. /.  WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/HND/6 
14 September 2012 
 (12-4938) 
Committee on Subsidies and 
Countervailing Measures Original: Spanish 
 
 
 
SUBSIDIES 
 
Questions from COLOMBIA concerning the 
New and Full Notification of HONDURAS1 
   The following communication, dated 13 September 2012, is being circulated at the request of 
the delegation of Colombia.  
_______________ 
 
  We thank Honduras for its notification fo r 2010 under Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and C ountervailing Measures, which contains information 
on the following subsidy programmes: 
 
1. Temporary Import Regime (RIT); 
2. Export Processing Zones (ZIP);  and 
3. Free Zones 
 
 In the notification, the Government of Hondur as explains that these programmes, which were 
developed, among other reasons, to promot e exports, grant the following benefits: 
 
• Temporary Import Regime (RIT) 
  Suspension of payment of customs duties or any other taxes or charges, including the general 
sales tax on imports.  
• Export Processing Zones (ZIP) 
  Total exemption from the payment of customs duties, sales tax and other taxes, levies, 
charges and surcharges on imports.  Sales and out put generated in the ZI Ps and industrial and 
commercial property and establishments located ther ein are exempt from state and municipal taxes.  
User companies established in a ZIP are exempt from the payment of corporate tax on operating profits at the end of the fiscal year.  
• Free Zones 
  Exemption from the payment of customs duti es, charges, surcharges and other taxes and 
levies directly or indirectly related to customs import operations.  Sales and output in the free zone 
and commercial and industrial property and estab lishments located therein are exempt from the 
                                                      
1 G/SCM/N/220/HND. G/SCM/Q2/HND/6 
Page 2  
 
  payment of municipal taxes and charges at the end of the fiscal year.  Similarly, companies 
established in this zone are exempt from the paymen t of corporate tax on operating profits at the end 
of the fiscal year.  
QUESTIONS 
 
1. Could Honduras clarify whether these three subsidy programmes form  part of Honduras' 
reservation of rights
2, under SCM Article 27.4 in respect of the transition period for the elimination of 
export subsidies pursuant to the procedures c ontained in the General Council Decision in 
document WT/L/691? 
 
2. The most recent notification submitted (G/SCM/N/220/HND)  covers the year 2010.  When 
does Honduras intend to submit its notification for 2011?  3. What are the conditions for a company to operate in an Export Processing Zone?  Please 
explain how the tax exemption is no t contingent upon export performance. 
 4. In the notification, in reply to the question on the duration of the subsidy, the Government of 
Honduras states for the three programmes that " the benefits currently granted  to enterprises under the 
RIT, ZIP and Free Zone programmes are of indefinite duration ".  Why does Honduras not plan to 
eliminate the subsidies pertaining to these thr ee programmes within a particular time-frame? 
 
5. In the notification, in reply to the question on the amount of the subsidy, the Government of 
Honduras states for the three programmes that " any calculation of the amount of the subsidy per unit 
[is] impossible.  The information re quested can therefore not be provided ".  Could the Government of 
Honduras please inform the Committee whether it has ma de any changes in respect of the original 
programmes?  Has the level of export subsidies increased?  Would it be possible to provide some 
approximate figures to support the answer to this question?  
__________ 
                                                      
2 Document WT/L/691, page 5, footnote 7:  "The Members that reserved rights, and the programmes in 
respect of which these rights were reserved, are identified in documents G/SCM/N/74/BOL & Suppl.1, 
G/SCM/N/74/HND, G/SCM/N/74 /KEN, and G/SCM/N/74/LKA".