis  
Classification  Sanitary and phytosanitary risk  Entry require ments  
Category A  High risk  Phytosanitary or animal health permit authorizing import, 
sanitary or phytosanitary certificate issued by the 
country of origin, and inspection upon entry into 
Honduras  
Category B  Medium or moderate risk  Sanitary or phytosanit ary certificate and random 
inspection upon reaching the destination  
Category C  Insignificant or low risk  Random inspection upon reaching the destination  
Source:  Central American Sanitary and Phytosanitary Directive on Trade Facilitation in Respect of Shipments 
and Goods ( Annex to Resolution No.  338-2014 (COMIECO -EX)). 
3.67.  Honduras is in the process of implementing an electronic phytosanitary and animal health 
certification scheme which will eventually be used in the rest of Central America. According to th e 
authorities, once implemented, this scheme will allow plant and animal health certificates to be 
processed electronically.  
3.68.  During the review period, Honduras adopted regulations to prevent the transmission 
of bovine spongiform encephalopathy (BSE) and ot her transmissible spongiform encephalopathies 
(TSEs). Honduran legislation prescribes that any outbreak of BSE or TSE must be notified to the 
competent authority immediately.50 The risk analysis to assess the possibility of transmission 
of such diseases is based on the provisions in the OIE Terrestrial Code.51 The SENASA keeps 
a register of authorizations to import ruminants, products and byproducts and feed for bovine 
production.  
3.69.  The goal of the National Poultry Farming Programme is to protect the health sta tus 
of poultry breeding by improving epidemiological surveillance. The Health and Safety Commission 
for the poultry farming chain ensures that the directives laid down in the Programme are 
observed. In order to implement the health measures laid down in th e Programme, the SAG has, 
for example, adopted Decision No.  403-13, which determines provisions for the prevention, control 
and eradication of Newcastle disease (Box 3.1).  
Box 3.1 Sanitary measures relating to N ewcastle disease  
All owners of poultry must be registered with the competent authorities and comply with the epidemiological 
surveillance provisions and procedures determined in the National Poultry Farming Programme.  
To be able to export poultry product s to Honduras, an application must be made to the SENASA in writing. 
The latter defines the procedure to be followed according to the health status in the country of origin as 
regards Newcastle disease. Before approving the entry of poultry and poultry pro ducts or byproducts into 
Honduran territory, the SENASA inspects and verifies the operation of veterinary services in the country 
of origin, and also evaluates their diagnostic and epidemiological surveillance and risk analysis systems for 
detecting Newcas tle disease. The SENASA requires that all imports of poultry and poultry products be 
accompanied by a veterinary certificate. Moreover, it carries out random controls at the border in order to 
prevent the entry of any product presenting a risk of introduci ng Newcastle disease into Honduras. 
The SENASA also periodically conducts clinical inspections and serological and virological testing of poultry in 
areas adjacent to a country or zone infected by Newcastle disease. Any outbreak of the disease must be 
notified immediately.  
Honduras also regulates the transport of poultry sector products. Lorries used to transport such products must 
be cleaned and disinfected prior to loading and after unloading, using the procedures prescribed by the 
SENASA. In addition, l orries used to carry poultry from farms to processing plants must be used exclusively for 
this purpose and must be cleaned and disinfected after each journey. The materials used to transport poultry 
must also be cleaned and disinfected daily.  
Any product ion unit may be placed in quarantine as a precautionary or definitive measure if an outbreak of the 
disease is suspected or confirmed. Quarantine measures may only be suspended by the SENASA. If there is an 
outbreak of the disease, the SENASA follows the p rocedures and guidelines established by international 
organizations for its control and eradication.  
                                               
50 Regulations on epidemiological surveillance, prevention and control of bovine spongiform 
encephalopathy (BSE) (Decision No.  401-13). 
51 The country -risk categories determined by the OIE are also recognized.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  All owners of poultry must be registered with the competent authorities and comply with the epidemiological 
surveillance provisions and procedures determined in the National Poultry Farming Programme.  
The Health and Safety Commission for the poultry farming chain is responsible for drawing up vaccination 
programmes against Newcastle disease. Only vacci nes approved by the SENASA ( lentogenic live -virus or 
inactivated  vaccines) may be used. The owner or the person in charge of the poultry farm must keep a detailed 
logbook of the vaccines used, specifying: the make, the batch, the date of manufacture and th e expiry date, 
the type of vaccine, the administration method and the company from which it was purchased; and the phial's 
label must be stuck in the logbook.  
Source:  Decision No.  403-13 establishing provisions for the prevention, control and eradication  of Newcastle 
disease.  
3.70.  The Central American Technical Regulations on veterinary and related products specify the 
provisions for the sanitary registration and control of medicines for veterinary use and related 
products, as well as the facilities manufactur ing and marketing them.52 Such products and facilities 
must be registered with the competent national authority (in Honduras' case, the SENASA). 
In addition to registration, veterinary medicines and related products based on GMOs or 
biotechnology products, as well as biological products from countries where exotic diseases exist, 
have to undergo a risk analysis. According to the authorities, when conducting such analyses and 
controlling quality, Honduras uses as a reference: (a) the provisions of the Codex A limentarius, 
the OIE and the Association of Official Analytical Chemists (AOAC); and (b) analyses validated by 
the manufacturer. Honduras also follows the guidelines established by international organizations 
when determining the maximum residue limits for  veterinary medicines.  
3.71.  The registration and sanitary control of products used as animal feed, and of the facilities 
producing, marketing, repackaging or storing it, are also regulated by Central American 
legislation.53 The analytical methods, the methodolog ies and benchmark quality specifications used 
are those laid down by the AOAC, by other recognized institutions, or by the SENASA if validated 
by the producer. It is also specified that facilities must keep a logbook to facilitate the 
identification and tr aceability of raw materials and animal feed so that if there is any risk to animal 
or human health, the product may be withdrawn from the market.  
3.72.  Furthermore, the Central American Regulations also establish good manufacturing and 
hygiene practices (BMP) fo r products used as animal feed.54 They prescribe, in particular, that the 
goods must be inspected before being unloaded in order to determine the transport conditions and 
discount any deterioration or contamination caused by poor handling during transport. The goods 
may be kept in quarantine while the necessary analyses are being carried out. The SENASA may 
also conduct inspections, visits or assessments in any facility for the purpose of ascertaining to 
what extent the BMP are being implemented.  
3.73.  In 2014, Ho nduras approved the National Food Safety Policy, whose main objectives are: to 
improve scientific capacity, transfer and exchange of information, at both national and 
international levels; and to update the food control and monitoring systems.  
3.74.  The Food Saf ety Division (DIA) in the SAG has responsibility for inspecting the import of 
fruit and fresh and processed garden produce , as well as the facilities where they are packaged or 
processed. It is also in charge of certifying compliance with good agricultural  practices in primary 
production and best manufacturing practices (BPM) in facilities importing animal and plant 
products, and of implementing the Hazard Analysis and Critical Control Point (HACCP) system 
when processing operations so require.  
                                               
52 Central American Technical Regulations on veter inary and related products: sanitary registration and 
control requirements (RTCA 65.05.51:08).  
53 Central American Technical Regulations on products used in animal feed and facilities: sanitary 
registration and control requirements (RTCA 65.05.52:11), Annex  to Resolution No.  282-2012 
(COMIECO  LXII).  
54 Central American Technical Regulations on products used in animal feed: best manufacturing 
practices (RTCA 65.05.63:11).  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.2  Measures dir ectly affecting exports  
3.2.1   Procedures, documents and registration  
3.75.  There have been no major changes to export procedures and requirements since the 
previous review in 2010. Export formalities are still carried out at the Export Processing Centre 
(CENTREX), in which all institutions involved in the export process are represented: the SENASA, 
the Regional International Organization for Plant and Animal Health (OIRSA), the Central Bank of 
Honduras (BCH), the DEI, the State Secretariat for Health, PROHONDURAS and t he Honduran 
Geology and Mining Institute (INHGEOMIN).55 
3.76.  Exporters of certain goods have to be registered with the competent authority. Exporters 
of seeds and methyl bromide must be registered with the State Secretariat for Agriculture and 
Livestock (SAG) an d those exporting ozone -depleting chemicals with the State Secretariat for 
Energy, Natural Resources, the Environment and Mining.56 
3.77.  Exports to the CACM are processed using the FAUCA, while the DUA is used for other 
exports. The following documents have to b e attached to the DUA: the bill of lading (or equivalent 
document); the commercial invoice; the certificate of origin; the animal or plant health certificate; 
the "eligibility" certificate for sugar exports to the United States; the free sale and use 
certificate57; the documents required by the BCH; the documents attesting to the exemption 
regime; and other documents required by law according to the nature of the goods or the customs 
procedure.  
3.78.  A number of electronic systems started to be used during the rev iew period in order to 
speed up export procedures: in 2012, the Honduran Electronic Foreign Trade System (SECEH) was 
introduced and in 2015 the Honduran Electronic Payment Management System (SAPEH) came into 
operation. The SECEH is administered by PROHONDU RAS and allows export declarations and 
certificates of origin to be submitted electronically, while the SAPEH allows online payment for 
administrative procedures or services.58 
3.79.  Before shipping the goods, exporters must declare to the BCH the quantity, value , 
destination and date of export, together with the currency of payment. Such a declaration is not 
necessary if the exports are going from free zones or to the CACM.59 
3.80.  According to the authorities, the export procedures have not changed since 2010. They 
consist of: (a) definitive exportation; (b) temporary exportation for re -importation in the same 
state; (c) temporary exportation for outward processing; (d) re -exportation ; and (e) free zones.60 
3.2.2   Export taxes and charges  
3.81.  In Honduras, export tax has to be paid on coffee and some minerals (Table  3.11). When 
registering a purchase with the Honduran Coffee Institute (IHCAFE), either for export or for sale 
on the domestic market, producers, coffee roasters and/or exporters have to pay US$9 per quintal 
of green coffe e to the IHCAFE. This sum is earmarked for paying the coffee growers' debt and 
funding a trust to revitalize the sector.61 Coffee exports must also have an export certificate issued 
by the IHCAFE, which costs US$2.75 per bag (46 kg) of green coffee exported  or US$3.25 per bag 
(46 kg) if the exporter has a debt with the IHCAFE.62 Exports, as well as sales of some minerals on 
                                               
55 PowerPoint presentation by PROHONDURAS. Viewed at: 
http://www.ccichonduras.org/website/desc argas/presentaciones/2014/Importaciones -
Exportaciones/Presentaciones%20Desarrollo%20Economico/Presentaci%C3%B3n%20Direcci%C3%B3n%20Ge
neral%20de%20Tr%C3%A1mites%20Empresariales%20Shiara%20Duran.pdf .  
56 Article 5 of the Law on Seeds (Decree No.  1046) of 15  July 1980 and Article 2 of the General 
Regulations on the Use of Ozone -Depleting Substances (Decision No.  907-2002) of 15  October  2002.  
57 Certificate issued by the State Secretariat for Health for the export of certain food products.  
58 Information provided  by the authorities.  
59 Information provided by the authorities and Law on the Entry of Foreign Currency Earned from 
Exports (Decree No.  108-90) of 20  November  1990.  
60 For further details, see Title VI, Chapter II, of the CAUCA and Title VI of the RECAUCA.  
61 Law on Financial Revitalization of the Coffee Production Sector (Decree No.  152-2003), as amended 
by Decree No.  56-2007.  
62 Decree No.  297-2002 of 4  September  2002.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  the domestic market, pay a tax which varies depending on the product (Table  3.11). The sums 
collected as a result of levying this tax are  shared out among several government institutions, 
among which are the Mining Authority and municipalities.  
Table 3.11 Export taxes in 2015  
HS code  Description  Rate in 2015  
0901.11.30  Green coffee  US$9/quinta l 
7102.10.00; 7102.21.00; 7102.29.00; 
7102.31.00; 7102.39.00; 7103.10.00; 
7103.91.00; 7103.99.00  Gems or precious stones  2.5% of the f.o.b. valuea 
2821.10.00; 2825.80.00; 7106.10.00; 
7106.92.10; 7106.92.90; 7108.11.00; 
7108.12.00; 7108.13.00; 7112.91.00  Mining of metal ores, oxides and sulphides 
(non-metal)  6% of the f.o.b. valueb 
2505.10.00; 2505.90.00; 2517.10.00  Industrial mining of non -metal ores  2.5% of the f.o.b. valuea 
a 1% of the f.o.b. value collected by the DEI.  
b 2% of the f.o.b.  value colle cted by the DEI.  
Source:  Information provided by the authorities, Law on Financial Revitalization of the Coffee Production 
Sector (Decree No.  152-2003), as amended by Decree No.  56-2007, and General Law on Mining 
(Decree No.  238-2012) of 23  January  2013 re pealing the General Law on Mining 
(Decree  No. 292-98). 
3.82.  Pursuant to the Sales Tax Law, a sales tax of 0% applies to exports . 
3.2.3   Prohibitions, licensing and other restrictions  
3.83.  Honduras bans the export of some products for the following reasons: (i)  to protect p ublic, 
animal or plant health and the environment; (ii)  to ensure supplies of basic products for the 
domestic market; and (iii)  to comply with international commitments. For example, since 2010, 
owing to shortages on the domestic market, the export of red beans has been prohibited. 
The export of harmful foodstuffs is not allowed for reasons of public health63, and endangered 
plants or animals may not be exported in order to comply with the Convention on International 
Trade in Endangered Species of Wild Fauna  and Flora (CITES). Honduras does not allow the export 
of wood of latifoliate species from natural forests if it has not been worked or processed.64 
3.84.  Previously, cement could be exported or re -exported to Central America provided that the 
Honduran market had  sufficient supplies. Cement exports also required a special permit from 
PROHONDURAS valid for one year. According to the authorities, from 2012 onwards this special 
permit has no longer been required for exports of cement and it would appear that they are  not 
subject to any restrictions.  
3.2.4   Export support  
3.85.  Honduras has notified the WTO that in 2009 and 2014 it did not subsidize agricultural 
exports.65 
3.86.  Honduras has the right to maintain certain export promotion schemes until its per capita 
gross national product  (GNP) reaches US$1,000 in constant 1990 dollars for three consecutive 
years. This limit was not exceeded between 2011 and 2013 (the most recent three consecutive 
years for which information is available).66 In 2001, faced with the possibility of exceeding this 
limit, Honduras requested an extension of the transition period for dismantling these schemes.67 
3.87.  In 2013, Honduras notified the WTO of two export subsidy schemes, i.e. the Temporary 
Importation Procedure (RIT) and Free Zones (ZOLI).68 In 2011, Honduras notified a third scheme 
                                               
63 Article 76 of the Health Code.  
64 Article 102 of the Law on Forestry, Protected Areas and  Wildlife (Decree No.  98-2007) 
of 19 September  2007.  
65 WTO documents G/AG/N/HND/36 of 15  May 2014, G/AG/N/HND/39 of 22  July 2014 and 
G/AG/N/HND/443 of 12  October  2015.  
66 WTO document G/SCM/110/Add.12 of 6  July 2015.  
67 WTO documents G/SCM/N/74/HND of 4  December 2001 and G/SCM/39 of 20  November  2001.  
68 WTO document G/SCM/N/253/HND of 17  October  2013.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  (Industrial Export Processing Zones (ZIP)), which had already been in existence in 2010 and still 
exists, but is no longer operating (see below).69 These schemes were already operating in 2010 
with the aim of boosting exports, invest ment, production, competitiveness and job creation. 
PROHONDURAS and the DEI are responsible for their administration.  
3.88.  Benefits under the RIT and the ZOLI have not changed to any great extent since 2010.70 
Nevertheless, in 2013 it was decided that the fiscal  incentives granted under the ZOLI would be for 
a maximum period of 12  years, whereas previously they had been for an indefinite period 
(Table  3.12).  
Table 3.12 Export subsidy schemes in 2015  
 RIT ZOLI  
Benef iciaries  Natural or legal persons (Honduran or f oreigners resident in Honduras)  
Customs duties  Suspensi on of tariffs and import duties  Exemption from tariffs and import duties  
Other taxes  No fiscal incentives  Exemption from income tax and municipal 
taxes  for a period of 12 years  
Source:  WTO document G/SCM/N/253/HND of 17  October  2013 and Article 23 of the Law on Fiscal 
Consolidation, Control of Exemptions and Anti -Evasion Measures (Decree No.  278-2013) 
of 30 December  2013.  
3.89.  The RIT allows certain goods to  be imported with suspension of tariffs and other import 
charges so that the goods can be processed in Honduras and then exported or, in the case of 
machinery, can be used for a project in Honduras and then exported in the same state. The list of 
goods eli gible for this incentive was modified in 2011. In 2015, it included: (a)  raw materials, 
semi-finished goods, containers and packaging, as well as other inputs used in production; 
(b) machinery, equipment, moulds, tools, spare parts and other parts needed f or production; 
and (c) samples and instructions, patterns and models.71 The authorities have indicated that the 
time-limit for using and exporting or re -exporting raw materials and other inputs is 12 months. 
Machinery and other equipment imported under the RIT may enter the domestic market in the 
same State after five years, if so authorized by the DEI. Companies eligible for the RIT may sell 
their output on the Honduran market provided that they have received authorization from the DEI 
and that they pay the  tariffs and other charges applicable.72 
3.90.  There have been no significant changes to the ZOLI provisions since 2010. Making up textile 
articles remains the main activity in the ZOLI (Section 1). A percentage of the goods and services 
produced in the ZOLI may be sold on the domestic market, provided that the applicable tariffs and 
other charges are paid. The authorities have indicated, however , that a company under the 
ZOLI regime may sell all its output on the domestic market if the goods are not produced in 
Honduran customs territory, provided that it has been given an authorization by the DEI and that 
it pays the corresponding tariffs and other charges.  
3.91.  The ZIP regime has not been used since the late 1990s because the incentives under the 
ZOLI regime are broa der, inciting companies benefiting from the ZIP regime to transfer to the 
ZOLI. The main difference between these two regimes is that, under the ZOLI regime, companies 
may set up in any part of Honduras. The ZIP regime did not operate during the review per iod but 
nevertheless remains in force.73 
3.92.  According to information provided by the authorities, the total amount of fiscal exemptions 
granted to companies under the RIT and the ZOLI regime rose by 65% between 2010 and 2014. 
                                               
69 WTO documents G/SCM/N/220/HND of 1  September  2011 and G/SCM/N/220/HND/Rev.1 
of 4 October  2012.  
70 Decree No.  37-84 of 20  December  1984, as amended by Decrees No . 113-2011 and No.  261-2011, 
and Law on Free Zones (Decree No.  131-98) of 20  May 1998 and its impleme nting Regulations 
(Decision  No. 43-2009) of 21  December  2009, and amendments thereto.  
71 Article 1 of Decree No.  37-84, as amended by Article  30 of Decree N o. 113-2011 and Article 1 
of Decree No.  261-2011.  
72 PowerPoint presentation by the Special Commission for the Examination and Control of Waivers, 
Exemptions and Duty -Free Entry, "Special Regimes", March  2013. Viewed at: 
http://www.fosdeh.com/exoneraciones/archivo/analisis_final_subcomision_tecnica_01_marz_2013.pdf . 
73 PowerPoint presentation by the Central Bank of Honduras in 2014, "Special Foreign  Trade Regimes". 
Viewed at: http://www10.iadb.org/intal/intalcdi/PE/2014/13539a23.pdf . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  In 2014, fiscal exemptions amounte d to L  3,600  million, 87% of which corresponded to 
concessions given to companies in the ZOLI.  
3.93.  In 2015, a single enterprise was still benefiting from the Agricultural Export Zones regime 
(ZADE), which was abolished in 2003. This enterprise is exempt from t ariffs and other import 
charges, as well as from income tax. Under the ZADE regime, products could be sold on the 
domestic market provided that PROHONDURAS gave an authorization, that the applicable tariffs 
and other import charges were paid and that the g oods were not produced in Honduran customs 
territory.74 The authorities have indicated that in 2015, as was the case in 2010, the company 
benefiting from the ZADE exported all its output.  
3.94.  The drawback procedure consists of total or partial reimbursement of tariffs paid or 
deposited when certain goods are imported. Reimbursement is granted provided that the product 
has been re -exported after processing, alteration or incorporation into products for export.75 
According to the authorities, even though the drawba ck procedure has not been abolished, it has 
fallen into disuse as exporters prefer to use the RIT, which offers greater benefits.  
3.2.5   Export promotion  
3.95.  Honduras' export policy is defined in various documents, namely: the National Export 
Promotion Policy, the Na tional Export Promotion Plan, and the National Export Promotion Strategy 
(Table 3.13).76 
Table 3.13 Export promotion programmes  
 Principal aims  
National Export Promotion 
Policy   To increase the volume of expor ts by 25% by 2018  
 To make Honduras the largest exporter in the region  
National Export Promotion 
Plan   To build export capacity for the ten leading export products  
 To diversify export supply by incorporating five new high -value 
products in high internatio nal demand  
 To increase exports of processed textile goods  
National Export Promotion 
Strategy   To broaden, consolidate and diversify products and markets  
 To improve the competitiveness of exporting firms  
 To provide exporters with services and strategic info rmation  
Source:  Information provided by the authorities.  
3.96.  The Under -Secretariat for Economic Integration and Foreign Trade in PROHONDURAS has 
responsibility for promoting exports through business and trade events. At the sectoral level, the 
State promotes  agricultural exports through the Agribusiness Unit (formerly the Agricultural 
Business Promotion Centre (CPNA)) in the SAG and through the Interinstitutional Agribusiness 
Commission, which brings together public and private entities.77 The Unit and the Com mission 
provide information on the various markets and give exporters advice to facilitate market access.  
3.97.  In addition to government institutions, other institutions also provide support for exporters. 
For example, the Foundation for Investment and Developm ent of Exports (FIDE), a non -profit 
entity, gives exporters technical advice through the "Honduras Sí Exporta" programme. Honduras 
also has several other private entities which help companies to market their goods and services on 
international markets, for  example: the National Association of Industrialists (ANDI); the Honduran 
Private Enterprise Council (COHEP); the Federation of Honduran Agroexporters (FPX); the 
Honduran Foundation for Agricultural Investment (FIA); and the National Association of Exporte rs 
of Honduras (ANEXHON).  
                                               
74 Law establishing Agricultural Export Zones (Decree No.  233-2001) of 29  December  2001, repeale d by 
the Tax Equity Law (Decree No.  51-2003) of 3  April 2003, and PowerPoint presentation by the Central Bank 
of Honduras in 2014, "Special For eign Trade Regimes". Viewed at: 
http://w ww10.iadb.org/intal/intalcdi/PE/2014/13539a23.pdf . 
75 WTO document WT/TPR/S/234/Rev.1 of 15  October  2014.  
76 Article 12 of Executive Decree PCM -018-2014 of 22  April 2014.  
77 Online information from the Interinstitutional Agribusiness Commission. Viewed at: 
http://www.agronegocioshonduras.org ; FAO/IICA (2013), Apoyo del Sector Público para el Desarrollo de los 
Agronegocios Incluyentes: Análisis del modelo institucional de Honduras . Viewed at: http://www.fao.org/3/a -
i4078s.pdf , and online information from the SAG. Viewed at: http://agronegocios.sag.gob.hn . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.98.  There are also programmes to promote the export of goods produced by MSMEs. FIDE has 
training programmes for exporting SMEs or SMEs with export potential, coordinating with foreign 
trade facilitation offices and with national and regional public bodies (PROHONDURAS, SAG and the 
Inter-American Institute for Cooperation on Agriculture (IICA). The National Programme for the 
Development of Production and Competition in MSMEs has subprogrammes to build export 
capacity. The objective is to create industrial parks where MSMEs, when setting up, can take 
advantage of economies of scale for the production, packaging, labelling and export of goods to 
markets offering preferential access.  
3.2.6   Financing, insurance and guarantees  
3.99.  Honduras does not ha ve any official programmes on financing, insuring or guaranteeing 
exports.78 
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.100.   Honduras offers a series of exemptions or duty -free arrangements to non -profit 
development associations, travellers, Hondurans re sident abroad returning to the country and 
naturalized foreigners. It also gives various sectors of the economy a number of incentives 
(Table  3.14).  
Table 3.14 Incentives  
Legislation  Exemption or duty -free arr angement  
Article  8 of Decree No.  70-2001 
of 30 May 2001 (National Coffee Fund)  Exemption from payment of tariffs and sales taxes, as well as 
other levies on equipment and parts used for the Programme 
for Construction and Maintenance of Roads and Works for  
Social Development in Coffee -Growing Zones, administe red 
by the National Coffee Fund  
Article 47, as amended, of Decree  
No. 213-2000 of 1  November  2000 
(Honduran  Coffee Institute (IHCAFE))  Exemption from p ayment of tariffs on fertilizer  
Article 37 of the  Investment Promotion and 
Protection Law (Decree No.  51-2011) 
of 3 May 2011 Tax exemptions  
Article 4 of the Law on the Promotion 
of Sustainable Rural Tourism 
(Decree  No 126-2011) of 9  August  2011 Five-year exemption from payment of tariffs on the import 
of goods and inputs needed for the creation or improvement 
of tourism -related companies; and three -year exemption from 
payment of sales tax on the purchase of goods and inputs 
needed for the creation or improvement of tourism -related 
companies  
Law on Touri sm Incentives 
(Decree  No. 314-98) of 18  Decemb er 1998, 
and amendments thereto  Exemption from payment of income tax for seven or 
ten years, depending on the project, and exemption from 
payment of import taxes on imported equipment  
Temporary Importation Pro cedure (RIT), 
contained in Decree No.  37-84 of 
20 Decemb er 1984, and amendments thereto  Suspensive tax regime for the processing of goods  
Law on Free Zones (ZOLI) (Decree No.  35) 
of 19 July 1976, and amendments thereto  Exemption from paymen t of fiscal and  municipal taxes  
Law on the Promotion of Electricity Generation 
from Renewable Resources 
(Decree  No. 70-2007) of 31  May 2007, and 
amendments thereto  Exemption from taxes and other levies on both imports and 
local purchase of equipment, spare parts and oth er materials 
needed and directly related to the generation of electricity . 
Exemption from income tax for a period of ten years  
Customs Law (Decree No.  212-87) of 
29 November  1987, and amendments thereto  Temporary total or partial suspension of customs dut y on 
specific goods to be re -exporte d within a period of six months  
                                               
78 Information provided by the authorities.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Legislation  Exemption or duty -free arr angement  
Law on the Expression of Thought 
(Decree  No. 6) of 26  July 1958 Exemption from taxes on the import of machinery, spare 
parts, accessories, including ink and paper, for newspapers, 
in sheets or in reels, and other materials used as a means of 
expressing and disseminating thought, including materials 
needed to produce films, books, periodicals and booklets, 
reams of A4, legal -size or any size paper; as well as tapes, 
diskettes, compact disks  and films, provided that they are not 
intended for commercial distribution  
Law on the National Fund for Agricultural 
Competitiveness (Decree No.  143-2013) of 
23 July 2013 a nd its implementing Regulations  Exemption from sales tax  
Source:  Law on Fiscal Co nsolidation, Control of Exemptions and Anti -Evasion  Measures (Decree  
No. 278-2013), its implementing Regulations (Executive Decision No.  462-2014) and information 
provided by the authorities.  
3.101.   In 2012, Honduras introduced fiscal and tariff incentives to pro mote call centres and 
centres for outsourcing business services. These are intended for companies with fixed capital 
exceeding L 1  million.79 The fiscal incentive consists of total exemption from income tax. Originally, 
this incentive was given for an indef inite period, but since 2014 it has only been available for 
12 years (with no extension).80 Currently, only one company is taking advantage of this 
exemption, although other customer service centres and business service outsourcing centres 
could benefit fro m exemptions under the ZOLI regime (Section 3.2.4).  
3.3.1.1   Employment and Economic Development Zones  
3.102.   In 2013, Honduras introduced the Employment and Economic Development Zones (ZEDE) 
regime. The Organic Law on Employment and Economic Development Zones provides th at the 
ZEDE may establish a fiscal regime independent of that prevailing in the rest of Honduras, with the 
emphasis on a "low tax policy". The ZEDE administration will determine rates  for the various taxes, 
including: tariffs, income tax, sales tax, proper ty tax on unused land and real estate tax. The Law, 
however, sets ceilings on the taxes to be paid in the ZEDE: income tax may not exceed 16% for 
companies (and 12% for natural persons) and sales tax may not be more than 5%.81 
3.103.   The purpose of the ZEDE is to develop international logistics centres, international 
commercial courts, special investment areas, renewable energy areas, special economic zones, 
zones under a special legal system, special agro -industrial zones and special tourism zones. 
Although no ZED E has yet been established, a number of sites where they could be installed have 
been identified.82 
3.3.1.2   Financing of production sectors and MSMEs  
3.104.   The Honduran Production and Housing Bank (BANHPROVI ) is a State -owned body attached 
to the BCH and provides financi ng for production sectors83, social housing and MSMEs.84 It was set 
up in 2005 as a second -tier bank, although since 2014 it has been able to grant loans directly.85 
According to the authorities, at the end of 2015, however, the BANHPROVI was still acting as 
a second -tier bank and had not yet granted any loans directly.  
                                               
79 Law on the Prom otion of Call Centres and Outsourcing of Business Services (Decree No.  90-2012) 
of 14 June 2012. There are still no implementing regulations for this Law.  
80 Article 23 of the Law on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measures 
(Decree No.  278-2013) of 30  December  2013 and information provided by the authorities.  
81 Article 29 of the Organic Law on Employment and Economic Development Zones 
(Decree  No. 120-2013) of 12  June 2013.  
82 Article 2 of Decree No.  120-2013 and online information  on the ZEDE. Viewed at: 
http://zede.gob.hn/?page_id=2 . 
83 According to the authorities, production sectors are those which process raw materials, natural 
resources or other inputs in order to produce goods and services, but do not include micro, small or 
medium -sized enterprises. The "production sectors" only comprise large enterprises.  
84 In Honduras, enterprises are classified as micro, small or medium -sized depending on their number 
of employees. Law on the Pr omotion and Development of the Competitiveness of Micro, Small and 
Medium -Sized Enterprises, Decree No.  135-2008 of 1  October  2008.  
85 Law on the Honduran Production and Housing Bank (Decree No.  6-2005) of 26  January  2005, 
as amended by Decree No.  358-2014 and its implementing Regulations (Executive Decision No.  23-2014).  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.105.   The BCH finances the BANHPROVI in accordance with the provisions in the Law.86 
The BANHPROVI grants long - and short -term loans. The ceiling on loans to "production sectors" 
is L 50 million, with  a maximum term of 12 years, and for MSMEs it is L  2 million with a maximum 
term of 10 years.87 Market interest rates or those determined by the BANHPROVI are payable on 
the loans. According to the authorities, the factors taken into account in determining and/or 
revising the interest rates are the market conditions, terms and production levels. In 2014, 
the BANHPROVI set annual interest rates of 10% to 12% for production sectors and 6% to 10.5% 
for MSMEs, whereas the commercial banks' average lending rate was 14.4%.88 
3.106.   The BANHPROVI also administers the Rural Financing in Support of Food Safety 
Programme (FINSA), intended to finance agricultural MSMEs. The maximum amount of each loan 
granted under the FINSA is L  250,000 at market interest rates.89 
3.107.   Between 2010 and 2014, loans granted to production sectors and MSMEs rose from 
L 1.4 to L 1.9 million. In 2014, 53% of the loans went to MSMEs (Table A3.2). There is no 
breakdown of loans granted by production sector or by type of enterprise.  
3.108.   In 2011, the Small and Med ium-Sized Enterprises Guarantee Fund (FOGMIPYME) and the 
Agricultural Mutual Guarantee Fund (FAGRE) were created in support of MSMEs.90 The guarantees 
available under the FOGMIPYME and the FAGRE are up to 50% of the amount of the loan, but not 
more than US$ 25,000 (or its equivalent in lempiras). By 30  August  2015, 90 guarantee certificates 
had been issued for the amount of L  2.5 million; 90% of these were issued through the 
FOGMIPYME and 0.8% through the FAGRE.91 There is also the Fund for the Promotion of Mi cro, 
Small and Medium -Sized Enterprises (FOMIPYME), set up in 2008.92 The authorities have indicated 
that this Fund is used to finance projects and programmes to promote the competitiveness and 
productivity of MSMEs.  
3.3.2   Competition policy and price controls  
3.3.2.1   Competition policy and consumer protection  
3.3.2.1.1   Competition policy  
3.109.   Competition in Honduras is chiefly governed by the Law on the Defence and Promotion of 
Competition  (LDPC) of 2005, but also by the Constitution and the Commercial Code.93 
The Constitution prohibits  monopolies, monopsonies, oligopolies, cornering and similar practices in 
industrial and commercial activities, but it allows the State to reserve the right to engage in 
certain basic industries, undertakings and services of public interest for reasons of public or social 
order.94 The Commercial Code defines what is meant by unfair competition in Honduras.  
3.110.   The LDPC prohibits anti -competitive trade practices, but it may allow exceptions for 
reasons of economic efficiency and consumer welfare, except in the ca se of horizontal agreements. 
The Law is generally applicable and covers all activities (even when these are regulated by special 
laws), as well as all economic operators, whether public or private, whether or not domiciled in 
Honduras.95 In 2015, the LDPC w as amended as regards the imposition of fines and the income of 
                                               
86 Law on Financial Support for Production Sectors in Honduras of 2008, and online information from the 
BANHPROVI. Viewed at: http://banhprovi.org/productos -servicios.html . 
87 For further details, see http://banhprovi.org/productos -servicios.html . 
88 Online information from the BANHPROVI. Viewed at: http://banhprovi.org/productos -servicios.html . 
National Banking and Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/fi les/memoria/Memoria_2014.pdf . 
89 Online information from the BANHPROVI. Viewed at: http://banhprovi.org/mipymes.html . 
90 The Social Housing Guarantee Fund (FOGAVIS) was also set up. Law on the System of Mutu al 
Guarantee Funds for the Promotion of MSMEs, Social Housing and Technical/Vocational Education 
(Decree  No. 205-2011) of 15  November  2011.  
91 The remainder were guarantees issued through the FOGAVIS.  
92 Law on the Promotion and Development of the Competitiv eness of Micro, Small and Medium -Sized 
Enterprises (Decree No.  135-2008) of 1  October  2008.  
93 Law on the Defence and Promotion of Competition (Decree No.  357-2005) of 16  December  2005, 
as amended by Decree No.  4-2015, and its implementing Regulations (Deci sion No.  001-2007) of 6  July 2007.  
94 Articles 332 and 339 of the Constitution.  
95 Articles 3 and 4 of Decree No.  357-2005.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  the Commission for the Defence and Promotion of Competition (CDPC).96 The reform introduced 
an administrative clemency procedure and payment of a tax for verifying business mergers.  
3.111.   The CPDC is  the body responsible for monitoring compliance with the LDPC. It investigates 
whether or not there is anti -competitive behaviour and determines the appropriate measures to be 
taken, as well as controlling and approving business mergers.97 In order to contr ol the latter, the 
Commission cooperates with sectoral regulatory entities such as the National Telecommunications 
Commission  (CONATEL)  (Section 4.3.2) and the National Banking and Insurance Commission 
(CNBS)  (Section  4.3.1.1).98 The CDPC carries out sector al studies in order to make 
recommendations on competition policy.  
3.112.   The LDPC prohibits practices which distort competition by reason of their nature or their 
effect. The former mean agreements between competing economic operators (horizontal 
agreements), wh ose effect is to fix prices, restrict supply, divide up the market and coordinate 
bidding positions. Such agreements are prohibited per se and are considered non -existent. 
The latter mean agreements between economic operators not competing amongst themselv es 
(vertical agreements), whose effect is unjustifiably to exclude other market operators, prevent 
access to the market or give exclusive advantages to third parties.  
3.113.   Vertical practices are illegal if the operator involved has a "notable" share of the mark et 
(or a dominant position), but may be considered non -restrictive if they can be proved to lead to 
significant improvements in economic efficiency and consumer welfare. A company's share of the 
relevant market is "notable" when it exceeds the percentage t hreshold determined by the CDPC.99 
Although the Law does not specify the threshold, allowing it to be determined according to the 
relevant market in question, the market share established for the control of business mergers is 
used as the benchmark, namely 25%.100 Market share does not, however, in itself determine the 
dominant position of an economic operator and other criteria also have to be taken into account, 
for example, its ability to act unilaterally to prevent competition or the existence of barriers to 
entry.101 
3.114.   The CDPC initiates investigations into possible restrictive practices either ex  officio or 
following a complaint. If there are sufficient indications of a prohibited practice, the Commission 
orders remedial measures and imposes a fine of up to a  maximum of three times the amount 
of the profit gained or, if this is not known, 10% of the gross sales profit for the previous fiscal 
year.102 When deciding on the amount of the fine, the characteristics of the conduct, for example, 
its gravity, repeated o ccurrence, scope or duration, are taken into account. The amount of the fine 
may be reduced if the charges are accepted or as a result of administrative clemency. 
The administrative clemency procedure was introduced in 2015 and consists of total or partial  
reduction of the fine for companies taking part in horizontal agreements. Total exemption depends 
on whether or not the company cooperates with the CDPC, providing proof of the existence of the 
agreement in which it is participating, as long as it was not  the instigator and that it terminates its 
participation in the agreement. An appeal may be made against decisions by the CDPC, firstly, 
through administrative channels and, if the appeal is rejected by the Commission, before the 
administrative litigation courts. An appeal to the court does not dispense the company from paying 
the fine.103 According to information provided by the authorities, a ppeals were lodged against 
five decisions by the CDPC during the review period.  
3.115.   With regard to the examination of bus iness mergers, thos e which exceed one of the 
three  thresholds determined by the Commission must be notified in advance to the CDPC 
(Table  3.15).104 During the review period, the CDPC lowered the thresholds in order to examine 
                                               
96 Articles 51 -A, -B, -C, -D and -E and 63 -A, -B and –C added by Decree No.  4-2015.  
97 Article 34 of Decree No.  357-2005. 
98 Online infor mation from the CDPC. Viewed at: https://www.cdpc.hn/?q=www.coperacion_inter . 
99 Articles 5 -9 of Decree No.  357-2005.  
100 OECD/IDB (2011), Competition Law and Policy in Honduras: A Peer Review. Viewe d at: 
http://www.oecd.org/daf/competition/49733270.pdf . 
101 Article 8 of Decision No.  001-2007.  
102 The Commission may adopt provisional measures to terminate the practice during the investigatio n 
(Article  40 of Decree No.  357-2005).  
103 Articles 37, 39, 44 and 45 of Decree No.  357-2005.  
104 Articles 13, 37 and 41 of Decree No.  357-2005.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  a larger number of business merg ers after finding that some of these, in sensitive sectors105, had 
remained outside the examination process.106 This process includes an economic, technical and 
legal evaluation. Mergers may be refused or authorized or conditions may be imposed in order to 
prevent any action that distorts competition.107 Honduran legislation provides that the Commission 
must approve some merger operations, for example, in the case of strategic alliances or corporate 
reorganization.108 It also has to approve business mergers that yi eld benefits in terms of economic 
efficiency and consumer welfare.109 Since 2015, the Commission has been levying a tax for 
conducting the examinations.110 
Table 3.15 Thresholds for business mergers, 2010 and 2015  
 2010  2015  
Total assets  > 10,000  minimum wage units  > 4,000  minimum wage units  
Sales volume  > 15,000  minimum wage units  > 5,000  minimum wage units  
Share of the relevant market  > 20%  > 25%  
Source:  Resolution No.  04-CDPC -2014-AÑO-IX of 16  June 2014 an d WTO document WT/TPR/S/234/Rev.1 
of 15 October  2010.  
3.116.   The CDPC does not penalize business mergers and horizontal agreements which promote 
economic efficiency and consumer welfare. According to the authorities, it is the CDPC's 
responsibility to evaluate th ese benefits, which must be credible and quantifiable. Its evaluation 
must take into account improvements in the production, distribution, supply, marketing or 
consumption situation for the goods and services.  
3.117.   Between 2010 and 2014, most of the investigati ons initiated by the CDPC stemmed from 
a complaint (Table  3.16). The markets investigated concerned agro -industry (sugar, coffee and 
beer), cement, electric power and telecommunications and transport services. The practices 
penalized were collusion in orde r to fix prices and divide up the market, and abuse of a dominant 
position. The Commission did not prohibit any business merger, but imposed conditions on the 
terms under which some of them had to operate and penalized six companies for late notification 
of the merger (Table 3.16). The Commission also determined the existence of business mergers in 
the agro -industrial and energy sectors, and in distribution, financial and telecommunications 
services.  
Table 3.16 Activities of the Commission for the Defence and Promotion of Competition, 
2010 -2014  
 2010  2011  2012  2013  2014  
Investigations  
Initiated ex officio  1 2 1 0 1 
Initiated following a complaint  5 1 1 1 3 
Penalties imposed  2 1 0 0 0 
Business mergers  
Exam ined and approved  7 7 3 4 2 
Examined and conditions imposed  5 4 0 0 1 
Refused  0 0 0 0 0 
Penalty for late notification  3 2 1 0 0 
Source:  CDPC (various years), Memoria Institucional . Viewed at: 
https: //www.cdpc.hn/?q=www.memoria_int ; and information provided by the authorities.  
                                               
105 The sensitive sectors include: private education, health or broadcasting services (information 
provided by the au thorities).  
106 Resolution No.  04-CDPC -2014-AÑO-IX of 16  June 2014.  
107 Article 18 of Decree No.  357-2005 and online information from the CDPC. Viewed at: 
https://www.cdpc.hn/?q=www.concentraciones_ eco. 
108 Article  13 of Decision No.  001-2007.  
109 Article 12 of Decree No.  357-2005.  
110 Article 63 -B added by Decree No.  4-2015.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.3.2.1.2   Protection of consumers  
3.118.   Consumers' rights are protected by the Constitution and by the Consumer Protection Law 
of 2008.111 PROHONDURAS, through the Directorate -General of Consume r Protection (DGPC), is 
responsible for implementing the Law,112 which determines what abusive practices are prohibited 
and the contractual clauses that are deemed to be abusive.113 The DGPC may initiate proceedings 
against suppliers which engage in such pract ices, either ex officio  or following a complaint. In the 
case of a complaint, the DGPC tries to reconcile the parties. If there are indications of a violation, 
the DGPC imposes one or more penalties, which range from a warning up to the imposition 
of fines, temporary closure of the establishment or temporary suspension of the service. Appeals 
may be made against the DGPC's decisions before the administrative litigation courts, but this 
does not dispense the offender from paying the fine. Between 2010 and 20 13, the DGPC dealt with 
over 3,000  complaints.114 No information is available on the outcome of these complaints.115 
3.3.2.2   Price controls  
3.119.   The Consumer Protection Law prohibits any practice whose purpose is to cause an increase 
in the retail selling price of goods es sential for consumption and health, and inputs used to 
produce them.116 
3.120.   The DGPC is empowered to fix the price, the rate or the maximum retail margin for goods 
and services in the basic shopping basket; the inputs  needed to produce or supply them; and the 
agricultural and industrial inputs required for economic activities in times of emergency, disasters 
or catastrophes, or if there are monopolies or oligopolies for the sale of any product. If unfair or 
anti-competitive practices are determined, a favourable decision has to be obtained from the CDPC 
before the price can be fixed.117 During the review period, the DGPC did not fix prices for any of 
these reasons.  
3.121.   In practice, the DGPC only monitors prices weekly for products in the basic basket, which 
in 2015 comp rised 273 goods and services: 240 food products, school supplies (24  articles), 
seven  non-food products and two forms of transport.118 By means of this monitoring, the DGPC 
determines prices for those goods considered to be for seasonal consumption so as to prevent 
speculation, hoarding or supply shortages. It also fixes retail selling prices based on average 
weighted prices over a period between 60 and 90 days. The prices fixed by the DGPC remain in 
effect for a renewable period of 30  days.119 
3.122.   The 240 food pro ducts in the basic basket form the List of Food Security Products, whose 
prices are monitored by the National Food Security Observatory , a body set up by the DGPC 
in 2015 for the sole purpose of monitoring the price of goods in the List. The DGPC revises t he List 
each year, taking into account requests made by consumers.120 
3.123.   Honduras operates a temporary market stabilization mechanism for products in the List  of 
Food Security Products. This mechanism is triggered when the retail selling price (on the market) 
for any of the products in the List exceeds the rate of inflation for the preceding month by more 
than 10%. If such an increase occurs, the DGPC fixes a temporary ceiling price based on a  
calculation of weighted prices over a period of 60 to 90 days. This p rice remains in effect for a  
                                               
111 Consumer Protection Law (Decree No.  24-2008) of 1  April 2008 and its implementing Regulations 
(Decision No.  15-2009) of 15  April 2009.  
112 Online information viewed at : http://www.prohonduras.hn/dgpc . 
113 For further details, see Articles 68 and 69 of Decree No.  24-2008.  
114 Figures from the DGPC, viewed at: http://www.prohonduras.hn/dgpc/logros.html . 
115 Articles 76 -83, 88 and 94 of Decree No.  24-2008.  
116 Article 68 of Decree No.  24-2008.  
117 Articles 72 and 73 of Decree No.  24-2008.  
118 For further details, see Executive Decision No.  005-2014 of 7  February  2014. Viewed at: 
http://www.hondurasysueconomia.com/wp -content/uploads/2014/04/Acuerdo -05-
2014Lis tado_de_productos_canasta_basica_La_Gaceta.pdf . 
119 Articles 8 and 74 of Decree No.  24-2008.  
120 Article 1 of Decision No.  383-2014 of the State Secretariat for Economic Development 
of 19 December  2014.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  period of 30  days, during which the Directorate looks into the possible existence of speculation.121 
If it is found that a violation has occurred, the DGPC reintroduces the fixed price for a further 
30-day period (renewable). Sup pliers may request that the maximum selling price be reviewed or 
eliminated if, for example, the price of the raw materials used to produce the good has 
increased.122 According to the authorities, this mechanism was used in 2015.  
3.124.   The DGPC imposes fines if th e prices that it has fixed are not respected. Speculation in 
essential goods in order to raise the selling price or cause shortages on the market may result in 
imprisonment.123 
3.125.   The Petroleum Administration Commission regulates the selling price of imported r efined 
fuels124 and since 2007 has been using an import parity price mechanism in order to establish the 
selling price.125 Likewise, the Law on Hydrocarbons specifies a mechanism for determining the 
selling price of hydrocarbons produced in Honduras.126 This mec hanism is not applied, however, 
as Honduras does not produce hydrocarbons.  
3.3.3   State trading and State -owned enterprises  
3.126.   Honduras does not have any State trading enterprises within the meaning of Article  XVII 
of the GATT  1994.127 
3.127.   Most of Honduras' State -owned en terprises are in the services sector and the major ones 
are: the National Electricity Company (ENEE), the National Agricultural Development Bank 
(BANADESA), the BANHPROVI, the Honduran Telecommunications Company (HONDUTEL), the 
National Ports Company  (ENP)  and the National Autonomous Water and Sewerage Service 
(SANAA).  
3.128.   The new General Law on the Electricity Industry (Decree No.  404-2013) came into force in 
2014 and allows the private sector to participate in the electricity market.128 Nonetheless, pursuant 
to the Law, as of 1  July 2015 the ENEE was to be split into a parent company and 
three  subsidiaries (one responsible for generation, one for transmission and one for distribution), 
which would remain under State ownership.129 
3.129.   The 2003 Framework Law on Drinking  Water and Sanitation determined a transitional 
period up to 2008, which was extended until 2013, during which the SANAA  would transfer the 
systems that it operated to local authorities and would become a technical support body for the 
new suppliers.130 The authorities have indicated that, at the end of 2015, the SANAA was 
continuing to operate 13 systems and that the remainder were being operated by local authorities 
under various management models. Only one local authority (San Pedro Sula) has given 
a conce ssion for the services in question to the private sector.  
3.130.   As regards telecommunications, HONDUTEL remains the sole supplier of international 
long-distance fixed telephone calls. The ENP still manages and operates Honduras' international 
ports, except for P uerto Cortés, where these services were put out to concession in 2013. 
The ENP continues to provide auxiliary port services, but may subcontract them (Section  4). 
                                               
121 The investigation process ex officio consists of conve ning the major suppliers of the good 
(production, distribution and marketing) in order to determine the reasons for the price increase.  
122 Article 2 of Decision No.  383-2014.  
123 Article 5 of Decision No.  383-2014 and Articles 94 and 95 of Decree No.  24-2008.  
124 Decree No.  94-83 of 28  April 1983 and its implementing Regulations in Executive Decision No.  25-07 
of 6 September  2007.  
125 Executive Decree No.  PCM 02 -2007.  
126 Articles 54 and 56 of Decree No.  194-84 (Law on Hydrocarbons of 25  October  1984).  
127 WTO documen t G/STR/N/15/HND of 1  September  2014.  
128 Repeals the Framework Law on the Electricity Subsector (Decree No.  158-94). Online information 
from the ENEE. Viewed at: http://www.enee.hn/index.php/noticias/92 -salud -feria-2/447 -honduras -liberaliza -
el-mercado -de-la-energia ; and PowerPoint presentation by M.A. Figueroa Rivera, " Marco legal del sub -sector 
eléctrico, Parte III ", Institute of Electrica l and Electronics Engineers. Viewed at: http://www.andi.hn/wp -
content/uploads/2014/11/1_marcolegal -3_sn.pdf . 
129 Article 29 of the General Law on the Electricity Industry (De cree No.  404-2013) of 20  January  2014.  
130 Framework Law on Drinking Water and Sanitation (Decree No.  118-2003) of 20  August  2003, 
as amended by Decree No.  112-2008.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.131.   According to the authorities, in 2014 the contribution of State -owned enterprises to GDP 
was 0.8%. There are no data available on employment in these enterprises.  
3.3.4   Government procurement  
3.132.   There were some changes to the regulatory framework for government procurement 
during the review period. The Law on Efficient and Transparent Procurement using Ele ctronic 
Means came into force in 2014, introducing a new method of procurement in order to streamline 
procedures and foster transparency and economies.131 Furthermore, the Government Procurement 
Law (LCE) of 2001132 was revised, mainly by:  
a. totally excluding fr om its scope contracts unrelated to public works, supply and 
consultancy;  
b. creating dispute settlement mechanisms and including penalty clauses in contracts, 
as well as requiring contractors to provide a bank guarantee in order to have access to 
dispute set tlement mechanisms relating to fulfilment of a contract;  
c. requiring that the budget allocation be presented to the National Congress, together with 
the contract133; 
d. empowering the State Secretariat for Finance to declare a contract null and void if there 
is no financing; and  
e. prohibiting the purchase of used machinery and equipment in government procurement, 
unless so authorized by the President in the Council of Ministers.134 
3.133.   Honduras' commitments on government procurement under the various regional 
agreements t hat it has signed take precedence over the domestic legal framework. In the WTO, 
Honduras is neither an observer at the Committee on Government Procurement nor considering 
accession to the Agreement.  
3.134.   The LCE specifies that Honduras guarantees free competit ion among suppliers and national 
treatment for foreign suppliers under regional trade agreements or, in their absence, under the 
principle of reciprocity.135 Nevertheless, Honduras maintains measures to encourage Honduran 
companies and professionals to parti cipate in government procurement procedures. Accordingly, it 
has a system of preferential margins for domestic suppliers and suppliers from countries with 
which it has signed agreements. The preferential margin corresponds to the price offered by the 
foreign supplier increased by: (a) 7.5% for public works projects; and (b) the tariff and other 
import charges or, in their absence, 15% for the supply of goods and services. In applying the 
preferential margin, there is also a national content requirement and goods must have 40% 
national content.136 The Law on the Promotion and Development of the Competitiveness of Micro, 
Small and Medium -Sized Enterprises provides that 30% of government procurement must go to 
MSMEs.137 No data are available on the percentage of go vernment procurement contracts awarded 
to MSMEs during the review period.  
                                               
131 Law on Efficient and Transparent Procurement using Electronic Means (Decree No.  36-2013) 
of 21 March  2013 and its implementing Regulations (Executive Decision No.  641-2014) of 28  October  2014.  
132 Government Procurement Law (Decree No.  74-2001) of 29  June 2001, as amended by 
Decrees  No. 266-2013 and No.  35-2014. See also the Regulations implement ing the Government Procurement 
Law (Executive Decision No.  055-2002) of 15  May 2002.  
133 The Annual Procurement and Contracting Plan for each institution must appear in the General Budget 
to be approved by the National Congress. According to the authorities,  it is mandatory for any contract signed 
to have the corresponding budgetary approval.  
134 Articles 2, 3, 27, 121, 128 and 153 of Decree No.  74-2001, as amended by Decree No.  266-2013, 
and Article 84, as amended by Decree No.  35-2014.  
135 Article 7 of Decree N o. 74-2001.  
136 Article 53 of Decree No.  74-2001 and Article  128 of Executive Decision No.  055-2002.  
137 Article  25 of the Law on the Promotion and Development of the Competitiveness of Micro, Small and 
Medium -Sized Enterprises (Decree No.  135-2008) of 1  Octob er 2008.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.135.   Honduras has adopted other measures to promote increased participation in government 
procurement by domestic suppliers, particularly in the case of activities of "public interest".138 
For example, the LCE provides that international bidding procedures are not allowed if the 
contracts are financed solely and wholly by domestic resources. Moreover, in Honduras 
consultancy contracts awarded to foreign companies must be carried out by Hondu ran 
professionals.139 
3.136.   The Office for the Regulation of Government Procurement and Purchasing (ONCAE), 
attached to the State Secretariat for General Coordination of Government, is the regulatory body  
for the government procurement system. It prepares the stan dards and tools needed to promote 
efficiency, transparency, harmonization and economies in government procurement.140 
3.137.   Honduras has a digital information system on government procurement and purchasing 
(HonduCompras), managed by the ONCAE, through which contr acting entities publicize and 
manage procurement procedures.141 The national and international press are nevertheless still 
used.  
3.138.   Listing in the ONCAE's Register of State Suppliers and Contractors is compulsory for all 
Honduran and foreign suppliers wishing to take part in government competitions and bidding. 
Registration is free -of-charge and is valid for three years, renewable. The registration 
requirements are the same for Honduran citizens and foreigners.142 In order to be registered, 
however, companies inc orporated overseas must obtain an authorization to do business in 
Honduras, pursuant to the Commercial Code; unless permitted by the contract specifications, bids 
must be accompanied by documents proving that the company has been legally incorporated in it s 
country of origin.143 During the review period, the ONCAE created two special registers in order to 
enhance transparency: one in 2010 for MSMEs and the other in 2012 for the health sector.144 
3.139.   In 2014, the Electronic Catalogue for government procurement in Ho nduras was 
introduced, and its use is compulsory for all government procurement under a framework 
agreement or in the case of joint procurement or reverse bidding. The Catalogue contains bids 
from various suppliers for each type of good or service included  therein. The suppliers in the 
Electronic Catalogue are chosen by the ONCAE by means of a public invitation to bid. 
The evaluation criteria include the price, operating or maintenance costs, delivery time and 
reliability of the suppliers. Contracting entit ies may manage purchase orders to selected suppliers 
directly through the Catalogue.145 In 2015, the Electronic Catalogue included 5,000 goods and, 
according to the authorities, the economies achieved by using the Catalogue in 2015 amounted to 
L 22 million.  
3.140.   The other government procurement methods, which have remained unchanged since the 
previous review in 2010, are direct contracting, public or private bidding and public or private 
competitions. Use of each of these depends on the good or service concerned o r to be contracted 
and the thresholds determined in the State's annual budget (Table  3.17). Private bidding, 
                                               
138 Article 147 of Decree No.  74-2001 states that "the development of technical and professional 
activities relating to the supply of professional services is declared to be of public interest, together with the 
promotion of building capacity and bu siness experience in the country for the construction of public works, the 
supply of consultancy or accountancy services and other professional services in general, in order to boost 
domestic production".  
139 Articles 114 -116 and 151 of Decree No.  74-2001.  
140 Decree No.  74-2001, Executive Decree PCM -02-2014 of 3  February  2014, and online information 
from the State Secretariat for General Coordination of Government. Viewed at: 
http://www.scgg.gob.hn/book/ export/html/6 . 
141 Executive Decree No.  010-2005 of 29  September  2009. See HonduCompras at: 
http://www.honducompras.gob.hn . 
142 Articles 34 -37 of Decree No.  74-2001 and Articles 54 -69 of Executive Decree No.  055-2002 and 
online information from the ONCAE. Viewed at: http://www.oncae.gob.hn/index.php/material -
oncae/respuestas -oncae  and http://www.oncae.gob.hn/index.php/material -oncae/manuales -proveedores . 
143 Articles 23 and 24 of Executive Decision No.  641-2014.  
144 ONCAE (2012), Gestión 2011 . Viewed at: 
http://www.oncae.gob.hn/docm/memoria/ONCAE%20Gestion%202011.pdf ,and ONCAE Circular N o. 12/2012 
of 24 July 2012.  
145 Decree No.  36-2013; Executive Decision No.  641-2014, and online information from the ONCAE. 
Viewed at : http://oncae.gob.hn/index.php/material -oncae/2014 -10-08-16-28-18. WT/TPR/S/336 /Rev.1  • Honduras  
 
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  however, may be used for other reasons such as scarcity of suppliers, urgency146, security or 
supply shortages. In such cases, authorization by the P resident (centralized entities) or the highest 
authority (decentralized entities) is required.147 
Table 3.17 Thresholds for the application of government procurement procedures, 2015  
 Direct contracting  Private  
bidding  Private 
competition  Public 
bidding  Public 
competition  2 bids  3 bids  
Goods and 
services  ≤ L 75,000  > L 75,000  
≤ L 240,000  = L 240,000  
< L 550,000   ≥ L 550,000   
Works   < L 1,000,000  = L 1,000,000  
< L 2,000,000   ≥ L 2,000,000   
Consultancy   < L 1,000,000   = L 1,000,000  
< L 2,000,000   ≥ L 2,000,000  
Source:  Article 62 of the General Budget of R evenues and Expenditures  of the Republic for fiscal 2015 
(Decree No.  140-2014) of 17  December  2014.  
3.141.   In general, an unlimited number of bidders may take part in public bidding, but in some 
cases a prequalification procedure is required. Prequalification is mandatory for public works 
contracts and supply contracts when highly specialized goods or services are purchased. 
The prequalification procedure leads to the establishment of a list of three to six suppliers, which 
are invited to submit bids.148 According t o the authorities, preselection of suppliers is based on 
legal, administrative, technical and financial criteria and the suppliers' capacity and experience.  
3.142.   International public bidding may be used when special technology is required or there are 
other jus tifying reasons.149 The invitation must be issued in accordance with conditions in the 
Honduran professional market and the availability of budgetary and financial resources.150 
3.143.   Private bidding involves a limited number of bidders (at least three) and particip ation is by 
invitation.151 The contract is awarded to the supplier which receives the best technical evaluation 
(including the lowest price) and with which the terms of the procurement procedure are agreed. 
If no agreement is reached with the first supplier chosen, the second is invited to negotiate and 
so on.152 
3.144.   In a bidding procedure, whether public or private, the contract is usually awarded to the 
supplier offering the lowest price. When domestic and foreign suppliers are competing, the price to 
be compared  is determined taking into account the preferential margin. Other criteria in addition 
to price may be taken into account when evaluating bids, for example: financing terms, delivery 
time and environmental impact. If the contract is not awarded to the bidd er offering the lowest 
price, the decision has to be properly substantiated and approved by the official in charge of the 
institution concerned (for example, the State Secretariat or the mayor).153 
3.145.   Direct contracting may be used for a variety of reasons, esp ecially for small -scale 
procurement. This type of procurement involves the submission of quotations. At least two or 
three suppliers are directly invited to submit bids (Table 3.17). The lowest bid is selected or the 
bid that is considered the most economi cal or advantageous. Direct contracting is also used in 
cases of emergency or to procure special goods or services, or goods or services that are 
                                               
146 Unforeseen circumstances which, without counting as emergencies, require urgent attention in order 
not to hinder th e normal supply of public services (Article 7 of Executive Decision No.  55-2002).  
147 Article  60 of Decree No.  74-2001.  
148 Articles  61 and 95 of Decree No.  74-2001, and Article 160 of Executive Decision No.  055-2002.  
149 Articles  42, 43 and 95 of Decree No.  74-2001, and Article 85 of Executive Decision No.  055-2002.  
150 Article 75 of the General Budget of Revenues and Expenditures  of the Republic for fiscal 2015 
(Decree No.  140-2014) of 17  December  2014.  
151 Article  60 of Decree No.  74-2001.  
152 Article  61 of Decree N o. 74-2001, and the ONCAE's 2010 handbook of procedures for procurement 
through bidding and consultancy. The ONCAE's handbooks can be viewed at: 
http://www.honducompras.gob.hn/Info/Normativa .aspx . 
153 Articles  51-53 and 55 of Decree No.  74-2001, and the ONCAE's June  2010 handbook of procedures 
for procurement through bidding and consultancy.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  exclusively sold, in which case only a quotation from the exclusive supplier is required.154 In any 
event, direc t contracting requires authorization from the President of the Republic (centralized 
entities) or the highest authority (decentralized entities). Foreign suppliers of goods and services 
may participate in special cases155, provided that they have no commerci al presence in 
Honduras.156 
3.146.   Contractors may lodge a complaint if they consider that their rights have not been 
respected or there have been irregularities either during the contracting procedure or in fulfilment 
of the contract. After exhausting administrati ve appeals channels at the ONCAE, they may turn to 
the administrative litigation courts. Rulings handed down by these courts are not subject to 
appeal.157 
3.147.   According to the information provided by the authorities, in December  2014 the amount of 
government pro curement by the central administration amounted to L  41.9 million (10% of GDP). 
Some 19% was for procurement of goods, 65% for services (including consultancy) and 16% for 
works.  
3.3.5   Intellectual property rights  
3.148.   The main change in the regime for protection of intellectual property rights since 2010 has 
been the enactment of the Law on the Protection of New Varieties of Plants. There  have been no 
major changes to the provisions on other industrial property rights and copyright and related 
rights. The key legal i nstruments in this area are still the Industrial Property Law and the Law on 
Copyright and Related Rights. According to the authorities, these laws incorporate: the provisions 
in the WTO Agreement on Trade -Related Aspects of Intellectual Property Rights (T RIPS); the 
commitments made under the CAFTA -DR; and the WIPO -administered treaties to which Honduras 
is a contracting party, notably the Patent Cooperation Treaty  (PCT), the Copyright Treaty (WCT) 
and the Performances and Phonograms Treaty (WPPT).  
3.149.   The Dire ctorate -General of Intellectual Property (DIGEPIH), attached to the Property 
Institute (IP), still acts as the intellectual property office. The DIGEPIH keeps the Industrial 
Property Register and the Copyright and Related Rights Register, while the SAG, th rough the 
SENASA, is responsible for the National Register of Plant Varieties.  
3.150.   Honduras is a contracting party to ten WIPO -administered treaties.158 During the review 
period, it signed other international treaties: WIPO's Beijing Treaty on Audiovisual Perfor mances 
(2012) and the Marrakesh Treaty to Facilitate Access to Published Works for Persons who are 
Blind, Visually Impaired or Otherwise Print Disabled (2015).159 In the WTO context, in 2011 
Honduras accepted the 2005 Protocol amending the TRIPS Agreement. I n addition, Honduras has 
begun the process of acceding to the International Convention for the Protection of New Varieties 
of Plants.160 
                                               
154 Article  63 of Decree No.  74-2001, and the ONCAE's 2010 handbook of procedures for small -scale 
procure ment. See also the ONCAE's 2010 handbook of procedures for direct procurement and contracting using 
domestic funds.  
155 For example, in situations where goods or services are needed urgently in order not to hinder the 
normal supply of public services or in s ituations of emergency.  
156 Article  21 of Decree No.  74-2001.  
157 Article  142 of Decree No.  74-2001, the ONCAE's 2010 handbook of procedures for procurement 
through bidding and consultancy, and Response by the Republic of Honduras to the questionnaire on the 
provisions of the Inter -American Convention against Corruption selected in the second round and for follow -up 
on the recommendations formulated in the first round. Viewed at: 
http:/ /www.oas.org/juridico/spanish/mesicic2_hnd_resp_sp.pdf . 
158 Copyright and related rights: Rome Convention; Berne Convention; Phonograms Convention; WIPO 
Copyright Treaty; WIPO Performances and Phonograms Treaty. Industrial property: Paris Convention. Patent s: 
Budapest Treaty, Patent Cooperation Treaty. Trademarks: Trademark Law Treaty. Programme -carrying signals 
transmitted by satellite: Brussels Convention.  
159 Information provided by the authorities, and online information from the National Congress of 
Hondu ras. Viewed at: http://www.congresonacional.hn/index.php/201 4-02-10-22-24-42/congreso/item/1210 -
congreso -nacional -aprueba -tlc-con-peru-y-tratado -de-marrakech -para-beneficiar -a-personas -ciegas.html . 
160 UPOV Publication No.  437(EN) of 26  November  2015. Viewed at: 
http://www.upov.int/edocs/pubdocs/en/upov_pub_437.pdf.   WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.151.   In 2013, Honduras' National Intellectual Property Strategy was adopted with the aim of 
strengthening the intellectual pro perty regime. This is a five -pronged strategy: ( i) education and 
culture; ( ii) science and innovation for health; ( iii) biodiversity and the environment; 
(iv) productivity and competitiveness; a nd (v)  management and enforcement of intellectual 
property.161 
3.3.5.1   New varieties of plants  
3.152.   The Law on the Protection of New Varieties of Plants162, enacted in 2012, was drafted 
along the lines prescribed by the International Union for the Protection of New Varieties of Plants 
(UPOV).  
3.153.   The scope of the Law is currently limited  to a minimum of 15 plant species, but ten years 
after it has entered into force protection will be extended to all species. For a variety to obtain 
protection, it must be new, distinct, stable and uniform. The SENASA is in charge of examining the 
formal a nd substantive aspects of applications for registration. Foreigners not resident in Honduras 
have to appoint a legal representative domiciled in Honduras to file the application.163 According to 
the authorities, registration takes around one and a half years . By the end of 2015, no applications 
for registration had been received.  
3.154.   A breeder's right is granted by means of a breeder's certificate. The term of protection is 
25 years from the date on which the certificate was issued for perennial species and 15  years for 
other species, with no possibility of extension in either case.164 
3.155.   The Law provides that emergency licences may be issued when exploitation of a variety is 
deemed essential in order to meet the basic needs of a segment of the population and availabil ity 
or supplies do not suffice. Licences are granted following a public bidding procedure convened by 
the SENASA and the licence holder is given financial compensation. Emergency licences are issued 
for a specific period, after which the licence holder aut omatically recovers his rights.165 According 
to the authorities, no emergency licence has yet been issued in Honduras.  
3.3.5.2   Other industrial property rights  
3.156.   The Industrial Property Law regulates the protection  of patents (inventions, utility models 
and industrial  designs), trademarks and other distinctive signs, as well as appellations of origin 
and geographical indications.166 
3.157.   There have been no significant changes to the registration procedures laid down in the Law 
since 2010. The changes that have occurred since 2010 as regards industrial protection concern: 
(a) the period during which objections to a patent notification may be made, which changes from 
three consecutive periods of 30 days to a single period of 90 working days; and (b) the method for 
publishing suc h notifications, which must be through the DIGEIPH's website and not through 
publication in the Official Journal (La Gaceta ), as was previously the case.167 The Law was also 
amended to allow the recognition and protection of geographical indications. Before 2012, only 
appellations of origin could be registered.168 
3.158.   Patent rights are granted, as of the date of filing the application, for periods of: 
(a) 20 years for patents for inventions (non -renewable); (b)  15 years for patents for utility models 
(non-renewable ); and (c)  five years for patents for industrial designs, which may be renewed for 
two successive five -year periods. For marks, the term of protection is ten years and may be 
                                               
161 Executive Decree No.  013-2013 of 9  October  2013.  
162 Law on the Protection of New Varieties of Plants (Decree No.  21-2012) of 13  March  2012.  
163 Articles 4, 6, 13 and 18 of Decree No.  21-2012.  
164 Articles 11 and 15 -24 of Decree No.  21-2012.  
165 Articles 29 -32 of Decree No.  21-2012.  
166 Industrial Property Law (Decree No.  12-99-E) of 19  December  1999, as amended by 
Decrees  No. 16-2006, No.  51-2011 and No.  219-2012. There are no implementing re gulations for this Law.  
167 Articles 55 and 60 and 61 of Decree No.  12-99-E, as amended by Decree No.  51-2011. Notifications 
can be viewed at: http://digepih.webs.com/publicacionespatentes.htm . 
168 Articles 126 -133 of Decree No.  12-99-E, as amended by Decree No.  219-2012. Viewed at: 
http://www.wipo.int/geo_indications/en . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  renewed indefinitely, although failure to use the mark may entail loss of the rig ht. The registration 
of an appellation of origin or a geographical indication has an indefinite term.169 
3.159.   The time required to grant a patent for an invention must not be more than five years. 
The legislation does not specify what period is required for grant ing patents for utility models or 
industrial designs. Nevertheless, the authorities have indicated that, in practice, they are granted 
within three and a half years and eight months, respectively.  
3.160.   As far as patents are concerned, Honduras grants compulsory  licences for reasons of public 
interest, emergency, national security, nutrition or public health. They may also be granted if the 
patented invention has not been worked in Honduras within four years of the date of the 
application or three years from the date on which the patent was granted. The applicant for a 
compulsory licence must prove that he has requested the patent holder for a contractual licence, 
which was not granted on reasonable terms and within a reasonable period of time.170 According to 
the authorities, Honduras has not so far granted any compulsory licences. Parallel imports are not 
allowed unless for research purposes or personal use.171 
3.161.   Honduras is not party to the Nice Agreement, but uses the Nice classification for the 
registration of marks . Trademarks and service, certification and collective marks may all be 
registered in Honduras.172 The owner of a mark may grant a third party a licence to use the mark 
without losing the exclusive right in the mark. A user's licence may not be granted in th e case of 
collective marks.173 
3.162.   The procedures for examination, publication, opposition and registration of appellations of 
origin and geographical indications are governed by the provisions applying to the registration of 
marks.174 Honduras has recognized and protected geographical indications since 2012.  
3.163.   The Industrial Property Law also protects industrial and business secrets175 and is enforced 
by means of internal instructions from the State Secretariat for Public Health and the SENASA as 
there are no implemen ting regulations for the Law.  
3.164.   Layout -designs of integrated circuits are not protected in Honduras.  
3.3.5.3   Copyright and related rights  
3.165.   There have been no changes to the Law on Copyright and Related Rights since 2010.176 
It protects literary and artistic works, comp uter programs, performers, phonogram producers and 
broadcasting organizations. The copyright of non -residents whose works have been published for 
the first time abroad and performances, phonograms and broadcasts owned by non -resident 
foreigners are protect ed under international conventions or, in their absence, by the principle of 
reciprocity.177 
3.166.   Works are protected for the author's lifetime and 75  years after his death. Rights of 
performers, phonogram producers and broadcasting organizations are protected fo r 75 years. 
Protection of copyright and related rights is automatic without the need for any official registration, 
which has purely declaratory value.178 
                                               
169 Articles 15, 27, 33, 92 and 106 of Decree No.  12-99-E, and Article 1 31 of Decree No.  12-99-E, 
as amended by Decree No.  219-2012.  
170 Articles 66, 67 and 70 of Decree No.  12-99-E. 
171 Information provided by the authorities.  
172 Article 79 of Decree No.  12-99-E, and online information from the DIGEPIH.  
173 Articles 102 -104 and 115 of Decree No.  12-99-E. 
174 Article 129 of Decree No.  12-99-E. 
175 Article 73 of Decree No.  12-99-E. 
176 Law on Copyright and Related Rights (Decree No.  4-99-E) of 2  December  1999.  
177 Articles 4 and 8 of Decree No.  4-99-E. 
178 Articles 44, 120 and 130 of Decree No.  4-99-E. WT/TPR/S/336 /Rev.1  • Honduras  
 
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  3.167.   The Association of Authors, Composers, Performers and Musicians of Honduras (AACIMH) 
is responsible for  protection, collecting fees and administering the rights of Honduran authors and 
those foreigners affiliated to like associations with which the AACIMH has signed reciprocal 
representation contracts.  
3.3.5.4   Enforcement  
3.168.   The institutions responsible for enforcing intellectual property rights are the DIGEPIH, at 
the administrative level, and the Public Prosecutor's Office, through the Special Prosecutor's Office 
for Intellectual Property, at the judicial level. The Interinstitutional Commission against Piracy 
(CICOM PI), composed of public and private bodies, also assists the public sector in protecting and 
safeguarding industrial property rights and copyright.  
3.169.   As regards measures at the border, Honduras applies the provisions in the CAUCA, the 
RECAUCA, the TRIPS Agre ement and the CAFTA -DR, which are implemented by the DEI through 
the Intellectual Property Department, in collaboration with the DIGEPIH and the Special 
Prosecutor's Office for Intellectual Property. Honduras' National Intellectual Property Strategy lists 
a series of measures to improve compliance with intellectual property rights, which include: 
revising the legal framework in order to impose more severe penalties; promoting awareness 
among civil society; and training government officials.179 
3.170.   During the revi ew period, Honduras took part in Operation Tigre, conducted by the 
World  Customs Organization at several ports in the region in order to seize counterfeit goods.180 
According to the authorities, as a result of this operation, large quantities of counterfeit,  pirated 
and smuggled goods were seized, although there are no estimates of their value. Since 2010, 
there has been an increase in the confiscation of counterfeit and pirated goods both at the border 
and in trade. The goods seized are destroyed or donated to charities. At the same time, 
340 complaints have been lodged with the courts and fines of L  50,000 to 100,000 and terms 
of imprisonment of three to six years have been imposed . 
 
 
                                               
179 Executive Decree No.  013-2013 of 9  October  2013.  
180 WCO Press Release of 9  December  2011. Viewed at: 
http://www.wcoomd.org/en/media/newsroom/2011/december/latin -america -unites -to-launch -operation -tigre-
2-to-fight-counterfeiting -and-piracy.aspx , and online information from the WCO. Viewed at: 
http://www.wcoomd.org/en/media/newsroom/2014/may/tons -of-fake-goods -intercepted -under -operation -
tigre-3.aspx . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture  
4.1.1   Main features  
4.1.  The agricultural secto r has retained its relative importance for the Honduran economy and 
during the review period grew at an average annual rate of 3.8%.1 During the period in question 
the sector 's performance was uneven, with a contraction in real terms in 2009 and weak growt h 
in 2010 being followed by two years of strong growth in 2011 and 2012. The agricultural sector 's 
share of GDP increased slightly during the review period (2009 -2014); thus, in 2009 the sector 's 
share of GDP at constant prices was 12.9%, while in 2014 it was 13.9% (Table  4.1). These figures 
relate to the agricultural sector per se  and do not include the value of agro -industrial production, 
input production or services, activities which fall within the industrial sector or the services sector. 
The agricultu ral sector continues to be a major generator of employment, although during the 
review period its importance declined. In 2014, the sector provided work for about 30% of the 
country 's economically active population, as compared with 37.1% in 2009.  
Table 4.1 Main indicators for the agricultural sector, 2010 -2014  
 2010  2011  2012  2013  2014a 
Crop farming, livestock breeding, hunting, forestry 
and fishing       
Share of GDP (% at current prices)  11.6 14.2 13.6 12.2 12.7 
Share of GDP (% at 2000 constant prices)  12.7 13.0 13.8 13.9 13.9 
Real rates of growth (%, at 2000 prices)  1.8 6.5 10.7 3.4 2.7 
Gross value added (growth rate)  16.3 37.3 2.9 -6.4 13.2 
Share of agricultural production (%)       
 Coffee  26.7 37.2 35.6 25.7 26.7 
 Bananas  13.5 11.9 13.7 16.1 14.7 
 Tubers, vegetables, pulses and fruit  16.8 10.7 10.5 12.3 12.0 
 Bovine cattle  9.0 7.0 8.7 11.2 10.9 
 Other crops and agricultural activitiesb 9.1 7.6 8.6 9.8 9.7 
Employment (% of total, end of period)  37.5 36.6 38.2 35.8 30.0c 
Exports       
Value (US$ million)  1,933 2,890 3,095 2,551 2,727 
09 – Coffee, tea, mate and spices  37.5 47.2 45.5 29.6 30.9 
15 – Animal or vegetable fats and oils  8.9 9.6 10.7 11.9 12.4 
08 – Edible fruit and nuts; peel of citrus  fruit or melons  20.9 16.5 17.0 20.6 20.1 
24 – Tobacco and manufactured tobacco substitutes  6.1 4.5 4.5 5.6 5.0 
17 – Sugars and sugar confectionery  3.8 2.3 2.8 4.0 3.9 
Imports       
Value (US$ million)  1,185 1,479 1,553 1,581 1,612 
10 - Cereals  15.3 19.0 16.6 16.4 15.4 
21 – Miscellaneous edible preparations  12.9 13.0 14.8 15.1 14.8 
19 - Preparations of cereals, flour, starch or milk  12.7 11.4 11.3 11.6 11.9 
23 – Residues and waste from the food industries  12.5 11.6 12.5 14.1 15.4 
22 – Beverages, spi rits and vinegar  5.9 5.9 7.0 6.4 5.9 
Agricultural trade balance (US$ million)  748 1,411 1,542 970 1,115 
a Preliminary.  
b Tobacco and sugar cane crops, agricultural services, production of live -animal and other products . 
c The total employed labour force declined in 2014 due to adjustments made by the National Institute 
of Statistics (INE).  
Source:  WTO Secretariat estimates, based on data from the Central Bank of Honduras.  
4.2.  The Honduran agricultural sector is characterized by its relative concentration. Cof fee and 
bananas accounted for 41.4% of agricultural production in 2014. Other leading products are fruit 
and vegetables, palm oil and livestock products. Coffee is the principal agricultural product 
in Honduras and during the review period it increased in relative importance, rising from 21.8% 
of agricultural production in 2009 to 26.7% in 2014. Honduras has concentrated on producing 
high-grade coffee, which has enabled it to maintain a stable position on the quality bean markets 
at competitive costs. In  2014, bananas accounted for 14.7% of agricultural production. 
In Honduras, banana growing yields high returns, having benefited from projects to improve 
                                               
1 Information provided by the authorities.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  competitiveness and reduce the risk of pests and diseases (see below). The most important 
industrial crop s are sugar cane, African palm and cocoa, which together accounted for about 10% 
of agricultural output in  2014.  
4.3.  Agriculture continues to be a major source for the generation of foreign exchange. In  2014, 
agriculture accounted for 33.8% of the foreign exch ange generated by merchandise exports. 
Agricultural exports increased from US$1,933.3  million in 2010 to US$2,727.3  million in 2014. 
Honduras remains a net exporter of agricultural products and the agricultural trade balance 
recorded a growing surplus duri ng the review period, rising from US$748.4  million in 2010 
to US$1,115.1  million in 2014. The main export products continue to be coffee, bananas, palm oil, 
farmed shrimp, tilapia, sugar, and fruit, pulses and vegetables. In 2014, imports of agricultural 
products accounted for 14.6% of total merchandise imports. Cereals, in particular maize, were 
Honduras ' leading agricultural import . 
4.1.2   Agricultural policy  
4.1.2.1   General policies  
4.4.  The State Secretariat for Agriculture and Livestock (SAG), created by Decree No.  218-96, 
is the agency responsible for designing and implementing agrifood sector and rural environment 
policies. The SAG 's objective is to ensure that domestic agricultural production is competitive, 
sustainable and capable of integration into the international economy, while meeting the needs 
of the domestic market and playing its part in a plan for the sustainable development of natural 
resources.2 The SAG coordinates the process of planning and implementing agricultural public 
sector policy, performs functions  relating to the country 's farming areas and represents the sector 
at the regional and international levels. At sector level, the SAG coordinates aspects relating to the 
sectoral policies implemented by the institutions that make up the agricultural public  sector, 
specifically those concerned with land tenure, rural financing, marketing, forestry, crop and 
livestock production, and rural and forest development. The SAG is a member of various bodies 
including, in particular: the Central American Agricultural  Council (CAC), the Tropical Agricultural 
Research and Higher Education Centre (CATIE), the Inter -American Institute for Cooperation 
on Agriculture (IICA), the United Nations Food and Agriculture Organization (FAO) and the 
International Fund for Agricultur al Development (IFAD).  
4.5.  Other institutions that make up the agricultural public sector are the National Agrarian 
Institute (INA), the Honduran Agricultural Market Institute (IHMA), the National Agricultural 
Development Bank (BANADESA), the State Forestry Ad ministration (AFE) and the Honduran 
National Institute for Forest Conservation and Development, Protected Areas and Wildlife  (ICF).  
4.6.  In recent years, the objectives of the State Agricultural Policy for the Agrifood Sector and 
Rural Environment in Honduras 2 004-2021 have been to increase productivity and promote 
exports without neglecting production for the domestic market, with a view to ensuring food 
security. The authorities have tried to increase productivity in the sector by improving the 
operation of th e domestic market, by establishing a price stabilization mechanism and through 
measures to improve food safety (Table  4.2). To promote exports of agricultural products, 
Honduras has continued to adopt a strategy aimed at opening up new or niche markets by 
negotiating new FTAs and improving their administration and implementation . 
Table 4.2 Summary of agricultural measures  
Scope  Measures/results  
Efficient, Fair and Competitive Trade  
This policy has been entrus ted to the Agribusiness Centre of the National Agrifood Development Programme (PRONAGRO) 
implemented by the SAG, the Trade Negotiations office of the CAFTA -DR and the SENASA, in coordination with public and 
private sector institutions. Its objective is to help to improve marketing and to open up more markets for domestic 
agricultural production.  
The policy has been implemented by:  
 disseminating information on market opportunities and conditions at national and international levels by means of 
documents, pub lications, a documentation centre and a web page ; 
 organizing national trade fairs in support of small and medium -sized agribusinesses ; 
 providing coordination and training to facilitate the participation of small businesses in international trade fair s; 
                                               
2 Online information from the  SAG. Viewed at: http://sag.gob.hn/acerca -de-la-sag/quienes -somos/que -
es-la-secretaria -de-agricultura -y-ganaderia . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Scope  Measures/results  
 organizing national and international business conferences;  
 concluding legal instruments for the entry into force of the CAFTA -DR; 
 providing for the establishment and operation of the Committee on the Admissibility of Agricultural Products to the 
Internationa l Market ; 
 authorizing the Honduran Agricultural Marketing Institute (IHMA), to purchase maize and beans to constitute 
a national strategic food reserve ; 
 advising and exchanging information on international standards and regulation s; 
 participating in the ne gotiation of free trade agreements with Chinese Taipei and  Colombia;  
 commissioning the Comayagua hydrothermal treatment plant for the export of fruit and vegetables and the plant for 
packing rambutan for export; and  
 helping small producers to purchase agri cultural product processing equipment to add value.  
Sustained improvement in agricultural health and food safety  
This policy has been implemented through:  
 the issuing of phytosanitary and animal health permits with the support of the Export Processing Ce ntre (CENTREX);  
 the implementation of Resolution No. 175 -2006 of the Council of Ministers for Central American Economic Integration 
(COMIECO XXXVIII), to facilitate the free import and export of 150 products and by -products of plant origin ; 
 the implementat ion of diagnostic audits of good agricultural practices for small farmers and packers in order to certify 
exports of oriental vegetables;  
 epidemiological surveillance at national level to prevent the introduction of exotic diseases ; 
 the strengthening of th e diagnostic and laboratory analysis system, by adopting quality management and health 
facilitation systems to export melons to European markets ; 
 the nutritional evaluation of fodder and raw materials for animal consumption with the support of the Internat ional 
Atomic Energy Agency (IAEA); and  
 the structure and design of ISO/IEC Standard 17025 for managing the quality of products and service s. 
Integration of agrifood chains  
Seven priority agrifood chains have been defined: staple grains; fruit and vegetab les; fishing and aquaculture; livestock; 
beekeeping; coffee and cocoa; and African palm.  
This policy has been implemented by:  
 providing technical assistance for small and medium -sized basic foods producers;  
 implementing the Agricultural Education Service;  
 developing agribusiness centres; and  
 developing rural infrastructure and irrigation through the National Rural Infrastructure and Irrigation Service.  
Promotion of technological innovation, diversification and value added  
The Generation and Access to Tech nological Innovation policy has been implemented mainly through the Science and 
Agricultural Technology Directorate (DICTA), by:  
 providing technical assistance for small and medium -sized basic foods producers;  
 building the technical capacity of the small fruit and vegetable producers of the Tegucigalpa highlands with the 
support of the Foundation for Rural Enterprise Development (FUNDER);  
 validating prototypes of animal -drawn implements through the Latin American Animal Traction and Appropriate 
Technologie s Network (RELATA);  
 generating improved varieties of maize, beans, rice and sorghum;  
 reactivating the Seed Production Programme for the benefit of small producers;  
 establishing the National Seed Potato Production Programme with the support of the Millenni um Challenge Account 
and FUNDER; and  
 establishing strategic alliances, through the National Agrifood Technology System (SNITTA), with: the Central 
American Agricultural Technology Integration System (SICTA); the Regional Agricultural Technology Fund 
(FONT AGRO); the Latin American Rice Fund (FLAR); the Zamorano Pan -American Agricultural School (EAP); the 
Tropical Agricultural Research and Higher Education Centre (CATIE); the National Agricultural and Food Research 
Institute (INIA/Spain); EMBRAPA/Brazil, MT,  the Millennium Challenge Account (MCA); and the International Maize 
and Wheat Improvement Centre (CIMMYT).  
Sustainable access to agricultural credit and rural financing  
This policy has been implemented by generating financial instruments and mechanisms  for accessing credit and rural 
financing by:  
 financially strengthening the National Agricultural Development Bank (BANADESA), to take care of the agricultural 
sector;  
 issuing the Law on Financial Support for Production Sectors in Honduras, implemented t hrough the Honduran Bank for 
Production and Housing (BANHPROVI), to cover 14 products, with an investment of L 1,378 million, through private 
banking;  
 drafting and presenting the Executive Decree establishing the Agricultural Insurance Committee in Hondur as, through 
which it is intended to reduce the climatic and biological risks faced by agricultural producers in making their 
productive investments;  
 strengthening alternative rural financing for small subsistence producers through rural savings and loan as sociations 
supported by rural development projects.  
Source:  Government of Honduras, State Secretariat for Agriculture and Livestock.  
4.7.  The Strategy for the Agrifood Public Sector, drawn up in 2009, established a series 
of quantitative targets to be met by 2 014. These included, in particular: (i)  achieving an average 
increase in agrifood GDP of 4% per year (this target was partially met, inasmuch as a growth rate 
of more than 4% was recorded only in 2011 -2012); (ii)  helping to reduce poverty and extreme 
pover ty by 10 percentage points by 2014 (the target was not met as the growth rate for 
2010-2014 was 3.2%); (iii)  increasing agrifood  exports by 70%, from US$ 1,663  million in 2009 
to US$2,827  million in 2014 (the target was not met, but a substantial increase o f approximately 
41% was achieved, with the value rising from US$1,933  million in 2010 to US$2,727  million WT/TPR/S/336 /Rev.1  • Honduras  
 
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  in 2014); (iv)  increasing the value of fruit and vegetable e xport s, from US$440  million in 2009 
to US$572  million in 2014 (target met); (v)  increasing  coffee exports through the value chains by 
a cumulative 5% per year, from US$532  million to US$644  million (target exceeded) ; (vi)  helping 
to replace US$18  million of imports of onions, potatoes, carrots and garlic by 2014 (target met); 
(vii) building or resurfacing 5,000 km of rural roads (the resurfacing of 159 km of tertiary roads 
has been approved ); (viii)  increasing staple grains production by 15% by 2014, from 15.9  million 
quintals to 18.4  million quintals (target not met, as staple grains production  for 2014 was 
estimated at 15.2  million quintals); (ix)  increasing the strategic reserve of maize and beans 
by 10%, from 80,704  quintals in 2009 to 89,000 quintals in 2014 (there is no information 
available concerning the achievement of this target); and ( x) increasing the area under irrigation 
by 30% by 2014, from 90,000 new hectares incorporated into agricultural irrigation in 2009 to 
117,000 in 2014 (target exceeded).3 
4.8.  To achieve one of the general objectives of the Strategy, a National Investment Plan f or the 
Agrifood Sector 2011 -2014 (PIPSA) was drawn up. The purpose of the PIPSA was to help to reduce 
poverty levels by raising the income of the beneficiaries through inclusive economic growth, 
job creation and sustainable food and nutritional security. T o this end, efforts have been made to 
improve productivity and competitiveness through investment, both public and private, aimed at 
modernizing and improving the infrastructure, transferring technology to producers, and extending 
value chains. As an objec tive for 2014, the PIPSA established a 10 -point reduction in the 
percentage of rural families living in conditions of both poverty (from 72% to 62%) and extreme 
poverty (from 60% to 50%).4 This was to be associated with a 4% increase in nominal agricultura l 
GDP (from US$1,022  million to US$1,196  million). This target was met, since the rate of growth 
for the period 2010 -2014 was 7.7%, while agricultural GDP rose from US$1,835  million in 2010 
to US$2,475  million in 2014. The SAG has drawn up five main strate gic programmes for achieving 
the national targets for economic growth and rural poverty reduction: (i)  competitiveness and 
growth in the agricultural sector; (ii)  expansion of market access; (iii)  intersectoral support 
(resources and productive infrastruct ure); (iv)  a facilitative environment for agribusiness; and 
(v) multisectoral/cross -cutting areas (food security, gender, youth and job creation). The total cost 
of investment under the PIPSA has been estimated at US$790.39  million, with current financial 
commitments estimated at US$139.9  million financed by resources from the IFAD, the 
Central  American Bank for Economic Integration  (BCIE) and the  OPEC Fund for International 
Development (OFID) and an investment gap of US$650.5  million.5 The authorities have  noted that 
the target has not been met and that only 17.7% of it is covered by the funds mentioned.  
4.9.  The National Coffee Council (CONACAFE), established in 2000, is the body responsible for 
formulating national coffee policy and advising the President of t he Republic on matters related with 
the coffee industry.6 The Council has the following functions: to formulate, approve and evaluate 
national coffee policy; to represent the country, domestically and internationally, in matters relating 
to coffee; to appr ove the establishment of mechanisms for the stabilization, defence and protection 
of domestic coffee production; to adopt coffee -related control and emergency measures in 
connection with the protection of the public interest; to set production targets, wit h account for 
Honduras' international commitments, and establish domestic coffee consumption policy, with a view 
to helping to achieve greater price stability on the domestic market.  
4.10.  The Honduran Coffee Institute (IHCAFE) is a private non -profit organizati on that performs 
administrative and public service functions, by delegation under the law (Article  1 of Decree 
No. 213-2000) . Its purposes and objectives are: to implement the policy and policy measures 
approved by CONACAFE which fall within its jurisdicti on; to provide technology generation and 
technology transfer services for all the participants in the agro -industrial coffee chain; and to apply 
the regulations and resolutions designed to improve agricultural production techniques and 
methods of grading a nd processing, packaging, transporting, registering, manufacturing and 
                                               
3 SAG, Strategy for the Agr ifood Public Sector and Implementation Plan. Honduras for Sustainable 
Development. Viewed at: http://www.sag.gob.hn/dmsdocument/2 . 
4 SAG (2011), Plan de Inversión del País para El Sector Agroalimentario ( PIPSA) 2011 -2014, June 2011. 
Viewed at: http://www.sag.gob.hn/dmsdocument/3 . 
5 Out of these funds, 26.05% is earmarked for sectoral competitiveness and growth; 10.79% for market 
access; 34.51% for sector support; 8.41% for the facilitative environment for agribusiness; and 20.25% for 
cross-cutting areas, such as food security and gender -related issues. See SAG (2011), Plan de Inversión del 
País para El Sector Agroalimentario (PIPSA) 2011 -2014, June 2011. Viewed at: 
http://www.sag.gob.hn/dmsdocument/3 . 
6 Decree No. 145 -2000, Official Journal  of 21 November 2000.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  marketing coffee.  The IHCAFE 's mission is to promote the Honduran coffee grower 's 
socio-economic return by developing the competitiveness of the agribusiness coffee chain.7 
4.11.  The Central American Agricultural Policy (PACA), approved in 2007, is an integral part 
of Honduran agricultural policy. Apart from Honduras, Costa  Rica, El  Salvador, Guatemala and 
Nicaragua participate in the PACA, as well as Belize and Panama. The PACA 's objective is  to 
establish a coordinated regional policy which: (i)  promotes conditions for the development 
of a modern, competitive, fair and regionally articulated Central American agriculture; 
(ii) contributes to the development of a sustainable Central American agr iculture from the 
economic, social, environmental and institutional points of view; and (iii)  provides for follow -up 
and evaluation mechanisms that ensure its effective implementation.8 To this end, the PACA 
defines five priority areas: intra - and extra -regional trade; agricultural health and food safety; 
technological innovation; financing; and risk management. In the Strategic Plan for the Agrifood 
Sector of Honduras 2010 -2014 (PEAGROH) provision is made for measures designed to achieve 
the PACA 's objecti ves. The normative instruments deriving from the PACA are binding on the 
countries involved in the process of formation of the Central American Customs Union and wholly 
or partially optional for Panama and Belize.  
4.1.2.2   Measures affecting imports  
4.12.  The agricultura l sector benefits from tariff protection greater than that granted to industrial 
products. In 2015, agricultural products (WTO definition) were subject to an average tariff 
of 10.7%, as compared with an average MFN applied duty of 5.9%, and an average tari ff of 5.1% 
applied to non -agricultural products, excluding petroleum. On average, the highest duties per WTO 
category were applied to dairy produce and products of animal origin, with tariffs of 22.2% and 
18.4% respectively. The maximum tariff is still 164 % for imports of poultry meat of 
HS subheadings 02.07.13 and 02.07.14. The second highest rate (55%) is that applied to 
cigarettes (HS  24.02.20.00.00).  
4.13.  Honduras continues to use a price band system for products classified in seven tariff lines, 
such as yel low maize, white maize (up to August  2015), grain sorghum, maize flour and other 
worked grains (Table 4.3).9 The price band system operates as a seasonal tariff that varies with 
the international benchmark prices of the respective products and its main pur pose is to cushion 
the domestic -market impact of international price fluctuations. The Honduran Agricultural 
Marketing Institute  (IHMA) is the body responsible for administering the system and monitoring 
price trends. Each year, the band 's ceiling and floo r prices are set on the basis of world prices for 
the product in question over the previous 60  months. Every January, the price band limits have 
to be approved by the IHMA Executive Committee and submitted to the Agricultural Development 
Council. The limit s remain in force for 12 months from 1 September each year. If the world price 
falls below the floor benchmark price, the import tariff is raised ad valorem  by the percentage 
difference between the two prices. Otherwise the MFN tariff is applied. Under Hon duran legislation, 
the sum of the MFN tariff and the surcharge may not exceed the bound tariff rate. In such cases, 
the tariff is applied at its WTO bound level . 
                                               
7 Online information from the IHCAFE. Viewed at: 
http://www.ihcafe.hn/index.php?option=com_content&view=article&id=104&Itemid=116 . 
8 Central American Agricultural Policy 2008 -2017. Basic document for national and regional consultation, 
April 2007. Viewed at: http://www.sag.gob.hn/dmsdocument/11 . 
9 Regulations on the Marketing of Agricultural Products, Decision No. 0105 -93 of 26 February 1993.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 4.3 Products subject to price bands, 2015  
 Tariff Rate  
(%) 
Code  Description  MFN Bound  
1005.90.20  Yellow maize  15 45 
1005.90.30  White maize  15a 50 
1007.00.90  Other  15 45 
1102.20.00  Maize flour  15 35 
1103.13.10  Pre-gelatinized maize flour  15 35 
1103.13.90  Other groats  15 35 
1104.23.00  Other  grains of maize, worked  5 35 
a Since 6 August 2015 the tariff rate applied to white maize has been 50%.  
Source:  WTO Secretariat estimates, based on data provided by the authorities . 
4.14.  The National Staple Grains Board is tasked with developing programmes to  promote the 
production of staple grains and forecasting domestic demand and exportable surpluses. Honduras 
applies a preferential import policy to maize and rice for processing, subject to a domestic market 
purchase requirement.10 To guarantee a secure pri ce for the producer and a fair price for the 
consumer, the SAG establishes purchase agreements between agribusiness and maize, sorghum 
and rice producers, setting quotas for purchase commitments and guaranteed minimum prices. 
There is a so -called "Purchase  and Sale Agreement" between staple grain producers and 
processors that allows staple grains to be imported for processing at preferential tariffs of as low 
as 0%. The quantity that can be imported under preferential conditions varies in accordance with 
domestic supply estimates. In the case of white maize (HS 1005.90.30) a processor that buys one 
quintal on the domestic market can import one quintal tariff -free, while in the case of yellow maize 
(HS 1005.90.20) a processor that buys one quintal can import four quintals tariff -free.11 In the 
case of rice, the quantity that can be imported duty -free is proportionate to the percentage 
purchase of domestic production. The preferential conditions apply only to firms that have signed 
the agreement. Products import ed tariff -free have to be used for processing and cannot be sold on 
the domestic market as whole grain for human or industrial consumption to an industry that is not 
a party to the agreement.  
4.15.  Honduras does not apply tariff quotas for agricultural products within the framework of the 
WTO. However, it does apply preferential quotas for some products under bilateral agreements 
(Table A4.1).  
4.16.  Some products of agricultural origin, including the food products in the basic shopping 
basket, along with agricultural i nputs, are exempt from sales tax, which is generally levied at 12%, 
except for certain alcoholic beverages, cigarettes and other processed tobacco products, which are 
taxed at 15%.  
4.17.  Honduras maintains a system of automatic and non -automatic import licences for the 
purpose of protecting plant and animal health. The importation of products and by -products 
of plant and animal origin also requires a non -automatic import licence . 
4.1.2.3   Domestic support  
4.18.  In the course of the review period, Honduras notified a series of a gricultural support 
measures for implementation during the period 2009 -2014, as well as the amendment of some 
existing measures and the introduction of other new ones.12 Several of these programmes expired 
during the review period. In July 2015, Honduras wa s maintaining three domestic support 
programmes notified as reduction -exempt measures within the green box: the Honduras rural 
competitiveness project  (COMRURAL); the project for improvement of the competitiveness of the 
rural economy in the department of Yoro (PROMECOM); and the rural development and 
competitiveness programme for the Southern Region  (EmprendeSUR). Honduras has also 
maintained three measures notified as measures exempt from the reduction commitment as 
development programmes: the competitive ness and sustainable rural development project in the 
                                               
10 Decision No. 648 -98, Official Journal  of 28 April 1998. View ed at: 
http://faolex.fao.org/docs/pdf/hon18 438.pdf . 
11 Decision No. A -788-14 of 1 September 2014.  
12 WTO documents G/AG/N/HND/34 of 9 October 2013 and G/AG/N/HND/41 of 6 July 2015.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Northern Zone of Honduras (Northern Horizons) (project in the process of closing down in 2015); 
the production solidarity voucher project; and the agricultural irrigation development project 
(PDABR).13 
4.19.  Table 4.4 summarizes the domestic support programmes implemented during the period 
2009-2014 and notified to the WTO . 
Table 4.4 Domestic support measures implemented by Honduras in 2009 -2014 
(June -May)  
Category  Name and description of measure  Monetary 
value  
(US$)  
2009 -2014  
Measures exempt from the reduction commitment - "Green Box"  
Research services  
Strengthening of local 
management of natural 
resources in the Patuca and 
Choluteca river basins 
(FORCUENCAS)  The FORCUENCAS (2009 -2012) project was aimed at the 
conservation and sustainable management of natural resources in 
the Choluteca, Patuca and Negro river basins, through the 
strengthening of local organizations, proper application of related 
legislation (Fo restry Law, Land Use Planning Law, Water Law) and 
funding to support environmental management investment 
projects.  99,834,670.6 
Training services  
Honduras rural 
competitiveness project 
(COMRURAL)  Focuses on operationalizing processes and mechanisms to fa cilitate 
productive alliances, as well as on promoting organizational 
procedures, training, information, studies and technical support, 
infrastructure and productive investment so as to encourage the 
participation of small and medium -sized producers and cr eate a 
favourable climate for them to invest in productive alliances. 
Co-finances viable demand -driven business plans defined on the 
basis of market mechanisms (see below).  24,900,000 
Improvement of the 
competitiveness of the rural 
economy in Yoro 
(PROMEC OM) Strengthening of producers ' economic organizations to create 
opportunities for them to increase their existing equity capital 
(see below).  13,400,000 
EmprendeSUR project  Seeks to contribute to increased income, employment opportunities 
and food securi ty for small -scale producers by facilitating their 
participation in value chains. To be developed over six years as 
from 2011.  30,000,000 
Marketing and promotion services  
Agribusiness development 
programme for small and 
medium -sized African palm 
producer s (PROPALMA)  Putting 7,206 ha of African palm into production, as the first stage 
in 28,000 ha of replanting and expansion. Implemented by the 
SAG, in support of small and medium -sized African palm producers 
by means of a palm oil production, processing an d marketing chain. 
Setting up two oil extraction plants.  4,600,000 
PYMERURAL programme  To contribute to job and income creation in rural areas in the 
context of rural MSMEs, by means of action to promote their 
integration into agribusiness chains and tour ism clusters.  2,089,245 
Pest and disease control services  
Prevention and control of 
highly pathogenic avian 
influenza  Capacity building and strengthening of the implementation of the 
national action plan for the prevention, control and early detection 
of highly pathogenic avian influenza.  292,047.61 
Extension and advisory services  
Santa María del Real project  Preparation of the study for the Santa María del Real agricultural 
development project involving the creation of efficient, customized 
agro-indust rial villages in rural areas.  74,546.55 
Infrastructure services  
Irrigation microsystem project  Construction of 102 irrigation microsystems of less than one 
hectare each, in municipalities of the Francisco Morazán, Intibucá 
and La Paz departments.  181,490.31 
Measures exempt from the reduction commitment - Special and differential treatment - "Development 
Programmes"  
Investment subsidies generally available to agriculture  
Irrigation enhancement 
project for the western 
Comayagua Valley 
micro -watershed 
(PROMORCO)  Seeks to raise income levels and improve food security for 
1,222  families and sustainable management of natural resources on 
5,188  mz (3,626 ha) of land under irrigation in the western 
Comayagua Valley.  7,000,000 
                                               
13 WTO documen t G/AG/N/HND/41 of 6 July 2015.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Category  Name and description of measure  Monetary 
value  
(US$)  
2009 -2014  
Production solidarity voucher  Seeks to contribute to food security for the rural population and 
generate production surpluses by increasing staple grain production 
through the use of appropriate technology by small producers.  26,133,573 
Creation and operation of a 
fund for financing impr oved 
agricultural implements for 
small-scale staple grain 
producers  Provides access to credit for small and medium -sized producers in 
eligible departments to buy animal -drawn agricultural implements 
for sowing staple grains.  115,667.72 
Rural Savings and L oan 
Associations Project 
(FONADERS)  Offers technical and financial support for the operation of rural 
savings and loan associations as a micro -finance organization, at 
community level, thus contributing to poverty reduction in 
Honduras  561,122.40 
Competit iveness and 
sustainable rural development 
project in the Northern Zone 
of Honduras (Northern 
Horizons)  To increase the income, employment and food security of poor rural 
households in the departments of Atlántida, Cortés and 
Santa  Barbara, while reducing t heir environmental vulnerability.  8,720,000 
Agricultural irrigation 
development project (PDABR)  To improve the standard of living of the beneficiary families through 
increased income, job creation and greater food security, by 
promoting the development of  agricultural irrigation.  55,190,000 
Source:  State Secretariat for Agriculture and Livestock; WTO documents G/AG/N/HND/34 of 9  October  2013 
and G/AG/N/HND/41 of 6 July 2015 , and information provided by the authorities.  
4.20.  The domestic support provided by Hon duras between June 2009 and May 2014 totalled 
US$273.9  million. The main programme in terms of disbursements was FORCUENCAS , which ended 
in 2012, with 36.7% of the total, followed by EmprendeSUR with 20% and COMRURAL with 14.42%.  
4.21.  The EmprendeSUR project is  aimed at helping to increase the income and employment 
opportunities and food security of small -scale producers by facilitating their participation in value 
chains through capacity building and has three components: market access, human development 
and th e project management unit. It is focused on the d epartments of  Francisco Morazán, 
Choluteca, Valle, La Paz and El Paraíso and is funded by the International Fund for Agricultural 
Development (IFAD), the Organization of the Petroleum Exporting Countries (OP EC), the Central 
American Bank for Economic Integration (CABEI) and the Government of Honduras. The total cost 
has been estimated at US$ 30 million. The project entered into force in June 2011, for six years, 
until September 2017.14 
4.22.  The rural competitiveness  project (COMRURAL) is a Government of Honduras initiative led 
by the SAG, with financial support from the World Bank and the Swiss Agency for Development 
and Cooperation (SDC) and technical support from the United Nations Food and Agriculture 
Organization  (FAO), within the framework of the Land Access Programme (PACTA) of the National 
Agrarian Institute (INA). The total funds allocated to COMRURAL amount to US$24.9  million.15 
4.23.  The COMRURAL programme seeks to improve the productivity and competitiveness of th e 
rural sector within a context of social, environmental, economic and institutional sustainability. 
To improve competitiveness COMRURAL employs three mechanisms: (i)  the establishment of 
strategic productive alliances, with mutual benefit arrangements, be tween producer or ganizations 
and one or more commercial partners. To this end, it is proposed to establish formal ties between 
producers and links in the value chain; (ii)  the provision of technical (financial and non -financial) 
services; and (iii)  busines s plans that include investments and in which the private sector and 
COMRURAL both participate.  
4.24.  The support for productive alliances component includes the provision of technical advice for 
the preparation of viable business plans based on alliances betwee n producer organizations and 
commercial partners in the value chain. The activities to be financed by this component include 
a plan for communication, information and promotion of implementation involving the various 
players participating in COMRURAL. Stud ies and research relevant to the definition of productive 
alliances may also be financed . 
                                               
14 WTO doc ument G/AG/N/HND/40 of 28 July  2014.  
15 The World Bank contributed US$22.7  million; the SDC US$4  million; the Government of Honduras 
US$1.2  million; the private sector US$7.9  million; and rural producers US$3.6  million. WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.25.  COMRURAL also provides non -reimbursable funds for the purpose of co -financing viable 
business plans based on productive alliances within the framework of value chains  and drawn up 
under the previous component. The resources of this second component must serve to supplement 
the financing previously granted by the private financial sector and commercial partners and the 
contribution made by the producer organizations. Th e investments that can be financed include 
minor infrastructure projects on farms, working capital, technical assistance and training for 
participating groups. Only producer organizations that receive loans from private financial 
institutions to co -finance  business plans will be eligible to receive funds (seed capital) for support 
for productive investments.  
4.26.  COMRURAL also supports efficient project management, monitoring and evaluation, as well as 
the dissemination of information. The funds from this compon ent can be used to finance 
management services, office equipment, and the administrative and operating expenses necessary 
to ensure the efficient implementation of COMRURAL and resource management activities.16 
The total amount received may not exceed 60% o f the total cost of the business plan, with a  ceiling 
of US$3,500 for each participating member. At least 30% of the total funding for the project must 
consist of a loan from a private financial institution, while the contribution made by the beneficiary o f 
the project must amount to at least 10% of its cost and may consist of cash and/or labour for the 
construction of productive infrastructure to be developed under the business plan.  
4.27.  According to the authorities, by mid -2015, the rural producers ' organizat ions (OPRs) in the 
seven departments in which COMRURAL operates had submitted 126 business profiles, of which 
78, in nine value chains, were approved.17 
4.28.  The PROMECOM project aims to reduce poverty among the rural population of the Yoro 
department. It is des igned to improve the organizational capacity of small producers, position the 
products of the rural and indigenous poor in the market, implement land management practices 
and improve environmental conditions in the area. It seeks to expand the opportunitie s for poor 
rural families to generate income by financing the enterprises of participating families and their 
organizat ions. 
4.29.  The Northern Horizons programme consists of three components: (i)  human and social 
development; (ii)  value chains and competitivene ss; and (iii)  project management. The first 
component is centred on promoting and strengthening the production organizations and business 
management, building human capacity for business management and for employment and 
improving the living conditions of the rural poor. The value chains and competitiveness component 
is focused on the development of agribusinesses and rural micro -enterprises with market potential. 
The aim is to reduce food insecurity and environmental vulnerability and to improve capitaliza tion 
and rural financial services. The rural savings and loan association are used to provide short -term 
financing and for identifying vulnerable groups and linking them up with rural micro -enterprises, 
and organizations of producers having an agribusiness  with potential for incorporation in the value 
chains and those of the new agro -industries receive support with investment in productive assets. 
The programme is in the process of being closed down, with closure scheduled for 
November  2015, and the resourc es will be redirected into the PROLENCA project being negotiated, 
since the financing for the investment has not been finalized.  
4.30.  The Agricultural Irrigation Development Project (PDABR), which was set up within the 
framework of the Poverty Reduction Strateg y and the Law for the Establishment of a Country 
Vision and the Adoption of a National Plan for Honduras (Decree No. 286 -2009), aims to promote 
agricultural irrigation development at national level, thereby generating sources of employment 
and steady incom e in the rural areas and guaranteeing food and nutritional security; in addition, 
it is hoped to improve production levels in the areas incorporated in irrigated agriculture, thereby 
increasing the contribution of agricultural GDP. To achieve all this, the  PDABR will facilitate access 
to irrigation water for 3,071  families at national level, irrigating 8,476 ha. The estimated cost 
                                               
16 Online information v iewed at: http://www.comrural.hn/web/fuentes -de-financiamiento . 
17 The nine value chains are: vegetables (28 profiles approved); special coffee (51); beekeeping 
sector  (7); fruit trees (7); rural tourism (7); aquaculture sector (1); staple grains (6); livestock (8); and 
cultural products. Online information from the SAG. Viewed at: http://www.sag.gob.hn . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  of the measure is US$55.19  million. The PDABR entered into force in May  2013, with an 
implementation period ending in December  2019.18 
4.31.  In addition to these general programmes, small producers are being helped by means of the 
production solidarity and direct assistance voucher of the rural development projects. The voucher 
involves the donation of inputs (seed and fertilizers) for pl anting one manzana  of maize, beans, 
rice or sorghum.19 For medium -sized and large producers, the public and private banking systems 
offer special lines of credit, for example, through BANADESA and the Alternative Rural Financing 
System (SIFAR).  
4.32.  Agro-industr ial cooperatives are exempt from payment of tariffs, including customs duties 
and other levies on agricultural machinery and essential inputs, provided that the items in question 
are not produced in Honduras under suitable conditions in terms of price, qua ntity and quality. 
These enterprises also enjoy a ten -year renewable exemption from income tax and local and 
municipal taxes.20 The Special Law on Agricultural Investment and Rural Job Creation exempts 
"certain" new investment projects from the net assets t ax.21  
4.33.  The National Agricultural Development Bank (BANADESA) is a State institution created 
in 1980. BANADESA provides financial resources for micro, small and medium -sized producers in 
the agricultural sector, as a basic source for promoting and strengthen ing food security and 
agro-industrial development. BANADESA also offers savings and loan facilities and administers 
trust funds.22 BANADESA provides financing for staple grains, vegetables, coffee, livestock, 
poultry, fishing, industry, trade, African palm,  irrigation, machinery and other sectors through the 
BANDES funds for micro, small and medium -sized producers. The funds available in 2015 totalled 
some US$566.9  million.23 The terms vary according to the product, with interest rates that range 
from 9% to 1 2% and repayment periods of between 1 and 10 years (Table  4.5). 
Table 4.5 BANDES funds for micro, small and medium -sized arable, livestock and 
industrial producers, 2015  
Item  Interest 
rate (%)  Term  Amount 
(US$  million)  
Coffee    55 
Maintenance  10 Up to 1 year  35 
Planting  9 Up to 7 years  20 
Vegetables     
Oriental  12 Up to 1 year  15 
Traditional  12 Up to 1 year  15 
Root crops  12 Up to 1 year  5 
Potatoes  10 Up to 1 year  5 
Staple grains    32 
Maize  9 Up to 1 y ear 10 
Beans  9 Up to 1 year  10 
Sorghum and maicillo  9 Up to 1 year  2 
Rice 9 Up to 1 year  10 
Fruit for export    40 
Bananas  12 Up to 7 years  20 
Rambutan and passion fruit  10 Up to 7 years  5 
Melons, including watermelons  12 Up to 7 years  5 
Citrus frui t, mango and avocado  10 Up to 7 years  10 
African palm crops  10 According to production cycle  65 
Irrigation systems  9 Up to 10 years  55 
Drying and storage  9 Up to 10 years  70 
Purchase of grains  9 Up to 1 year  30 
Construction of storage centres and silo s 9 Up to 10 years  40 
Purchase of agricultural machinery  9 Up to 10 years  60 
Livestock  10  40 
Breeding   Up to 7 years  20 
Dairy   Up to 7 years  20 
                                               
18 WTO document G/AG/N/ HND/42 of 6 July 2015.  
19 The manzana  (mz) is a unit of area approximately equal to 0.70 ha.  
20 Decree No. 101 -87, Official Journal  of 22 August 1987.  
21 Decree No. 322.98, Official Journal of 20 January 1990, and Decree No. 20 -99, Official Journal  
of 7 May 1 999. 
22 Online information from BANADESA. Viewed at: http://www.banadesa.hn/misionvision.html . 
23 Online information from BANADESA. Viewed at: http://www.banadesa.hn/fondos_bandes.html . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Item  Interest 
rate (%)  Term  Amount 
(US$  million)  
Minor species (poultry, fishing, beekeeping, pig 
breeding)  10 Working capital: Up to 18  months  
Investment:  Up to 5 years  41,856  
Micro, small and medium -sized agricultural 
processing enterprises  10 According to ability to pay and 
production cycle  25 
Small and medium -scale agricultural industry  12 According to ability to pay and 
production cycle  43 
Total    566,856  
Source:  BANADESA, viewed at: http://www.banadesa.hn/fondos_bandes.html . 
4.34.  The National Basic Products Supply Company (BANASUPRO) is an autonomous organization 
responsible for selling products i n the basic shopping basket to regulate their prices.24 Specifically, 
BANASUPRO: (a)  purchases or manufactures consumer products for sale at reasonable prices and 
on appropriate conditions to the rural and urban populations; (b)  organizes and operates 
a marketing system; (c)  signs contracts with unions, cooperatives, farmers' associations, 
federations, and other social or professional entities to supply products for the end consumer; and 
(d) signs contracts with domestic and foreign enterprises for the purch ase of consumer goods. 
BANASUPRO is authorized to import the articles it needs for its purposes completely tax -free, 
subject to obtaining the appropriate permit.25 The authorities note that in 2015, the list of products 
whose prices are regulated contained 543 active items. The main agricultural products with 
regulated selling prices include rice, sugar, some cheeses, tomato paste, butter, milk, beans and 
maize flour.26 
4.1.2.4   Measures affecting exports  
4.35.  The Agricultural Export Zones (ZADE) regime was set up in 2001 to promote exports of 
agricultural products by establishing "agricultural export enterprises".27 This regime has been 
suspended; however, its suspension was not made retroactive for existing beneficiaries. 
On 1 January  2015, there was only one beneficiary ( Sociedad Mercantil Exportadora del 
Atlántico  S.A.).28 ZADEs could be located anywhere in the country. Eligible enterprises were 
exempt from all import duties and internal taxes on the goods they imported and/or exported; 
they we re also exempt from income ta x. 
4.36.  Honduras has notified the WTO that it did not subsidize any agricultural exports between 
2009 and 2013.29 The promotion of agricultural exports is the responsibility of the Agricultural 
Business Promotion Centre (CPNA), whose priorities are to provide in formation about markets and 
facilitate marketing and financing for exporters.  
4.37.  Honduras does not impose taxes on exports. Coffee exports and production for roasting are 
subject to a levy of US$9  per quintal intended for the Honduran Coffee Institute (IHCAF E). 
This levy can be deducted as an expense against income tax.30 
                                               
24 Decree -Law No. 1.049, of 15 July 1980, Law on the National Basic Products Supply Company 
(BANASUPRO) (Official Journal No.  23179 of 13 August 1980).  
25 Online information from BANASUPRO. Viewed at: 
http://www.banasupro.org/files/funciones_de_banasupro.pdf . 
26 Online information from BANASUPRO. Viewed at: 
http://www.banasupro.o rg/files/lista_de_precios.pdf . 
27 Decree No. 233 –2002 of 1 February 2002.  
28 Online information from the State Secretariat for Finance. Viewed at: http://www.sefin.gob.hn/wp -
content/uploads/2015/01/Registro_ZADE.pdf . 
29 WTO documents G/AG/N/HND/36 of 15 May 2014 and G/AG/N/HND/98 of 22  July 2014.  
30 The export duty of US$13.25 is used as follows: US$2.75 as a contribution to the IHCAFE and the 
Coffee Fund (Decree No. 213 -2000) ; US$0.5 for loan repayment (Decree -Law No. 292 297 -2002); US$9 for 
the producer trust fund and voluntary capitalization fund (Decree No. 152 -2003 and Amendment 
No. 56-2007); and US$1 to repay ot her debt (Decree No. 143 -2008).  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.2  Electricity  
4.2.1   General features  
4.38.  Electricity, which in Honduras is classified together with gas and water, accounted for 2.4% 
of total GDP in 2014. The subsector has undergone major changes since  the previous Trade Policy 
Review. These changes include the approval of a new law and the creation of a new regulator.  
4.39.  The electricity subsector continues to be dominated by the operations of the National 
Electricity Company (ENEE), a vertically integrate d autonomous State -owned company which has 
been responsible for generating, marketing, transmitting and distributing electricity in Honduras 
since 1957. The ENEE still has a monopoly on the last three of the above -mentioned activities, but 
not on generatio n, where several private Honduran -owned companies participate under contracts 
with the ENEE and are responsible for generating more than 60% of the country 's power 
(Box 4.1). Power is mainly generated and supplied through the National Interconnected System  
(SIN). SIN operations are coordinated through the ENEE 's National Dispatch Centre, which is 
tasked with determining the amount of power that has to be generated by the power plants. 
The Dispatch Centre coordinates generation in Honduras and energy trading  with Nicaragua, 
Costa  Rica, Panama and El Salvador.  
Box 4.1 Composition of the Honduran electricity subsector  
The generating stations of the Honduran electrical system have an installed capacity of 1,899  MW 
(August 2015). Out of this total capacity, 24.5% (464.4 MW) corresponds to ENEE -owned hydroelectric 
plants, 8.8% (167.3 MW) to private hydroelectric plants, 4.5% (84.6 MW) to ENEE -owned thermal plants, 
20.2% (385.9 MW) to private thermal plants, 8.8% (171.3 M W) to private biomass plants, 9.2% (175.5  MW) 
to private wind -power plants, and 24% (455.2 MW) to private photovoltaic plants.  
The following private generating companies are operating in  Honduras:  
 ELCOSA (medium -speed diesel plants) with 80 MW of generati ng capacity;  
 EMCE II with 55 MW (medium -speed diesel plants) and 86 MW (medium -speed diesel plants, owned by 
ENEE, but operated by EMCE);  
 LUFUSSA I with 39.5 MW (gas turbine), LUFUSSA II with 80 MW (medium -speed diesel plants) and 
LUFUSSA III with 231 MW ( medium -speed diesel plants);  
 ENERSA with 220 MW (medium -speed diesel plants). In addition, private leasing accounts for 82.4  MW. 
Sourc e: ENEE.  
4.40.  The main indicators for the Honduran electricity subsector are set out in Table  4.6. 
Table 4.6 Main electricity subsector indicators, 2010 -2015  
 2010  2011  2012  2013  2014  2015a 
Installed capacity (MW)b 1,610 1,781 1,783 1,806 1,850 1,899 
National Interconnected 
System SIN (MWh)  6,746,760 7,168,586 7,578,263 7,938,355 8,092,068 5,688,046 
State hydroelectric  2,707,504 2,468,570 2,399,389 2,275,066 1,882,110 1,119,894 
State thermal  23,379 25,431 38,069 131,467 40,752 29,738 
Purchased power  4,015,713 4,673,680 5,140,805 5,531,821 6,169,206 4,538,415 
Private hydroelectri c 372,782 346,539 387,310 464,147 720,268 435,250 
Private thermal  3,472,674 4,001,644 4,157,857 4,450,480 4,595,330 3,097,857 
Biomass  148,109 164,539 181,521 192,371 176,789 247,188 
Wind n.a. 116,668 338,283 310,234 398,306 499,823 
Photovoltaic  n.a. n.a. n.a. n.a. n.a. 164,199 
International purchase  22,148 44,289 75,833 114,590 278,513 94,098 
Maximum demand (MW)  1,245 1,240 1,282 1,336 1,383 1,445 
Generation (GWh) (SIN)  6,724 7,123 7,502 7,824 7,814 5,565 
Hydroelectric  3,080 2,815 2,787 2,739 2,602 1,555 
 Public  2,708 2,469 2,399 2,275 1,882 1,120 
 Private  373 347 387 464 720 435 
Thermal  3,496 4,027 4,196 4,582 4,636 3,128 
 Public  23 25 38 131 2 30 
 Private  3,473 4,002 4,158 4,450 4,595 3,098 
Biomass  148 165 182 192 177 247 WT/TPR/S/336 /Rev.1  • Honduras  
 
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   2010  2011  2012  2013  2014  2015a 
Wind 0 117 338 310 398 500 
Photovoltaic  0 0 0 0 0 135 
Energy purchased by 
ENEE (US$)  2,013,123 6,648,744 13,952,674 114,590 45,702,164 8,566,356 
Net imports (MWh)  22,148 42,734 75,833 19,468,900 320,360 94,098 
Number of customers  1,273,020 1,334,604 1,401,507 1,481,599 1,552,951 1,629,474c 
Total investment by 
ENEE (L 1,000)  481,101 1,820,326 1,771,877 1,272,620 1,958,983 1,676,615 
Average price, 
residential sector 
(L/KWh)  2.29 2.61 2.82 2.8 2.9 3.2 
n.a. Not available . 
a January -August.  
b Total of local production and  net electricity imports.  
c October 2015.  
Source:  Information provided by the Honduran authorities.  
4.41.  Honduras participates in the SIEPAC (Central American Electrical Interconnection System) 
project, which involves the creation and implementation of a Centra l American wholesale electricity 
market and the development of the first regional transmission system. Honduras, together with 
Guatemala, El Salvador, Nicaragua, Costa Rica and Panama, has ratified the Framework Treaty on 
the Central American Electricity M arket, in force since January 1999, which is aimed at establishing 
a regional electricity market (MER) for the transmission and the buying and selling of electricity. 
The Regional Electrical Interconnection Commission (CRIE) is tasked with ensuring impleme ntation 
of the principles of the Framework Treaty and the subsequent regulations, while the Regional 
Operating Entity (EOR) is responsible for the technical operation and the commercial aspects of the 
regional market. Both entities were formally establishe d in 2000.  
4.2.2   Legal and institutional framework  
4.42.  The formulation and approval of electrical subsector policies is the responsibility of the 
Energy Cabinet, consisting of the President of the Republic and the State Secretaries for Natural 
Resources and the Envi ronment; Economic Development; Finance; and Infrastructure and Public 
Services. The State Secretariat for Natural Resources and the Environment (SERNA) is responsible 
for approving energy purchase and sale contracts with generating companies, as well as bi dding 
contracts. The National Congress has an Energy Committee which oversees electricity legislation.  
4.43.  At the end of 2015, the National Energy Commission (CNE), a decentralized SERNA agency, 
was still the body responsible for implementing and monitoring co mpliance with the laws and 
regulations governing the activities of the electricity subsector, as well as for submitting the 
short-term marginal cost (generating cost) to SERNA for approval and for putting it into effect. 
The functions of the CNE included a pproving busbar tariffs and those for the end consumer, 
together with their respective adjustment formulas.  
4.44.  During most of the review period, the industry 's activities (electricity generation, 
transmission, distribution and marketing) were governed by the  Framework Law on the Electricity 
Subsector (Decree No.  158-94) of 4  November  1994 and by its implementing Regulations 
(Official  Journal No.  27.953 of 11  May 1996), as amended by Decrees No.  131-98 and 89 -98. 
Under this legal framework, electricity generat ion was opened up to public, private and semi -public 
companies, with no restrictions on nationality. Distribution was also opened up to the private 
sector; distributors had to sign power supply contracts with the generating companies for terms of 
not less than five years and could not have generating facilities. Transmission was reserved by law 
for the State, which managed the operation of the Transmission System and the Dispatch Centre. 
The ENEE was the only entity authorized to import electricity.  
4.45.  The 199 4 Law stipulated that the user tariff was to have three components, namely: 
generation, transmission and value added for distribution; the busbar tariff (calculated as the 
average marginal cost over a period of five years) included the generation and trans mission 
components. Under the Law, the busbar tariffs had to be calculated by the generating companies 
and approved by the CNE, but in practice the generation cost was determined by the ENEE in WT/TPR/S/336 /Rev.1  • Honduras  
 
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  accordance with a dynamic model. The transmission and distribu tion components were added to 
obtain the total tariff.  
4.46.  The Framework Law on the Electricity Subsector provided for the application 
of cross-subsidies for residential users consuming less than 300 kWh per month. As a result of this 
cross-subsidy, users cons uming between 101 and 300 kWh were charged 80% of the total cost 
and those consuming between 0 and 100 kWh were charged 45%. These subsidies were financed 
from the payments made by non -residential users or large residential users. In addition, the 
Governme nt granted another subsidy, amounting to L  275 million per year, to residential 
customers consuming less than 300 kWh per month.  
4.47.  The main change during the review period was the enactment of the General Law on the 
Electricity Industry (Decree No.  404-2013)  of 20  January  2014, which replaced the previous law 
of 1994. This Law abolishes the exclusive rights assigned to the ENEE in relation to transmission 
and liberalizes the electricity market. In general, the new Law is intended to regulate: the 
generation, transmission, distribution and marketing of electricity in Honduras; the importing and 
exporting of electricity (in a way that supplements the provisions of the relevant international 
treaties); and the operation of the national system, including its relat ionship with those of 
neighbouring countries and the Central American regional power system and electricity market. 
The Law identifies the generating, distributing and marketing companies, together with the 
consumers, as actors in the national electricity market.  
4.48.  The new Law creates the Electricity Regulatory Commission (CREE), as a decentralized 
entity of the Sectoral Ministry of Economic  Management and Regulation, with operational and 
budgetary independence and administrative powers sufficient to ensure t he technical and financial 
capacity necessary to achieve its objectives. The Law stipulates that the CREE is to consist of three 
commissioners appointed by the President of the Republic, on the proposal of a Nominations 
Committee.31 The commissioners must r emain in office for a period of seven years, renewable for 
another equal term.  
4.49.  The CREE performs the following functions: to enforce and monitor compliance with the laws 
and regulations governing the electricity subsector; to impose the appropriate sanctio ns on 
enterprises and users governed by the Law in the event of infringements; to issue the rules and 
regulations necessary to improve the implementation of the Law and the proper functioning of the 
electricity subsector; to grant operating licences for tr ansmission and distribution; to define the 
methodology for calculating transmission and distribution tariffs, oversee their application, and 
approve, publish and put into effect the resulting tariffs; to establish the discount rate, the unit 
cost of the en ergy not supplied, and the hourly blocks to be used for calculating tariffs; to approve 
bidding conditions, to supervise the processes for the purchase of power and energy by 
distributors and to approve the power and energy contracts that result from these  processes; to 
approve requests from customers to be classified as a qualifying consumer; to approve, for 
distributors, the volume of energy to be invoiced monthly under the heading of street lighting; and 
to prevent anti -competitive, monopolistic or discr iminatory behaviour by the participants in each 
stage of the electricity supply service, including producers and users.  
4.50.  The CREE is also responsible for maintaining the Public Register of Electricity Sector 
Companies. In the interests of greater transparen cy, the law stipulates that the CREE must publish 
the decisions it adopts and submit to the Government and the National Congress an annual report 
on its activities. Under the General Law on the Electricity Industry (LGIE), the CREE is responsible 
for prepa ring draft rules of procedure, to be submitted to the President of the Republic for 
approval. This draft was prepared by the CREE within the period laid down by law, approved by the 
President of the Republic on 23  October  2015, and later published in the O fficial Journal 
(La Gaceta ).32 These rules reaffirm the obligation upon the CREE to publish its acts and decisions.  
                                               
31 The Nominations Committee w ill consist of: a person appointed by the Rectors of the national 
universities, public and private, who will preside; a person appointed by the Honduran Federation of Private 
Development Organizations (FOPRIDEH); a person appointed by the Honduran Private Enterprise Council 
(COHEP); a person appointed by the Honduran Institute of Mechanical, Electrical and Chemical Engineers 
(CIMEQH); and a person appointed by the Federation of University Professional Associations.  
32 Rules of Procedure of the CREE (Executiv e Decision No. 017 -2015) of 23 October 2015.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.51.  The CREE is financed by imposing a monthly electricity sales tax on every distributor. All the 
distribution companies, or the National Electr icity Company (ENEE) while these companies are 
being created, must make available to the CREE, in the first five days of each month, 0.25% of the 
total amount they have invoiced in the month prior to the preceding month. This charge may be 
transferred to t he final electricity distribution tariffs, if authorized by the CREE.  
4.52.  To operate in the electricity subsector, companies must be authorized by the CREE. 
The authorization may impose conditions on the companies with regard to leaving the subsector or 
taking  their installations out of service or reducing their capacity. Generating and marketing 
companies must be enrolled in the CREE 's Public Register of Electricity Sector Companies. 
Generating companies that use hydro resources must obtain the corresponding w ater utilization 
rights concession, in accordance with the provisions of the Law on Incentives for Renewable 
Energy Generation (Decree No.  70-2007) and amendments thereto, and the General Water Law. 
The concession specifies the period, conditions and scope  and the corresponding area in which the 
renewable natural resource is located and the process infrastructure. For all generating companies 
that use renewable energy sources the duration of the respective concession, the licence to use 
the non -hydro renewa ble resource and the environmental permit will be equal to the economic life 
of the project, as defined by the CREE by means of regulatory provisions. Transmission and 
distribution companies, in addition to being enrolled in the Public Register of Electric ity Sector 
Companies, must request and obtain a public electricity service operating licence from the CREE.  
4.53.  Operating licences for transmission and distribution services are granted by the CREE, 
subject to verification of the applicant 's technical and fina ncial capacity, for a minimum period of 
30 years and are renewable provided that application is made at least one year before the licence 
expires. Renewal is quasi -automatic, since the CREE can refuse only for good cause on the basis of 
a technical and leg al opinion. If it can be anticipated that, for some reason, an operating licence 
for transmission or distribution is going to come to an end, without renewal or extension, then the 
State must, sufficiently in advance, issue an international public invitati on to tender for the 
purpose of awarding the licence to another company. The CREE must supervise this process.  
4.54.  Under the new Law the CREE may grant study permits for building generating plants that 
have to use renewable natural resources. The permits are v alid for two years, once renewable for 
the same period of time, and confer exclusivity; the granting of these permits may be made 
subject to economic conditions.  
4.55.  The Law provides for an entity known as the "System Operator" to be responsible for the 
operat ion of the national electrical system. This will be a non -profit public, private or semi -public 
entity with technical capabilities. The stake in the equity of the System Operator which can be held 
by any company with electrical systems that form part of th e Regional Electricity Market may not 
exceed a maximum of 5% of the voting shares of the equity in question and no economic group 
may hold or control more than 10% of the capital or have the power of appointment to the 
management bodies. The structure of t he System Operator will include a Market Agents 
Committee to provide periodic assessments of its performance and propose measures for 
improving the functioning of the electrical system and the market. The Committee consists of 
representatives of the genera ting, distributing and marketing companies and the qualifying 
consumers.  
4.56.  The main function of the System Operator is to guarantee a safe and continuous supply of 
electricity and the proper coordination of the generation and transmission system at minimum c ost 
over the full range of electricity market operations. The Operator must also exercise supervision 
and control over the operations of the SIN and is required to administer a "casual" electricity 
market on which the price for each operating interval is e qual to the marginal cost determined on 
the basis of the dispatching at minimum cost realized by the Operator. All owners of generating 
plants and buyers who have acquired the right to their output are obliged to place all the available 
capacity of their p lants at the service of the System Operator, by submitting their variable costs.  
4.57.  The new Law separates the various activities of the electricity industry. It stipulates that 
distributors may not own generating plants, except in exceptional cases which must  be certified by 
the CREE. Moreover, a distributor 's total installed generating capacity may not exceed 5% of its 
maximum power demand.  It is also specified that transmission companies may not participate,  
directly or indirectly, in companies engaged in el ectricity generation, distribution or marketing 
activities.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.58.  The Law requires that the tariffs reflect the generation, transmission, distribution and other 
costs of providing the electricity service and that their discount rate be the real rate of the cost of 
capital determined by the CREE. The new Law does not contain any provisions with respect to 
subsidies or cross -subsidies. The State abolished the application of subsidies to electricity tariffs as 
from the end of 2014; however, it grants subsidies to th ose users who consume less than 75  kWh 
per month, the subsidy being provided directly through the State Secretariat for Social 
Development and applying only to families identified by the Government as living in poverty or 
extreme poverty.  
4.59.  In August 2015, t he CREE was not yet operational. In June  2015, the President of the 
Republic had appointed the members of the CREE.  
4.60.  The authorities have been promoting the implementation of renewable energy projects by 
means of a series of tax incentives. These include: e xemption from sales tax on equipment, 
accessories and spare parts during the pre -investment and construction period; exemption from 
the payment of import taxes, charges, tariffs and levies, during the pre -investment and 
construction period; for projects of  up to 50 MW, exemption from the payment of income tax, the 
temporary solidarity contribution, the net assets tax, and all taxes related to income over 
a ten-year period from the commencement of commercial operation; relief from taxes on 
temporary importat ion; exemption from income tax and withholdings on payments for services or 
fees agreed with foreign natural or legal persons, necessary for studies, development, installation, 
engineering, administration and construction, and monitoring of the renewable e nergy project . 
4.61.  Incentives are also granted with regard to the sale of energy through concession of the right 
to sell to the ENEE under a renewable energy supply contract (PPA), with a maximum duration 
of 20 years for projects up to 50  MW and 30  years for t hose that exceed that capacity. The Law 
stipulates that projects of less than 3  MW may be exempted from the need to sign an operating 
contract under a simplified procedure to be established by the SERNA.33 The base price for the 
energy is established in the  contracts in accordance with the short -run marginal cost (CMCP) 
in effect at the time of signature. For the first ten years, there is an incentive of 10% above the 
base price for projects of up to 50  MW. The base price is indexed annually in accordance wi th the 
United  States inflation index, up to an annual maximum of 1. 5%. 
4.3  Services  
4.3.1   Financial services  
4.3.1.1   Banking  
4.62.  At the end of 2015, the national financial system (SFN) comprised 92 banking and 
non-banking institutions, including the Central Bank of Honduras (BC H).34 The financial assets of 
the SFN amounted to a total of L  406,673.3  million in 2014.35 In 2015, the following were 
operating in Honduras: 17  commercial banks, 11 of them foreign -owned; one State bank (National 
Agricultural Development Bank (BANADESA)); two second -tier State -owned entities (Honduran 
Bank for Production and Housing (BANHPROVI)36 and Private Contributions Regime); and two 
representative offices of foreign banks. In 2014, the commercial banks managed around 96.8% of  
the total assets of the SF N, with 58.7% being concentrated in the foreign -owned banks. Since  
2010, the banking market has been characterized by a high level of concentration. In  2014, the six 
biggest commercial banks were handling 79.3% of assets, 79.1% of the loan portfolio and 81 .2% 
of deposits.37 
                                               
33 Online information from the CNE. Viewed at: 
http://www.cne.gob.hn/proyectos/incentivos?download=76%3Aincentivos -fiscales. 
34 The list of institutions can be viewed at: http://www.cnbs.gob.hn/files/boletines/listainst.pdf . 
35 National Banking and Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . 
36 Since 2014, BANHPROVI has been able to grant direct loans, but at the end of 2015 had not yet 
operated as a first -tier bank (Section  3.3.1. 2). 
37 National Banking and Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf  and Central American Monetary Council (2015 ), 
Informe del Sistema Bancario de Centroamérica , República Dominicana y Panamá 2014 . Viewed at: 
http://www.secmca.org/INFORMES/11%20EFR/EFR2014.pdf . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.63.  The total assets of the commercial banks amounted to L  393,763  million in 2014 
(Chart  4.1). During the review period, there was no substantial change in asset structure: in  2014, 
the loan portfolio was still the most significant asset wit h a 57.4% share of total assets, followed 
by investments (15.2%) and liquid assets (11.2%). Funds deposited by the public amounted to 
L 217,891  million i n 2014, representing 61.3% of total liabilities (Chart  4.1). During the period 
2010-2014 both total ass ets and deposits were mostly denominated in the local currency. 
However, the percentage share of foreign -currency assets and deposits increased over the period 
in question.38 The majority of lending was in the local currency . 
Chart 4.1 Private banking indicators, 2010 -2014  
(L million and % of total loans)  
 0 10 20 30 40 Real estate  Consumer  Industry  Commerce  Services  Agricultural  Other 
2010 2014 0 50 100 150 200 250 300 350 400 450 
2010 2011 2012 2013 2014 
Total assets  Loans 
Liabilities  Deposits  Performance  Lending by sector  
 
Note:  The authorities point out that the services sector relates to tangible goods (for example, electricity, 
transport, and communicat ions).  
Source:  Nationa l Banking and Insurance Commission (various years), Memoria . Viewed at: 
http://www.cnbs.gob.hn/index.php/publicaciones/memorias -anuales , and information provided by 
the authori ties. 
4.64.  In 2014, direct loans39 granted by the commercial banks amounted to L  208,467  million, 
while total loans reached L  225,694 million.40 There were no significant changes in the destination 
of the loans during the review period (Chart  4.1). Lending to ind ustry and for real estate 
transactions decreased, while lending to finance other activities increased.  
4.65.  Financial spreads continued to be relatively high. In 2014, the weighted average lending 
rate (in both currencies, local and foreign) was 14.4% while th e weighted average deposit rate 
was 5.2%, corresponding to a spread of 9.2% (Section 1).41 
4.66.  Between 2010 and 2014 the total capital of the commercial banks increased from L  22,932 
to L 38,172  million. Since  2010, the commercial banks have had sound balance s heets with 
a capital adequacy ratio (CAR) that exceeds the minimum requirement of 10%.42 
                                               
38 National Banking and Insurance Commi ssion (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf  and National Banking and Insurance Commission 
(2011), Memorias 2010 . Viewed at: http://www.cnbs.gob.hn/files/memoria/MEMORIA2010.pdf . 
39 Include only the capital (not interest).  
40 National Banking and Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . 
41 National Banking and Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://w ww.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . 
42 Regulations on the capital adequacy of banks, savings and loan associations and finance companies. 
Circular CNBS No. 005/2009 of 13 January 2009.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  In December  2014, the CAR stood at 14.6%. In 2014, all the banks met the minimum CAR 
requirement.43 
4.67.  In December 2014, the Honduran banking system had not yet returned to  the levels 
of return on assets (ROA) and return on equity (ROE) recorded before the international financial 
crisis. The ROA was 1.9% (2.5% pre -crisis) and the ROE was 16.8% (25.7% pre -crisis). In  2014, 
the commercial banking system had a liquidity ratio o f a little over 20%, which comfortably met 
the prudential requirements in force. Default risk improved substantially over the review period. 
The non -performing loan ratio, which had reached  6.9% in December 2010, fell to 3.3% 
in December  2014.44 
4.68.  Where prude ntial standards are concerned, the Honduran banking system makes use of the 
Basel principles.45 According to the CNBS, Honduras applies the Basel principles; however, 
according to the authorities, it has not yet been possible to implement all of them.46 The CNBS is 
taking steps to implement Basel II and III.  
4.69.  The banking system 's regulatory bodies are the CNBS, through the Supervisory Authority 
for Banks, Finance Companies and Savings and Loan Associations, and the BCH. The Supervisory 
Authority oversees 32 fi nancial institutions: 17 commercial banks, one State -owned bank, 
ten finance companies, two representative offices of foreign banks, and two second -tier 
institutions. The CNBS is authorized to determine the prudential requirements, in particular the 
solven cy ratio. The Commission may order the compulsory liquidation of a bank whose solvency 
ratio is less than 60% of the level required.  
4.70.  The financial institutions continue to be governed by the 2004 Law on the Financial 
System.47 No amendments were made to thi s law during the review period.  
4.71.  Honduras authorizes the commercial presence of foreign banks through legally established 
branches and representative offices; both are subject to the national legislation and the reciprocity 
principle. Branches must have tw o legal representatives permanently domiciled in Honduras. 
The CNBS resolution authorizing the operation of a financial institution must be recorded in the 
Business Register.  
4.72.  The CNBS authorizes the establishment of commercial banks, subject to a favourab le 
opinion from the BCH based on an economic needs test. Applications for authorization require 
security equivalent to 10% of the fixed capital it is planned to invest to be deposited in the BCH or 
invested in government securities. Moreover, foreign insti tutions must invest their fixed capital 
in Honduras.48  
4.73.  Commercial banks, both Honduran and foreign, must be set up as a closed -end public 
limited company. The minimum fixed capital must be paid up before operations begin and is 
determined by the CNBS, subj ect to a favourable opinion from the BCH. In  2013, the Commission 
increased the minimum amount required for commercial banks, which rose from L  300 million to 
L 400 million, and gave already established banks a period of up to two years in which to comply 
                                               
43 National Banking and Insurance Commission (2011), Memorias  2010. Viewed at: 
http://www.cnbs.gob.hn/files/memoria/MEMORIA2010.pdf , and National Banking and Insurance Commission 
(2015), Memorias 2014 . Viewed at: http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . 
44 National Banking and Insurance Commission (2011), Memorias 2010 . Viewed at: 
http://www.cnbs.gob. hn/files/memoria/MEMORIA2010.pdf , National Banking and Insurance Commission 
(2015), Memorias 2014 . Viewed at: http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf , and 
Central  American  Monetary Council (2015), Informe del Sistema Bancario de Centroamérica , República 
Dominicana y Panamá 2014 . Viewed at: http://www.secmca.org/INFORMES/11%20EFR/EFR2014.pdf . 
45 Online inform ation from the CNBS. Viewed at: http://www.cnbs.gob.hn/index.php/marco -
legal/normas -y-practicas -internacionales/29 -principios -basicos -para-una-supervision -bancaria -efectiva -
principios -basicos -de-basilea . 
46 The authorities have noted that three of the 25 principles were rated materially non -compliant 
(these  were: country and  transfer risks; market risk; and interest rate risk). The other principles are rated 
largely compliant.  
47 Law on the Financial System (Decree No. 129 -2004) of 21 September 2004.  
48 Articles 6 -8 and 20 of Decree No. 129 -2004.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  with the new threshold.49 The CNBS can adjust the minimum every two years, but this period may 
be reduced if the macroeconomic situation so requires, subject to the prior opinion of the BCH.50 
4.74.  Commercial banks, both Honduran and foreign, may open (and/or clo se) branches, agencies 
and other types of institutions for offering financial services, provided that they inform the CNBS. 
The Commission may limit or prohibit the opening of branches or agencies for lack of capital or 
reserves.51 According to the authorit ies, no opening of an office has been limited or prohibited 
since 2010.  
4.75.  Mergers and acquisitions between commercial banks are permitted.52 In the case of a 
merger, application must be made to the Commission for the Defence and Promotion of 
Competition (CDPC ), which transmits it to the BCH. If the BCH expresses a favourable opinion, the 
application is forwarded to the CNBS, which authorizes the merger. The share transfer requires the 
authorization of the CNBS if it presupposes a change of control in the insti tution or if a single 
shareholder acquires an amount equal to or greater than 10% of the registered capital . 
4.76.  Banks are required to notify the CNBS if they intend to make investments amounting to 5% 
or more of their registered capital. Moreover, some invest ments must be kept within certain limits; 
banks may not invest more than 20% of their capital and reserves in shares or more than 40% 
in the cost of their movable property, equipment or real estate. Likewise, loans extended to 
persons domiciled abroad must  be approved by the BCH.53 Furthermore, a bank may not grant 
loans for more than 30% of its capital to related parties.54 
4.77.  Deposits in commercial banks are insured for a maximum of US$ 9,632.92  (or its equivalent 
in local currency ). 
4.78.  In addition, Honduras has f ive private financial development organizations (OPDFs), which, 
on 31 December  2014, held L  1,564.9 million in assets. T he credit granted by these 
five organizations amounted to L  1,095 million. Most of these loans were made to finance coffee 
trading and c offee growing. According to the authorities, the requirements for establishing 
an OPDF have not changed since 2010. The minimum capital varies between L  1 million and 
L 10 million, depending on whether the OPDF is first - or second -tier. Foreign capital may  be 
invested and there is no minimum percentage for foreigners.55 Moreover, at the end of 2014, there 
were four remittance companies in operation, transferring funds inside and outside the country. 
These companies received L  28,724.2 million in family remit tances, an increase of 39.3% as 
compared with 2013.56 
4.79.  The Law on the Financial System continues to govern "authorized financial groups", which 
are regulated by the CNBS. The Law allows two or more legal persons engaged in activities of 
a financial nature to  organize as an "authorized financial group" provided that: (i)  at least one of 
them is a financial system institution authorized under the Law; and (ii)  there is common control in 
matters of ownership, management, administration or use of corporate image,  or if there are no 
such relationships, then under an agreement they decide to maintain common control or act as 
a decision -making unit. At the end of 2014, there were eight authorized financial groups operating 
in Honduras, involving a total of 39 compani es. According to the authorities, each group was 
headed by a bank. In September 2014, the eight financial groups had L  268,463.5  million in assets 
and L  236,696.1  million in liabilities.  
                                               
49 The minimum requirements were  also increased for savings and loan associations (from L  70 million 
to L 90 million) and finance companies and other institutions habitually involved in financial intermediation 
(from L  50 million to L  60 million).  
50 Articles 5 and 36 of Decree No.  129-2004, CNBS Circular No.  080/2013 of 3  May 2013, and 
WTO document WT/TPR/S/234/Rev.1 of 15  October  2010.  
51 Article 16 of Decree No. 129 -2004.  
52 OECD/IDB (2011), Competition Law and Policy in Honduras: A Peer Review . Viewed at: 
http://www.oecd.org/daf/competition/49733321.pdf . 
53 Articles 47 and 48 of Decree No. 129 -2004.  
54 Article 63 o f Decree No. 129 -2004.  
55 WTO document WT/TPR/S/234/Rev.1 of 15 October 2010.  
56 National Banking and Insurance Comm ission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.3.1.2   Insurance  
4.80.  The insurance market consists only of private companies. At  the end of 2015, there were 
11 active insurance companies, six of which were foreign -owned. In Honduras, insurance 
companies may offer personal insurance (life, health, disability) or insurance against damage to 
property, or both types of insurance.57 There are no local reinsurance companies.58 During the 
review period, the insurance market remained highly concentrated. In  2014, six insurance 
companies were managing 81.3% of total assets and 84.6% of premiums.59 
4.81.  Between 2010 and 2014, the assets of the Hondur an insurance companies increased by 
L 9,131  million to L  12,477  million. Total net premiums reached L  8,000  million in 2014 
(Chart  4.2). Although premiums increased during the review period, the insurance penetration rate 
(or percentage of premiums in rela tion to GDP) remained below 2%.60 During the review period, 
despite having decreased, damage insurance accounted for the largest share of the market 
(Chart  4.2). In 2014, the annual per capita expenditure on insurance was L  912.43. In the same 
year, reinsur ed premiums accounted for 45.6% of total premiums.61 
4.82.  The subsector 's legal and institutional framework has not undergone any substantial 
changes since 2010. Insurance and reinsurance services are governed by the Law on Insurance 
and Reinsurance Institutions62 and the resolutions of the CNBS. The Commission, through the 
Insurance and Pensions Supervisory Authority, supervises and monitors the activities of the 
insurance and reinsurance companies, together with those of intermediaries.  
4.83.  Honduras allows the comme rcial presence of foreign insurance companies in the form of 
legally established branches. Branches may be established if the parent company is subject to 
prudential standards similar to or stricter than those employed in Honduras and has sufficient 
capita l to meet the obligations contracted in Honduras.63 The establishment of insurance 
companies is authorized by the BCH, subject to a favourable opinion from the CNBS based on an 
economic needs test. In addition to meeting the requirements applicable to local  companies, 
foreign companies must deposit security equivalent to 10% of the fixed capital that it is planned to 
invest. This sum must be deposited in the BCH or invested in government securities. Likewise, the 
fixed capital must be invested in Honduras.64 
                                               
57 Article 8 of Decree No. 22 -2001.  
58 A.M. Best Company (2013), Latin America Insurance Reg ulators Evolve With Growing, Changing 
Markets , May. Viewed at: 
http://www.ambest.com/latinamerica/pdfs/SR_2013_453_LatAm_Regulations_esp.pdf . 
59 National Banking a nd Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . 
60 MAPFRE Foundation (2013), El mercado asegurador latinoamericano 2012 -2013, December. Viewed 
at: https://www.fundacionmapfre.org/fundacion/es_es/images/mercado -asegurador -ltinoamericano -2012-
2013-esp_tcm164 -49381.pdf . 
61 National Banking and Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . 
62 Law on Insurance and Rein surance Institutions (Decree No. 22 -2001) of 30 April 2001.  
63 Articles 21 and 22 of Decree No. 22 -2001. The authorization requirements, procedure and 
requirements for the establishment of branches of foreign institutions in Honduras are contained in Decree  
No. 22-2001 and the Regulations on the Establishment of Branches of Foreign Insurance Institutions issued by 
the BCH (Resolution No. 448 -12/2003 of 18 December 2003).  
64 Articles 10 -12 and 22 of Decree No. 22 -2001.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Chart 4.2 Insurance subsector indicators, 2010 -2014  
(L million and % of total)  
0 10 20 30 40 50 60DamageLifeAccident, illnessSurety bonds
2010 201402468101214
2010 2011 2012 2013 2014
Assets Total net premiums
Reinsured premiumsPerformanceComposition of total net premiums, 
by branch
 
Source:  National Banking and Insurance Commission (various years), Memoria . Viewed at: 
http://www.cnbs.gob.hn/index.php/publicaciones/memorias -anuales , and information provided by 
the authorities . 
4.84.  Insurance and reinsurance companies must be set up as closed -end public limited 
companies .65 These require a  minimum amount of fixed capital determined by the BCH, subject to 
a favourable opinion from the CNBS. In  2013, the BCH increased the minimum amount of capital 
and accorded a period of up to one year for already established companies to meet the new 
requir ements (Table  4.7). The minimum capital must be deposited at the commencement of 
operations.  
Table 4.7 Minimum fixed capital for the establishment of insurance companies, 2010  
and 2015  
 2010  2015  
Companies of fering general and personal insurance services  L 25 million  L 60 million  
Companies offering all types of insurance  L 50 million  L 120 million  
Reinsurers  L 70 million  L 165 million  
Source:  Central Bank Resolution No. 30 -1/2013 of 29  April 2013, and WTO document WT/TPR/S/234/Rev.1 
of 15 October  2010.  
4.85.  To be able to practice as an insurance agent or broker it is necessary to obtain the 
authorization of the CNBS and to be registered in the Public Register of Insurance Agents and 
Brokers; foreigners must show  that they have resided in Honduras for three consecutive years.66 
4.86.  Insurance companies may sign reinsurance contracts inside or outside Honduras but only 
with reinsurers registered with the CNBS.67 Foreign reinsurers must have at least a BBB -rating 
(or equiv alent) to be able to provide services. Insurers may not provide reinsurance services. 
However, they may offer some financial services, depending on the amount and the term, such as 
loans for natural or legal persons resident in Honduras.68 
4.87.  The CNBS regulate s the types of policy that can be sold, but the insurance companies set 
the premium rates.  
                                               
65 Article 9 of Decree No.  22-2001.  
66 Articles 94 and 96 of Decree No. 22 -2001 and Regulations on Insurance and Surety Bond 
Intermediation (CNBS Circular No.  084/2009).  
67 Article 77 of Decree No.  22-2001.  
68 The credit limit is fixed at 20% of the capital and capital reserves. They may also provide  loans with 
a fiduciary guarantee which are unlimited in amount but repayable within not more than 25 years . For further 
information, see A rticle 69 of Decree No.  22-2001.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.88.  Applications for mergers and takeovers are submitted to the CDPC, which forwards them to 
the CNBS. If the CNBS gives a favourable opinion, the application is sent to  the BCH for approval. 
Mergers between insurers operating in different branches or between insurers and reinsurers are 
not permitted if the intention is to operate in both markets. Mergers which concentrate more than 
25% of total premiums are prohibited. I f a natural person acquires shares equivalent to more than 
10% of a company 's subscribed and paid -up capital, the BCH and the CNBS must be notified.69 
4.3.2   Telecommunications  
4.89.  According to the authorities, in 2014 telecommunications contributed 4.6% to GDP and 
absorbed 28.3% of total FDI. Since  2010, the fixed telephony penetration rate has remained 
stable, while that of mobile telephony, although high, has decreased (Chart  4.3).70 The use of 
mobile broadband services increased during the review period. At the end of 2014 there were 
1.4 million users and the penetration rate was 15.5%. The authorities have pointed out that this 
increase was partly due to the expansion of 4G  coverage. However, fixed broadband internet use 
continues to be limited by the low level of p enetration of fixed telephony and the small proportion 
of households that have computers (some 20.6% at the end of 2014).  
Chart 4.3 Telecommunications services penetration rate, 2010 -2015  
 0 20 40 60 80 100 120 140 
2010 2011 2012 2013 2014 2015 (Jan -June) 
Fixed telephony users  Mobile telephony users  
Fixed broadband i nternet  users Mobile broadband i nternet  users Per 100 inhabitants  
 
Source:  National Te lecommunications Commission (CONATEL) ( http://www.conatel.gob.hn/?page_id=464 ), 
ITU (http://www.itu.int/net4/itu -d/icteye  and http://www.itu.int/net4/itu -
d/icteye/CountryProfile.aspx ), and data provided by the authorities . 
4.90.  The Honduran Telecommunications Company (HONDUTEL), a 100% State -owned 
enterprise, provides telecommunicati ons services. In  2014, there were 17  fixed-telephony public 
service operators, three mobile -telephony public service operators and 33  internet access 
providers. The market is also composed of sub -operators and resellers that sell public 
telecommunications services after signing a contract with the authorized operators. 
The sub-operators are enterprises that market exclusively some of the services offered by 
HONDUTEL. At present, there are nine Honduran and foreign sub -operators.  
                                               
69 Article 56 of Decree No.  22-2001.  
70 IDB (2012), Sector de Telecomunicaciones en Ho nduras . Viewed at: 
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=37085065 . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.91.  The mobile telephony market is dominated by private companies, while HONDUTEL 
holds  78% of the fixed telephony market. HONDUTEL is still the only provider of international 
long-distance fixed telephony services, although since 2010 sub -operators have also been 
allowed  to offer them. International long -distance mobile telephony services have been liberalized 
since 2006.71 
4.92.  The provision of telecommunications services is governed by the Framework Law on the 
Telecommunications Sector of 1995, which was amended in 2011 and 2013.72 The subsec tor is 
also governed by the regulations issued by the National Telecommunications Commission 
(CONATEL). In 2013, in accordance with commitments assumed under the CAFTA -DR, Honduras 
enacted the Law on Number Portability in mobile telephony services.  
4.93.  The Go vernment formulates telecommunications policy and CONATEL implements it. Since 
2010, the objective of telecommunications policy has been to increase the use of 
telecommunications and to reduce the cost and improve the quality of the services.73 In 2013, 
to improve access to telecommunications services, Honduras established the Fund for Investment 
in Telecommunications and Information and Communications Technologies (FITT). The FITT, 
managed by CONATEL, is used to subsidize or finance projects in neglected ar eas and social 
inclusion projects or to narrow the digital gap. The Fund is financed, in particular, from 
a contribution equivalent to 1% of operators ' incomes.74 According to the authorities, the main 
projects supported by the FITT have been the increased use of the internet in schools and of the 
Wi-Fi network in public places. Projects are awarded on the basis of a bidding process.  
4.94.  CONATEL, assigned since 2013 to the Office of the President of the Republic, regulates and 
supervises the provision of telecom munications services. CONATEL also administers and monitors 
the use of the radio -frequency spectrum everywhere in the country, except in the Employment and 
Economic Development Zones (ZEDE), where there is provision for CONATEL to cede the 
administration o f the unallocated spectrum to the Zone Administration.75 
4.95.  Honduras does not impose restrictions on access to the public telecommunications services 
market for private providers, whether domestic or foreign, but foreign State -owned enterprises 
may not partici pate directly (Section 2.4).  
4.96.  CONATEL authorizes the provision of public telecommunications services by means of a 
concession, a permit or registration (Table  4.8). If the provision of the service entails the use 
of the radio -frequency spectrum, then a lic ence, likewise issued by the Commission, is also 
required. Licences to use the radio -frequency spectrum are awarded automatically upon 
application; however, if there is a shortage of frequencies, a public competition is organized. 
The licence is valid for the same length of time as the concession, permit or registration with which 
it is linked. To be allowed to operate, foreign companies must be established in Honduras and have 
a local representative. As a rule, providers of public telecommunications servic es do not benefit 
from exclusive rights, unless CONATEL so decides, on the basis of technical or economic criteria. 
So far, no exclusivity has been granted.  
                                               
71 CONATEL Resolution NR011/10 and State Secretariat for Foreign Affairs (2011), Programa Nac ional 
de Promoción de Inversiones: Oportunidades de Inversión - Sector Infraestructura . Viewed at: 
http://www.hondurasopenforbusiness.com/ SITEv2/files/pdf/Oportunidades_de_inversion_Infraestructura.pdf . 
72 Framework Law on the Telecommunications Sector (Decree No. 185 -95) of 5 December 1995, 
as amended by Decrees No. 118 -97, No. 112 -2011 and No. 325 -2013, and General Regulations of the 
Frame work Law on the Telecommunications Sector (Executive Decision No.  141-2002) of 23 December 2002.  
73 Government Plan 2010 -2014 and State Secretariat for Foreign Affairs (2011), Programa Nacional de 
Promoción de Inversiones: Oportunidades de Inversión - Secto r Infraestructura . Viewed at: 
http://www.hondurasopenforbusiness.com/SITEv2/files/pdf/Oportunidades_de_inversion_Infraestructura.pdf . 
74 Articles 24 -B and 24 -C of Decree No. 185 -95, added by Decree No. 325 -2013.  
75 Articles 13 and 14 of Decree No. 185 -95, as amended by Decrees No. 118 -97 and No. 325 -2013.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 4.8 Types of authorization for the provision o f public telecommunications services  
 Carrier 
services  Basic 
end-user 
services  Supplementary 
end-user 
services  Radiocommunication 
and broadcasting 
services  Value -added 
services  
Authorization  Concession  Permit  Registration  
Duration  25 years  15 years  5 yea rs 
Awarding 
procedure  Public bidding  At the request of the applicant or by public 
competition, as decided by CONATEL on 
the basis of technical or strategic criteria  - 
Note:  Authorizations may be renewed . 
Source:  Articles 25 and 27 of Decree No.  185-95. 
4.97.  In general, the rates for telecommunications services are set by the market, but CONATEL 
may regulate them by means of a maximum price system, depending on whether or not "effective 
competitive conditions" are present or for reasons of social interest.76 CONATEL determines the 
rates for the services offered by HONDUTEL.  
4.98.  CONATEL must ensure free competition in the telecommunications market by investigating 
restrictive practices and taking appropriate remedial action. In  2011, the competition regime was 
reforme d and since then economic concentration transactions have had to be approved by 
CONATEL, after obtaining the opinion of the CDPC. The purchase of shares amounting to less than 
10% of the total does not require authorization, but CONATEL must be notified. Up until 2011, 
a concession could be revoked if an operator acquired more than 10% of the capital of another 
company offering the same services. CONATEL is also responsible for settling disputes between 
operators and handling complaints from users.77 CONATEL 's decisions may be appealed through 
administrative or legal channels.  
4.99.  Since 2013, number portability has been available in Honduras for mobile telephony. Where 
fixed telephony is concerned, number portability has not been introduced due to the low level o f 
usage of these service s. 
4.3.3   Transport  
4.3.3.1   Air transport  
4.100.   Honduras has four international airports and is building a fifth. At the end of 2014, 
Honduras had international air links that included 160  scheduled and another three non -scheduled 
(charter) routes . 
4.101.   Air transport is regulated by: the Civil Aviation Law78, its implementing Regulations, issued 
by the Honduran Civil Aviation Board (AHAC), the Joint Rules on Civil Aviation, issued by the 
Central American Air Navigation Services Corporation (COCESNA), and the i nternational 
conventions and other air services agreements signed by Honduras. There were no amendments to 
the Civil Aviation Law during the review period . 
4.102.   Air transport policy is formulated by the State Secretariat for Infrastructure and Public 
Services ( INSEP). According to the authorities,  Honduras does not have a clearly defined 
commercial aviation policy. However, the Civil Aviation Law stipulates that Honduras has an open 
skies policy which unilaterally grants fifth -freedom traffic rights. Despite thi s policy, Honduras may 
invoke the reciprocity principle to refuse or cancel authorizations to operate.79 
                                               
76 Article 31 of Decree No. 185 -95, as amended by Decree No. 325 -2013, CONATEL Resolution  
No. 12/12 and Articles 4 -5 and 7 of the Regulations on Telecommunications Services Rates and Costs 
(CONATEL Resolution No.  28/99). The Regulations also contain the formulas for determining the maximum 
rates.  
77 Articles 229 and 236 of Executive Decision No . 141-2002.  
78 Civil Aviation Law (Decree No.  55-2004) of 5 May 2005, and Regulations implementing the Civil 
Aviation Law (Decision No.  00645 -A) of 14 October 2005.  
79 Articles 4 and 116 of the Civil Aviation Law (Decree No.  55-2004) of 5 May 2005.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.103.   In 2014, the Directorate -General of Civil Aviation (DGAC) was replaced by the Honduran 
Civil Aviation Board (AHAC).80 The National Aviation Council conti nues to implement the Civil 
Aviation Law, but without taking powers away from the AHAC.  
4.104.   The AHAC is responsible for regulating and supervising aviation activities. COCESNA, 
a regional institution, has the exclusive right to provide air traffic control serv ices, together with 
aviation telecommunications and information and radio -navigation services. COCESNA controls air 
traffic at altitudes above 20,000  feet, below which the AHAC provides the service.81 
The Administration of an Employment and Economic Develop ment Zone (ZEDE) is responsible for 
aerial navigation and airport control within the zone.  
4.105.   The international airports are managed and operated by the private sector under a 
concession system. A concession has also been awarded for the construction, mainte nance and 
operation of the future Palmerola international airport, which will replace the Toncontín airport. 
The new airport will have to comply with International Civil Aviation Organization (ICAO) 
standards. Measures are also being taken to improve the o perational safety of the other airports.82  
4.106.   There have been no changes in terms of access to the air transport services market 
since 2010. Under the law, domestic and cabotage flights have to be operated exclusively by 
national airlines. Airlines are consid ered national if more than 51% of the capital and effective 
control (including the management body) are in the hands of Hondurans.  
4.107.   The AHAC authorizes the provision of air transport services. Air carriers must complete the 
formalities through a legal repr esentative duly enrolled in the National Aviation Register. Foreign 
airlines must also have authorization to trade, in accordance with the provisions of the Commercial 
Code.83 
4.108.   To provide air transport services in Honduras an operating certificate or permit,  issued by 
the AHAC, is required (Table  4.10). To obtain an operating certificate national and foreign airline 
companies must meet similar requirements; the only difference is the amount of the bank 
guarantee that has to be deposited. With the authorizatio n of the AHAC, airlines that operate 
scheduled flights may operate other flights on or off their routes.84 
Table 4.9 Requirements for the provision of air transport services  
 Scheduled services  Charter services   
Type of authorization  Operating certificate  Permit  
Duration  10 years, renewable  1 year, renewable  
Requirement for 
issuing authorization  Traffic needs  Not constitute "undue competition" 
for scheduled services  
Other requirements 
to operate  Obtain an ai r operator 's certificate (COA)  Obtain an operating certificate  
Note:  The COA and the operating certificate show that the airline meets the technical operational safety 
requirements.  
Source:  Decree No.  55-2004.  
4.109.   To operate in Honduras all aircraft must have  certificates of registration and airworthiness. 
Honduras recognizes certificates granted abroad provided that they are in accordance with 
international standards. Only Honduran natural and legal persons may register aircraft for 
commercial transport purpo ses in the National Aviation Register. Honduran airlines may operate 
with foreign -registered aircraft subject to AHAC approval.85 Charter and leasing contracts must be 
recorded in the National Aviation Register. The temporary or outright exportation of a Ho nduran 
civil aircraft requires authorization from the AHAC. Honduras allows Honduran -registered aircraft 
to be maintained in foreign workshops certified by the AHAC.  
                                               
80 Executi ve Decree No. PCM -047-2014 of 4 August 2014, Article 1 of Executive Decree 
No. PCM-047-2014, and Article 17 of Decree No. 55 -2004.  
81 Online information from COCESNA. Viewed at: http://www.cocesna.org/in dex.php?lng=0 . 
82 Online information from Aeropuertos de Honduras. Viewed at: http://www.interairports.hn . 
83 Article 142 of Decree No. 55 -2004.  
84 Articles 129 and 134 of Decree No. 55 -2004, and Articles 112 and 123 of Decision No. 00645 -A. 
85 Article 131 of Decree No. 55 -2004.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.110.   The temporary hiring of foreign technical aviation personnel is permitted if there is 
a shortage of local personnel, but this is subject to reciprocal treatment. In these cases, the AHAC 
issues a special permit for a renewable three -month period, during which Honduran personnel 
must be trained. To serve on board Honduran -registered aircraft for eign crews must hold a licence 
accredited by the AHAC.86 
4.111.   Foreign airlines that operate in Honduras may market their products directly, without 
restrictions. For example, there is no limit on the number of points of sale.  
4.112.   Air transport operators may set the ir fares freely, but have to register them with the 
AHAC. According to the authorities, the concession contract stipulates that, each year, the 
concession holder may adopt new airport charges, if so authorized by the Supervisory Authority for 
Public -Privat e Partnerships (SAPP).  
4.113.   Honduras is promoting the development of aviation activities by granting incentives, 
namely: (a)  imports of aircraft, engines and other parts are exempt from tariffs and other 
charges; (b)  a zero rate is applied to aviation fuel and lubricants; (c)  aviation fuel and lubricant 
imports are exempt from the administrative services charge and from production and consumption 
tax; and (d)  aviation gasoline is exempt from the tax on petroleum products.87  
4.114.   According to the authorities, Honduras  has signed only three bilateral agreements on air 
transport services (Table  4.10).  
Table 4.10 Modalities of the bilateral agreements on air transport services  
 
Signature  
Entry into force  Freedom of the aira Articles:  
Statisticsg Fifth  
Seventh  
Eighth  
(cabotage) 
Cooperationb 
Designationc 
Denunciationd 
Ratese 
Capacityf 
Ecuador  1954 n.a. No No No No M PCME  ND B1 No 
United States  1997 n.a. Yes No No No M PCME  DD FD No 
Panama  1987 n.a. No No No No M PCME  DA PD No 
n.a. Not available.  
a Yes = rights are granted, even though limited.  
b Yes = there articles permitting cooperation between airlines, for example, code sharing.  
c M = multiple.  
d PCME = majority ownership and effective control.  
e DA = double approval . DD = double disapproval. ND = not determined.  
f B1 = Bermuda 1. FD = free determination. PD = predetermination.  
g Yes = the agreement provides for an exchange of statistics.  
Source:  WTO Secretariat database on air transport services agreements, and infor mation provided by the 
authorities.  
4.3.3.2   Maritime transport  
4.115.   Maritime transport is used to carry 90% of Honduran foreign trade. Between 2010 and 
2012, activity in Honduran ports steadily increased, but since 2013 there has been a slight decline 
in movements of v essels and cargo (Table  4.11). In 2014, bulk cargo accounted for 57% of the 
total cargo handled in the ports, followed by container traffic (32.5%). Honduras ' main port is 
Puerto Cortés.88 
                                               
86 Decision No. 00645 -A. 
87 Article 44 of Decree No. 55 -2004.  
88 Central American Maritime Transport Commission (2014), Resumen Estadístico 2013 . Viewed at: 
http://www.cocatram.org.ni/redmarport.html ; COCATRAM statistics for the fourth quarter of 2013 -2014. 
Viewed at: http://www.cocatram.org.ni/redmarport.html . WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table 4.11 Port opera tions, 2010 -2014  
 2010  2011  2012  2013  2014  
Movement of vessels  2,252 2,570 2,338 2,281 2,043 
Movement of cargo (1,000 tonnes)  10,582 12,137 13,057 14,117 13,936 
Movement of containers  (TEU)  612,844 662,672 663,945 671,467 682,859 
Source:  Central Americ an Maritime Transport Commission data. Viewed at: 
http://www.cocatram.org.ni/Serie_Historica_Buques_Carga_TEUs_2001_2014.pdf , and data 
provided by the authorities.  
4.116.   All Honduran ports are owned by the State; they fall under the jurisdiction of the National 
Ports Company (ENP), which can operate them directly or by putting them out to concession. 
When the ENP gives out a port on concession, it becomes the body responsib le for regulating the 
operators. There are six international ports in Honduras. The ENP continues to manage and 
operate the ports of La Ceiba, Castilla, San Lorenzo and Tela. The port installations of the port 
of Roatán (cruise ship port) and those of Puer to Cortés are operated by concession holders . 
4.117.   The subsector 's legal and institutional framework has not changed since the last TPR in 
2010. According to the authorities, the Organic Law on the National Merchant Marine of 199489 
is being reviewed. The subsec tor is regulated by the Directorate -General of the Merchant Marine 
(DGMM), which is part of the State Secretariat for Security and Defence.90 
4.118.   There was no change in the conditions of access to the maritime transport services market 
during the review period.  Honduras allows foreign shipping companies to operate international 
maritime transport services, with the State reserving the right to impose restrictions on economic 
or defence grounds. Honduras observes the principle of reciprocity in the provision of i nternational 
maritime transport services . 
4.119.   Under the law, only domestic shipping companies may provide maritime transport services 
in territorial waters and cabotage services.91 A domestic shipping company is one that belongs to 
Hondurans (51% of the capital ) and is domiciled in Honduras.  In addition, transport services in 
territorial waters and cabotage services must be operated by Honduran -registered vessels; 
however, where there are no Honduran vessels available, the DGMM may authorize goods to be 
transpor ted on foreign -flag vessels, in which case preference will be giv en to Central American 
vessels.  
4.120.   DGMM registration is mandatory for domestic shipping companies; international companies 
are not obliged to register, but may do so. Foreign vessels can also be  registered, thereby 
acquiring Honduran nationality under a navigation permit valid for four years.92  
4.121.   Honduran legislation allows shipping companies participating in maritime conferences to 
provide regular international maritime transport services.93 Mariti me conferences that include 
Honduran ports must permit free entry for Honduran shipping lines. Where a conference applies 
a traffic -sharing agreement, Honduran shipping companies may opt to be treated as a single 
group. Conferences must register with the D GMM and have an agent in Honduras. There is 
no obligation to register tariffs.  
4.122.   The ENP continues to set the charges for port services and related activities in the ports 
that it manages. The Government, the armed forces and social welfare bodies are totall y or 
partially exempted from payment for these services. Honduran shipping companies are eligible for 
a discount on the annual tonnage tax if they employ Honduran crews on international maritime 
transport vessels.94 The discount percentage varies according to the number of crews of Honduran 
nationality that are hired.  
                                               
89 Organic Law on the National Merchant Marine (Decree No. 167 -94) of 18 November 1994, 
as amended by Decrees No. 200 -97, No. 86 -2004 and No. 131 -98, and Maritime Transport Regulations 
(Decision No.  000764 -1997) of 13 December 1997.  
90 Articles 91 and 92 of Decree No. 167 -94. 
91 Articles 5 and 6 of Decision No. 000764 -1997.  
92 Articles 54 and 59 of Decree No. 167 -94. 
93 Articles 43 -59 of Decision No. 000764 -1997.  
94 Article 78A of Decree No. 167 -94. WT/TPR/S/336 /Rev.1  • Honduras  
 
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  4.123.   The ENP is responsible for providing or subcontracting auxiliary port services, except for 
pilotage services . 
4.3.4   Tourism  
4.124.   Honduras has a Tourism Satellite Account by means of which it has been dete rmined that 
tourism value added amounted to L  21,251 million in 2013 (6% of national value added). In  2013, 
income from tourism reached US$608.2 million, or 6.8% of total exports of goods and services and 
consolidated its position as the fourth source of f oreign currency after family remittances, maquila  
industry and coffee.  
4.125.   The international tourism indicators have not changed much since 2010 (Table  4.12). 
During the review period, the annual number of visitors remained below 2  million and consisted 
largel y of day visitors arriving mainly by sea. Most tourists come from the rest of Central America 
and their main mode of entry continued to be by land.95 
Table 4.12 International tourism indicators, 2010 -2013  
 2010  2011  2012  2013a 
Arrivals (1,000)  1,965 1,852 1,904 1,857 
Touristsb 862 872 895 863 
Day visitorsc 1,103 980 1,009 994 
Average expenditure per stay (US$)  632.9 645.8 685.6 641.7 
Average stay (nights)  9.9 10.4 10.5 9.9 
a Preliminary data.  
b Visitors wh o stay overnight . 
c Visitors who stay only for the day . 
Source:  Honduran Tourism Institute (2014), Boletín de Estadísticas Turísticas 2009 -2013. Viewed at:  
http://transparencia.iht.hn/?q=system/files/Boletin de Estadisticas Turisticas 2009 -2013.pdf , and 
data provided by the Honduran authorities.  
4.126.   The subsector continues to be regulated by the Law on the Honduran Tourism Institute 
of 1993, whic h remained unchanged during the review period.96 There were changes in the State 
institutions that govern the subsector as a result of the reorganization of government services. 
In 2013, the State Secretariat for Tourism was abolished and replaced by the Ho nduran Tourism 
Institute (IHT), under PROHONDURAS. The IHT formulates and implements sectoral policy; 
regulates and supervises the provision of tourism services; and promotes tourism.  
4.127.   Policy in the subsector is defined by the National Sustainable Tourism Strategy 2006 -2021 
(ENTS) and the four -year tourism plans. Honduras is implementing an integrated tourism model, 
which takes the local communities and the environment into account, while consolidating existing 
tourism products and designing new ones.97 In 2014, tourism was declared a priority sector for 
socio-economic development and the promotion of investment.98 
4.128.   The market access conditions have not changed since 2010. Honduras permits foreigners 
to carry out tourism projects in connection with all subsecto r activities and throughout its territory, 
including in the areas reserved for the exclusive use of Hondurans (Section  2.4.2). In general, 
both Hondurans and foreigners require only an identity certificate, obtainable automatically by 
enrolling in the Nati onal Tourism Register of the National Chamber of Tourism, in order to provide 
tourism services. To act as a guide, foreigners have to be permanently resident in the country and 
                                               
95 Honduran Tourism Institute  (2014), Boletín de Estadísticas Turísticas 2009 -2013. Viewed  at: 
http://transparencia.iht.hn/?q=system/files/Boletin de Estadísticas Turísticas 2009 -2013.pdf . 
96 Law on the  Honduran Tourism Institute (Decree No. 103 -93) of 27 May 1993, as amended by Decree 
No. 360-02 of 5 November 2002, and its implementing Regulations (Executive Decision No. 030 -05) of 
4 July 2005.  
97 Online information from the ENTS. Viewed at: http://ents.iht.hn . 
98 Executive Decrees No. PCM -011-2014 of 10 April 2014 and No. PCM -018-2014 of 22 April 2014.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  possess a work permit.99 Articles 41 and 47 of Decree No. 103 -93 guarantee the f ree pricing 
of tourism services. Tourism services are subject to a 4% tax.100 
4.129.   Honduras grants incentives for tourism under the Law on Tourism Incentives (LIT) and the 
Law on the Tourism Free Zone in the Bahía Islands Department (ZOLITUR) (Table 4.13). The LI T 
and the ZOLITUR regime are administered by the IHT and the State Secretariat for Finance, 
respectively. In 2014, Honduras reformed both regimes to eliminate some tax concessions, such 
as the exemption from income tax.101 These reforms did not have retroact ive effect, so that there 
are still companies that benefit from the exemption. Moreover, in the case of ZOLITUR, under 
which tax concessions were being granted, the reform limited the term to 12 years. At the end of 
2015, 94 and 336 companies were benefiti ng from the regimes available under the LIT and 
ZOLITUR, respectively. In addition, some companies continue to benefit from the incentives 
granted under the Tourism Free Zones (ZOLT) regime, even though the latter was repealed by the 
LIT in 1998.  
Table 4.13 Tourism incentive regimes  
 LIT ZOLITUR  
Legal 
framework  Law on Tourism Incentives (Decree 
No. 314-98) of 18 December 1998 as amended 
by Decrees No. 194 -2002, No.  135-2006, 
No. 17-2010, No. 113 -2011 and No. 2 78-2013.  
Regulations implementing the Law on Tourism 
Incentives (Decision No.  001-2004) as 
amended by Decision No. 145 -2005 Law on the Tourism Free Zone in the Bahía 
Islands Department (Decree No. 181 -2006) 
of 26 November 2006  
Regulations implementing the Law on the 
Tourism Free Zone in the Bahía Islands 
Department (Decision No. 1097) 
of 3 September 2007  
Beneficiaries  Activities directly linked with tourisma Natural and legal persons with their legal 
domicile in the Bahía Islands  
Tariff 
exemptions  Tariffs  and other charges levied on imports of 
new goods and equipment (once only, until the 
equipping is complete) and spares (10 years) 
as well as promotional material (15  years)  Tariffs and other charges levied on importsb 
of goods and services for own use or for 
marketing, processing, storage or 
re-exportation  
Tax 
exemptions  Up until 2014 there was exemption from 
income tax for 12 years for hotels and 7 years 
for other activities  Up until 2014 the activities were exempted 
from all nation al taxes, with a few e xceptions  
a Hotels and other types of accommodation, passenger transport by air and water, craft shops, 
inbound travel agencies, convention centres, vehicle hire companies, recreation centres, restaurants, 
land passenger transport, wholesale travel agenci es, discotheques and casinos, and diving 
establishments.  
b Also includes imports from free zones and industrial export processing zones.  
Source:  WTO Secretariat, and information provided by the authorities.  
4.130.   In 2011, in order to promote tourism, Honduras en acted the Law on the Development 
of Sustainable Rural Tourism, which also provides for a series of tax incentives. However, it has 
not yet been implemented, since implementing regulations have still to be enacted.  
 
                                               
99 Article 6 of the Honduran National Regulations on Tourist Guides of 8 June 2006, and Article 93 
of Executive Decision  No. 030 -05. 
100 Online information from the IHT transparency web page. Viewed at: 
http://transparencia.iht.hn/?q=node/6 . 
101 Law on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measures 
(Decree No. 278-2013) of 21 December 2013.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  5  APPENDIX TABLES  
Table A1. 1 General merchandise exports by main products, 2010 -2015a 
(US$ million and  %) 
Description  2010  2011  2012  2013  2014b 2015  
T2b 
 (US$ million)   
Exports  2,819  3,960  4,402  3,886  4,070  2,294  
 (% of exports)   
Palm oil  5.9 6.8 7.3 7.4 7.6 4.0 
Sugar 1.6 1.0 1.3 1.7 1.8 1.9 
Bananas  11.9 10.0 10.2 12.6 11.2 10.5 
Coffee  25.6 34.3 31.9 19.3 20.6 36.1 
Shrimp and lobster  6.3 5.2 5.1 7.0 7.1 3.2 
Cigarettes  1.0 0.8 0.7 0.8 0.8 0.6 
Soaps  2.1 1.7 1.8 2.5 2.2 1.9 
Vegetables and garden produce  1.7 1.8 1.3 1.6 1.7 1.7 
Wood  0.8 0.4 0.5 0.6 0.8 0.6 
Articles of wood  0.7 0.4 0.4 0.6 0.6 0.6 
Melons and watermelons  1.5 1.4 1.2 1.5 1.6 2.4 
Wooden furniture  0.1 0.2 0.1 0.1 0.2 0.2 
Paper and paperboard  2.5 1.6 1.9 2.4 2.6 3.1 
Plastics and articles thereof  1.9 2.0 2.2 2.3 2.2 1.9 
Pineapples  0.6 0.5 0.5 0.5 0.5 0.6 
Silver  0.9 1.0 0.5 0.7 0.8 0.4 
Lead and zinc  2.5 1.6 0.9 1.1 1.2 0.7 
Preparations of vegetables and fruit  1.1 0.9 0.9 1.1 1.7 1.5 
Cigars  2.6 2.1 2.0 2.4 2.1 1.9 
Tobacco  0.6 0.4 0.4 0.5 0.4 0.4 
Textiles  1.6 1.5 1.8 2.2 2.1 1.9 
Tilapia  2.0 1.6 1.4 1.7 1.8 1.6 
Other  21.5 20.3 23.4 26.8 25.5 19.8 
Non-monetary gold  3.0 2.4 2.4 2.5 2.8 2.2 
a Excluding maquila.  
b Preliminary figures.  
Note:  The sum of the parts is not necessarily equal to the tota l, owing to rounding.  
Source:  Central Bank of Honduras.  
Table A1. 2 Exports of goods for processing (maquila), 2010 -2015  
(US$ million and  %) 
Description  2010  2011  2012  2013  2014a 2015 
T2a 
Exports  3,432  3,999  3,939  3,890  3,980  2,030 
Textile articles other than clothing  1.5 1.7 1.9 1.6 1.7 1.6 
 % of exports  
Transport equipment  2.0 1.7 2.0 1.6 1.3 1.4 
Yarns, threads and fabrics of textile fibres  10.3 6.1 5.2 4.5 4.4 3.7 
Electrical machinery and apparatus and parts 
thereof  10.8 11.7 14.0 17.6 15.6 16.2 
Other manufactured articles  0.1 0.0 0.0 0.2 0.2 0.3 
Newsprint, other paper and paperboard  0.0 0.1 0.1 0.1 0.1 0.1 
Clothing  58.1 60.8 63.4 63.0 64.1 63.5 
Plastic products  0.6 0.3 0.1 0.1 0.1 0.1 
Knitted fabrics  15.5 16.8 12.8 10.7 11.8 12.5 
Other  1.1 0.9 0.6 0.6 0.7 0.7 
a Preliminary figures.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding.  
Source:  Central Bank of Honduras.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table A1. 3 General merchandise imports (c.i.f.) by main products of the Central 
American Tariff System (SAC), 2010 -2015a 
(US$ million and  %) 
Description  2010  2011  2012  2013  2014b 2015 
T2b 
 (US$  million)  
Imports  7,128  9,016  9,395  9,152  9,311  4,836  
 (% of imports)  
Live animals; animal product s 1.6 1.4 1.5 1.5 1.6 1.7 
Vegetable products  4.2 4.8 4.4 4.6 4.4 4.0 
Animal or vegetable fats and oils  1.1 1.2 0.9 0.8 0.7 0.7 
Prepared foodstuffs  9.7 9.0 9.7 10.5 10.6 10.4 
Mineral products  21.3 23.9 24.3 25.2 22.8 15.5 
Fuels and lubricants  20.9 23.3 23.9 24.7 22.4 14.9 
Other mineral products  0.4 0.6 0.4 0.5 0.4 0.6 
Products of the chemical or allied industries  14.5 13.6 13.6 12.9 12.4 12.8 
Plastics and articles thereof  6.1 5.6 5.9 5.8 5.9 5.8 
Raw hides and skins, leather, furskins and articles 
thereof 0.2 0.2 0.2 0.2 0.2 0.2 
Wood and articles of wood; wood charcoal; cork 
and articles of cork  0.3 0.3 0.3 0.3 0.3 0.3 
Pulp for manufacturing paper and articles of paper  5.1 4.4 3.8 4.3 3.9 3.9 
Textiles and textile articles  2.8 2.4 2.6 2.4 3.0 2.6 
Footwear, headgear, feathers and flowers  0.9 0.8 0.8 0.8 0.8 0.7 
Articles of stone, plaster, cement or glass  1.2 1.1 1.2 1.2 1.2 1.2 
Pearls, precious stones, metals and articles thereof  0.2 0.1 0.1 0.1 0.1 0.2 
Base metals and articles of base metal  6.0 6.8 6.5 6.1 6.7 8.4 
Machinery and mechanical appliances; electrical 
equipment  16.1 15.3 14.5 14.7 17.1 23.6 
Transport equipment  5.8 5.5 6.1 5.3 5.0 5.1 
Optical, photographic, cinematographic, medical, 
surgical and other instruments  1.0 1.5 1.3 1.3 0.9 0.8 
Arms and ammunition  0.1 0.2 0.1 0.1 0.1 0.1 
Miscellaneous manufactured articles  1.8 1.7 2.2 2.1 2.2  
Works of art, collectors' pieces  0.0 0.0 0.0 0.1 0.0 0.0 
a Excluding maquila.  
b Preliminary figures.  
Note:  The sum of the parts is not necessarily eq ual to the total, owing to rounding.  
Source:  Central Bank of Honduras.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table A1. 4 Imports (c.i.f.) of goods for processing (maquila), 2010 -2014  
(US$ million and  %) 
Description  2010  2011  2012  2013  2014a 
 (% of imports)  
Imports  2,393  2,880  2,856  2,674  2,738  
Vegetable products  0.0 0.0 0.0 0.0 0.0 
Mineral products  0.1 0.2 0.1 0.3 0.2 
Other mineral products  0.1 0.2 0.1 0.3 0.2 
Products of the chemical or allied industries  4.6 3.5 4.5 5.0 5.4 
Plastics and articles thereof  4.0 3.4 3.2 3.4 3.0 
Wood and articles of wood; wood charcoal; cork and 
articles of cork  0.1 0.1 0.2 0.1 0.1 
Pulp for manufacturing paper and articles of paper  1.8 1.4 1.7 1.7 1.5 
Textiles and textile articles  78.7 78.7 76.7 72.9 76.0 
Articles of stone, plas ter, cement or glass  0.0 0.0 0.0 0.0 0.0 
Pearls, precious stones, metals and articles thereof  0.0 n/a 0.0 0.0 0.0 
Base metals and articles of base metal  3.8 1.2 0.2 0.3 0.3 
Machinery and mechanical appliances; electrical 
equipment  4.9 9.9 11.6 14.2 11.7 
Transport equipment  0.9 0.9 1.1 1.5 1.0 
Optical, photographic, cinematographic or medical 
instruments  n/a n/a 0.0 0.0 0.0 
Miscellaneous manufactured articles  0.8 0.7 0.6 0.7 0.6 
Other products  0.0 0.0 0.0 0.0 0.0 
n/a Not applicable.  
a Preliminary fig ures. 
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding.  
Source:  Central Bank of Honduras.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table A1. 5 General merchandise exports by trading partner, 2010 -2015a 
(US$ million and  %) 
Description  2009  2010  2011  2012  2013  2014b 2015  
T2b 
 (US$ million)  
Exports  2,362  2,819  3,960  4,402  3,886  4,070  2,294  
 (% of exports)   
America  72.6 69.7 67.0 63.6 71.1 70.4 66.9 
Canada  1.9 2.2 2.1 1.7 2.1 1.4 1.3 
United States of America  40.0 36.5 35.1 32.5 35.3 34.8 33.7 
Central America  23.1 22.6 22.8 20.3 23.3 22.9 19.5 
Costa Rica  2.6 3.1 3.0 2.4 2.8 2.8 2.2 
El Salvador  8.5 8.0 7.7 6.8 8.6 8.0 7.5 
Guatemala  7.5 7.1 6.9 6.0 6.7 6.3 5.1 
Nicaragua  4.6 4.4 4.2 5.2 5.3 5.9 4.6 
Brazil  0.1 0.1 0.1 0.1 0.1 0.2 0.2 
Colombia  0.1 0.8 0.2 0.2 0.3 0.3 0.3 
Ecuador  0.1 0.1 0.2 0.2 0.3 0.5 0.5 
Mexico  2.6 3.3 3.2 2.8 3.5 4.4 2.2 
Panama  0.6 0.8 0.7 0.9 1.4 1.2 2.4 
Peru 0.0 0.0 0.0 0.3 0.1 0.1 0.1 
Venezuela, Bolivarian Republic of  0.6 0.0 0.0 2.0 1.6 1.5 2.3 
Other Ame rica 3.2 3.0 2.8 2.6 2.9 3.1 4.3 
Europe  22.4 22.8 21.9 29.5 20.3 22.1 28.5 
Germany  6.9 7.2 6.9 11.3 7.0 8.4 11.6 
Belgium  4.2 4.6 4.5 6.7 3.5 2.1 4.1 
Spain  2.3 1.9 1.9 1.3 1.2 1.1 0.8 
France  1.3 1.6 1.5 1.2 1.2 1.5 2.0 
Holland  1.1 1.7 1.6 3.3 2.9 4.0 3.1 
Italy 1.5 1.8 1.8 1.8 1.1 1.2 2.5 
United Kingdom  2.5 1.9 1.8 1.8 1.7 1.8 1.7 
Russian Federation  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Sweden  0.8 0.7 0.7 0.7 0.5 0.6 1.1 
Other Europe  1.6 1.2 1.1 1.2 1.1 1.2 1.5 
Asia 4.4 6.6 9.8 6.0 6.9 5.3 3.1 
China  1.8 2.2 3.5 2.6 3.3 1.8 0.4 
Japan  0.8 0.9 1.8 0.8 0.7 0.9 0.8 
Korea  1.3 2.5 3.2 1.6 1.3 1.1 1.3 
Chinese Taipei  0.3 0.9 0.5 0.6 0.9 0.9 0.2 
India 0.2 0.1 0.7 0.4 0.6 0.6 0.4 
Malaysia  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Thailand  0.0 0.0 0.1 0.0 0.1 0.0 0.0 
Rest of  world  0.7 0.9 1.5 1.0 1.6 2.4 1.5 
a Excluding maquila.  
b Preliminary figures.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding.  
Source:  Central Bank of Honduras.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table A1. 6 General merchandi se imports (c.i.f.) by trading partner, 2009 -2015a 
(US$ million and  %) 
Description  2009  2010  2011  2012  2013  2014b 2015 
T2b 
 (US$ million)  
Imports  6,224  7,128  9,016  9,395  9,152  9,311  4,836  
 (% of imports)  
America  85.3 77.8 84.7 83.5 83.6 78.4 67.5 
Canada 0.5 0.7 0.4 0.4 0.4 0.4 0.4 
United States of America  37.9 40.5 46.7 44.0 43.4 43.2 34.2 
Central America  23.7 17.0 19.0 19.6 19.8 19.3 18.7 
Costa Rica  4.9 4.0 4.0 4.1 3.9 3.5 3.2 
El Salvador  6.4 4.4 5.4 5.9 5.7 5.1 4.9 
Guatemala  10.6 7.8 8.9 8.6 9.0 9.4 9.4 
Nicaragua  1.8 0.8 0.7 1.0 1.2 1.2 1.2 
Netherlands Antilles  2.1 0.2 0.0 0.0 0.0 0.0 0.0 
Argentina  0.4 0.4 0.3 0.3 0.5 0.4 0.2 
Brazil  1.5 1.5 0.9 1.0 0.9 1.5 1.4 
Chile 0.5 0.6 0.5 0.6 0.6 0.7 0.6 
Colombia  2.6 2.5 3.5 2.9 3.6 2.0 1.2 
Ecuador  1.9 1.2 2.5 2.5 2.0 0.5 0.7 
Mexico  5.9 7.5 5.4 5.7 5.6 5.6 6.4 
Panama  4.9 1.1 3.8 3.8 3.7 2.8 1.6 
Peru 1.0 1.8 0.3 0.8 1.1 0.8 0.8 
Venezuela, Bolivarian Republic of  0.2 0.1 0.1 0.0 0.0 0.0 0.0 
Other America  2.4 2.8 1.2 1.8 2.0 1.2 1.1 
Europe  6.2 7.1 6.3 5.6 6.0 7.6 9.3 
Germany  1.0 1.5 1.6 1.4 1.7 1.9 1.8 
Belgium  0.3 0.3 0.4 0.4 0.5 0.4 0.3 
Spain  0.9 0.9 0.9 1.0 0.9 1.5 2.7 
France  0.4 0.6 0.3 0.3 0.4 0.4 0.5 
Holland  1.1 0.4 0.4 0.4 0.4 0.4 0.3 
Italy 0.4 0.8 0.7 0.5 0.5 0.9 1.0 
United Kingdom  0.1 0.3 0.1 0.1 0.2 0.2 0.3 
Russian Federation  0.2 0.3 0.7 0.5 0.6 0.5 0.9 
Sweden  0.7 0.5 0.2 0.1 0.1 0.3 0.2 
Other Europe  1.2 1.5 0.9 0.9 0.8 1.2 1.3 
Asia 7.5 13.4 7.8 9.3 9.3 12.7 23.3 
China  3.1 7.6 3.7 4.6 4.9 7.6 14.8 
Japan  1.3 2.0 1.2 1.3 0.9 1.0 1.5 
Korea, Rep. of  0.8 1.1 1.0 1.0 0.8 0.9 0.9 
Chinese Taipei  0.5 0.8 0.4 0.4 0.6 0.8 1.1 
India 0.7 0.6 0.6 0.9 0.9 1.2 2.0 
Malaysia  0.2 0.3 0.1 0.2 0.2 0.3 0.6 
Thailand  0.9 1.0 0.8 1.0 0.9 0.9 0.9 
Rest of world  1.1 1.6 1.2 1.6 1.1 1.4 1.4 
a Excluding  maquila.  
b Preliminary figures.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding.  
Source:  Central Bank of Honduras.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table A2. 1 Notifications to the WTO, 1  January  2010 to 31  December  2015  
Agreement 
and Article  Requirement  Frequency  Document (most 
recent if submitted 
regularly)  Date  
Agreement on Trade Facilitation  
Article 15, 
Section II  Category A commitments  Once only  WT/PCTF/N/HND/1  18/07/2014  
Agreement on Agriculture  
Articles 10 and 
18.2, ES:1 and 
ES:2 Export subsidies  On an annual 
basis G/AG/N/HND/43  12/10/2015  
Article 18.2, 
DS:1 Domestic support  On an annual 
basis G/AG/N/HND/41  06/07/2015  
Article 18.3, 
DS:2 Domestic support  On an annual 
basis G/AG/N/HND/42  06/07/2015  
General Agre ement on Trade in Services  
Article III:3  Laws/regulations (transparency; 
new, or changes to existing, laws, 
regulations or administrative 
guidelines which significantly 
affect trade in services)  Ad hoc  S/C/N/804  26/03/2015  
Article III:4 
and/or IV:2  Enquiry and contact points  On an annual 
basis S/ENQ/78/Rev.15  04/02/2015  
Article V:7(a)  Economic integration agreement  Ad hoc  S/C/N/791  05/02/2015  
S/C/N/717/Rev.1  28/01/2014  
S/C/N/680  27/02/2013  
S/C/N/646  03/09/2012  
S/C/N/614  09/01/2012  
S/C/N/612  01/12/2011  
S/C/N/544  08/04/2010  
GATT 1994  
Article XXVIII:5  Modification of schedules 
(reservation of the right to modify 
schedules for a 3 -year period)  Triennial  G/MA/305  21/11/2014  
Agreement on Implementation of Article VI of the GAT T 1994 (anti -dumping)  
Article 16.4  Anti-dumping actions (preliminary 
and final)  Ad hoc  G/ADP/N/205  23/09/2010  
Article 16.4  Anti-dumping actions (taken 
during the preceding six months)  Semi-annual  G/ADP/N/272  15/06/2015  
Article 16.5  Authorities compete nt to initiate 
and conduct investigations 
referred to in Article  16.5 of the 
Agreement, and domestic 
procedures governing the 
initiation and conduct of such 
investigations  As appropriate 
(upon entry into 
force of the WTO 
Agreement for 
the Member 
concerned)  G/ADP/N/14/Add.30  22/10/2010  
Agreement on Implementation of Article VII of the GATT 1994 (customs valuation)  
Article 22.2  Changes in laws/regulations and 
administrative arrangements  Ad hoc  G/VAL/N/1/HND/1  06/11/2014  
GATT 1994  
Article XVII:4(a)  State trading activities  On an annual 
basis  G/STR/N/15/HND  01/09/2014  
Article 
XXIV:7(a)  Formation of a customs union  Ad hoc  WT/REG283/N/1  08/04/2010  
Article 
XXIV:7(a)  Formation of a free  trade area  Ad hoc  WT/REG364/N/1  05/02/2015  
WT/REG349/N/1/Rev.1  28/01/2014  
WT/REG332/N/1  27/02/2013  
WT/REG316/N/1  03/09/2012  
WT/REG305/N/1  09/01/2012  
WT/REG303/N/1  01/12/2011  
Agreement on Import Licensing Procedures  
Article 5.1, 5.2 
and 5.3  Import licensing procedures and 
changes thereto  Ad hoc  G/LIC /N/2/HND/4  18/01/2010  
Article 7.3  Replies to questionnaire on 
import licensing procedures  On an annual 
basis G/LIC/N/3/HND/9  12/08/2014  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Agreement 
and Article  Requirement  Frequency  Document (most 
recent if submitted 
regularly)  Date  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, 
Annex  B  Sanitary/phytosanitary measu res Ad hoc  G/SPS/N/HND/52 – 
G/SPS/N/HND/33  06/05/2014 
– 
31/05/2010  
Agreement on Rules of Origin  
Article 5 and 
Annex II, 
paragraph 4  Changes in preferential rules 
of origin; new preferential rules 
of origin  Ad hoc  G/RO/N/134  
G/RO/N/114  
G/RO/N/93  02/10/201 5 
02/04/2014  
09/04/2013  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/HND/86 - 
G/TBT/N/HND/61  04/02/2015 
- 
19/05/2010  
Agreement on Subsidies and Countervailing Measures  
Article 25.1  Any subsidy as defined in 
Article  1.1 of the Agreement, 
which is specific within the 
meaning of Article 2 of the 
Agreement, as well as any other 
subsidy which causes increased 
exports or decreased imports 
within the meaning of 
Article  XVI:1 of the GATT  1994 On a triennial 
basis G/SCM/N/253/HND  17/10/2013  
Article 25.11  Countervailing measures 
(adopted during the preceding 
six months)  Semi-annual  G/SCM/N/289  15/06/2015  
Article 25.12  Authorities competent to initiate 
and conduct countervailing duty 
investigations referred to in 
Article 11 of the Agreement, and 
domestic procedures governing 
the initiation and conduct of such 
investigations  Once upon entry 
into force of the 
WTO Agreement 
for existing 
authorities and 
procedures; ad 
hoc as and when 
a Member 
establishes such 
authorities  and 
procedures  G/SCM/N/18/Add.30  22/10/2010  
Source:  WTO Secretariat.  WT/TPR/S/336 /Rev.1  • Honduras  
 
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  Table A3. 1 Analysis of the MFN tariff, 2014a 
 MFN Bound tariff  
Rangeb 
(%) No. of 
lines  Average  
(%) Range  
(%) Coefficient 
of variation  
(CV) Product descr iption  
Total  6,974  5.9 0 - 164 1.3 0 - 164.4  
HS 01 -24 1,221 11.6 0 - 164 1.1 8 - 164.4  
HS 25 -97 5,753 4.7 0 - 15 1.2 0 - 55 
By WTO category       
Agricultural products  1,026 10.7 0 - 164 1.3 8 - 164.4  
 - Animals and animal products  154 18.4 0 - 164 1.5 12 - 164.4  
 - Dairy products  34 22.2 0 - 35 0.5 8 - 35 
 - Fruit, vegetables and garden produce  283 11.5 0 - 30 0.5 10 - 45 
 - Coffee and tea  28 13.2 0 - 15 0.3 19.3 - 35 
 - Cereals and cereal preparations  133 9.6 0 - 45 1.1 8 - 55 
 - Oilseeds, fats and oils and their products  98 5.7 0 - 15 1.0 10 - 50 
 - Sugar and confectionery  21 11.4 0 - 40 1.0 30 - 40 
 - Beverages, alcohol and tobacco  74 12.4 0 - 55 0.6 15 - 60 
 - Cotton  5 0.0 0 - 0 n/a 10 - 15 
 - Other agricultural products n.e.s.  196 4.1 0 - 15 1.3 10 - 35 
Non-agricultural products (including 
petroleum)  5,948  5.1 0 - 15 1.2 0 - 55 
 - Non-agricultural products (excluding 
petroleum)  5,920  5.1 0 - 15 1.2 0 - 55 
 - - Fish and fish products  288 11.6 0 - 15 0.4 20 - 35 
 - - Mineral product s and metals  1,093  3.6 0 - 15 1.5 5 - 35 
 - - Chemicals and photographic products  1,275  2.1 0 - 15 2.0 0 - 35 
 - - Wood, wood pulp, paper and furniture  459 6.5 0 - 15 0.9 5 - 50 
 - - Textiles  698 8.1 0 - 15 0.6 12 - 35 
 - - Clothing  236 14.8 0 - 15 0.1 30 - 35 
 - - Leather, rubber, footwear and travel 
articles  211 7.6 0 - 15 0.7 5 - 55 
 - - Non-electrical machinery  595 1.4 0 - 15 2.8 0 - 35 
 - - Electrical machinery  339 2.6 0 - 15 2.0 0 - 35 
 - - Transport equipment  221 6.0 0 - 15 0.8 10 - 35 
 - - Non-agricultural products n.e.s.  505 7.0 0 - 15 0.9 0 - 35 
 - Petroleum  28 4.1 0 - 15 1.2 5 - 35 
By ISIC sectorc      
Agriculture and fishing  497 8.2 0 - 45 0.9 10 - 50 
Mining  112 1.7 0 - 15 1.9 15 - 35 
Manufacturing  6,364  5.8 0 - 164 1.4 0 - 164.4  
By HS section       
01 Live animals; animal products  449 13.8 0 - 164 1.2 8 - 164.4  
02 Vegetable products  419 9.1 0 - 45 0.9 8 - 50 
03 Fats and oils  57 8.2 0 - 15 0.7 10 - 50 
04 Prepared foodstuffs, etc.  296 12.4 0 - 164 0.9 10 - 94.7 
05 Mineral product s 187 2.6 0 - 15 1.5 5 - 35 
06 Products of the chemical or allied 
industries  1,128  1.7 0 - 15 2.3 0 - 35 
07 Plastics and rubber  336 4.3 0 - 15 1.1 5 - 35 
08 Hides and skins  108 8.3 0 - 15 0.7 35 - 35 
09 Wood and articles of wood  139 8.5 0 - 15 0.6 25 - 35 
10 Wood pulp, paper, etc.  292 5.1 0 - 15 1.1 5 - 35 
11 Textiles and textile articles  918 9.6 0 - 15 0.5 10 - 35 
12 Footwear, hats and other headgear  64 12.8 0 - 15 0.3 35 - 55 
13 Articles of stone  176 6.3 0 - 15 1.1 15 - 35 
14 Precious stones, etc . 54 6.9 0 - 15 0.8 20 - 35 
15 Base metals and articles of base metal  702 3.1 0 - 15 1.6 5 - 35 
16 Machinery and mechanical appliances  980 2.0 0 - 15 2.3 0 - 35 
17 Transport equipment  234 6.0 0 - 15 0.8 10 - 35 
18 Precision instruments  234 3.8 0 - 15 1.5 0 - 35 
19 Arms and ammunition  21 15.0 15 - 15 0.0 35 - 35 
20 Miscellaneous manufactured articles  171 10.7 0 - 15 0.5 15 - 50 
21 Works of art, etc.  9 7.8 5 - 10 0.3 35 - 35 
n/a Not applicable  
a For price band products, 15 % was used.  
b The bindings ar e given in HS 07 and the applied rates in HS 2012; consequently, there may be 
differences in the number of lines included in the analysis.  
c ISIC (Rev.2), excluding electricity (one line).  
Source:  WTO Secretariat estimates, based on data provided by the au thorities.  
 WT/TPR/S/336 • Honduras  
 
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- 115 - 
 
Table A3. 2 Conditions for loans granted by BANHPROVI  
Financing of "production sectors"  
 BANHPROVI funds  BCH Trust Fund  
Agriculture, 
agro-industry, 
industry, 
services sector  Sowing of 
staple grains, 
vegetables  Oil palm  Marketing of coffee, 
staple grains and 
vegetables  Renewable 
energy 
generation  Agricultural, poultry, 
aquaculture production, 
agro-industry and 
industry, manufacturing  Clean energy 
generation  
Maximum amount 
(L million)  50 30 50 30 10 50 10 50 
Maximum  term 7 years  1 year  10 years  12 months  6 months  3 years  10 years  1 year  12 years  
Use Fixed assets  Working 
capital  Fixed assets  Working 
capital  Working capital  Fixed assets  Fixed 
assets  Working capital  Fixed assets  
Interest rate for 
intermediary 
financia l institutions 
(IFI) (%)  6.0 6.0 6.0 8.0 8.0 6.0 6.0 6.0 
Interest rate for 
end  customer (%)  10.0 10.0 10.0 12.0 12.0 10.0 10.0 10.0 
Financing for MSMEs  
 BANHPROVI funds  BCH Trust Fund  
Agricultural and 
agro-industrial sectors, 
services, industry, trade , 
tourism, transport  Sowing of staple grains, 
vegetables, bananas  Agricultural sector, 
services, industry, 
trade, tourism, 
transport  Sowing of staple 
grains, vegetables, 
bananas  Agro -industrial sector  
Maximum amount (L  thousand)  
Micro enterprises  250 250 250 150 250 150 
Small enterprises  800 800 500 250 500 250 
Medium -sized enterprises  2,000  2,000  1,000  750 1,000  750 
Maximum term  7 years  2 years  2 years  7 years  2 year  10 years  
Use Fixed assets  Working 
capital  Working capital  Working capital  Working capital  Fixed assets  Working 
capital  
Interest rate for intermediary 
financial institutions (IFI) (%)  10.5 10.5 6.0 6.0 6.0 
Interest rate for customers (%)  Free (on the basis of market 
conditions)  Free (on the basis of market 
conditions)  10.0 10.0 10.0 
Note: Staple grains are maize, beans, rice and sorghum.  
Source:  BANHPROVI online information. Viewed at: http://banhprovi.org/productos -servicios.html . 
 WT/TPR/S/336 • Honduras  
 
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- 116 - 
 
Table A4. 1 Import quotas applied by Honduras in 2015  
Quota  Tariff code  Volume opened  
MT Out-of-quota 
tariff  In-quota tariff  
Free Trade Agreement CAFTA -DR 
Rough rice  1006.10.90  108,000  45% 0% 
Milled rice  1006.20.00; 1006.30.10; 
1006.30.90; 1006.40.00  12,750  45% 0% 
Yellow corn  1005.90.20  272,156  30.1%  0% 
White corn  1005.90.30  27,600  45% 0% 
Pork 0203.11.00; 0203.12.00; 
0203.19.00; 0203.21.00; 
0203.22.00; 0203.29.00  3,500  10.2%  0% 
Milk powder  0402.10.00;  
0402.21.11;  
0402.21.12:  
0402.21.21;  
04.02.21.22;  
0402.29.00  465 15%;  
15% 
15% 
5% 
5% 
15% 0% 
Butter  0405.10.00; 0405.20.00; 
0405.90.90  155 15% 0% 
Cheese  0406.10.10; 0406.10.90; 
0406.20.20; 0406.20.90; 
0406.30.00; 0406.90.20; 
0406.90.90  636 15% 0% 
Ice cream  2105.00.00  155 15% 0% 
Other dairy products  2202.90.90  217 15% 0% 
Chicken leg quarters  0207.13.93; 0207.13.94; 
0207.14.93; 0207.14.94; 
1602.32.10  4,275  164%  0% 
Association Agreement between Central America and the European Union  
Milk powder  0402.10.00  
0402.21.11  
0402.21.12  
0402.21.21  
0402.21.22  
0402.29.00  440 15% 
20% 
20% 
15% 
15% 
25% 0% 
Cheese  0406.20.90  
0406.30.00  
0406.90.20  
0406.90.90  550 35% 
35% 
35% 
15% 0% 
Free Trade Agreement between Honduras and Panama  
Beef 0201.10.00; 0201.20.00; 
0201.30.00; 0202.10.00; 
0202.20.00; 0202.30.00  563 15% 0% 
Pork 0203.11.00; 02 03.12.00; 
0203.19.00; 0203.21.00; 
0203.22.00; 0203.29.00  128 15% 0% 
Liquid milk, exclusively of the 
type known as UHT  0401.20.00  275,685  
litres 15% 0% 
Processed cheese, not grated 
or powdered  0406.30.00  200 15% 0% 
Crude palm oil  1511.10.00  450 5% 0% 
Stockings and socks  6115.10.90 D; 6115.10.90 E; 
6115.95.00; 6115.96.00; 
6115.99.00  15,000  
dozen pairs  15% 0% 
Free Trade Agreement between Honduras and Colombia  
Dog or cat food, put up for 
retail sale, other than food 
put up in airtight containers  2309.10.0 0 500 15% 0% 
Free Trade Agreement between Honduras and Canada  
Pork 0203.11.00; 0203.12.00  
0203.19.00; 0203.21.00  
0203.22.00;0203.29.00  1,726  15% 0% 
Prime and AAA Beef  0201.20.00A; 0201.30.00A 
0202.20.00A; 0202.30.00A  315 15% 0% 
AA and A Beef  0201.20.00 B; 020.130.00B  
0202.20.00B; 0202.30.00B  210 15% 0% 
Source:  Information provided by the Honduran authorities . 
__________