RESTRICTED  
  
WT/TPR/S/336  
24 March 2016  
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Trade Policy Review Body   
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
HONDURAS  
This report, prepared for the third Trade Policy Review of Honduras, has been drawn up by the 
WTO Secretariat on its own responsibility. The Se cretariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (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 addressed 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 is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Re view Body on Honduras. This report was drafted 
in Spanish. WT/TPR/S/336 • Honduras 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 7 
1   ECONOMIC ENVIRONMENT ........................................................................................ 11  
1.1   Economic structure an d structural adjustment .............................................................. 11 
1.2   Production and employment ....................................................................................... 14 
1.3   Fisca l policy ........................................................................................................... .. 14 
1.4   Monetary and exchan ge-rate policy and prices .............................................................. 17 
1.5   Balance of paymen ts and extern al debt ....................................................................... 18 
1.6   Goods trade an d investment  flows .............................................................................. 20 
1.6.1   Composit ion of trade .............................................................................................. 20 
1.6.2   Geographic al distribution ........................................................................................ 21 
1.6.3   Trade in services ................................................................................................... 24 
1.6.4   Foreign di rect inve stment........................................................................................ 25 
1.7   Outlook ................................................................................................................... 27 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 28  
2.1   Genera l framework ................................................................................................... 28 
2.2   Trade poli cy objectives .............................................................................................. 31 
2.3   Trade agreements  and arrang ements .......................................................................... 32 
2.3.1   WTO ................................................................................................................... . 32 
2.3.2   Regional and pr eferential agreements ....................................................................... 33 
2.3.2.1   Regional trade agreements ................................................................................... 33 
2.3.2.1.1   Central American economic inte gration and trade rela tions with Panama .................. 34 
2.3.2.1.2   Association Agreem ent with the Eu ropean Union ................................................... 35 
2.3.2.1.3   Free Trade Ag reement with  Mexico ..................................................................... 35 
2.3.2.1.4   Free Trade Agreement wi th Canada..................................................................... 36 
2.3.2.2   Other agreements an d preferential arrangem ents .................................................... 36 
2.4   Investme nt regime ................................................................................................... 36 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 41  
3.1   Measures direct ly affectin g imports ............................................................................. 41 
3.1.1   Procedures, docu ments and regi stration .................................................................... 41 
3.1.2   Custom s valuation ................................................................................................. 42 
3.1.3   Rules of origin .......................................................................................................  42 
3.1.4   Tariffs ............................................................................................................... ... 43 
3.1.4.1   Structure 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 charge s affecting imports ............................................................................... 47 
3.1.6   Prohibitions, licensi ng and other re strictions .............................................................. 48 
3.1.7   Continge ncy measures ........................................................................................... 50 WT/TPR/S/336 • 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 ph ytosanitary measures ....................................................................... 55 
3.2   Measures direct ly affectin g exports ............................................................................. 60 
3.2.1   Procedures, docu ments and regi stration .................................................................... 60 
3.2.2   Export taxes and charges ........................................................................................ 60 
3.2.3   Prohibitions, licensi ng and other re strictions .............................................................. 61 
3.2.4   Expo rt support ...................................................................................................... 61 
3.2.5   Export promotion ................................................................................................... 63 
3.2.6   Financing, insu rance and gu arantees ........................................................................ 64 
3.3   Measures affectin g production and trade ...................................................................... 64 
3.3.1   In centives ............................................................................................................  64 
3.3.1.1   Employment and Ec onomic Develo pment Zo nes ...................................................... 65 
3.3.1.2   Financing of prod uction sector s 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   Competition policy ............................................................................................ 66 
3.3.2.1.2   Protecti on of co nsumers .................................................................................... 69 
3.3.2.2   Pric e contro ls ..................................................................................................... 69 
3.3.3   State trading and State-owned en terprises ................................................................ 70 
3.3.4   Governme nt procurement ....................................................................................... 71 
3.3.5   Intellectual property rights ...................................................................................... 74 
3.3.5.1   New varieties of plants ......................................................................................... 75 
3.3.5.2   Other industri al property rights ............................................................................. 75 
3.3.5.3   Copyright and related rights ................................................................................. 76 
3.3.5.4   Enforcement ....................................................................................................... 77 
4   TRADE POLICIES BY SECTOR ..................................................................................... 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   Dome stic support ................................................................................................ 83 
4.1.2.4   Measures affecting exports ................................................................................... 88 
4.2   Elec tricity ............................................................................................................. ... 89 
4.2.1   Genera l features .................................................................................................... 89 
4.2.2   Legal and institutional framework ............................................................................. 90 
4.3   Services ................................................................................................................ .. 93 
4.3.1   Financial services ................................................................................................... 93 WT/TPR/S/336 • Honduras 
 
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  4.3.1.1   Banking .............................................................................................................  93 
4.3.1.2   Insura nce .......................................................................................................... 97 
4.3.2   Telecommunications ............................................................................................... 99 
4.3.3   Transport ........................................................................................................... 1 01 
4.3.3.1   Air transport ..................................................................................................... 101  
4.3.3.2   Mariti me transp ort ............................................................................................ 103  
4.3.4   Tourism .............................................................................................................. 105  
5   APPENDIX TABLES .................................................................................................. 107  
 
CHARTS 
 
Chart 1.1 General merchandise trad e by main produc ts, 2010 an d 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 ra tes, 2015 ........................................................................... 44 
Chart 3.2 Procedure for dumping and subsidy inve stigatio ns, 2015 ......................................... 51 
Chart 3.3 Procedure for prep aring Honduran  standards ......................................................... 54 
Chart 3.4 Procedure for prepar ing technical regulations ......................................................... 54 
Chart 4.1 Private bankin g indicators , 2010-20 14 .................................................................. 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 th e central govern ment, 2009- 2014 ........................................ 15 
Table 1.3 Main taxe s applied in 2015  .................................................................................. 16 
Table 1.4 Balance of payments, 2010-2015  ......................................................................... 19 
Table 1.5 Balance of trad e in services , 2010-2015 ................................................................ 25 
Table 1.6 Foreign direct investment flows by economic activity, 2010-2015 .............................. 26 
Table 1.7 Foreign direct investment fl ows by country of origin, 2 010-20 15 ............................... 26 
Table 2.1 Main trade-related legislation ............................................................................... 29 
Table 2.2 Some State Secretariats in volved in trade policy formulation .................................... 32 
Table 2.3 Disputes in which Honduras pa rticipated, 2010-2015 (t o 31 Decemb er 2015) ............. 33 
Table 2.4 Tariff reduction programme s adopted by Hond uras since 2010 ................................. 34 
Table 2.5 Guarantees offered under the Investment Promotion and Protection Law .................... 37 
Table 2.6 Activities rese rved to the State,  2015 .................................................................... 37 
Table 2.7 Investment guarantees stipulated under the Investment Promotion and 
Protection Law ................................................................................................................. 38 
Table 3.1 Registration of importer s, 2015 ............................................................................ 41 WT/TPR/S/336 • 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 pr ice band system, 2010 and 2015 ........................................... 46 
Table 3.6 Analysis of applied tariffs for countries with which trade agreements have been 
negotiated, 2015 ............................................................................................................. 46 
Table 3.7 Other import  charges in 2015 .............................................................................. 47 
Table 3.8 Details concerning import licences in 2015 ............................................................. 49 
Table 3.9 Principal legal instruments regulati ng the sanitary and phytosanitary system, 
2015 .............................................................................................................................. 56 
Table 3.10 Entry requirements based on the sa nitary and phytosanit ary risk analysis ................ 58 
Table 3.11 Export taxes in 2015 ......................................................................................... 61 
Table 3.12 Export subs idy schemes in 2015  ......................................................................... 62 
Table 3.13 Export pr omotion pr ogramme s ........................................................................... 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 procurem ent procedur es, 2015 ............ 73 
Table 4.1 Main indicators for th e agricultural se ctor, 2010 -2014 ............................................. 78 
Table 4.2 Summary of ag ricultural measures ....................................................................... 79 
Table 4.3 Products subjec t to price ba nds, 2015 ................................................................... 83 
Table 4.4 Domestic support measures implem ented by Honduras in  2009-2014 (June-May) ....... 84 
Table 4.5 BANDES funds for micro, small and me dium-sized arable, livestock and industrial 
producers,  2015  .............................................................................................................. 87 
Table 4.6 Main electricity su bsector indica tors, 2010- 2015 ..................................................... 89 
Table 4.7 Minimum fixed capital for the es tablishment 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 prov ision of air transport services ......................................... 102  
Table 4.10 Modalities of the bilateral agr eements on air tran sport serv ices ............................. 103  
Table 4.11 Port oper ations, 2010- 2014 ............................................................................. 104  
Table 4.12 International tourism indicators, 2010-2013 ....................................................... 105  
Table 4.13 Tourism in centive regimes ............................................................................... 106  
 
BOXES 
 
Box 2.1 Employment and Economic  Development Zo nes (ZEDE) ............................................. 31 
Box 3.1 Sanitary measures rela ting to Newcas tle disease ...................................................... 58 
Box 4.1 Composition of the Honduran electricity subsector ..................................................... 89 
 WT/TPR/S/336 • Honduras 
 
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  APPENDIX TABLES 
 
Table A1.1 General merchandise expo rts by main prod ucts, 2010-2015 ................................. 107  
Table A1.2 Exports of goods for pr ocessing (maquila ), 2010-20 15 ........................................ 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 (maq uila), 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 pa rtner, 2009- 2015 ...................... 111  
 
 
Table A2.1 Notifications 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 lo ans granted by BANHPROVI ...................................................... 115  
 
 
Table A4.1 Import quotas app lied by Honduras in 2015 ....................................................... 116  
 WT/TPR/S/336 • 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% between 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 generally kept its inflation rate within the fluctuation 
band established by the Central Bank. The aver age 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 reform 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, th e central government deficit remained high during 
the review 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 continues 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 substantially 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%), an d 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%. Hondura's 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, the composition of imports remained stable between 2010 and 2014, and 
they grew at an annual average rate of 8. 9%. Imports consist mainly of manufactures, 
in particular machinery and equipment and minera l products. As in the case of exports, the 
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 implem ented a system for evaluating government 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 formulating 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 • 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 available 
in Honduras. At the same time, Honduras enacte d 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 Protection of Plant Varieties and the Law on the Energy Sector. These and other 
reforms were introduced to modernize the legisl ative system. However, there have been a number 
of obstacles and delays in implementing some laws, for example the new Energy Sector Law. 
8. Honduran trade policy is largely determined by the commitments made in the framework 
of the Central American Common Market (CACM), and more recently 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 participate in the multilateral trading system, which it 
considers to be fundamental to the small and vu lnerable economies. Under the Doha Development 
Agenda (DDA), Honduras has advocated the implementation of special and differential treatment provisions along with 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). Together 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 an d Trade in Services (TICS), and Honduras signed 
an agreement with Guatemala 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 requirements 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, especi ally 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 formalities. 
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 streamlined 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 Facilitation (TFA) and has begun the formalities for ratifying 
the TFA. 
13. The average applied MFN 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 represented 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%. Agricultural 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 • Honduras 
 
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  continues to be applied to imports of certai n poultry 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 seven 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 band 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 international 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 February 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 standards and regulations and sanitary and phytosanitary 
measures is governed by the principles of co nsensus and transparency, and generally follows 
international standards. During the review period , Honduras also set up new institutions for the 
development of these measures in order to enhanc e 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 also operates a number of sectoral programmes: the Agricultural Export 
Zones regime which, although suspended, continues 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 change s in trade policy since the last 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 insure 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 continues 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 Varieties of Plants. There have been no 
major changes to the provisions on other indust rial property rights and copyright and related 
rights. Honduras is continuing its efforts to improve compliance with intellectual property rights WT/TPR/S/336 • 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 domestic markets, with a view to ensuring 
food security. The authorities have tried to redu ce the distortions in the domestic market by 
introducing a price stabilization mechanism and measures to improve food safety. To promote 
agricultural exports, Honduras has 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, expansion 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 th e 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. For example, 
cabotage services are still reserved for national operators in the case of both air transport and maritime transport. 
 WT/TPR/S/336 • Honduras 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Economic structure an d structural adjustment 
1.1.  With a population of around 8.7 million an d still growing by 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$1,798. According to the World Bank, the country's 
development indicators have worsened in the period  reviewed, as a result of the slow growth and 
stagnation of per capita GDP; 64.5% of the population were living below the poverty line in 2013, 
compared to 60% in 2010.1 As was identified in previous reports and is reaffirmed in the 
Government's 2014-2018 Strategic Plan, the causes of poverty are a lacklustre rate of economic growth, a low level of social inclusion measured by a skewed income distribution, a low level of schooling, inadequate coverage of health services, infrastructure shortcomings, and low labour 
productivity. The Government has proposed implemen ting policies to address the challenges on all 
of these fronts (see below). 
1.2.  The agriculture sector's contribution to GDP stayed broadly constant in real terms during the 
period under review, accounting for 13.9% in 2014 (Table 1.1), or 15.2% of gross value added at 
basic prices. Agriculture remains a very important job creator in Honduras, since a high percentage of the active labour force is employed  in farming or related activities, mainly raising 
livestock and growing coffee, basic grains, pulses, vegetables and fruit. 
1.3.  The GDP share of the manufacturing sector, including maquila  industry, declined slightly 
during the reporting period, from 19.8% in 2010 to 19.3% in 2014. This represented 21.1% of gross value added at basic prices. Services accounted for 63.3% of GDP in the same year 
(or 72.5% of gross value added at basic prices). Among these, financial intermediation, 
communications and trade each represented over 10% of GDP at market prices in 2014. 
Table 1.1 Structure of the economy, 2010-2015 
 2010 2011 2012 2013 2014a 2015  
Q3a 
Gross domestic product (GDP)  
GDP at current prices (market prices, L million) 299,286  335,028  361,349  376,539 409,612 n.a. 
GDP at current prices (market prices, US$ 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 
Housing 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.org/country/honduras . WT/TPR/S/336 • 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 intermediation 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 secto r 73.7 73.5 73.6 74.3 74.0 74.0 
Public secto r 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 secto r 16.6  19.0 19.3 17.9 17.9 n.a.  
Public secto r 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 expenditure category (real growth rate)  
Final consumption expenditure  2.8 2.8 4.0 3.7 2.1 3.0  
Private secto r 3.6 3.6 4.3 3.8 2.7 3.4 
Public secto r -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 secto r 4.7  19.0 6.0 -4.7 2.9 n.a.  
Public secto r -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$, annual average) 19.0  19.0 19.6 20.5 21.1 22.1g 
Real effective exchange rate (index 2009=100), end 
of period 103.8  104.7  103.4  103.0 104.8 105.2h 
Real effective exchange rate, annual variation, end of 
period 3.8 0.9 -1.2 -0.4 1.7 0.8b 
Interest rate on loans in national currency, end of period  19.0 18.1 19.2 20.3 20.7 20.7 
Interest rate on deposits in national currency, end of period  8.7 7.9 10.5 11.3 10.5 9.2  
Monetary base, broad definition (net foreign assets + 
domestic assets), L million 63,648  69,033  68,731  76,106 88,491 n.a. 
Monetary base, narrow definition, L million 31,993  34,280  36,053  39,694 45,450 n.a.  
Employment  
Employed labour force ('000 persons)i 3,254  3,226  3,244  3,487 3,461 n.a.  
Open unemployment rate (%)  3.9 4.3 3.6 3.6 5.3 n.a. 
Other economic indicators  
Current account balance (% of GDP) -4.3 -8.0 -8.6 -9.6 -7.5 n.a. 
Family remittances (US$ 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 reserves 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 variatio n 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 • Honduras 
 
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  1.4.  The Government's 2014-2018 Strategic Plan is targeted on improving welfare and social 
inclusion 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 housing conditions and 
the quality of education and health services. It also seeks to increase employment and reduce 
poverty by promoting investment and competitiven ess, stimulating external trade and supporting 
the development of small urban and rural enterprises. 
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 logistics 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 that 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 implementati on of a universal social security system; an 
expanded and better quality education coverage; un iversal and free coverage of health services to 
be achieved gradually; faster growth of GDP and pe r capita GDP than in the previous five years; a 
reduction in underemployment; improved competitiven ess; 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 so ught support from the International Monetary 
Fund (IMF). This programme aims to conserve ma croeconomic 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 co nnection, a set of fiscal measures was approved in 
December 2013, mainly aimed at boosting revenue (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 und er the Standby Credit Facility amounting to 
US$75.4 million.3 These agreements, which the Honduran au thorities 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 woul d mean reducing the consolidated 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 programmes. 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 (HONDUTEL); 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 actions 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 stresses 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 solid pace with real GDP posting a growth rate of 4% in 
                                               
2 Government of the Republic of Hondur as, 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 at: 
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 • Honduras 
 
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  the first quarter. At the same time, inflation rema ined 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 remittances 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, as 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 th e 39 countries officially included by the 
World Bank and the IMF in the Heavily Indebted Po or 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 a nnual rate of 2.5% betw een 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 prevented 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 owing 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 conditions 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 of 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 continue s to have responsibility for formulating and 
implementing fiscal policy in Honduras. The aim of current 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 infrastructure. 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/external/spanish/np/sec/pr/2015/pr15339s.htm . 
7 Under HIPC rules, debt relief is assigned as a propor tion 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 • Honduras 
 
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  obligations arising from the public debt, ensuring that the available resources are invested 
efficiently and transparently, while underpinning fiscal sustainability.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 gene rally posts a surplus, fuelled above all by the 
earnings of the social security institutes. The ce ntral government deficit fluctuated between 4.4% 
and 7.9% of GDP during the review period, attain ing 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 consumption 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 (grants) 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 total, 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 are 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 represented 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 Hondur as, 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 • 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 combinatio n 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 surcharge, paid on income above L 1 million. 
Net assets tax Assets less reserves in respect of accoun ts 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 th e time of importation or at the domestic 
production level. In the case of cigarett es 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 and 
importation of undenatured ethyl alcohol wi th 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 equivale nt, 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 depe nding on the c.i.f. value of each used 
vehicle. 
Forestry production tax Board feet recorded in the pr evious year, 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 ve hicles for tourism pu rposes, and services 
provided by tourist agencies. 
Administrative 
instruments  Issuance of administrative permits. 
Special contribution levied 
on the financial system Levied on all withdrawals in national an d foreign currency, from demand deposits 
or checking accounts held in financial institutions 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 phon e calls (airtime) received by firms 
operating in the sector. 
Special contribution levied 
on the mining sector Industrial mining of non-metal ores an d gemstone/precious st one 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 under 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, ex penditure 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 defi cit 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 eliminated WT/TPR/S/336 • Honduras 
 
- 17 - 
 
  a number of exemptions and duty-free arrangemen ts; 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, beer, cigarettes, and executive-class airline tickets. At the same time, it exempted go ods in the basic shopping basket from this tax.
9 
Measures were also introduced to rationalize ex penditure, control the management of the public 
debt, and improve tax administration. 
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 tax base; an increase in the num ber 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 an d 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 provid es 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 budget 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 public 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 pr ojected for central government, and 1.7% for the 
consolidated public sector.
10 
1.4  Monetary and exchange-rate policy and 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 BCH are open-market operations and its 
management of required reserves. Open-market oper ations 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 operational 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 calculated 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 (C IP) were created as short-term investment 
instruments that can be purchased directly by pr ivate 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 Annex I to the Law and cover 75 eight-digit tariff subheadings. They include 
certain types of meat, milk, cheese, potatoes, green vege tables, beans, certain fruit s, 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 • Honduras 
 
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  liquidity shortages, subject to prior certification of their compliance with current capital adequacy 
requirements issued by the National Banking an d Insurance Commission (CNBS). Financial entities 
may also avail themselves of the permanent cred it 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  international 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 materials, and the implemen tation 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 range 
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 ex ternal 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 Fund
11; (g) improving coordination 
between monetary and fiscal policies; and (h) st rengthening 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. This 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 lower 
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 exch ange rate system. The BCH maintains an online 
system for currency transactions (SENDI), as an instrument for allocating the foreign exchange 
needed by economic operators. The 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 an d the behaviour of official reserve assets. 
The weighted-average exchange rate of successful auctions is used as the benchmark (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 authorized foreign exchange dealers. 
The banks and foreign exchange bureaus are requ ired to surrender 100% of their daily foreign 
exchange purchases to the BCH at the benchmark fo reign 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 paymen ts 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 • Honduras 
 
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  1.30.  Goods imports grew vigorously between  2009 and 2012, before declining somewhat. 
However, the average annual rate of growth  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 continued 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 pa rticularly important in this category — totalling US$3,353 million, or 
17.2% of GDP in 2014, up by nearly 36% on th e 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  
Expenditure 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 investment 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 • 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 infl ow (outflow) of capital for the country. 
c Net variation in assets: a positive (negative) sign means a reduction (i ncrease) in claims on 
non-residents. Example: 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 reductio n (increase) 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 vari es considerably between 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 dynamic 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 main 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 products 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 equipment 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 consisted of textile materials (Table A1.4 and Chart 1.2). WT/TPR/S/336 • 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 American 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 • Honduras 
 
- 22 - 
 
  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 • 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 Bank of Honduras. WT/TPR/S/336 • Honduras 
 
- 24 - 
 
  Chart 1.3 Merchandise trade by trading partner, 2010 and 2014 
2010 2014
(a)    Exports
Total: US$2,819 million
(b)    Im ports
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 widened 
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 • 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  
Construction 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 business 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 Bank of Hondur as, Macroeconomic Statistics Depart ment, Foreign Trade in Services. 
1.6.4  Foreign direct investment 
1.41.  Foreign direct investment flows increase d during the review period, from US$969.2 million 
in 2010 to US$1,144 million in 2014 (Table 1.6). Be tween 2010 and 2015, the transport, storage 
and telecommunications sector and the manufacturing sector (including maquila ) received the 
largest volumes of investment (30% of the total ea ch), followed by the services sector (commerce, 
hotels and restaurants). WT/TPR/S/336 • 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 processing 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 Preliminary 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 businesses or a decrease in liabilities. 
Source: Central Bank of Honduras, Macroeconomic St atistics 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 
Argentina 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  
Asia 13.2 -21.5  5.2 13.5 31.6 14.8 WT/TPR/S/336 • Honduras 
 
- 27 - 
 
   2010  2011  2012  2013  2014a 2015  
T3a 
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 Programme, 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 • Honduras 
 
- 28 - 
 
  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 relating 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 Employment 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 Offi ce of the President. The presidential term of 
office is four years, without 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 crea tion 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 wi th exclusive jurisdiction in the ZEDEs (see  below) were 
added to the Judiciary.4 
2.4.  Reforms were introduced 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 servants 
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 th e Republic, followed, by order of importance, by 
international treaties, laws (decrees) and their implementing regulations (executive decisions), 
executive decrees, and lastly, agreements and othe r 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 the 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 was 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 Constitution, as at December 2014, viewed at: http://www.poderjudicial.gob.hn/CEDIJ/Leyes/Do cuments/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 Admi nistration (Decree No. 146-86) of 27 October 1986, 
as amended by Decrees No. 31-2010, No. 177-2010, No. 78-2011 and 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 appr oval, the Executive 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 Justic e will be requested to rule on the matter. WT/TPR/S/336 • Honduras 
 
- 29 - 
 
  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 an d 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 consolidation, 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 effo rts by Honduras to modernize its legislative 
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 for 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 Guarantee Fu nds for the Promotion of MSMEs, Social 
Housing and Technical/Vocational Education 
Organic Law on Employment an d 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 Regulation s 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 
Central American Regulations on Sani tary and Phytosanitary Measures and 
Procedures 
Regulations on Agricultural Quarantine 
Regulations on the Sanitary Control of He alth Products, Servic es 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 • Honduras 
 
- 30 - 
 
  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 Law 
Law on the Defence and Promotion of Competition 24-2008 
357-2005 
Intellectual property rights 
Industrial Property Law 
Law on Copyright an d Related Rights 
Law on the Protection of New Varieties of Plants 12-99-E 
4-99-E 
21-2012 
Agriculture, fishing, forestry   
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 on the Nati onal 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 appr oved 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 regulation s were being prepared. 
d Repeals the Framework Law on the Electricity Subsector (Decree No. 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 
(http://www.tsc.gob.hn/biblioteca ). 
2.9.   The Constitution 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 project. 
Following the 2012 constitutional amendmen t, 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, ZEDEs represent an administrative subdivision in Honduran national territory.
10 ZEDEs 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 identity 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 amendment 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 Na tional Institute of Statistics had not 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 ZEDEs. 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 • Honduras 
 
- 31 - 
 
  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 Econom ic Development Zones (ZEDE) 
Under the Law, ZEDEs: 
 Are subject to the provisions of the Constitution, international 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 th eir own policies and regulations. 
 Are operationally and admi nistratively 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 Comm ittee on the Adoption of Best Practices (CAMP).c 
ZEDE courts may turn to courts of others jurisdicti ons, 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 the free movement 
of goods, intangible assets and capital. 
 Have an independent financial regi me 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, prov ided that no government  guarantee is required. 
 Must not apply exchange controls. 
 Are authorized to 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 that is within their jurisdiction. 
a For further information, see Ar ticles 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 
(Decree No. 219-2011) of 17 November 2011, as amended by Decree No. 291-2013). 
c The institutions that manage the ZEDEs are the CAMP and the Technical Secretariat. The CAMP will 
comprise 21 members from the private and public se ctors and academics of "recognized 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 Secretariat 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, PROHONDURAS 
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 multilateral 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 • Honduras 
 
- 32 - 
 
  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 Telecommunications 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 Enterprise 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 Secretariats in volved in trade policy formulation 
State Secretariat Functions  
Foreign Affairs and 
International Cooperation  To formulate, coordinate, implem ent 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, coordina te, implement and evaluate policy on: (a) food 
production, preservation and marketing;  and (b) promotion and modernization 
of agriculture 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 re gulating 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 trade. 
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 Honduras in international trade; increasing 
export supply; providing logistical and trade faci litation services; and forging strategic alliances 
with trading partners in order to promote innovation and production chains. 
2.14.  According to the authorities, there is no  formal trade policy monitoring mechanism, but 
there is a results-based system for the evaluati on 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.  Honduras 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 Tec hnology 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 Airc raft Agreement. In 2011 Honduras accepted the 2005 
Protocol amending the WTO Agreement on Trade-Re lated 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 successive 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 • Honduras 
 
- 33 - 
 
  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) (Table 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 practi ces have not been the subject of any dispute 
settlement 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 negoti ations, Honduras is a member of the group of 
Small, Vulnerable Economies and of the G 33 (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. Honduras 
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 agreements 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 provisions 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 th e 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 no t covered by the 
General Treaty on Central American Economic Integration but were the su bject of subsequent negotiations 
culminating in the 2002 Treaty on In vestment and Trade in Services. 
20 For further information, see the WTO's RTA database. Viewed at: 
http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . WT/TPR/S/336 • Honduras 
 
- 34 - 
 
  Chart 2.1 Participation in regional tr ade 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 LAIA 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    
 Immediate 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 quotas  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  Central American economic inte gration 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 • Honduras 
 
- 35 - 
 
  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 provisions on electronic trade. 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 an d Panama has been governed by the TGIEC and 
the Protocol 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 Agreem ent with the European Union 
2.26.  The Association Agreement between Central America (Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama) and the Europe an Union was signed in 2012. The Agreement 
consists of three pillars: trade, political dial ogue 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 
u n d e r t o o k  t o  r e d u c e  t a r i f f s  o n  H o n d u r a n  p r o d u c t s  i n c l u d e d  i n  t h e  G S P +  t o  0 %  a s  s o o n  a s  t h e  
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 tariff 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 quotas 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 si ngle 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 provisions.
30 As of 
the entry into force of the Agreement, with so me exceptions, all tariffs were eliminated on 
                                               
23 For further information on the functioning of th e 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 tari ff reduction for each of the countries. The protocol 
between Honduras and Panama was signed in 2007 and took effect in 2009. 
26 Article 4 of the Protocol Incorporating the Repu blic of Panama into the Economic Integration 
Subsystem of the Central Am erican Integration System. 
27 Online information from the Eu ropean Commission. Viewed at: 
http://exporthelp.europa.eu/thdapp/display.htm?pag e=cd/cd_AmericaCentral.html&docType=main&languageI
d=ES&newLanguageId=EN , and State Secretariat 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-A CTUALIZADO-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; Mexi co 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 Ag reement between Central America and Mexico. WT/TPR/S/336 • Honduras 
 
- 36 - 
 
  originating goods. Some 94.8% of tariff lines enjo y 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. This Agreement is the first bilateral trade agreement signed by Honduras and also 
includes cooperation commitments relating to labour 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 pr oducts 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 an d 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, Honduras 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 investment 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 public-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 Promotion 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 I n  t h a t  s a m e  y e a r  H o n d u r a s  a p p r o v e d  t h e  L a w  o n  t h e  
Promotion of Public-Private Partnerships in order to promote 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 2010-2014 National Investment Promotion Programme can be viewed at: 
http://www.hondurasopenforbusi ness.com/SITEv2/flv/pnpi.pdf . 
34 Article 43 of Decree No. 51-2011, as amended by Article 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 implemen ting the Investment Promotion and Protection Law 
(Executive Decision No. 22-DGTC-2014) of 22 October 2014. 
37 Law on the Promotion of Public-Private Partne rships (Decree No. 143-2010) of 11 August 2011, and 
General Regulations implementing the Law on the Promotio n of Public-Private Partnerships (Executive Decision 
No. 02073-2010) of 21 December 2010. WT/TPR/S/336 • Honduras 
 
- 37 - 
 
  under the previous regime will be guaranteed up to the end of 2016, as of which time the new 
investment regime will au tomatically take effect.38 
Table 2.5 Guarantees offered under the In vestment Promotion and Protection Law 
Domestic and foreign investment 
Unrestricted access to foreign exchange 
Right to open bank accounts and to withdr aw 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 insurance 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, subsidiari es, 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 National 
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 )"; hunting, 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 gr anted to private entities (Table 2.6), and the 
service linked 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 20 14 the private sector has been permitted 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 rese rved to the State, 2015 
Activity Legal framework 
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 
Management 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 supply, waste management, 
sanitation and hygiene 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 to 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 • 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 distribution 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 
c o n t r a r y  o r  i f  t h e r e  i s  a  n e e d  f o r  l a n d  r e f o r m  o r  t o  c r e a t e  t o u r i s t  z o n e s  o r  E m p l o y m e n t  a n d  
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 located 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 for 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) protection 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 Stability contracts are offered only to investors that commit to investing upwards of 
US$2 million in Honduras. In addition to the in centives envisaged under the new law, Honduras 
maintains other special regimes to promote both domestic and foreign investment (Section 3). 
Most of these programmes apply generally, though some incentives are maintained in order to promote investment in specific sectors, especially in clean energy generation
50 and tourism 
(Section 4.3.4). 
Table 2.7 Investment guarantees stipulat ed under the Investment Promotion and 
Protection Law 
Guarantee Description 
Stability 
contract  It ensures that the legal and tax conditions in fo rce at the time of investing in Honduras remain 
unchanged for a period of 15 years. The contract  may be extended to 25 years 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 tax for a period of 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 Economic Development Zones (Decree No. 120-2013) of 12 June 2013. 
45 The Investment Promotion and Protection La w distinguishes between direct and indirect 
expropriation. Direct expropriation oc curs when an investment is nation alized directly through the formal 
transfer of the right of ownership to the State. Indirect  expropriation occurs when St ate 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 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 Measures 
(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 • Honduras 
 
- 39 - 
 
  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 Projects on Disputed Real Estate protects investors aggrieved by a judicial or admini strative 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, Executive Decision No. 22-DGTC-2014 
and Decree No. 284-2013. 
2.43.  Honduras is setting up a single wind ow for investment, which will be managed by 
PROHONDURAS. The first stage consists of th e National Investment Register, which began 
operating in 2015. Furthermore, the 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 re view 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 Industry, registration in the 
National Tax Register and obtaining the municipa l operating permit. The FUE is processed on the 
MiEmpresaEnLínea website. Investment projects de emed 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 "expedited 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 workforce 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 Investment  Disputes (ICSID). Moreover, Honduras applies 
the New York Convention (recognition and enfo rcement 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 Pr ogramme. 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 projects 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 partne rship contracts are contained in the Law on the 
Promotion of Public-Private Partnerships (Decre e No. 143-2010) of 11 August 2010 and in the General 
Regulations implementing the Law on the Promotion of Public-Private Partnerships (Executive 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 • Honduras 
 
- 40 - 
 
  nine bilateral investment agreements.60 According to the authorities, Honduras has not signed any 
agreements for the avoidance of double taxati on, though it has signed agreements on the 
exchange of tax information. Honduras has two agreements of this kind, one with Central America and the other with the United States. 
 
 
                                               
60 Chile; France; Germany; Republic of Korea; Neth erlands; Spain; Switzerl and; United States; and 
United Kingdom. Two agreements (Cuba and Chinese Taipei) have not entered into force. WT/TPR/S/336 • Honduras 
 
- 41 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures directly affecting imports 3.1.1  Procedures, docu ments and registration 
3.1.  There were no major changes to import procedures and requirements during the period 
under review. The customs 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 Se cretariat for Finance/DEI 
Methyl bromide; seeds; da iry 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 Agri culture and Livestock  
Refrigerants  State Secretariat fo r Energy, Natural Resources, the 
Environment and Mining 
Cosmetics; medicines; food products; toxic chemicals State Secretaria t for Health 
Source: WTO Secretariat. 
3.3.  The documents to be forwarded for import s 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, including 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 (COMIE CO-XLIX) of 25 April 2008, as amended by 
Resolution No. 306 2013 (COMIECO-EX) of 15 May 2013.  The amendment concerns the submission of 
documents accompanying the single customs declarat ion for definitive exports, temporary exports and 
re-exports. 
2 Technical Secretariat for Planning and External Cooperation (2013), Agenda Digital Honduras 
2014-2018 . Viewed at: 
http://www.scgg.gob.hn/sites/default/files/Ag enda%20Digital%20de%20Honduras%202014-2018.pdf . 
3 Articles 30 and 39 of the Law on Revenue Enhancemen t, 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 the 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.gob.hn/website/uploaded/content/category/1268580696.pdf . WT/TPR/S/336 • Honduras 
 
- 42 - 
 
  3.4.  The automated customs revenue system of Honduras (SARAH) has been in operation 
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 electronically, 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 regulati ons 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 importation; (b) customs transit; (c) temporary importation for re-exportation in the same state; (d) temporar y 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 nationals 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 ca tegory A commitments, provisions which will be 
implemented when the WTO Agreement on Trade Faci litation comes into force, and the procedure 
for ratifying the Agreement has been initiated (Section 2.3.1).12 
3.9.  Appeals against decisions by the customs se rvice 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 administra tive channels, an appeal may be made to the 
administrative litigation courts. According to th e 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 accordan ce 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 goods 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/upl oaded/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 RECAUCA. 
10 A customs agent is not required for cross-bo rder 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 • Honduras 
 
- 43 - 
 
  3.13.  Since 2010, Honduras has signed trade agreements with Canada, Mexico and the 
European Union and therefore applies the preferenti al 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 rules 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 provisions on preferen tial rules of origin applied since 2010 
 Canada Panama EU Mexico 
Criteria Change in tariff headin g 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 fi bres 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 origin
b United States 
and Mexico 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 preferenti al agreements between them are in force. 
Source: WTO Secretariat, based on information provid ed 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 apply 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 applied MFN 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 • 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 all 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 definition) 11.1 10.7 
9. Non-agricultural products (including petroleum, WTO definition) 5.1 5.1  
10. Domestic 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 of 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 Domestic tariff peaks are defined as rates exceeding three times the overall simp le average applied rate. 
c International 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 lines 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 at levels below 35%. WT/TPR/S/336 • Honduras 
 
- 45 - 
 
  3.18.  For the purpose of this review, the Secret ariat 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 time 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 equal to 2 mm 15 15 8 
72106910 Flat-rolled products of alumin ium 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 were 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 cushion the domestic-market impact of international 
price fluctuations. 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 tari ff and the surcharge may not 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 February 1993. WT/TPR/S/336 • 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 system 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 ba nds are also subject to "absorption agreements" 
(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-fr ee, 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; Ch inese Taipei; Colombia; Dominican 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 agr eements negotiated by Honduras are all well below 
the average MFN rate. Preferential tariffs ra nge 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 
products 
(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 • 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 also 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 between 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. Th e 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.  Honduras 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 subj ect to a number of internal taxes, namely: the 
sales tax, the production and consumption tax, 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 ot her alcoholic beverages, 
cigarettes 18% 
Production and consumption tax  
Carbonated and other prepared beve rages, excluding 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 an d 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; perfum ery 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 WT/TPR/S/336 • Honduras 
 
- 48 - 
 
  Tax and goods  Rate in 2015 
AvJet US$0.0300 
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, an d 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, licensi ng and other restrictions
21 
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, Honduras has banned the import of 
incandescent lamps, methyl bromide for agricultur al 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 of 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 licences has not changed since 2010 and includes: arms and 
ammunition and explosive materials; medicines an d chemical precursors; dairy produce; plant and 
animal products and by-products; inputs for agri cultural or veterinary use; and methyl bromide 
and refrigerants. 
3.34.  In order to request an automatic or non-automatic import licence, importers usually have to 
be registered with the competent State Secretaria t (Table 3.8). The time required for granting a 
licence is between 24 hours (for import licences for products 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 by the 
competent State Secretariat. Licences may be tran sferred. 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 licence. 
                                               
20 In 2015, the basic shopping basket consisted of 271 goods and two services. The goods included: 
meat, fish, milk, eggs, fruit and vege tables, 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 perm it, depending on the issuing body. WT/TPR/S/336 • Honduras 
 
- 49 - 
 
  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 days 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/LIC/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 import 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 administer 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 
obtaining 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 refriger ants varies depending 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 
                                               
24 The Armoury is a unit of the Military Provident In stitute and its main activities are the manufacture, 
import, distribution, purchase and sale of arms and ammunition. WT/TPR/S/336 • Honduras 
 
- 50 - 
 
  did not take place. A licence may be refused if the quota attributed to the importer has been 
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, Honduras 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 Honduras 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 unfounded. 
3.39.  Honduras did not initiate any subsidy investigation during the review period. 
                                               
25 Resolution No. 193-2007 (COMIECO-XLIV). WT/TPR/S/336 • 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 Directorate-General of Economic Integration and Trade Policy (DGIEPC) 
may initiate an investigation ex officio  
The Under-Secretariat requests 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 agreed solution 
The Under-Secretariat issues a resolution initiating an investigation and notifies this to the 
governments of the interested parties 
The Under-Secretariat requests information by means of questionnaires 
The Under-Secretariat receives replies 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 provisional  
measures are imposed 
Definitive measures are imposed by means of a resolution published in the Official Journal 
(La Gaceta ) and another national newspaper, which is forwarded to the interested parties, 
the DEI, the SIECA and the WTO Provisional measures are imposed by means of a resolution published in the Official 
Journal ( La Gaceta ) and another national newspaper, which is forwarded to the interested 
parties, the DEI, the SIECA and the WTO. 
Provisional measures are applied for 4 months, in the case 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 by 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 consid ers 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/dgiepc/files/Flujograma.pdf ; and information provided by the 
authorities. WT/TPR/S/336 • 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 Americ an Regulations on Safeguard Measures 
(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 investigation 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. Af ter it has received 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 information if the application is incomplete; or to reject it in the form 
of a reasoned decision if the request does not cont ain sufficient evidence justifying the initiation 
of an investigation or if it has not been made on behalf of a domestic industry. The decision 
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 months 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, within 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 remain 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 mo re 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 im posed 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; or 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 or 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 "safeguard" 
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 • Honduras 
 
- 53 - 
 
  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 Standardization 
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 technical 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 Honduras' 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 Practi ce for the Preparation, Adoption and Application 
of Standards.
29 
3.49.  Honduras notified 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 created the National Quality System as the 
technical body responsible for promoting the us e of conformity assessment and demonstration 
mechanisms, the adoption of quality management practices and training, as well as for fostering public and private coordination 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, publishing 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, en ergy efficiency, lighting, melons, toys and 
conformity assessment.
33 
3.52.  The procedure for preparation of OHN standa rds 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 consultation 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 the authorities, standard s 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; ad vises the Office of the President of the Republic, the 
official in charge of the Technical Secretariat for Planni ng and External Cooperation, and other bodies belonging 
to the National Quality System; it proposes quality po licies and defines the gene ral 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 equality; conformity assess ment; beans; hotels; toys; dairy produce; melons; plastics; social 
responsibility; doughnuts; and tour operators. Information viewed at: 
http://ohn.hondurascalidad.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 • Honduras 
 
- 54 - 
 
  Chart 3.3 Procedure for preparing Honduran standards 
Stage 0 
Preliminary  stage 
Stage 4
Public consultation  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 regulations within their spheres of competence. The CIRT was set up in 2013 to coordinate the preparation of technical regulations and starte d 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 an d 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 regulations 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 measuring 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 Information viewed at: http://cehm.hondurascalidad.org/laboratorios.html . 
5 Review of the public consultation text 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 technical committee 
2 Invitation to attend the technical 
committee with CIRT representatives 
4 National and international public 
consultation 3 Working meetings with various technical 
committees 1 Need for a technical regulation 
Request to the CIRT WT/TPR/S/336 • 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, guides 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 accreditation must use accredited laboratories or those recognized under recognition agreements between the OHA and equivalent internat ional bodies. It also provides for the creation 
of a network of inspection, testing, analysis, calibration and certification bodies, composed of 
public and/or private entities, to determine conf ormity with standards or technical regulations. 
3.57.  The general accreditation procedure defines the st ages 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 eval uation and s upervis ion in order to ens ure that the y maintain the 
necessary technical skills to remain accredited. They may request renewal of accreditation. The accreditation granted by the OHA is valid indefinitely, but is subject to annual visits to monitor the 
institutions accredited and to evalua tion 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' rights 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 provisions 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 also forms part of Honduras' SPS lega l framework, together with the applicable CACM 
legislation, notably the Central American Regulations on Sanitary and Phytosanitary Measures and Procedures, revised in 2011
42, which harmonize SPS measures at the Central American level. 
Under these Regulations, SPS measures must be ba sed 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 Accr editation 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.hondurascalidad.org/oec_acredita dos_oha-eca/oec_acre ditados_oha-eca.html . 
38 For further details, see: 
http://oha.hondurascalidad.org/se rvicios_acreditacion/Procedimien to_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 contents, 
quantity or specification of measurements; date of ma nufacture 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 protecti on. The Regula tions also 
stipulate that, where a sanitary or phytosanitary measure is not underpin ned by an international reference 
standard, it must be founded on a risk-based analysis. Th is risk analysis must be conducted in accordance with 
the WTO Agreement on the Application of Sanitary and Phytosanitary Measures, the standards, directives and 
recommendations of the OIE, the IPPC and the Codex Alimen tarius, as well as the relevant regional regulations 
(Article 4 of Resolution No. 271-2011 (COMIECO-LXI)). WT/TPR/S/336 • Honduras 
 
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  Table 3.9 Principal legal instruments regulating  the sanitary and phytosanitary system, 2015 
Animal health  Legal framework 
Sanitary regulations for the operation of poultry-fa ttening farms at the national 
level  Decision No. 894-01 (SAG)  
Sanitary regulations for th e 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 surveillance 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 Fauna and Flora Decision No. 966-03 (SAG) 
Regulations on the prevention, control and eradication of Newcastle disease Decision No. 403-13 (SAG) 
Regulations on the prevention, control and eradication of avian salmonellosis Decision No. 402-13 (SAG) 
Regulations on epidemiological surveillance, prevention and control of bovine 
spongiform encephalopathy (BSE) an d other transmissible spongiform 
encephalopathies (TSEs) Decision No. 401-13 (SAG) 
Central American sanitary and phytosanit ary directive on trade facilitation in 
respect of shipments and goods Resolution No. 338-2014 
(COMIECO-EX) 
Procedure for recognition of sanitary regi stration of products used in animal 
feed Resolution No. 304-2013 
(COMIECO-EX) 
Central American regulations on sani tary and phytosanitary measures and 
procedures Resolution No. 271-2011 
(COMIECO-LXI) 
Central American Technical Regulation s (RTCA) on veterinary and related 
products: sanitary registrati on and control requirements RTCA 65.05.51:08 
RTCA on products used in animal feed and facilities: sanitary registration and 
control 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 1980 and 
Decision No. 1942 of 1982 
Biosafety regulations with emph asis on transgenic plants Decision No. 1570-98 (SAG) 
Regulations on agricultural quarantine Decision No. 1618-97 (SAG) 
Regulations on diagnosis, surveillance and phytosanitary campaigns Decision No. 002-98 (SAG) 
Regulation on the inspection and certif ication 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 pesticides and related 
substances Decision No. 642-98 (SAG) 
Technical regulations on the production, import and marketing of potato seeds Decision No. 873-2009 
Regulations on the registration, use and control of fertilizers and raw materials Decision No. 002-02 (SAG) 
RTCA on agricultural inputs: requirem ents for the production and marketing 
of certified staple grains and soya seeds RTCA 65.05.53:10 
RTCA on fertilizers and soil improvers for agricultural use: registration 
requirements RTCA 65.05.54:09 
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 health  Decision No. 1418-00 (SAG) 
Regulations on the inspection and safe ty 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) 
Regulations on the inspection and animal health certification of fishery and 
aquaculture products Decision No. 728-08 (SAG) 
Regulations on the inspection of meat and meat products Decision No. 078-00 (SAG) 
Regulations on the inspection, approval and health certification 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.senasa-sag.gob.hn/re glamentos-vigentes-en-senasa ; and on the basis of information 
provided by the authorities. WT/TPR/S/336 • Honduras 
 
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  3.60.  The State Secretariat for Agriculture and Livestock (SAG), through the National Agricultural 
Health Service (SENASA), is responsible for developing 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 plant health and f ood 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 pest s 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 th e three enquiry points designated by Honduras in 
the context of the WTO Agreement on the Applic ation of Sanitary and 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 Secretariat 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 phytosanitary 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, Hond uras 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 marking 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 im port or transit through its territory of goods 
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 veterinary 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 may 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 procedures to streamline the entry and ex it 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, Annex to Resolution No. 259-2010 (COMIECO-LIX). 
49 Shipments are: plants and plan t products and/or other articles  transported from one country to 
another and covered by a single phytos anitary certificate. A shipment may comprise one or more products or 
batches (Annex to Resolution No. 338-2014 (COMIECO-EX)).  Goods are: live animals, products and byproducts 
of animal origin, genetic material of animals, biolog ical products, animal feed and pathological material 
(Annex to Resolution No. 338-2014 (COMIECO-EX)). WT/TPR/S/336 • Honduras 
 
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  goods are divided into three categories depending on the risk analysis, which serve 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 requirements 
Category A High risk Phytosanitary or an imal 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 phytosanitary 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 Resoluti on 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 the authorities, once implemented, this scheme will allow plant and animal health certificates to be processed electronically. 
3.68.  During the review period, Honduras ad opted regulations to prevent the transmission 
of bovine spongiform encephalopathy (BSE) and other 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 ruminant s, products and byproducts and feed for bovine 
production. 
3.69.  The goal of the National Poultry Farming Programme is to protect the health status 
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 meas ures laid down in the Programme, the SAG has, 
for example, adopted Decision No. 403-13, which de termines provisions for the prevention, control 
and eradication of Newcastle disease (Box 3.1). 
Box 3.1 Sanitary measures relating to Newcastle disease 
All owners of poultry must be registered with the co mpetent authorities and comply with the epidemiological 
surveillance provisions and proc edures determined in the National Poultry Farming Programme.  
To be able to export poultry produc ts to Honduras, an application must be made to the SENASA in writing. 
The latter defines the procedure to be followed accordin g to the health status in the country of origin as 
regards Newcastle disease. Before approving the entry of poultry an d poultry products or byproducts into 
Honduran territory, the SENASA inspec ts 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 Newcastle disease.  The SENASA requires that all import s of poultry and poultry products be 
accompanied by a veterinary certificat e. Moreover, it carries out random co ntrols at the border in order to 
prevent the entry of any product presenting a risk  of introducing Newcastle disease into Honduras. 
The SENASA also periodically conducts clinical inspections and serological an d virological testing of poultry in 
areas adjacent to a country or zone  infected by Newcastle disease. An y 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, lorries used to carry poultry from fa rms 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 production unit may be placed in quarantine as a prec autionary or defini tive 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 proc edures 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 • Honduras 
 
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  All owners of poultry must be registered with the co mpetent authorities and comply with the epidemiological 
surveillance provisions and proc edures determined in the National Poultry Farming Programme.  
The Health and Safety Commission for the poultry farm ing chain is responsible for drawing up vaccination 
programmes against Newcastle disease. Only vaccines  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 the 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 manufacturing 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 Alimentarius, 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 prod ucts 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 methodologies and benchmark quality specifications used 
are those laid down by the AOAC, by other recogn ized 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 traceability 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) for 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, Honduras approved the National Food Safety Policy, whose main objectives are: to 
improve scientific capacity, tran sfer and exchange of information, at both national and 
international levels; and to update the food control and monitoring systems. 
3.74.  The Food Safety Division (DIA) in the SAG has responsibility for inspecting the import of 
fruit and fresh and processed garden produce, as we ll 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 veterina ry and related products: sa nitary 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 prod ucts used in animal fe ed: best manufacturing 
practices (RTCA 65.05.63:11). WT/TPR/S/336 • Honduras 
 
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  3.2  Measures directly affecting exports 
3.2.1  Procedures, docu ments 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 the 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) and those exporting ozone-deplet ing chemicals with the State Secretariat for 
Energy, Natural Resources, the Environment and Mining.56 
3.77.  Exports to the CACM are processed usin g the FAUCA, while the DUA is used for other 
exports. The following documents have to be 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 certificate
57; the documents required by the BCH; th e documents attesting to the exemption 
regime; and other documents required by law accord ing to the nature of the goods or the customs 
procedure. 
3.78.  A number of electronic systems started to be used during the review 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 PROHONDURAS 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 coffee to the IHCAFE. This sum is earm arked 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/descargas/presentaciones/2014/Importaciones-
Exportaciones/Presentaciones%20Desarrollo%20Eco nomico/Presentaci%C3%B3n%20Direcci%C3%B3n%20Ge
neral%20de%20Tr%C3%A1mites%20Emp resariales%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 La w 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 • Honduras 
 
- 61 - 
 
  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/quintal 
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. value
b 
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 collected 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 repealing 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, licensi ng and other restrictions 
3.83.  Honduras bans the export of some products for the following reasons: (i) to protect public, 
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, th e 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 fo rests 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 • 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, investment , 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 previous ly they had been for an indefinite period 
(Table 3.12). 
Table 3.12 Export subsidy schemes in 2015  
 RIT ZOLI 
Beneficiaries Natural or legal persons (Honduran or  foreigners resident in Honduras) 
Customs duties Suspension 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 eligible for this incentive was modified in 2011. In 2015, it included: (a) raw materials, semi-finished goods, containers and packaging, a s  w e l l  a s  o t h e r  i n p u t s  u s e d  i n  p r o d u c t i o n ;  
(b) machinery, equipment, moulds, tools, spare parts and other parts needed for 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 th e 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 (S ection 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 broader, 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 period 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 implementing 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 No. 113-2011 and Article 1 
of Decree No. 261-2011. 
72 PowerPoint presentation by the Special Commissi on 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 • Honduras 
 
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  In 2014, fiscal exemptions amounted 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 enterp rise is exempt from tariffs 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 th e goods 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. Reimbu rsement 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 drawback 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 National 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 exports by 25% by 2018 
 To make Honduras the larges t exporter in the region  
National Export Promotion 
Plan   To build export capacity for th e ten leading export products 
 To diversify export supply by in corporating five new high-value 
products in high international demand 
 To increase exports of processed textile goods 
National Export Promotion 
Strategy  To broaden, consolidate and di versify products and markets 
 To improve the competitiveness of exporting firms 
 To provide exporters with services and strategic information  
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 Commission 
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 Development 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 Exporters of Honduras (ANEXHON). 
                                               
74 Law establishing Agricultural Export Zones (Decree No. 233-2001) of 29 December 2001, repealed 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 Foreign Trade Regimes". Viewed at: http://www10.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 Interinstituti onal 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://agronegoc ios.sag.gob.hn . WT/TPR/S/336 • 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 Agri culture (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 have any official prog rammes 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 resident 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 arrangement 
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, administered 
by the National Coffee Fund 
Article 47, as amended, of Decree 
No. 213-2000 of 1 November 2000 
(Honduran Coffee Institute (IHCAFE)) Exemption from payment of tariffs on fertilizer 
Article 37 of the Inve stment 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 paymen t 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 Tourism Incentives 
(Decree No. 314-98) of 18 December 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 Procedure (RIT), 
contained in Decree No. 37-84 of 
20 December 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 payment 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 other 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 duty on 
specific goods to be re-exported within a period of six months 
                                               
78 Information provided by the authorities. WT/TPR/S/336 • Honduras 
 
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  Legislation Exemption or duty-free arrangement 
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 othe r 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 si ze 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 and its implementing Regulations Exemption from sales tax 
Source: Law on Fiscal Consolidation, Contro l 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 promote 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 indefinite 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 ce ntres and business service outsourcing centres 
could benefit from 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 Ec onomic Development Zones provides that the 
ZEDE may establish a fiscal regime independent of th at prevailing in the rest of Honduras, with the 
emphasis on a "low tax policy". The ZEDE administ ration will determine rates for the various taxes, 
including: tariffs, income tax, sales tax, property 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 ZEDE has yet been established, a num ber 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 financing for production sectors
83, 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 Promotion 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 Empl oyment 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 sector s are those which process raw materials, natural 
resources or other inputs in order to produce good s and services, but do not include micro, small or 
medium-sized enterprises. Th e "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 Promotion and Developm ent 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 • 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 fa ctors 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 Medium-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 m illion; 90% of these were issued through the 
FOGMIPYME and 0.8% through the FAGRE.91 There is also the Fund for the Promotion of Micro, 
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 welfar e, except in the case 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 was 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 Insu rance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/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 Mutual 
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 Co mpetitiveness 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 (Decision 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 • 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 control 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 sectoral 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), whose 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 themselves 
(vertical agreements), whose effect is unjustifiab ly 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 market 
(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 th e percentage threshold 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 occurrence, 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 th e 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, appeals were lodged against 
five decisions by the CDPC during the review period. 
3.115.  With regard to the examination of bu siness mergers, those 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 information 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. Viewed 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 investigation 
(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 • Honduras 
 
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  a larger number of business mergers 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 yield 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 and 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 these benefits, which mu st 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 investigations 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 order to fix prices an d 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  
Examined 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 authorities). 
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 • Honduras 
 
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  3.3.2.1.2  Protection of consumers 
3.118.  Consumers' rights are protected by the Co nstitution and by the Consumer Protection Law 
of 2008.111 PROHONDURAS, through the Directorate-Gene ral of Consumer 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 practices, 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 2013, 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 essential 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 in puts 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 olig opolies 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 comprised 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 al so 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 products in the basic basket form the List of Food Security Products, whose 
prices are monitored by the National Food Secu rity 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 the List 
each year, taking into account requests made by consumers.120 
3.123.  Honduras operates a temporary market stab ilization 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 ra te 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 price 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 See: 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-
2014Listado_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 • 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). Suppliers 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 the 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 Admi nistration Commission regulates th e selling price of imported refined 
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 mechanism 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 enterprises 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 Indu stry (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 concession 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 Puerto 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 convening the major suppliers of the good 
(production, distribution and mark eting) in order to determine th e 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 implementi ng 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 document G/STR/N/15/HND of 1 September 2014. 
128 Repeals the Framework Law on the Electricity Su bsector (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 Electrical 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 Electricit y Industry (Decree No. 404-2013) of 20 January 2014. 
130 Framework Law on Drinking Water and Sani tation (Decree No. 118-2003) of 20 August 2003, 
as amended by Decree No. 112-2008. WT/TPR/S/336 • 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 regu latory framework for government procurement 
during the review period. The Law on Efficien t and Transparent Procurement using Electronic 
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 from 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 settlement mechanisms relating to fulfilment of a contract; 
c. requiring that the budget allocation be presen ted 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 that 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 competition 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 participate 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 Developm ent 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 government procurement contracts awarded 
to MSMEs during the review period. 
                                               
131 Law on Efficient and Transparent Procuremen t 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 Regula tions implementing the Government Procurement 
Law (Executive Decision No. 055-2002) of 15 May 2002. 
133 The Annual Procurement and Contract ing Plan for each institution must  appear in the General Budget 
to be approved by the National Congre ss. 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 No. 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 Develo pment of the Competitiveness of Micro, Small and 
Medium-Sized Enterprises (Decree No. 135-2008) of 1 October 2008. WT/TPR/S/336 • 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 internatio nal 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 Honduran 
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 standards and tools needed to promote efficiency, transparency, harmonization an d economies in government procurement.
140 
3.137.  Honduras has a digital information system on government procurement and purchasing 
(HonduCompras), managed by the ONCAE, throug h which contracting 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 incorporated 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 its 
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 Honduras 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, oper ating or maintenance costs, delivery time and 
reliability of the suppliers. Contracting entities 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 achi eved 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 or 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 prof essional services is declared to be of public interest, together with the 
promotion of building capacity and busi ness experience in the co untry for the construction  of public works, the 
supply of consultancy or accountancy services and other professional services in ge neral, 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 C oordination 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 No. 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 • 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 President (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 Revenu es 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 to the authorities, preselection of suppliers is based on 
legal, administrative, technical and financial crit eria and the suppliers' capacity and experience. 
3.142.  International public bidding may be used when special technology is required or there are 
other justifying reasons.149 The invitation must be issued in accordance with conditions in the 
Honduran professional market and the availa bility of budgetary and financial resources.150 
3.143.  Private bidding involves a limited number of bidders (at least three) and participation 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 evaluati ng bids, for example: financing terms, delivery 
time and environmental impact. If the contract is not awarded to the bidder offering the lowest 
price, the decision has to be properly substantiate d 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, especially 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 economical 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 the 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 an d 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 No. 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 • Honduras 
 
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  exclusively sold, in which case only a quotation from the exclusive supplier is required.154 In any 
event, direct contracting requires authorization from the President of the Republic (centralized 
entities) or the highest authority (decentralized en tities). Foreign suppliers of goods and services 
may participate in special cases155, provided that they have no commercial 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 administrative ap peals 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 procurement by the central administra tion 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 indust rial property rights and copyright and related 
rights. The key legal instruments 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 (TRIPS); the 
commitments made under the CAFTA-DR; and the WIPO-administered treaties to which Honduras 
is a contracting party, notably the Patent Cooper ation Treaty (PCT), the Copyright Treaty (WCT) 
and the Performances and Phonograms Treaty (WPPT). 
3.149.  The Directorate-General of Intellectual Pr operty (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 Relate d Rights Register, while the SAG, through 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 Performances (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. In addition, Honduras has begun the process of acceding to the Internationa l 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 
procurement. See also the ONCAE's 2010 handbook of proc edures 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 situations 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 Conv ention 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: Ro me Convention; Berne Convention ; Phonograms Convention; WIPO 
Copyright Treaty; WIPO Performances and Phonograms Trea ty. Industrial property: Paris Convention. Patents: 
Budapest Treaty, Patent Cooperation Treaty. Trademar ks: 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 
Honduras. Viewed at: http://www.congresonacional.hn/index. php/2014-02-10-22-24-42/congreso/item/1210-
congreso-nacional-aprueba-tlc-con- peru-y-tratado-de-marrakech-para-be neficiar-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 • Honduras 
 
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  3.151.  In 2013, Honduras' National Intellectual Property Strategy was adopted with the aim of 
strengthening the intellectual property 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; and (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 Unio n 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 and 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 availability 
or supplies do not suffice. Licences are granted fo llowing 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 automatically 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 pr otection 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 pate nt 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 such 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 da te 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 regulations 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 • Honduras 
 
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  renewed indefinitely, although failure to use the ma rk may entail loss of the right. 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 granting 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 wh ich 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 the 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 Stat e Secretariat for Public Health and the SENASA as 
there are no implementing 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, computer 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 protected under international conven tions 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 for 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 131 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 • 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 
(CICOMPI), 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 Agreement 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 review 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 • Honduras 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Main features 4.1.  The agricultural sector 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 growth 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 re view 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 agricultural 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 th e agricultural sector, 2010-2014 
 2010  2011  2012 2013 2014a 
Crop farming, livestock br eeding, 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, spirits 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 servic es, production of live-a nimal 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 charac terized by its relative concentration. Coffee 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 • Honduras 
 
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  competitiveness and reduce the risk of pests and diseases (see below). The most important 
industrial crops 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 exchange 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 during the review period, rising from US$748.4 million in 2010 
to US$1,115.1 million in 2014. The main export produc ts 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 impl ementing 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 planni ng 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 Agricultural 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 Forest ry Administration (AFE) and the Honduran 
National Institute for Forest Conservation and De velopment, 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 2004-2021 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 the 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 entrusted 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, publications, 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 fairs; 
                                               
2 Online information from the SAG. Viewed at: http://sag.gob.hn/acerca-de-la-sag/quienes-somos/que-
es-la-secretaria-de-ag ricultura-y-ganaderia . WT/TPR/S/336 • 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 
International 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 regulations; 
 participating in the negotiation 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 agricultural product processing equipment to add value. 
Sustained improvement in agricu ltural health and food safety  
This policy has been implemented through: 
 the issuing of phytosanitary and animal health permits with  the support of the Export Pr ocessing Centre (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 implementation 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 the 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 International 
Atomic Energy Agency (IAEA); and 
 the structure and design of ISO/IEC Standard 17025 fo r managing the quality of products and services. 
Integration of agrifood chains 
Seven priority agrifood chains have been defined: staple gr ains; fruit and vegetables; 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 innovati on, diversification and value added  
The Generation and Access to Technological 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 
Technologies 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 Millennium 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 
(FONTAGRO); 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 through 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 Honduras, 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 associations 
supported by rural development projects. 
Source: Government of Honduras, State Se cretariat 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 2014. 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 
poverty 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 of approximately 
41% was achieved, with the value rising fr om US$1,933 million in 2010 to US$2,727 million WT/TPR/S/336 • Honduras 
 
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  in 2014); (iv) increasing the value of fruit and vegetable exports, 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 ro ads (the resurfacing of 159 km of tertiary roads 
has been approved); (viii) increasing staple grai ns 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) increa sing 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 targ et); 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 for 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 se curity. To this end, efforts have been made to 
improve productivity and competitiveness through investment, both public and private, aimed at 
modernizing and improving the infrastructure, transf erring technology to producers, and extending 
value chains. As an objective 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 agricultural 
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 strategic 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 infrastructure); (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), es tablished in 2000, is the body responsible for 
formulating national coffee policy and advising the President of the 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 approve 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, with 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 organization 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 jurisdiction; 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 im prove agricultural production techniques and 
methods of grading and processing, packaging, transporting, registering, manufacturing and 
                                               
3 SAG, Strategy for the Agrifood Public Sector an d Implementation Plan. Ho nduras 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 sect oral competitiveness and growth; 10.79% for market 
access; 34.51% for sector support; 8. 41% for the facilitative environmen t 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 • Honduras 
 
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  marketing coffee.  The IHCAFE's mission is to promot e the Honduran coffee grower's 
socio-economic return by developing the co mpetitiveness 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 Ho nduras, 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 agriculture 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 T o  t h i s  e n d ,  t h e  P A C A  
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 objectives. 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 agricultural sector bene fits 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 applie d duty of 5.9%, and an average tariff of 5.1% 
applied to non-agricultural products, excluding pe troleum. On average, the highest duties per WTO 
category were applied to dairy produce and produc ts 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 yellow maize, white maize (up to Au gust 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 purpose 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 floor  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 Committ ee and submitted to the Agricultural Development 
Council. The limits 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 Honduran 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 • 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 price 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 purcha se 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 imported 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 ag ricultural 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 inputs, 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, Hond uras notified a series of agricultural 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 was 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 competitiveness and sustainable rural development project in the 
                                               
10 Decision No. 648-98, Official Journal  of 28 April 1998. Viewed 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 • 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 (Forestry Law, Land Us e 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 facilitate 
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 create 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 
(PROMECOM)  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 security 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 producers (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 and 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 tourism 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-industrial villages in rural areas. 74,546.55 
Infrastructure services  
Irrigation micr osystem 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 tr eatment - "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 document G/AG/N/HND/41 of 6 July 2015. WT/TPR/S/336 • 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 improved 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 Loan 
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 
Competitiveness 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 their 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 Livest ock; 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 Hondur as 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 the project management unit. It is focused on the departments 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 Pe troleum Exporting Countries (OPEC), 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 Wo rld Bank and the Swiss Agency for Development 
and Cooperation (SDC) and technical support fr om 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 the 
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, between producer organizations 
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) business 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 between 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. Studies and research relevant to the definition of productive alliances may also be financed. 
                                               
14 WTO document 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 • 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. The 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 component 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% of 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 of 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' organizations (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 po verty among the rural population of the Yoro 
department. It is designed to improve the organiza tional 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 opportunities for poor 
rural families to generate income by financing th e enterprises of participating families and their 
organizations. 
4.29.  The Northern Horizons programme consists of three components: (i) human and social 
development; (ii) value chains and competitiv eness; and (iii) project management. The first 
component is centred on promoting and strength ening 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 an d rural micro-enterprises with market potential. 
The aim is to reduce food insecurity and environmental vulnerability and to improve capitalization 
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 resources 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 Strategy 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 income in the rural areas and guarante eing 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 Viewed 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 info rmation from the SAG. Viewed at: http://www.sag.gob.hn . WT/TPR/S/336 • 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 (see d and fertilizers) for planting 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-industrial 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, quantity 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 tax.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 strengthening 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$566.9 million.23 The terms vary according to the product, with interest rates that range 
from 9% to 12% and repayment periods of between 1 and 10 years (Table 4.5). 
Table 4.5 BANDES funds for micro, small and medium-sized arable, livestock and 
industrial producers, 2015 
Item Interest 
rate (%) Term Amount 
(US$ 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 year 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 fruit, 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 silos 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 1999. 
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 • 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 in 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 enti ties to supply products for the end consumer; and 
(d) signs contracts with domestic and foreign enterprises for the purchase 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) re gime was set up in 2001 to promote exports of 
agricultural products by establishing "agricultural export enterprises".
27 T h i s  r e g i m e  h a s  b e e n  
suspended; however, its suspension was not ma de 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 taxe s on the goods they imported and/or exported; 
they were also exempt from income tax. 
4.36.  Honduras has notified the WTO that it di d 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 information 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 (IHCAFE). 
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.org/files/lista_de_precios.pdf . 
27 Decree No. 233–2002 of 1 February 2002. 
28 Online information from the State Se cretariat 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 other debt (Decree No. 143-2008). WT/TPR/S/336 • 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 integr ated autonomous State-owned company which has 
been responsible for generating, marketing, transm itting and distributing electricity in Honduras 
since 1957. The ENEE still has a monopoly on the la st three of the above-mentioned activities, but 
not on generation, 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 supplie d 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 th at 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 plan ts, 4.5% (84.6 MW) to ENEE-owned thermal plants, 
20.2% (385.9 MW) to private thermal plants, 8.8% (171.3 MW) 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 generating capacity; 
 EMCE II with 55 MW (medium-speed diesel plants) an d 86 MW (medium-speed di esel plants, owned by 
ENEE, but operated by EMCE); 
 LUFUSSA I with 39.5 MW (gas turbine), LUFUSSA II with 80 MW (medium-spee d 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. 
Source: 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 hydroelectric 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 • 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 Central 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 Market, in force since January 1999, which is aimed at establishing a regional electricity market (MER) for the transmi ssion and the buying and selling of electricity. 
The Regional Electrical Interconnection Commission (CRIE) is tasked with ensuring implementation 
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 established 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 Environment; 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 bidding 
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 compliance with the laws and 
regulations governing the activities of the electr icity 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 approving bu sbar 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 go verned 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 generation 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 1994 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 transmission 
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 • Honduras 
 
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  accordance with a dynamic model. The transmission and distribution 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 consuming between 101 an d 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 
Government 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 peri od 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 a ssigned to the ENEE in relation to transmission 
and liberalizes the electricity market. In genera l, 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 syst em, including its relationship 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 the 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 remain 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 subsec tor; to impose the appropriate sanctions 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 transmission 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 energy not supplied, an d the hourly blocks to be used for calculating tariffs; to approve 
bidding conditions, to supervise the processe s 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 classifi ed 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 discrim inatory 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 transparency, the law stipulates that the CREE must publish 
the decisions it adopts and submit to the Govern ment and the National Congress an annual report 
on its activities. Under the General Law on the Electricity Industry (LGIE), the CREE is responsible 
for preparing 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 Official Journal 
(La Gaceta ).
32 These rules reaffirm the obligation upon the CREE to publish its acts and decisions. 
                                               
31 The Nominations Committee will consist of: a pe rson appointed by the Rectors of the national 
universities, public and private, who will preside; a pe rson appointed by the Honduran Federation of Private 
Development Organizations (FOPRIDEH); a person appo inted 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 Federati on of University Professional Associations. 
32 Rules of Procedure of the CREE (Executive Decision No. 017-2015) of 23 October 2015.  WT/TPR/S/336 • 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 Electricity 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 the 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 mu st obtain the corresponding water utilization 
rights concession, in accordance with the provisions of the Law on Incentives for Renewable 
Energy Generation (Decree No. 70-2007) and amen dments 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 renewable resource and the environmen tal permit will be equal to the economic life 
of the project, as defined by the CREE by mean s of regulatory provisions. Transmission and 
distribution companies, in addition to being enro lled in the Public Register of Electricity Sector 
Companies, must request and obtain a public electricity service operating licence from the CREE. 
4.53.  Operating licences for transmission and di stribution services are granted by the CREE, 
subject to verification of the applicant's technical and financial 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 legal 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 invitation 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 perm its are valid for two years, once renewable for 
the same period of time, and confer exclusivit y; 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 
operation 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 the 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 the 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 sy stem and the market. The Committee consists of 
representatives of the generating, 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 gene ration and transmission system at minimum cost 
over the full range of electricity market operatio ns. 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 equal 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 plants at the service of the Syst em 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 electricity generation, distribution or marketing 
activities. WT/TPR/S/336 • Honduras 
 
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  4.58.  The Law requires that the tariffs reflect th e generation, transmission, distribution and other 
costs of providing the electricity service and that th eir 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 those 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 identifi ed by the Government as living in poverty or 
extreme poverty. 
4.59.  In August 2015, the 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 im plementation of renewable energy projects by 
means of a series of tax incentives. These include: exemption 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 importation; 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, an d monitoring of the renewable energy 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 those 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 with 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 fina ncial system (SFN) comprised 92 banking and 
non-banking institutions, including the Central Bank of Honduras (BCH).
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)); tw o 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 SFN, 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 3.3.1.3). 
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 Banc ario de Centroamérica , República Dominicana y Panamá 2014 . Viewed at: 
http://www.secmca.org/INFORMES/11%20EFR/EFR2014.pdf . WT/TPR/S/336 • 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 with 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 in 2014, representing 61.3% of total liabilities (Chart 4.1). During the period 2010-2014 both total assets 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 1 02 03 04 0Real estateConsume rIndustr y CommerceServicesAgricultural  Other
2010 2014 050100 150 200 250 300 350 400 450 
2010 2011 2012 2013 2014 
Total assets Loans
Liabilities DepositsPerformance Lending by secto r
 
Note: The authorities point out that the services sector relates to tangible goods (for example, electricity, 
transport, and communications). 
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. 
4.64.  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 industry 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) wa s 14.4% while the 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 sheets with 
a capital adequacy ratio (CAR) that ex ceeds the minimum requirement of 10%.42 
                                               
38 National Banking and Insurance Commission (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://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . 
42 Regulations on the capital adequacy of banks, sa vings and loan associations and finance companies. 
Circular CNBS No. 005/2009 of 13 January 2009. WT/TPR/S/336 • 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 of 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 re ached 6.9% in December 2010, fell to 3.3% 
in December 2014.
44 
4.68.  Where prudential 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 ye t 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 Lo an Associations, and the BCH. The Supervisory 
Authority oversees 32 financial institutions: 17 commercial banks, one State-owned bank, ten finance companies, two representative of fices of foreign banks, and two second-tier 
institutions. The CNBS is authorized to determine the prudential requirements, in particular the 
solvency ratio. The Commission may order the comp ulsory 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 this 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 two 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 favourable 
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 institutions 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, subject 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 Banc ario de Centroamérica , República 
Dominicana y Panamá 2014 . Viewed at: http://www.secmca.org/INFORMES/11%20EFR/EFR2014.pdf . 
45 Online information from the CNBS. Viewed at: http://www.cnbs.gob.hn/index.php/marco-
legal/normas-y-practicas-internacionales/29-principi os-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 risk s; market risk; and interest rate ri sk). 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 • Honduras 
 
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  with the new threshold.49 The CNBS can adjust the minimum ev ery 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 close) 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 authorities, 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 author izes the merger. The share transfer requires the 
authorization of the CNBS if it presupposes a change of control in the institution 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 investments 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 five private fi nancial development organizations (OPDFs), which, 
on 31 December 2014, held L 1,564.9 million in assets. The credit granted by these five organizations amounted to L 1,095 million. Mo st of these loans were made to finance coffee 
trading and coffee 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 fi rst- 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 remittances, 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 we re eight authorized financial groups operating 
in Honduras, involving a total of 39 companies. 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 al so 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 of Decree No. 129-2004. 
55 WTO document WT/TPR/S/234/Rev.1 of 15 October 2010. 
56 National Banking and Insurance Commission (2015), Memorias 2014 . Viewed at: 
http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf . WT/TPR/S/336 • Honduras 
 
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  4.3.1.2  Insurance 
4.80.  The insurance market consists only of pr ivate 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 Honduran 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 relation 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 expe nditure on insurance was L 912.43. In the same 
year, reinsured 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 serv ices 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, su pervises and monitors the activities of the 
insurance and reinsurance companies, together with those of intermediaries. 
4.83.  Honduras allows the commercial 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 
capital 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 Regulators Evolve With Growing, Changing 
Markets , May. Viewed at: 
http://www.ambest.com/latinamerica/pdfs/SR_2013_453_LatAm_Regulations_esp.pdf . 
59 National Banking and 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 Reinsu rance 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 Es tablishment 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 • Honduras 
 
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  Chart 4.2 Insurance subsector indicators, 2010-2014 
(L million and % of total) 
0 1 02 03 04 05 06 0DamageLifeAccident, illnessSurety bonds
2010 2014
02468101214
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 ca pital determined by the BCH, subject to 
a favourable opinion from the CNBS. In 2013, th e BCH increased the minimum amount of capital 
and accorded a period of up to one year for already established companies to meet the new 
requirements (Table 4.7). The minimum capital must be deposited at the commencement of 
operations. 
Table 4.7 Minimum fixed capital for the es tablishment of insurance companies, 2010 
and 2015 
 2010 2015  
Companies offering general and personal in surance 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 . 8 5 .   T o  b e  a b l e  t o  p r a c t i c e  a s  a n  i n s u r a n c e  a g e n t  o r  b r o k e r  i t  i s  n e c e s s a r y  t o  o b t a i n  t h e  
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 equivalent) 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 regulates the types of policy th at 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 an d capital reserves. They may also provide loans with 
a fiduciary guarantee which are unlimi ted in amount but repayable within not more than 25 years. For further 
information, see Article 69 of Decree No. 22-2001. WT/TPR/S/336 • 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 br anches 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. If a natural person acquires shares equivalent to more than 
10% of a company's subscribed and paid-up capi tal, 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 th e 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 penetration 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 100120140
2010 2011 2012  2013 2014 2015 (Jan-June)  
Fixed tele phony users Mobile tele phony users 
Fixed broadband internet users Mobile broadband internet usersPer 100 inhabitants
 
Source: National Telecommunications 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 telecommunications services. In 2014, there were 17 fixed-telephony public 
service operators, three mobile-telephony pu blic 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 Honduras . Viewed at: 
http://idbdocs.iadb.org/wsdocs/ getdocument.as px?docnum=37085065 . WT/TPR/S/336 • 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 servic es is governed by the Framework Law on the 
Telecommunications Sector of 1995, which was amended in 2011 and 2013.72 The subsector 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 Government 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 areas 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 incr eased 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 telecommunications 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 of 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 participate 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 licence,  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 services 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 Nacional 
de Promoción de Inversiones: Oportunida des de Inversión - Sector Infraestructura . Viewed at: 
http://www.hondurasopenforbusiness.com/SITEv2/files/ pdf/Oportunidades_de_inver sion_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 Framework 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: Oportunidade s de Inversión - Sector Infraestructura . Viewed at: 
http://www.hondurasopenforbusiness.com/SITEv2/files/ pdf/Oportunidades_de_inver sion_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 • Honduras 
 
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  Table 4.8 Types of authorization for the prov ision of 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 years 
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 
reformed 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 author ization, 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 avai lable in Honduras for mobile telephony. Where 
fixed telephony is concerned, number portability has not been introduced due to the low level of usage of these services. 
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 includ ed 160 scheduled and another three non-scheduled 
(charter) routes. 
4.101.  Air transport is regulated by: the Civil Aviation Law
78, 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 international 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 authoritie s, 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 this 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 fo r 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 • 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 continues 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 services, together with 
aviation telecommunications and information and radio-navigation services. COCESNA controls air traffic at altitudes above 20,000 feet, belo w which the AHAC provides the service.
81 
The Administration of an Employment and Econom ic Development 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, maintenance 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 operational 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 considered national  i f  m o r e  t h a n  5 1 %  o f  t h e  c a p i t a l  a n d  e f f e c t i v e  
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 representative 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 au thorization of the AHAC, airlines that operate 
scheduled flights may operate other flights on or off their routes.84 
Table 4.9 Requirements for the prov ision of air transport services 
 Scheduled services Charter services  
Type of authorization Oper ating 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 air 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 purposes 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 Honduran 
civil aircraft requires authorization from the AHAC. Honduras allows Honduran-registered aircraft to be maintained in foreign workshops certified by the AHAC. 
                                               
80 Executive 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/index.php?lng=0 . 
82 Online information from Aeropu ertos 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 • 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 foreign crews must hold a licence 
accredited by the AHAC.86 
4.111.  Foreign airlines that operate in Hondur as 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 their 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-Private 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 ha s signed only three bilateral agreements on air 
transport services (Table 4.10). 
Table 4.10 Modalities of the bilateral ag reements 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 se rvices agreements, and information 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 increase d, but since 2013 there has been a slight decline 
in movements of vessels 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 • Honduras 
 
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  Table 4.11 Port operations, 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 American 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 dire ctly or by putting them out to concession. 
When the ENP gives out a port on concession, it becomes the body responsible 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 Puerto 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 1994
89 
is being reviewed. The subsector 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 international 
maritime transport services. 
4.119.  Under the law, only domestic shipping co mpanies 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 
transported on foreign-flag vessels, in which case preference will be given 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 comp anies participating in maritime conferences to 
provide regular international maritime transport services.93 Maritime conferences that include 
Honduran ports must permit free entry for Hondur an 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 DG MM 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 totally or 
partially exempted from payment for these services . Honduran shipping companies are eligible for 
a discount on the annual tonnage tax if they empl oy 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 • Honduras 
 
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  4.123.  The ENP is responsible for providing or su bcontracting 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 determined that 
tourism value added amounted to L 21,251 million in 2013 (6% of national value added). In 2013, 
income from tourism reached US$608.2 million, or 6.8% of total exports of goods and services and consolidated its position as the fourth source of foreign currency after family remittances, maquila  
industry and coffee. 
4.125.  The international tourism indicators have not changed much since 2010 (Table 4.12). 
During the review period, the annual number of visitors remained below 2 million and consisted largely of day visitors arriving mainly by sea. Most tourists come from the rest of Central America 
and their main mode of entry continued to be by land.
95 
Table 4.12 International tourism indicators, 2010-2013 
 2010  2011  2012 2013a 
Arrivals (1,000)  1,965  1,852  1,904  1,857  
Touristsb 862 872 895 863 
Day visitorsc 1,103 980 1,009 994 
Average expenditure per stay (US$) 632.9 645.8 685.6 641.7 
Average stay (nights) 9.9 10.4 10.5 9.9 
a Preliminary data. 
b Visitors who 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, which 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 Honduran 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 subsector 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 National 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 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 • Honduras 
 
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  possess a work permit.99 Articles 41 and 47 of Decree No. 103-93 guarantee the free 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 LIT 
and the ZOLITUR regime are administered by th e 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 retroactive 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 refo rm limited the term to 12 years. At the end of 
2015, 94 and 336 companies were benefiting 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. 278-2013.
 
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 imports
b 
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 national taxes, with a few exceptions 
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 ag encies, discotheques an d casinos, and diving 
establishments. 
b Also includes imports from free zones an d industrial export processing zones. 
Source: WTO Secretariat, and information provided by the authorities. 
4.130.  In 2011, in order to promote tourism, Honduras enacted 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 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 • 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 total, owing to rounding. Source: Central Bank of Honduras. 
Table A1.2 Exports of goods fo r 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 • Honduras 
 
- 108 - 
 
  Table A1.3 General merchandis e 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 products 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, plas ter, 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 equal to the total, owing to rounding. Source: Central Bank of Honduras. WT/TPR/S/336 • Honduras 
 
- 109 - 
 
  Table A1.4 Imports (c.i.f.) of good s 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, plaste r, 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 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 • Honduras 
 
- 110 - 
 
  Table A1.5 General merchandise expo rts 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, Bolivari an Republic of 0.6 0.0 0.0 2.0 1.6 1.5 2.3 
Other America 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 • Honduras 
 
- 111 - 
 
  Table A1.6 General merchandise 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 • Honduras 
 
- 112 - 
 
  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 Agreement 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 GATT 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 competent 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 • Honduras 
 
- 113 - 
 
  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 measures 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 02/10/2015  
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 • Honduras 
 
- 114 - 
 
  Table A3.1 Analysis of the MFN tariff, 2014a 
 MFN Bound tariff 
Rangeb 
(%) No. of 
lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Product description 
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 products 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 products 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 rubbe r 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 headgea r 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 are 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 authorities. 
 WT/TPR/S/336 • Honduras 
 
- 115 - 
 
   
- 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 
financial 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 maiz e, beans, rice and sorghum. 
Source: BANHPROVI online information. Viewed at: http://banhprovi.org/productos-servicios.html . 
 WT/TPR/S/336 • Honduras 
 
- 116 - 
 
  Table A4.1 Import quotas applied by Honduras in 2015 
Quota Tariff code Volume opened  
MT Out-o f-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 powde r 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% 
Butte r 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 powde r 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; 0203.12.00; 
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  2309.10.00  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  0201.20.00B; 020.130.00B  
0202.20.00B; 0202.30.00B  210 15% 0% 
Source: Information provided by  the Honduran authorities. 
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