WORLD TRADE  
ORGANIZATION  G/SCM/N/186/HND 
18 September 2009 
 
 (09-4401) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the  
GATT 1994 and Article 25 of the Agreement on  
Subsidies and Countervailing Measures  
 
HONDURAS 
  
 The following notification, dated 14 September 2009 , is being circulated at the request of the 
delegation of Honduras.  
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 1. Title of the subsidy programme, if relevant,  or brief description or identification of the 
subsidy. 
 Temporary Import Regime (RIT), Export Processing Zones (ZIP) and Free Zones. 
 
2. Period covered by the notification. 
 2008. 
 
3. Policy objective and/or purpose of the subsidy. 
 These incentives are designed to promote exports, attract investment, stimulate production 
and competitiveness, support human  development and create jobs. 
 4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted). 
 The Temporary Import Regime (RIT) was established for the purpose of strengthening the 
Honduran economy, boosting domestic  production and increasing exports, promoting employment in 
combination with other national and foreign r esources, stimulating investment and creating 
mechanisms for the development of export industri es and increasing foreign trade by fostering export 
diversification.  This Regime has its legal basi s in Executive Decree No. 37 of 20 December 1984, as 
amended by Legislative Decree No. 190-86 of 31 October 1986, Legislative Decree No. 8-85 of 
7 February 1985 and Decree No. 135-94 of 28 Oc tober 1994, which rescinds the exemption from 
corporate tax for enterprises covered by the regime as from that date. 
 
 The Law on Export Processing Zones (ZIP) was designed to promote efficient competition with other countries by providing the services a nd incentives needed by foreign manufacturers and 
investors, taking advantage of the geographical position of Honduras in the Central American and G/SCM/N/186/HND 
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  Caribbean region.  A further aim was to create permanent employment on a large scale, thereby 
helping to diversify the industria l base and generating rapid economic  growth.  This programme has 
its legal basis in Decree No. 37-87 of 7 April 1987 and entered into force on 27 April 1987.   The purpose of the Law on Free Zones was to ta ke advantage of the geographical location of 
Honduras in the Central American and Caribbean region in order to provide opportunities for the 
development of domestic and intern ational trade, as well as to cr eate more employment opportunities 
through the establishment of commercial and industrial free zones.  It has its legal basis in Decree 
No. 356 of 19 July 1976, as amended by Decree No. 131-98 of 20 May 1998, whereby the title of the 
law setting up the Free Zone of Puerto Cortés was ch anged to Law on Free Zones and the benefits and 
provisions of the law were extended to the entire national territory. 
 
5. Form of the subsidy (i.e. gr ant, loan, tax concession, etc.). 
 The only benefits granted under the special re gimes are exemptions from and suspension (in 
the case of the Temporary Import Regime) of import duties, taxes and internal charges. 
 
6. To whom and how the subsidy is provi ded (whether to producers, to exporters or 
others;  through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how determined). 
Temporary Import Regime
 
 The beneficiaries of the Temporary Import Re gime are natural and le gal persons eligible 
under the regime. 
 
Benefits under the Law: 
 Producers/exporters duly authorized under this regime are not subject, when importing goods, 
to the payment of customs duties or any other ta xes or charges, including the general sales tax on 
imports. 
 
Export Processing Zones (ZIP ) 
 Benefits are extended to Honduran and forei gn natural and legal pers ons eligible under the 
regime as users of such zones.  Benefits under the Law: 
 Duly authorized producer companies enjoy total exemption from the payment of customs 
duties, sales tax and other taxes, levies, char ges and surcharges on imports.  Sales and output 
generated in the ZIPs and industrial and commercia l property and establishments located therein are 
exempt from state and municipal taxes.  User co mpanies established in a ZIP are exempt from the 
payment of corporate tax on operating profits at the end of the fiscal year. 
Free Zones
 
 Free zone benefits are extended to all Honduran and foreign natu ral and legal pe rsons eligible 
under the regime as user-operators or users.   G/SCM/N/186/HND 
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  Benefits under the Law: 
 Export-based commercial and industrial enterprises,  duly authorized at the time of bringing 
goods into the free zones, are exempt from the pa yment of customs duties, charges, surcharges and 
other taxes and levies directly or indir ectly related to customs import operations. 
 
 Sales and output in the free zone and commercia l and industrial property and establishments 
located therein are exempt from the payment of muni cipal taxes and charges at the end of the fiscal 
year.  Similarly, companies established in the free zone are exempt from the payment of corporate tax 
on operating profits at the end of the fiscal year.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in 
the previous year).  Where provision of per-unit subsidy information (for the year covered by the notification, for the previous  year, or both) is not possible, a full 
explanation. 
 The nature of the programmes makes any calcu lation of the amount of the subsidy per unit 
impossible.  The information requested can therefore not be provided.  
8. Duration of the subsidy and/or any other time-limits attached to it, including date of 
inception/commencement. 
 The benefits currently granted to enterpri ses under the RIT, ZIP and Free Zone programmes 
are of indefinite duration.  However, under the RIT,  firms are no longer exempt from corporate tax, in 
accordance with Decree No. 135-94 of 28 October 1994.  
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific 
nature and scope of such statistics is left to the judgment of the notifying Member.  To 
the extent possible, relevant and/or determin able, however, it is desirable that such 
information include statistics of production , consumption, imports and exports of the 
subsidized product(s) or sector(s): 
(a) For the three most recent years fo r which statistics are available; 
 
(b) for a previous representative year, which, where possible and meaningful, 
should be the latest year preceding the introduction of the subsidy or preceding 
the last major change in the subsidy. 
 G/SCM/N/186/HND 
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  Enterprises Eligible for Benefits under the Special Regimes 
2008 
 
YEAR NUMBER OF ENTERPRISES COVERED 
 TEMPORARY IMPORT 
REGIME (RIT)  EXPORT PROCESSING ZONES (ZIP) AND 
FREE ZONES 
2008 285 769 
Source : Ministry of Industry and Trade (revised figures)/ RIT data. 
Central Bank of Honduras (revised figures)/ ZIP and Free Zone  data. 
 
 
 
Employment Generated by Enterprise s Covered by the Special Regimes 
2008 
 
YEAR NUMBER OF JOBS 
 TEMPORARY IMPORT 
REGIME (RIT)  EXPORT PROCESSING ZONES (ZIP) AND 
FREE ZONES 
2008 111,629 133,000 
Source : Ministry of Industry and Trade (revised figures)/ RIT data. 
Asociación de Maquiladores de Honduras  (Honduran Manufacturers' Association) (revised figures)/ ZIP and Free 
Zone  data. 
 
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