Guatemala WT/TPR/S/210 
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III. TRADE POLICIES, BY MEASURE 
(1) OVERVIEW  
1. Guatemala's trade regime is essentially an open one.  The average rate of MFN duty applied 
fell from 7.0 per cent in 2001 to 5.9 per cent in 2008;  the average rate on agricultural products 
(9.9 per cent) is still relatively higher than that on  other products (5.3 per cent).  Guatemala has bound 
all its tariffs at an average rate of 42.7 per cent.   The predictability afford ed by these bindings could 
be enhanced by lowering the bound levels in orde r to close the gap between the bound and applied 
tariffs. 
2. Guatemala has also cut back tariff protec tion selectively through the four free-trade 
agreements (FTA) in force;  the average tariffs  applied by Guatemala under these agreements range 
from 1.0 per cent to 3.9 per cent. 
3. The internal taxes on imported and domestic goods  include a 12 per cent value added tax, as 
well as special taxes on certain products.  During the period under review, Guatemala eliminated the 
variations that existed between the taxes applicab le to national and imported alcoholic beverages. 
4. Guatemala makes limited use of non-tariff barriers.  Import licences are not required, but 
prior permits are needed for the import of some pr oducts related to health, safety and environmental 
protection.  Guatemala did not impose any anti-dum ping or countervailing duties or safeguards during 
the period under review. 
5. Guatemala has pursued its customs reforms, and adopted the relevant new Central American 
regulations, taking measures to streamline the functioning of its customs services.  Guatemala has also 
adopted the Central American Customs Valuation Re gulations with the intention of implementing the 
provisions of the WTO Customs Valuation Agreem ent;  it ceased to apply minimum values when the 
waiver granted by the WTO expired. 
6. Guatemala has made efforts to build its capacity to implement technical regulations and 
sanitary and phytosanitary (SPS) measures, for example by setting up the Sistema Nacional de la 
Calidad  (National Quality System).  It has notified many draft technical regulations and 
SPS measures to the WTO, although its capacity to  notify adopted technical regulations in the 
multilaterally agreed terms seems to be limited.  Th ere are also institutional shortcomings in drawing 
up and applying these measures.  It is therefore impor tant to continue buildin g institutional capacity in 
this respect as it would not only be benefi cial to consumers but also to producers. 
7. Export taxes only apply to coffee.  The export of  some logs is banned, both for environmental 
reasons and also to promote the domestic processing industry. 
8. Guatemala has notified the WTO of three fiscal concession schemes (maquila (in-bond 
processing), free zones, and the free trade and industr y zone) as including export subsidies.  It has 
undertaken to phase out these subsid ies before the end of 2015.  Guatemala considers that the 
programmes notified have had a positiv e impact on the country, generati ng close to 40 per cent of its 
exports of goods.  There is, however, no cost-benef it analysis that takes into account the fiscal burden 
and the distortions in the allocation of resources that may be caused by the subsidies.  It would therefore be useful to undertake with a view to developing a concrete strategy that would allow the 
costs of transition to a subsidy-free regime to be kept to a minimum. 
9. In addition to export incentives, Guatemal a gives incentives to micro-, small and 
medium-sized enterprises and for research and development. WT/TPR/S/210 Trade Policy Review 
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10. Guatemala still has no general law on competiti on policy.  The efforts made to ensure 
adoption of such a law prior to the previous Re view of Guatemala were not successful, although a 
draft law was once again before Congress in mid- 2008.  The authorities acknowledge that there are 
monopolies, oligopolies and cartels in the domestic market because of the small size of the economy 
and the numerous regulations in effect.  Increasing the level of competition is therefore one of the 
most important challenges for Guatemala's economic policy. 
11. Guatemala is neither a signatory nor an ob server to the WTO's Government Procurement 
Agreement.  In 2006, it amended the relevant legi slation, which governs government procurement of 
goods, works and services for the State.  The legi slation does not discriminate against foreign 
products, services or suppliers. 
12. Guatemala ratified four WIPO treaties during th e period under review and made a number of 
amendments to its intellectual property legislation, particularly as a result of the entry into force of 
DR-CAFTA.  Guatemala's copyright and industria l property legislation goes beyond the commitments 
under the TRIPS Agreement;  there is, however, no sp ecific domestic legislation on layout-designs of 
integrated circuits and only general provisions on  geographical indications.  Parallel imports are 
allowed in the case of patents and tradem arks, but not in relation to copyright. 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures, documentation and registration 
13. Guatemala's customs regime has applied the Uniform Central American Customs Code 
(CAUCA IV) and its Regulations (R ECAUCA) since August 2008.  Th e main regulations governing 
customs procedures are listed in Table III.1.  The Superintendencia de Administración Tributaria  – 
SAT (Tax Administration Supervisory Authority) is the entity responsible for customs administration.  
All the SAT's internal procedures are based on the current CAUCA and RECAUCA framework.  CAUCA III was in effect throughout most of the period under review. 
14. The majority of imports must be accompanied by a customs declaration.
1  Under the 
RECAUCA, the customs declaration must be accomp anied by the commercial invoice, the transport 
documents, a certificate of origin and any othe r permit required depending on the goods to be 
imported.  A customs declaration must be completed for each commercial invoice unless the commercial invoices come from the same supplier and a pply to the same transaction and provided that 
the goods are covered by the same transport docum ent.  The customs declaration form can be 
downloaded from the SAT's web site.  It is then completed and returned electronically. 
                                                     
 
1 The exceptions are:  imports by the State, municipal authorities, international bodies or entities that 
are exempt from payment of duties and taxes;  imports for non-profit-making purposes;  commercial imports of little value;  and others determined by the customs service. Guatemala WT/TPR/S/210 
 Page 27 
 
 
Table III.1 
Customs procedures and clearance 
Regulation Identification No Date of signature/entry 
into force Sector regulated 
Uniform Central American 
Customs Code III COMIECO Resolution No. 85-2002  19-06-20 02/18-07-2002 Regional uniform customs 
regulations 
Uniform Central American Customs Code IV COMIECO Resolution No. 223-2008  25-04-20 08/25-08-2008 Regional uniform customs 
regulations 
Implementing regulations for 
the Uniform Central 
American Customs Code COMRIEDRE Resolution No. 224-2008 25-04-2008/ 25-08-2008 Implementing regulations for 
the regional uniform customs 
regulations 
Implementing regulations for 
the International Land 
Transport Customs Regime Annex to COMRIEDRE Resolution 
No. 65-2001 12-12-2002/11-01-2003 Implementing regulations for 
the International Land 
Transport Customs Regime between Central American countries and Panama 
Source : Information provided by the authorities. 
15. Up to 11 documents may be needed for imports, depending on factors such as the origin and 
type of the goods.2  According to a study by the World Bank, this figure was 7 to 11 during the period 
2006-2008.  Despite the increase in the number of  documents required, over the same period the 
number of days taken to complete an import proced ure fell by half, from 36 to 18.  Looking at these 
figures from a regional perspective, the average ti me taken for import procedures in Latin America 
and the Caribbean as a whole is 24 days.3 
16. A customs agent is required for imports whose f.o.b. value exceeds US$500;  goods 
originating in countries belonging to the Central American Common Market (CACM) do not require 
any intermediary.  There is no charge for cu stoms services.  Until RECAUCA IV was adopted, 
importers did not have to comply with registra tion requirements, with the exception of those goods 
requiring import licences, which had to be obtained from the competent Ministry.  Article 5 of RECAUCA IV, however, allows the customs service to  draw up registers of im porters and exporters.  
Furthermore, Article 17 of RECAUCA IV provides for the establishment of a register of importers for 
the purpose of creating a regional risk database. 
17. The SAT verifies the information contained in the customs declaration on a random basis and 
the same applies to physical inspection of goods.  Immediate verification (physical and documentary 
examination) is regulated by CAUCA and its Regu lations.  The products that may be subject to 
stricter controls include white goods, tyres and used clothing, textiles and electrical household 
appliances, as well as consolidated shipments.  According to the authorities, some 20-40 per cent of 
imports are still inspected, depending on the risk level.  Customs procedures and import clearance take approximately four to six hours;  if there is a physical inspection,  clearance takes less than 
24 hours. 
18. RECAUCA Articles 623 to 629 govern the appeals procedure, providing that an appeal for 
review may be made against decisions taken by th e administrator of the customs office within a 
period of 10 days following notification of the deci sion.  The appeal must be lodged with the same 
administrator or with a higher body, which must take a decision within 20 days following receipt of the administrative documentation.  Appeals may also be lodged against any decisions taken to resolve 
all or part of the appeal for review or against the d ecisions taken by the higher authority;  such appeals 
                                                     
 
2 Bill of lading, certificate of origin, customs import declaration, customs valuation declaration, foreign 
exchange authorization, import licence, inspection report , packing list, sanitary certificate or certificate of 
compliance with technical requirem ents and final cost receipts. 
3 World Bank (2007a), p. 7. WT/TPR/S/210 Trade Policy Review 
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must be submitted to the higher authority of the cu stoms service within 10 days following notification 
of the decision and must be resolv ed by the Customs Tribunal or the competent body within 30 days 
of the day following receipt of the appeal.  There are no registers reflecting this information. 
19. During the period under review, the process of  customs reform continued.  Both the 
Guatemalan authorities and international observers have recognized that the customs service and its 
procedures have an important role to play in the na tional reform efforts and that the reforms can make 
a valuable contribution to economic development.  According to a recent study by the World Bank, 
Guatemala's customs administration has shown a significant improvement in recent years, but delays in clearance still occur.  The study notes that the customs units have been equipped with computers 
since 2001 and that customs tariffs and taxes are pa id directly through local banks, in addition to 
which a training programme is being implemente d through the SAT training centre (CENSAT).
4  The 
World Bank also recommended that the Government im plement a reform strategy in order to improve 
trade facilitation and strengthen the credibility of the customs.5  In response, the Government, in 
cooperation with the private sector, has taken measur es to improve this aspect of the country's trade 
regime.  For example, in November 2006 an Inte grity Pact was signed between the National Customs 
System, users of the customs service, private supplie rs of foreign trade services, and public providers. 
20. One measure recently implemented in order to facilitate trade administration is the adoption 
by the SAT of the SAQB'E tool.6  This computer system handles the digital management of 
documents, work flows, and a tax current account for the purposes of paying internal and foreign 
trade taxes.  Moreover, under the National Action Pl an published in 2007, it has been seen that, in 
order to lower foreign-trade-related costs and hen ce boost the country's competitiveness, the customs 
and other institutions involved in import and export n eed to adopt a process that  will facilitate trade.  
The Plan is based on the understanding that compe titiveness requires business costs to remain low and 
that this, in turn, depends on the efficiency of th e procedures and the elimination of corruption.  The 
Plan also advocates the promotion of the customs union in the CACM framework as an important step 
forward in rationalizing customs procedures.7 
21. In 2001, Guatemala, together with the othe r CACM member countries and Panama, signed a 
resolution establishing a reciprocal and non-discrimin atory treatment scheme for the international land 
transport of freight.8  The resolution provides for total free dom of transit through these countries for 
land freight transport for goods coming from or going to any of the member States.  The basis of the agreement is national treatment for all of the member countries' modes of transport in the territory of 
any one of those countries.  The rules laid dow n in the regulations are intended to facilitate, 
harmonize and streamline the procedures used for inte rnational customs transit operations by land.  
They provide that goods transported in the course of  an international customs transit operation by land 
shall be allowed into the customs territory of th e signatory countries and shall not be subject to 
payment of the applicable duties and taxes, provided that they comply with all the legal requirements 
and formalities in the regulations. 
22. In recent years several measures have been adopted to improve the functioning of customs 
services at specific entry points.  In 2004, Guatemala and El Salvador started to operate a scheme to eliminate border posts between the two countries at the Pedro de Al varado La Hachadura customs.  
The same year, bilateral agreements were drawn up to lessen bureaucracy at the border, abolishing 
formalities at the customs exit point and streamlining procedures at the customs entry point.  In 2008, 
                                                     
 
4 World Bank (2004), p. 53. 
5 Ibid., page 55. 
6 In different Mayan dialects, SAQB'E means "white road". 
7 Ministry of the Economy (2007b), pp. 16 and 17. 
8 COMRIEDRE Resolution No. 65-2001. Guatemala WT/TPR/S/210 
 Page 29 
 
 
this streamlined procedure applied at all the borde rs between the two countries.  Currently, customs 
formalities at border posts do not take more than fi ve minutes if the whole operation is carried out 
electronically.  In addition, Guatemala and Hon duras are working on establishing a single border post 
at Corinto;  efforts to gain approval for this new border post are still under way. 
23. Guatemala is a member of the World Custom s Organization and signed the Convention on the 
Establishment of a Customs Cooperation Council in 1985, but it is not a contracting party to the 
Customs Convention on the ATA Carnet for the Te mporary Admission of Goods, the International 
Convention on the Simplification and Harmonization of Customs Procedures, or any of the other 
subsidiary agreements of th e World Customs Organization. 
(ii) Customs valuation 
24. Guatemala did not reply to the WTO's "Customs  valuation checklist".  It signed the Central 
American Regulations on Customs Valuation of Goods , Annexes 2, 3 and 4, on 28 June 2004;  the 
Regulations came into force one month later af ter approval by means of a COMIECO resolution.9  
The declared intention of the Regulations is "to develop the provisions of the Agreement on 
Implementation of Article VII of the Genera l Agreement on Tariffs and Trade 1994, and the 
provisions arising from the regional legal structure"  (Article 1).  Guatemala notified the WTO in 2005 
that it was applying the Regulations.  In its notificat ion, Guatemala indicated that, with the entry into 
force of these Regulations, it considered that it ha d complied with its commitment to implement the 
WTO Agreement on Customs Valuation.10 
25. The Regulations provide that, in addition to th e elements referred to in Article 8.1 of the 
Customs Valuation Agreement, the following also form  part of customs valuation:  (1) transport costs 
for the imported goods to the port or place of impor t;  (2) the loading, unloading and handling charges 
for transporting the imported goods to the port or place of import;  and (3) insurance costs. 
26. RECAUCA Articles 187 to 216 reiterate the provi sions in the Agreement on Implementation 
of Article VII of the General Agreement on Tariffs  and Trade and provide that, when the customs 
authority has reason to doubt the veracity or exac titude of the data or doc uments submitted, it may 
request the importer to provide further explanations , together with documentation or other proof to 
show that the value declared co rresponds to the total amount actually paid or payable for the goods 
imported.  When it is not possible to determine the value using the transaction value, there should 
normally be consultation between the customs author ity and the importer in order to determine the 
value.  Although there are no statistics, the authoriti es have indicated that the transaction value is the 
one most commonly used in practice.  If the consulta tions do not result in determination of the value, 
this is done using the other procedures provide d in the Customs Valuation Agreement.  The 
Regulations oblige the customs service to create a database of values containing updated information 
on prices so as to conduct investigations on the values declared for goods imported and for this 
purpose it may request information on the value of  imported goods from importers and other foreign 
trade operators.  The database is not accessible to the public. 
27. In 2001, Guatemala requested and was given a time-bound reservation pursuant to 
Paragraph 2 of Annex III to th e Customs Valuation Agreement.11  With this reservation, Guatemala 
was allowed to maintain a level of minimum valu es for limited periods for the following products:  
poultry, not cut in pieces, until 21 November 2002;  rice, until 21 May 2003;  worn clothing, until 
                                                      
9 COMIECO Resolution No. 115-2004. 
10 WTO document G/VAL/N/1/GTM/1 of 30 September 2005. 
11 WTO documents G/VAL/W/91 of 15 October 2001 and G/VAL/W/91/Corr.1 of 25 October 2001. WT/TPR/S/210 Trade Policy Review 
Page 30 
 
 
21 November 2004;  and used motor vehicles and used motor cycles, until 21 November 2004.12  The 
reservation specified that these minimum values wo uld be used to address incidences of the absence 
of invoices and other undervaluation problems wh ile Guatemala develops proficiency in risk 
management and verification of customs value.  Since August 2008, the WTO customs valuation 
procedures have been integrated into RECAUCA IV. 
28. Guatemala has no preshipment inspection;  neve rtheless, it does have post-entry verification 
services.13  In 2006, the SAT announced that it had appointed the company SGS to conduct an 
inspection programme for the import, export or re-e xport of goods with Guatemala as the origin or 
destination.14  This programme involves verifying the accuracy of the documentation accompanying 
the customs declaration on import, export or re-e xport, and the exactitude of the information on 
transactions as far as their value, origin, custom s classification, volume, and information on the 
supplier, manufacturer, seller or buyer of the goods are concerned.  This verification procedure takes 
place either in the country of supply, that of origin or destination of the goods.  According to the SAT, 
the service has led to the compilation of a reliable database that ensures proper compliance with the 
law. 
(iii) Rules of origin 
29. In 1998, Guatemala notified the WTO that it did not apply any non-preferential rules of 
origin.15 
30. Guatemala applies preferential rules of origin  under a number of trade agreements.  In 
addition to the Central American Regulations on th e Origin of Goods, the FTAs with the Dominican 
Republic, Mexico16, Panama, the United States of America and Chinese Taipei contain preferential 
rules of origin.  These rules vary depending on the agreement and the various types of goods, but in 
general are based on the overriding principle of a change in tariff classification and/or complemented in some cases by requirements on the value of re gional content.  By September 2008, Guatemala had 
notified the WTO of the preferential rules of orig in in the FTA between Mexico and El Salvador, 
Guatemala and Honduras, as well as those under DR-CAFTA, when notifying these agreements.
17  
The authorities have indicated that it is expected that  the preferential rules of origin in the other two 
trade agreements mentioned will be notified when the signatories notify the instruments themselves. 
31. By Resolution No. 156-2006, as amended by Resolution No. 181-2006, the Council of 
Ministers of Economic Integration (COMIECO) appr oved the Central American Regulations on the 
Origin of Goods, together with its annex on specific rules of origin.18  The provisions of the Central 
American Regulations on the Origin of Goods came into force in Guatemala on 1 January 2007 
pursuant to Ministerial Decision 0385-2006 of 29 June 2006 and Ministerial Decision 0657-2006 of 
7 December 2006. 
                                                      
12 WTO document G/VAL/43 of 5 December 2001. 
13 WTO document G/VAL/W/63/Rev.9 of 25 April 2007. 
14 Information from the SAT.  Viewed at:  http ://portal.sat.gob.gt/portal/content/view/4175/48/. 
15 WTO document G/RO/N/21 of 20 July 1998. 
16 The other parties to this FTA are El Salvador and Honduras. 
17 WTO documents WT/REG214/N/1 of 12 July 2006 (DR-CAFTA) and WT/REG211/N/3 and 
S/C/N/372 of 17 August 2006 (DR-CAFTA). 
18 Resolution No. 156-2006 (COMIECO), as amended by Resolution No. 181-2006 
(COMIECO XXXIX). Guatemala WT/TPR/S/210 
 Page 31 
 
 
32. Under Resolution No. 181-2006, if a heading, subheading or statistical suffix entry is subject 
to optional specific rules of origin, it sha ll suffice to comply with one of them.19  In other words, an 
exporter or producer may choose one of the two options  in order to comply with the requirement of 
origin.  The first option is based on a change in tariff classification and the second on compliance with 
regional content value, which is to be found in the specific rule of origin.  The purpose of these rules 
is to allow the exporter or producer to choose whiche ver he finds most appropriate in order to comply 
with the rule of origin.  The majority of the optional rules apply to industrial goods. 
33. The change in tariff classification criterion applies only to non-originating materials.  Where a 
specific rule of origin is defined by the criterion of a change in tariff classification and the rule is 
written in such a way that it does not include tariff positions at the chapter, heading, subheading or 
statistical suffix levels, the materials listed in the tariff positions that are excluded must be originating 
if the goods are to be deemed originating.  Where a rule refers to a change  in heading or subheading 
"outside the group", the change must be from a he ading or subheading that is outside the group of 
headings or subheadings established in the rule. 
34. The Council of Ministers of Economic Integration has approved specific rules of origin for 
various products20, including aluminium foil, oat flour, and some fabrics.21 
35. Exporters or producers seeking to benefit from an FTA must sign a sworn declaration 
certifying origin.  Such certificates are not issued  or endorsed by any governmental entity, except in 
the case of the bilateral treaty with Chinese Taipei , the Partial Scope Agreement with Colombia, the 
Partial Scope Agreement with Venezuela, and the Partial Scope Agreement wi th Cuba, which require 
that the certificate of origin must be endorsed by a certifying body authorized by each country's 
government.  Guatemala utilizes the Formulario Único Centroamericano  – FAUCA (Central 
American Single Customs Form) to certify the Central American origin of goods coming from 
countries belonging to the CACM. 
(iv) Tariffs 
(a) Structure and levels 
36. As a minimum, Guatemala gives all its  trade partners most-favoured-nation 
(MFN) treatment). 
37. Tariff policy is defined in accordance with the framework and guidelines of the CACM.  
Guatemala applies the Central American import tariff, which uses the Sistema Arancelario 
Centroamericano  – SAC (Central American Tariff System), based on the Harmonized Commodity 
Description and Coding System (HS) for the offici al classification of goods.  The fourth revision of 
the HS in 2007 was incorporated into the SAC on 1 January 2007 by COMIECO Resolution No. 180-2006 of 9 November 2006. 
38. The tariffs applicable and amendments thereto must be approved by the Central American 
Tariff and Customs Council, composed of the head s of the ministries in each CACM member State 
responsible, according to their domestic law, for ec onomic integration matters or their appointees.  
The broad parameters of the CACM's tariff po licy are also set out in COMIECO Resolution 
                                                     
 
19 The text of Resolution No. 181-2006 was viewed at:  
http://www.sieca.org.gt/site/Vis orDocs.aspx?IDDOC=CacheING/17990000001441/17990000001441.swf. 
20 Resolution No. 90-2002 (COMIECO XXIII). 
21 Resolution No. 100-2002 (COMIECO XXV), Resolution No. 218-2007 (COMIECO XLVII) and 
Resolution No. 208-2007 (COMIECO XLVI), respectively. WT/TPR/S/210 Trade Policy Review 
Page 32 
 
 
No. 180-2006, with a four-tier tariff structure:  0 per cent for raw materials, intermediate goods and 
capital goods not produced in the region;  5 per cent for raw materials produced in the region;  10 per cent for intermediate goods and capital goods produced  in the region;  and 15 per cent for finished 
products.  According to an analysis by the Secr etariat for Central American Economic Integration 
(SIECA), the harmonized elements in the Centra l American Common Tariff account for 95.7 per cent 
of the lines, while 4.3 per cent have not been harmonized.
22 
39. Guatemala only applies ad valorem  tariffs.  There are no seasonal tariffs.  Import duties are 
calculated on the basis of the c.i.f. value of the goods. 
40. In May 2008, Guatemala's customs tariff contained 6,561 eight-digit lines of the 2007 HS.  
There are no seasonal or variable tariffs.  Guatemal a applies tariff quotas within the WTO context to 
imports of four tariff lines comprising rice;  wheat or meslin flour;  yellow maize (corn);  and apples (Chapter IV(2)). 
41. The average MFN duty applied is 5.9 per cent (Tab le III.2), compared to 7 per cent at the time 
of the previous Review.  This reflects substantia l tariff reductions in headings such as textiles and 
clothing, articles of leather, and beverages, while  tariffs in some headings such as dairy products 
remain unchanged.  Some 47.1 per cent all tariff lines ar e subject to a rate of 0 per cent.  For the other 
lines, the rates are 5, 10 or 15 per cent, with 15 pe r cent being the most common.  The variation in 
tariff duties is 0 to 40 per cent. 
42. An average tariff of 9.9 per cent is imposed on agricultural products (WTO definition), 
whereas non-agricultural products, except for petroleum,  are subject to an average tariff of 5.3 per 
cent.  The higher average duty by WTO category a pplies to alcoholic beverages and liquids, at 
19.1 per cent.  The highest rate is 40 per cent ap plicable, for example, to imports of malt beer, 
vermouth and ethyl alcohol.  The second highest rate is 30 per cent on some vegetables. 
Table III.2 
Structure of MFN tariffs, 2008 
(Percentage) 
 2008  
1. Total number of tariff lines 6,561 
2. Non- ad valorem  tariffs (% of all tariff lines) 0.0 
3. Non- ad valorem tariffs with no AVEs (% of all tariff lines) 0.0 
4. Tariff quotas (% of all tariff lines) 0.1 
5. Duty-free tariff lines (% of all tariff lines) 47.1 
6. Average of lines exceeding zero (%) 11.2 
7. Domestic tariff "peaks" (% of all tariff lines)a 1.2 
8. International tariff "peaks" (% of all tariff lines)b 1.2 
9. Bound tariff lines (% of all tariff lines) 100.0 
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average applied rate. 
b International tariff peaks are defi ned as rates exceeding 15 per cent. 
Source : WTO Secretariat estimates, based on data provided by the Guatemalan authorities. 
43. The tariff shows escalation between semi-finish ed products and fully finished products 
(Table III.3).  Imports of raw materials, on the othe r hand, are subject to a higher average tariff than 
semi-finished products. 
                                                      
22 SIECA (2008). Guatemala WT/TPR/S/210 
 Page 33 
 
 
Table III.3 
Summary of the MFN tariff, 2008 
MFN 
Description 
Number of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Average 
bound ratea 
(%) 
Total  6,561  5.9  0 – 40  1.1  42.7 
HS 01-24  1,000  10.5  0 – 40  0.6  51.8 
HS 25-97  5,561  5.1  0 – 20  1.2  41.1 
By WTO category      
Agricultural products  936  9.9  0 – 40  0.7  52.4 
- Animals and animal products  127  12.3  0 – 15  0.4  79.8 
- Dairy products  31  13.2  0 – 15  0.3  88.2 
- Coffee and tea, cocoa, sugar, etc.  170  10.2  0 – 20  0.5  42.7 
- Cut flowers and plants  59  5.8  0 – 15  1.2  40.0 
- Fruit and vegetables  203  13.2  0 – 30  0.4  46.5 
- Cereals  23  12.1  0 – 23.7  0.9  68.5 
- Oilseeds, fats and oils and their products  94  5.4  0 – 15  1.1  62.6 
- Alcoholic beverages and liquids  53  19.1  0 – 40  0.6  38.8 
- Tobacco  19  6.8  0 – 20  0.9  90.0 
- Other agricultural products n.e.s.  157  3.8  0 – 15  1.3  39.3 
Non-agricultural products (including petroleum)  5,625  5.3  0 – 20  1.2  41.1 
- Non-agricultural products (excluding petroleum)  5,601  5.3  0 – 20  1.1  41.1 
- Fish and fish products  157  9.6  0 – 15  0.6  40.7 
- Minerals, precious stones and metals  372  5.1  0 – 15  1.2  41.6 
- Metals  709  2.8  0 – 15  1.7  40.7 
- Chemicals and photographic products  1,105  2.5  0 – 15  1.8  39.0 
- Leather, rubber, footwear, travel articles  208  7.7  0 – 15  0.7  44.3 
- Wood, wood pulp, paper and furniture  460  6.4  0 – 15  0.9  37.2 
- Textiles and clothing  939  9.9  0 – 15  0.5  44.7 
- Transport equipment  219  8.3  0 – 20  0.8  45.8 
- Non-electrical machinery  587  1.4  0 – 15  2.8  36.5 
- Electrical machinery  338  3.4  0 – 15  1.7  39.3 
- Non-agricultural products n.e.s.  507  7.2  0 – 20  0.9  44.3 
- Petroleum  24  3.3  0 – 15  1.6  45.0 
By ISIC sectorb      
Agriculture and fishing  410  8.1  0 – 23.7  0.8  44.1 
Mining  107  1.8  0 – 15  1.8  42.2 
Manufacturing  6,043  5.8  0 – 40  1.1  42.6 
By HS chapter      
01 Live animals and animal products  299  10.3  0 – 15  0.5  62.0 
02 Plant products  373  9.7  0 – 30  0.7  45.2 
03 Fats and oils  54  7.4  0 – 15  0.9  78.0 
04 Food preparations, etc.  274  12.4  0 – 40  0.6  45.3 
05 Mineral products  178  2.7  0 – 15  1.5  43.0 
Table III.3 (cont'd) WT/TPR/S/210 Trade Policy Review 
Page 34 
 
 
MFN 
Description 
Number of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Average 
bound ratea 
(%) 
06 Products of the chemical and related  industries  961  2.1  0 – 15  2.1  37.5 
07 Plastics and rubber  333  4.6  0 – 15  1.0  43.7 
08 Hides and leather  108  8.3  0 – 15  0.7  43.7 
09 Wood and articles of wood  140  8.6  0 – 15  0.6  34.3 
10 Wood pulp, paper, etc.  299  5.1  0 – 15  1.1  37.7 
11 Textiles and textile articles  920  9.6  0 – 15  0.5  44.7 
12 Footwear, hats and other headgear  64  13.0  0 – 15  0.3  44.7 
13 Articles of stone  176  6.4  0 – 15  1.0  43.9 
14 Precious stones, etc.  54  6.9  0 – 15  0.8  43.6 
15 Base metal and arti cles of base metal  695  3.1  0 – 15  1.6  40.6 
16 Machinery and equipment  973  2.5  0 – 20  2.0  37.8 
17 Transport equipment  232  8.0  0 – 15  0.9  45.6 
18 Precision instruments  237  3.9  0 – 15  1.5  43.8 
19 Arms and ammunition  21  16.4  15 – 20  0.1  45.0 
20 Miscellaneous goods and products  161  10.7  0 – 15  0.5  44.6 
21 Works of art, etc.  9  7.8  5 – 10  0.3  45.0 
By stage of processing      
First stage of processing  807  6.4  0 – 30  1.0  44.0 
Semi-processed products  2.187  3.9  0 – 20  1.2  41.0 
Fully processed products  3.567  7.1  0 – 40  1.0  43.4 
a The bound rates follow the HS96 classification and the applied rate s the HS07;  consequently, there may be a difference betwe en 
the number of lines included in the calculation. 
b ISIC (Rev.2), excluding electricity (one line). 
Source : WTO Secretariat estimates, based on data provided by the authorities. 
44. The government revenue generated by import ta riffs showed a modest increase during the 
period under review in nominal terms, from Q 2,262.9 million in 2002 (US$298 million at the 
June 2008 exchange rate) to Q 2, 653.9 million in 2007 (US $349 million) (Table III.4).  Nevertheless, 
the share of import tariffs for total imports fell sharply from 6.1 per cent in 2002 to 2.9 per cent in 
2007. 
Table III.4 
Foreign trade-related tax revenue, 2002-2007 
(Q million (current) and percentage of imports) 
Percentage of imports 
Year VAT on imports Tariffs 
VAT on imports Tariffs Tariffs and VAT on 
imports 
2002 5,714.7 2,262.9 15.3 6.1 21.4 
2003 6,184.5 2,383.9 16.1 6.2 22.3 
2004 7,107.4 2,427.1 14.2 4.9 19.1 
2005 7,953.7 3,714.5 14.2 6.6 20.8 
2006 8,924.2 2,603.5 12.9 3.8 16.7 
2007 10,532.3 2,653.9 11.4 2.9 14.3 
Source : Ministry of Finance, Supervisor y Authority for Tax Administration. Guatemala WT/TPR/S/210 
 Page 35 
 
 
(b) Tariff bindings 
45. Guatemala bound all its tariffs in the Uruguay Round.  The tariffs on all non-agricultural 
products were initially bound at 45 per cent.  The final bound rates applied by Guatemala to 
agricultural products range from 10 to 257 per cent.   The bound rates above 200 per cent apply to 
meat and edible poultry offal, sunflower seed, ma ize, palm and soyabean oil.  In August 2008, 
Guatemala was in the process of transposing its schedule of commitments to the HS02.  It had recourse to Article XXVIII.5 of the GATT 1994 in a communication dated 16 November 2005, 
reserving the right to modify its schedule over a period of three years as of 1 January 2006.
23 
46. Guatemala acceded to the Informational T echnology Agreement (ITA) and circulated a 
rectified schedule of commitments in 2006.24  Its tariff bindings on th ese products, which were 45 per 
cent, are gradually being reduced to zero over the period 2006-2010. 
47. The Secretariat did not identify any tariff line whose applied rate exceeded the respective 
bound rate.25 
(c) Tariff preferences 
48. Guatemala gives preferential tariff treatment to imports from other members of the CACM.  
Virtually all products originating in the CACM are gi ven a tariff rate of 0 per cent.  The only products 
imported from CACM countries to which Guatemal a does not give preferential treatment are 
unroasted coffee, sugar cane, wheat flour, ethyl alcohol, and petroleum products.  As a result of the latest amendments introduced in the context of Ce ntral American economic integration, specifically 
those in Resolution No. 05-2006 of the Executiv e Committee on Economic Integration, the only 
products originating in the CACM that are not elig ible for free trade when entering Guatemala are:  
roasted coffee and unroasted coffee;  while sugar cane requires an import licence.  These restricted 
products are subject to bilateral import regimes. 
49. Guatemala also gives preferential treatment to imports from countries with which it has 
FTAs, namely, the Dominican Republic, Mexico, Ch inese Taipei, and the United States (Table III.5), 
and countries with which it has partial scope agre ements (namely, Colombia, Cuba, Panama and 
Venezuela).  The scope of these FTAs and partial scope agreements are discussed in Chapter II. 
50. The average preferential tariff applicable to imports from the United States under the CAFTA 
is 1.8 per cent.  The highest tariffs, by WTO categ ory, are on dairy products and beverages;  the 
average protection for agricultural products (W TO definition) is 5.3 per cent, while for 
non-agricultural products it is 1.4 per cent.  The aver age tariff on imports from Mexico is 1.1 per cent:  
3.6 per cent on agricultural products (WTO defin ition) and 0.7 per cent on non-agricultural goods.  
The average preferential tariff on imports from the Dominican Republic is 1.1 per cent:  1.6 per cent 
on agricultural products (WTO definition) and 0. 9 per cent on non-agricultural goods.  The average 
preferential tariff on imports from Cuba is 5.5 per cent:  9.1 per cent on agricultural products 
(WTO definition) and 4.7 per cent on non-agricult ural goods.  The average preferential tariff on 
imports from Chinese Taipei is 3.9 per cent:  6.8 pe r cent on agricultural products (WTO definition) 
and 3.4 per cent on non-agricu ltural goods (Table III.5). 
                                                     
 
23 WTO document G/MA/171 of 22 November 2005. 
24 WTO document G/MA/TAR/RS/105 of 21 February 2006. 
25 In undertaking this analysis, the Secretariat only took in to account the tariff lines  contained in the list 
in Schedule LXXXVIII in the HS96 that are strictly comparable to those in the HS07. WT/TPR/S/210 Trade Policy Review 
Page 36 
 
 
Table III.5 
Summary of preferential tariffs, 2008 
Description Number 
of lines MFN CAFTA
(US) Mexico Dominican 
Republic Cuba Chinese 
Taipei 
Total 6,561 5.9 1.8 1.1  1.0 5.5 3.9 
HS 01-24 1,000 10.5 4.0 3.4  1.6 9.1 6.8 
HS 25-97 5,561 5.1 1.4 0.7  0.9 4.8 3.4 
By WTO category        
Agricultural products 936 9.9 4.1 3.6  1.7 8.6 6.9 
- Animals and animal products 127 12.3 5.0 6.3  1.5 10.4 8.4 
- Dairy products 31 13.2 12.5 13.2  2.9 13.2 13.1 
- Coffee and tea, cocoa, sugar, etc. 170 10.2 4.7 3.9  0.9 9.4 6.9 
- Cut flowers and plants 59 5.8 0.0 0.3  0.0 5.8 2.8 
- Fruit and vegetables 203 13.2 4.3 3.0  1.0 11.2 9.7 
- Cereals 23 12.1 8.6 11.0  4.1 12.1 8.3 
- Oilseeds, fats and oils and their 
 products 94 5.4 2.3 2.2  3.2 5.4 3.6 
- Alcoholic beverages and liquids  53 19.1 11.1 4.1  9.6 12.8 16.2 
- Tobacco 19 6.8 3.4 6.3  3.4 4.2 5.3 
- Other agricultural products n.e.s. 157 3.8 0.3 0.6  0.0 3.7 1.2 
Non-agricultural products (including 
petroleum) 5,625 5.3 1.4 0.7  0.9 4.9 3.5 
- Non-agricultural products (excluding 
 petroleum) 5,601 5.3 1.4 0.7  0.9 4.9 3.5 
- Fish and fish products 157 9.6 1.4 0.4  0.0 8.2 2.1 
- Minerals, precious stones and metals 372 5.1 1.7 0.7  0.1 4.7 3.4 
- Metals 709 2.8 1.4 0.5  0.0 2.7 2.0 
- Chemicals and photographic products  1,105 2.5 1.1 0.3  0.0 2.1 1.9 
- Leather, rubber, footwear, travel articles 208 7.7 3.8 1.6  0.0 7.5 3.9 
- Wood, wood pulp, paper and furniture 460 6.4 3.5 0.7  0.0 6.0 5.8 
- Textiles and clothing 939 9. 9 0.1 0.1  5.5 9.6 8.8 
- Transport equipment 219 8.3 5.4 5.1  0.0 8.1 7.3 
- Non-electrical machinery 587 1.4 0.4 0.2  0.0 1.4 0.3 
- Electrical machinery 338 3.4 0.4 0.4  0.0 3.2 0.1 
- Non-agricultural products n.e.s. 507 7.2 1.1 1.3  0.0 6.8 1.5 
- Petroleum 24 3.3 0.0 3.3  3.3 3.3 1.3 
By ISIC sectora        
Agriculture and fishing 410 8.1 1.8 1.8  0.4 7.0 4.2 
Mining 107 1.8 0.2 0.1  0.0 1.6 1.3 
Manufacturing 6,043 5.8 1.8 1.1  1.1 5.4 4.0 
By HS chapter        
01 Live animals and animal products 299 10.3 3.8 3.9  0.9 9.5 4.9 
02 Plant products 373 9.7 2.8 2.7  1.1 8.7 6.3 
03 Fats and oils 54 7.4 3.7 3.0  5.6 7.4 5.9 
04 Food preparations, etc. 274 12.4 6.1 4.0  2.3 9.5 9.5 
05 Mineral products 178 2.7 0.4 0.9  0.6 2.6 1.8 
Table III.5 (cont'd) Guatemala WT/TPR/S/210 
 Page 37 
 
 
Description Number 
of lines MFN CAFTA
(US) Mexico Dominican 
Republic Cuba Chinese 
Taipei 
06 Products of the chemical and related 
 industries 961 2.1 0.7 0.2  0.0 1.8 1.3 
07 Plastics and rubber 333 4.6 2.6 0.8  0.0 4.0 3.7 
08 Hides and leather 108 8.3 2.0 1.3  0.0 8.1 1.8 
09 Wood and articles of wood 140 8.6 3.7 1.5  0.0 8.1 8.4 
10 Wood pulp, paper, etc. 299 5.1 2.8 0.1  0.0 4.9 4.2 
11 Textiles and textile article s 920 9.6 0.0 0.0  5.6 9.4 8.7 
12 Footwear, hats and other hea dgear 64 13.0 7.2 2.8  0.0 12.8 8.0 
13 Articles of stone 176 6.4 3.1 1.0  0.0 5.7 5.3 
14 Precious stones, etc. 54 6.9 0.0 0.0  0.0 6.7 0.7 
15 Base metal and articles of base  metal 695 3.1 1.6 0.6  0.0 2.9 2.2 
16 Machinery and equipment 973 2.5 0.3 0.3  0.0 2.4 0.1 
17 Transport equipment 232 8.0 5.1 4.9  0.0 7.9 7.0 
18 Precision instruments 237 3.9 0.0 0.5  0.0 3.8 0.1 
19 Arms and ammunition 21 16.4 0.0 16.4  0.0 16.4 0.0 
20 Miscellaneous goods and produc ts 161 10.7 4.6 1.4  0.0 9.3 5.5 
21 Works of art, etc. 9 7.8 0.0 0.4  0.0 6.7 5.3 
By stage of processing        
First stage of processing 807 6.4 1.5 1.4  0.6 5.7 3.1 
Semi-processed products 2,187 3.9 1.1 0.4  0.4 3.7 3.2 
Fully processed products 3,567 7.1 2.2 1.5  1.5 6.5 4.6 
a ISIC (Rev.2), excluding electricity (one line). 
Source : WTO Secretariat estimates, based on data provided by the Guatemalan authorities. 
(d) Tariff concessions 
51. Goods imported under the processing-for-export or drawback regimes covered by the 
Free Zones Law or the Law on the Promotion and Development of Exporting and Maquila Activities 
are eligible for tariff concessions (Section 3(v) below).  Government a nd non-profit-making entities 
are also eligible for tariff concessions.  The Minist ry of Finance is empowered to grant concessions 
under other circumstances;  for ex ample, for donations in kind, but they require the requisite 
authorization. 
(v) Other charges affecting imports 
52. The value added tax (VAT) must be paid on both imported and domestic goods .  This tax is at 
a rate of 12 per cent and for imported goods it must be  paid at the border on the c.i.f. value plus 
import duty;  this tax is credited on the monthly declaration of domestic VAT.  In 2007, VAT as a 
whole accounted for 50.9 per cent of total revenue;  of this total, 61.3 per cent was VAT on imports 
(31.2 per cent of total tax revenue ), and 38.7 per cent was VAT on dom estic products (19.7 per cent of 
total tax revenue). 
53. There are a number of internal taxes on dist ribution of a specific group of products within 
Guatemala, whether imported or produced locally .  The products concerned are:  alcoholic and 
non-alcoholic beverages, cement, cigarettes, and fuel  derived from petroleum.  The tax on cement is 
governed by Decree No. 79-2000 ( Ley del Impuesto Específico a la Distribución de Cemento  (Law on 
the Special Tax on the Distribution of Cement)) and amounts to Q 1.50 per 42.5 kg bag of cement or WT/TPR/S/210 Trade Policy Review 
Page 38 
 
 
its equivalent, whether in bulk or "clinker" , or in bags weighing a different amount.26  The tax on the 
distribution of crude petroleum and petroleum-de rived fuel is governed by Decree No. 38-92 and 
amendments thereto, and the rates per gallon are as follows:  premium grade gasoline Q 4.70;  regular 
gasoline Q 4.60;  aviation fuel Q 4.70;  diesel fuel  Q 1.30;  kerosene, liquefied petroleum gas and 
other related fuels Q 0.50.  The Ley de Tabacos y sus Productos  (Law on Tobacco and Tobacco 
Products) (Decree No. 61-77) imposes a 100 per cen t tax on the ex-factory price of cigarettes, 
although this may not under any circumstances be less than 46 per cent of the consumer price for 
cigarettes, before VAT is applied.27 
54. There have been a number of changes to the tax es on alcoholic beverages in recent years.  In 
2001, Guatemala enacted the Ley del Impuesto Específico Sobre la Distribución de Vinos, Sidras, 
Vinos Vermouth, Vinos Espumosas y Otras Bebidas Fermentadas  (Law on the Special Tax on the 
Distribution of Wine, Cider, Vermouth, Sparkli ng Wine and Other Fermen ted Beverages), which 
imposed different taxes on national and imported alc oholic beverages.  At the time of the previous 
Review, some WTO Members raised questions con cerning this Law's conformity with Guatemala's 
WTO commitments, particularly the apparent discrepancies between the various taxes on Guatemalan 
and foreign wine and the consistency of these meas ures with Article III of the GATT 1994.  In early 
2002, Congress approved a new law which remedied this discrepancy, establishing the same taxes on 
Guatemalan and imported alcoholic beverages.28  Moreover, in October 2003, Guatemala's 
Constitutional Court temporarily suspended the new d ecree so the tax on the distribution of alcoholic 
beverages remained without effect during that time. 
55. Since July 2004, Decree No. 21-2004 ( Ley del Impuesto sobre la Distribución de Bebidas 
Alcohólicas Destiladas, Cervezas y Otras Bebidas Fermentadas ) (Law on the Tax on the Distribution 
of Distilled Alcoholic Beverages, Beer and Other Fermented Bevera ges) has been in effect in 
Guatemala, establishing the same taxes on Guatemal an and imported alcoholic beverages.  The rates 
of the tax applied in Guatemala in April 2008 on both Guatemalan and imported alcoholic and 
non-alcoholic beverages are shown in Table III.6.   These apply to the selling price to the end 
consumer suggested by the manufacturer or the im porter and declared to the SAT in accordance with 
the provisions in this Law, excluding VAT and the corresponding distribution tax.  The tax on non-alcoholic beverages is set  out in Decree No. 09-2002 ( Ley del Impuesto Específico sobre la 
Distribución de Bebidas Gaseosas, Bebidas Isot ónicas o Deportivas, Jugos  y Nectares, Yogures, 
Preparaciones Concentradas o en Polvo para la Elaboración de Bebidas y Agua Natural Envasada  
(Law on the Special Tax on the Distribution of Aera ted Beverages, Isotonic or Sports Drinks, Juices 
and Nectars, Yoghurt, Concentrated Preparations  or Powders for Preparing Beverages and Bottled 
Natural Water) and applies to distribution of these beverages, whether produced  locally or imported, 
throughout Guatemala. 
56. Both alcoholic and non-alcoholic beverages ar e exempt from payment of the aforementioned 
taxes if they are imported or purchased by intern ational bodies;  the export or re-export of these 
products is also exempt.  There are no exemptions  for commercial imports.  In 2007, special taxes on 
distribution accounted for 9.7 per cent of total tax revenue. 
                                                     
 
26 The text of the Decree was viewed on the SA T's web site:  http://por tal.sat.gob.gt/portal/ 
components/com_docman/dl2.php?archive=0&file=ZHRvXzc5XzIwMDAucGRm 
27 Online information from the MSPAS.  Viewed at:  http://www.mspas.gob.gt/ 
menu/marco_legal/Decreto No 61-77.pdf.  Legislative Decree No. 007-2002. 
28 Legislative Decree No. 007-2002. Guatemala WT/TPR/S/210 
 Page 39 
 
 
Table III.6 
Taxes on Guatemalan a nd imported beverages 
Product HS Code Rate (%) 
Alcoholic beverages   
Beer and other beverages made fr om fermented cereals  2203.00.00 6.0 
Wine  2204 7.5 
Sparkling wine  2204.10.00 7.5 
Vermouth  2205 7.5 
Cider  2206.00.00 7.5 
Distilled alcoholic beverages  2208 8.5 
Alcoholic beverages mixed with aerated water, still or sweetened water or any type of water 
whether or not carbonated, and bottled in any type of container  2208.90.90 7.5 
Other fermented beverages  2206.00.00 7.5 
Non-alcoholic beverages HS Code Rate (Q/litre) 
Natural or sweetened aerated beverages,  whether or not carbonated  2201, 2202 0.18 
Syrups and/or concentrates which, when mi xed, create aerated beverages  2106.90.30 0.18 
Isotonic or sports drinks  2204.10.00 0.12 
Natural juices and nectars or of natural fruit a nd artificial and other juices  2009, 2202.90.90 0.10 
Any type of yoghurt drink  0403.10.00 0.10 
Bottled natural water, in containers not ex ceeding 4 litres, except for bottled natural water 
in containers exceeding 4 litres for domestic use  2201 0.08 
Source : Decree No. 21-2004 and Decree No. 09-2002. 
(vi) Prohibitions, restrictions and import licensing 
57. In 2004, Guatemala replied to the questionna ire on import licensing procedures and updated 
its notification concerning its import licensing regime.29  In its notification Guatemala indicated that 
there are no quantitative limits or restrictions on imports from a particular country.  Guatemala does 
not require import licences as such, although imports of certain products are subject to specific 
administrative procedures.  Guatemala has no tified the relevant formalities to the WTO.30  There are 
no differences in procedures for particular trade partners and there are no exceptions to licensing 
requirements as a result of bilateral or regional agreements. 
58. The import of narcotic drugs is restricted and can only be authorized by the persons legally 
entitled and strictly under their own responsibilit y for medical treatment, toxicological and 
pharmacological analyses, scientific research and the preparation of medicines, as laid down in Decree No. 48-92 ( Ley Contra la Narcoactividad  (Law Against the Traffic in Narcotic Drugs)) and its 
revisions, Decree No. 90-07 (Health Code) and its revisions, and Government Decision No. 54-2003 
(Regulations on the Control of Precursors and Chemical Substances). 
59. Decree No. 68-86 ( Ley de Protección y Mejoramiento del Medio Ambiente  (Law on the 
Protection and Improvement of the Environment)) bans  the import of animal or human waste, whether 
or not treated, for reasons of public health a nd environmental protecti on.  Decree No. 110-97 ( Ley que 
Prohíbe la Importación y Regula el Uso de los Cl orofluocarbonos en sus Diferentes Presentaciones  
(Law Prohibiting the Import and Regulating the Use of Chlorofluorocarbons in their Various Forms)) 
states that it is prohibited to import or bring into  Guatemala industrial or dom estic products that utilize 
chlorofluorocarbons, whether for the purposes of c ooling or refrigeration, or as propellants for 
medicinal products;  or halogenated alkanes in fire-fighting products, aerosols or in any other form.  
All these prohibitions were enacted prior to the period under review. 
                                                     
 
29 WTO document G/LIC/N/3/GTM/2 of 8 September 2004. 
30 WTO document G/LIC/N/3/GTM/4 of 9 November 2007. WT/TPR/S/210 Trade Policy Review 
Page 40 
 
 
60. The authorities have indicated that since 2002 th ere have been no significant changes in the 
group of products subject to import licensing.  Tabl e III.7 lists the products subject to import licences 
in mid-2008. 
61. As mentioned above, certain administrative proce dures have to be completed, for example, a 
prior permit has to be granted before products listed in Table III.7 can be imported.  For such 
products, the importing firm must first register with the competent administrative unit.  In addition, 
for products subject to the prior permit requireme nt, sanitary and phytosanitary permits are also 
required or in the case of a number of products they must comply with technical regulations (Sections 
(2)(viii) and (ix) below). 
Table III.7 
Imports for which a prior permit is required and the relevant legal basis, 2008 
Administrative authority Product or sector 
National Council for 
Protected Areas (CONAP) The import of plants or animals into protected areas 
Ministry of Energy and Mining  Mineral fuel s, mineral oils and products of their dis tillation;  bituminous materials;  mineral waxes 
Ministry of Energy and Mining  Inorganic ch emicals;  inorganic or organic compounds of precious metals, radioactive elements, 
rare-earth metals or isotopes 
Ministry of the Environment Organic chemicals 
Ministry of the Environment Plas tic materials and articles thereof 
Ministry of the Environment Rubber and rubber articles 
Ministry of the Environment Electrical machinery and mate rials, and appliances for recording sound or images 
Ministry of Defence Powder and explosives;  pyrotechnical ar ticles;  matches;  pyrophoric alloys;  inflammable materials 
Ministry of Defence Import of offe nsive weapons and their ammunition 
Source : Information provided by the Guatemalan authorities. 
(vii) Anti-dumping, countervailing or safeguard measures 
62. Guatemala did not take any anti-dumping, co untervailing or safeguard measures during the 
period under review.  It has only done so on one occasion since the WTO was established. 
63. The legal framework for the application of anti-dumping measures, countervailing duties and 
safeguards is contained in the WTO provisions and the Central American Regulations against Unfair 
Business Practices and the Central American Regulations on Trade Safeguards, applied by Guatemala since 1996 and revised to bring the rules previously applied into line with the relevant WTO Agreements.
31 
64. Guatemala notified the aforementioned revisions  of the regulations to the WTO Committee 
on Anti-Dumping Practices in early 2008.32  This notification caused three Members to pose a series 
of questions on the regulations.33  The questions put to Guatemala related to matters such as the 
relationship between the Guatemalan regulati ons and WTO rules, procedures for conducting 
investigations, treatment of confidential information,  verification visits, provisional measures, review 
of determinations, and their publication.  Guat emala replied to these questions in June 2008.34 
                                                      
31 WTO document G/ADP/N/1/GTM/2 – G/ SCM/N/1/GTM/2 of 2 October 1996. 
32 WTO document G/ADP/N/1/GTM/3 of 22 February 2008. 
33 The questions posed by the United States, Chinese Taipei and Chile are contained, respectively, in 
WTO documents G/ADP/Q1/GTM/8 of 9 April 2008, G/ADP/Q1/GTM/9 of 10 April 2008, and 
G/ADP/Q1/GTM/10 of 10 April 2008. 
34 WTO documents G/ADP/Q1/GTM/11-13 of 20 June 2008. Guatemala WT/TPR/S/210 
 Page 41 
 
 
65. In early 2008, Guatemala notified the WTO that the Central American Regulations on 
Safeguard Measures had been adopted.35  These Regulations specifically set out the provisions for 
application of Article XIX of the GATT 1994, as we ll as the provisions of the Guatemala Protocol 
(Protocol to the 1993 General Treaty on Central Am erican Integration).  The notification was 
followed by a series of questions posed to Guatemala by Members.36  The questions related to matters 
such as the administration of the legislation an d the competent authorities, the application of 
provisional measures, public interest criteria, the duration of safeguard meas ures and their review.  
Guatemala replied to these questions in June 2008.37 
66. Guatemala has regularly notified the WTO Committee on Anti-Dumping Practices that it did 
not adopt any anti-dumping measure during the period covered by the notification.38  It notified the 
WTO in 2004 that it had not made use of the speci al safeguard measures provided in the Agreement 
on Agriculture.39 
67. The Central American Regulations on Safe guard Measures apply to imports from third 
countries (i.e. countries that are not members of the CACM) and allow the introduction of provisional 
measures.  The safeguard measures may be adopted in the form of tariffs or quantitative restrictions.  
Provisional safeguard measures can be imposed for a maximum of 200 days and may only be in the 
form of tariffs.  Definitive measures may only be im posed for a period of four years, with extensions 
that may not exceed eight years.  The authorities have indicated that, by October 2008, these regulations had not been used by Guatemala as no such cases had occurred. 
68. Instances of "unfair business practices" concer ning goods originating in CACM member 
countries are brought before the Executive Committe e of the CACM (SIECA), which examines them 
and makes relevant recommendations.  Where more than one CACM member is affected by unfair 
business practices, responsibility for the procedures lies with the SIECA and its Executive Committee, 
whereas national authorities are res ponsible for any follow-up measures. 
69. In addition to the rules laid down within the CACM, the FTAs concluded by Guatemala 
(whether separately or together with all or some  of the CACM member countries) with Colombia, 
Cuba, the Dominican Republic, Mexico, Chinese Taipei and the United States contain legal 
provisions on anti-dumping and/or safeguard clauses. 
70. In order to initiate an investigation for th e purpose of anti-dumping or safeguard measures 
under these agreements, the domestic industry affected must submit a request to the Dirección de 
Administración de Comercio Exterior  (Directorate for the Administration of Foreign Trade) of the 
Ministry of the Economy (MINECO).  The request must contain specific information (for example, a 
description of the facts relating to the case and a calcu lation of the injury), and sufficient elements to 
allow the case to proceed.  The MINECO takes a decision within a maximum of 30 days.  If the decision is in the affirmative and while awaiting th e outcome of a meeting with the complainant, the 
Ministry may initiate the procedure in accord ance with the terms laid down in the relevant 
agreement.
40  By October 2008, these provisions had not b een utilized.  Chapters VIII and IX of the 
FTA with Mexico also contain provisions on saf eguard measures and unfair business practices;  the 
agreements with Panama and Ch ile contain similar provisions. 
                                                      
35 WTO document G/SG/N/1/GTM/3 of 25 February 2008. 
36 The questions posed by the United States and Chile, are contained, respectively, in WTO documents 
G/SG/Q1/GTM/3 and G/SG/Q1/GTM/4 of 9 April 2008. 
37 WTO documents G/SQ/Q1/GTM/5 and 6 of 17 June 2008. 
38 WTO document G/ADP/N 72/Add.1/Rev.6 of 22 January 2008. 
39 WTO document G/AG/N/GTM/29 of 10 March 2004. 
40 Guatemalan Ministry of the Economy (2005b). WT/TPR/S/210 Trade Policy Review 
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(viii) Standards and technical regulations 
71. The WTO Department in the MINECO acts as th e enquiry point and notification service for 
the WTO Agreement on Technical Barriers to Trade41 and the Directorate for the Administration of 
Foreign Trade is the notifying body.  Guatemala notified the WTO in 2004 that it had accepted the 
Code of Good Practice for the Preparation, Adoption and Application of Standards.42 
72. Guatemala is a member of the International Or ganization for Standardization (ISO), where the 
Comisión Gualtemalteca de Normas  – COGUANOR (Guatemalan Standards Commission) 
participates in the Committee on Developing Country Matters.  Guatemala is also a full member of the Pan-American Standards Commission (COPANT). 
73. Pursuant to Decree No. 1.523 of 1962, COGU ANOR is the national standardization body and 
is part of the MINECO.  Its role was ratified by Decree No. 78-2005 ( Ley del Sistema Nacional de la 
Calidad  (Law on the National Quality System)).  Its scope  of competence covers all economic sectors.  
Its objective is to promote the emergence of high-quality products and services, thus enhancing competitiveness and quality of life, as well as creating trust among the sectors involved.
43  
COGUANOR is composed of those responsible for the MINECO, the Chamber of Industry, the 
Chamber of Commerce, the Building Industry Chambe r, the Chamber of Agriculture, the Guatemalan 
Exporters' Association, the Forum of Rectors of Gu atemalan Universities, th e Assembly of Presidents 
of Professional Associations, and their alternates.  In addition, depending on the subject to be covered 
and its relation to matters within their competence, the following Ministries of State sit on the National Standardization Council:  (a) the Ministry of Agriculture, Livestock and Food (MAGA);  (b) 
the Ministry of Public Health and Social Security (MSPAS);  (c) the Ministry of Energy and Mining 
(MEM);  and (d) the Ministry of th e Environment and Natural Resources. 
74. The standards ("technical standards" accordi ng to Guatemala's legislation) developed, 
published and disseminated by COGUANOR are comp lied with, used and applied voluntarily, in 
accordance with the Law on the National Quality System, unless a government body decides to use 
them to draw up a mandatory technical regulati on.  Traditionally, however, COGUANOR had been 
the body responsible for drawing up and adopting technical regulations and monitoring compliance 
with them.  Since the Law on the National Quality  System was published in 2005, responsibility for 
drawing up technical regulations has fallen on the government entity concerned, with assistance from 
the Comisión Nacional de Reglamentación Técnica  – CRETEC (National Commission for Technical 
Regulations), which is to act as a consultative and a dvisory body for technical regulations but will not 
be responsible for drafting them.  By mid-2008, however, the CRETEC had not yet been set up.  The 
principal government entities which draw up technical regulations are the MSPAS, the MAGA, the Ministry of the Environment and Natural Resources, and the MEM, inter alia . 
75. Until 2005, COGUANOR drafted standards (recommended standards, NGR, applied 
voluntarily) and technical regula tions (mandatory standards, NG O).  The NGR applied to quality 
standards concerning the production and sale of goods a nd were optional for industry and trade for the 
products in question;  they were, however, manda tory for government bodies, official entities and 
decentralized autonomous bodies, which were not a llowed to buy the products they needed unless 
they met the standards and specifications laid down.   The NGO applied to or were related to weights 
and measures, foodstuffs, medicines, buildings and,  in general everything to do with safety and the 
protection of goods, health and life;  they were mandatory for all those using them.
44  Both the NGR 
                                                      
41 WTO document G/TBT/ENQ/32 of 7 March 2008. 
42 WTO document G/TBT/CS/N/156 of 31 August 2004. 
43 Online information from COGUANOR.  Viewed a t:  http://www.coguanor.org/quienes_somos.html. 
44 Online information from COGUANOR:  Viewed at: http://www.coguanor.org/que hacemos.html. Guatemala WT/TPR/S/210 
 Page 43 
 
 
and the NGO were the subject of comments by the public.  Since 2005, the COGUANOR has drawn 
up Guatemalan technical standards (NTG, voluntary ) to replace the NGR and no longer develops the 
NGO.  The NTG are prepared with the support of a ll the sectors concerned (regulators, consumers and 
the academic sector), which examine and a pprove them in the technical committees. 
76. The National Quality System was created by the Law on the National Quality System, Decree 
No. 78-2005 of 8 December 2005, in order to foster the adoption of high-quality management practices in companies belonging to the production sect or and to lay down the bases for ensuring that 
the adoption of technical regulations intended to prevent and limit risks liable to cause injury or 
prejudice to persons, animals, plants or the e nvironment do not constitute unnecessary barriers to 
trade.  The National Quality System comp rises five institutions:  COGUANOR;  the Oficina 
Guatemalteca de Acreditación  – OGA (Guatemalan Accreditation Bureau);  the Centro Nacional de 
Metrología  – CENAME (National Metrology Centre), including the National Metrology Laboratory 
and the Inspection and Verification Unit fo r legal metrology;  CRETEC;  and the Centro de 
Información  – CEINFORMA (Information Centre).  In a ddition to the functions described above, the 
National Quality System also defines the activities a nd procedures to be carried out by the competent 
entities in relation to standardization, accreditati on and metrology and establishes the mechanism to 
provide the production sector and the public in genera l with information on the current standards and 
accreditation procedures, as well as on the technical regulations and assessment procedures in effect in Guatemala and in the territory of its major trading partners. 
77. By November 2008, no implemen ting regulations for the Law on the National Quality System 
had yet been issued.  The authorities have i ndicated that COGUANOR is still carrying out its 
standardization work but, in the absence of the re levant regulations and owing to the fact that 
CRETEC has not yet been set up, it has been unable to approve the 11 draft NTG that had been approved by the competent standardization technical committees. 
78. In its work as the body responsible for drafting technical regulations up until 2005, 
COGUANOR followed two procedures:  a public enqui ry (which lasted from 60 to 90 days) and the 
creation of technical working committees.  Both pr ocedures gave all interested sectors an opportunity 
to comment on the draft standard.  Article No. 6 of the Law establishing COGUANOR provided that, 
once the standards, whether NGR or NGO, had been  adopted by COGUANOR, they were transmitted 
to the Executive Committee for approval by govern ment decision and publication in the Official 
Journal within 30 days of approval.  Since 2005, the Ministry responsible for the sector covered by the 
measure has been responsible for developing techni cal regulations.  The first step is to draw up a 
standard to be used as a basis for preparing a tec hnical regulation.  Public and private bodies with an 
interest in the matter take part in preparing this  and in general the technical regulations are agreed 
with the other Central American countries with a view to their respective approval and corresponding 
notification, within the Central American customs union framework. 
79. Before being transmitted to the Executive Co mmittee for approval, draft NGO had to be 
notified to the WTO by the MINECO so that WT O Members could make their remarks and comments 
within a period of 60 days.  After receiving the comments, COGUANOR convened the special 
technical committee that had prepared the draft standard in question in order to examine the 
comments and decide whether they were technically valid.  The lapse of time between the adoption of 
a COGUANOR standard and its publication in the O fficial Journal was a minimum of two months, 
during which the final draft was made available to the public for consultation.  Technical regulations 
entered into force eight days after their publicatio n in the Official Journal.  The same procedure 
should be followed by the Ministry or agency res ponsible for preparing a technical regulation.  As 
COGUANOR is no longer the body responsible for t echnical regulations, however, no notification has 
been made to the WTO.  The authorities acknowledge  that in this respect Guatemala still does not WT/TPR/S/210 Trade Policy Review 
Page 44 
 
 
have sufficient capacity to meet all its notificati on obligations.  The institu tional changes in 2005 have 
led to a certain vacuum and in order to overcome this it may be necessary to improve the procedures 
followed for notifying the WTO.  The authorities have indicated that the cause of this problem may lie 
more with the ministries th an with COGUANOR itself. 
80. The abolition of technical regulations that have become obsolete takes the form of a 
government decision repealing the regulations that are out of date and, where appropriate, replacing 
them with other updated regulations. 
81. The Guatemalan Accreditation Bureau, establis hed by Government Decision No. 145-2002, 
published on 6 May 2002, as amended by Decree No. 78- 2005, is the entity responsible for enforcing 
and administering accreditation in Guatemala for the purpose of formally recognizing the technical 
competence of conformity assessment bodies based on the international or national standards in 
effect.45  The bodies subject to assessment by the OGA  are:  testing and calibration laboratories 
(COGUANOR standard NTG/ISO/IEC 17.025);  clinical analysis laboratories (ISO standard 15.189);  certification bodies;  inspection bodies (standard  ISO/IEC 17.020);  and management systems 
(standard ISO/IEC 17.021).  The OGA also asses ses products (guide ISO/IEC 65) and personnel 
(standard ISO/IEC 17.024). 
82. By May 2008, the OGA had accredited 11 testing and calibration laboratories and 
one inspection body.
46  Accreditation is usually for four year s.  Testing and calibration laboratories, 
certification entities and inspection bodies which have been accredited may make use of the OGA accreditation mark, which identifies them as  bodies that have been evaluated and whose 
competence has been formally recognized.  The authorities have indicated that COGUANOR 
undertakes neither testing nor calibration.  Calibration a pplies to 100 per cent of the users' equipment.  
The MSPAS and the MEM carry out analyses and tests in order to register products under their responsibility (food, medicines and related substances in the case  of the MSPAS, fertilizer and 
pesticides in the case of the MAGA, and hydrocarb ons for the MEM);  these are carried out on the 
basis of samples provided by the importer or manufact urer.  The criteria used for analysis are laid 
down in each ministry's laws and regulations. 
83. The CENAME provides calibration services in relation to volume and temperature and the 
Legal Metrology Inspection and Veri fication Unit cooperates with the Dirección de Atención y 
Asistencia al Consumidor  – DIACO (Department for Consumer Affairs) in assessing calibration 
certificates for measuring appliances.  The CENAM E's metrology laboratory calibrates weighing 
machines, weights and thermometers. 
84. The authorities have indicated that, in Guatemal a, the use of first, second or third party 
conformity assessment systems is not a requirement  for a transaction between a supplier and a user, 
which is purely a contractual arrangement between th e client and the supplier.  The authorities have 
also stated that, when certain firms have raised  questions regarding the purchasing of unsatisfactory 
                                                     
 
45 Online information from the OGA.  Viewed at:  http://oga .org.gt/acerca_de_ la_oga.html. 
46 Testing laboratories:  Controlab (accredited in  2005), Expogranel, S.A.  (2004), Ecosistemas 
Proyectos Ambientales (2005), INLASA, S.A. (2006), La boratorio de Análisis y Servicios, S.A. (2006), 
Laboratorio Nacional de Salud del Ministerio de Salud Pública y Asistencia Social (2008), FQB Laboratorios 
(2008), Laboratorio Especial de Aseguramiento de la Calidad, Nestlé Guatemala, S.A. (2008).  Calibration 
laboratories:  Básculas Revuelta Maza, S.A. de C.V. (200 5-02-09), Sistemas de Pesaje , S.A. (2007).  Clinical 
laboratories:  Sanatorio Nuestra Señora del Pilar, La boratorio Clínico (2005), Laboratorio Clínico Hospital 
Herrera Llerandi – AMEDESGUA (2007).  Inspection bodies:  Asociación de Azucareros de Guatemala – 
ASAZGUA – Inspección de Ingenios (2007).  Onli ne information from the OGA.  Viewed at:  
http://oga.org.gt/organismos_acreditados.html. Guatemala WT/TPR/S/210 
 Page 45 
 
 
products or raw materials, it has generally been th e case that the transaction has been on the basis of a 
first party certificate but no institution keeps records of this practice. 
85. The authorities have indicated that, in order to register food, medicines, fertilizer and 
pesticides, the MSPAS and the MAGA receive sampl es from the user.  Pursuant to Decree No. 90-97 
(Health Code), the MSPAS requires processed foods and medicines to undergo assessment of 
conformity with the corresponding regulations;  in cases of non-compliance with the sanitary 
regulations, the sanctions laid down in the Health Code apply.  Pursuant to the Plant and Animal 
Health Law (Decree No. 36-98), the MAGA imposes san ctions for failure to observe phytosanitary 
controls for the products within its competence. 
86. During the period under review, COGUANOR a pproved 13 technical regulations and 
25 standards.  By May 2008, it had published 654 technical regulations since it commenced activities 
in areas such as:  security storage units;  tubing  and flanges;  valves and accessories and various 
components for distributing fluids and irrigation;  iron and steel;  petroleum products;  powder and 
explosives;  plastics and rubber;  standardization, metrology and social sciences;  medicines;  motor 
vehicle equipment;  sanitary engineering;  miscella neous industries;  chemical industry;  fishing 
industry;  leather and footwear industry and by-pro ducts;  fermentation industry;  agricultural and 
food industry;  building industry;  quality management;  materials testing;  packaging;  architecture;  
agriculture and agricultural machinery;  documentation;  and miscellaneous matters.47  T h e r e  i s  n o 
detailed information on the technical re gulations drawn up by other entities. 
87. Between 2002 and April 2008, Guatemala no tified 59 proposed technical regulations, 
bringing the total number of notifications to 61.48  All the measures were notified as drafts.  The 
technical regulations notified since 2005 are, in gene ral, developed at the Ce ntral American level and 
adopted by Guatemala. 
88. DR-CAFTA contains provisions on standard s, technical regulations and conformity 
assessment procedures.  Article 7.6 of DR-CAFTA provides for acceptance of trade partners' regulations as equivalent.  At th e Central American level, the re gistration and approval of a large 
number of technical regulations are recognized.  Th e authorities have indicated that, as of June 2008, 
efforts were being made in the region to achieve fu ll harmonization in this respect.  On 9 June 2008, 
the MINECO signed the Multilateral Recognition Arrangement (MLA) of the InterAmerican 
Accreditation Cooperation (IAAC), under which accreditation granted by the OGA to testing 
laboratories, including those carrying out clinical an alyses, is recognized at the international level.  
With this recognition, reports or certificates issued  by the laboratories accredited in Guatemala by the 
OGA are recognized internationally. 
89. Guatemala has a number of labelling regulati ons for certain products.  According to 
Government Decision No. 969-99 on food safety, a ll processed or packaged foods for public 
consumption must be labelled in accordance with Guatemala's technical regulations.  The main 
regulation in this respect is the COGUANOR techni cal regulation on the labelling of packaged food 
products for human consumption (NGO 34039).  If there are no relevant national regulations, the 
Codex Alimentarius and other intern ational regulations apply.  Producers and importers of processed 
foods are responsible for ensuring that the labelling is  correct.  Pursuant to Article 135 of the Health 
Code (Decree No. 90-97) of 2 October 1997, the c ontent and composition of all food products, as well 
                                                     
 
47 Online information from COGU ANOR.  Viewed at:  http://www.coguanor.org/index.php?ID= 
4613&PageNumber=3&action=&str=&ord=strTitle&ord AD=DESC&booleanType=OR& search4=all&searchY
ear1=&searchMonth1=&searchYear2=&searchMonth2=. 
48 WTO documents in the series G/TBT/ N/GTM, ranging from G/TBT/N/GTM/3 of 
26 September 2002 up to G/TBT/N/GTM/61, A1 of 28 April 2008. WT/TPR/S/210 Trade Policy Review 
Page 46 
 
 
as special health indications, must appear on the labe ls in Spanish.  According to Article 36 of the 
Food Safety Regulations (Government Decision No . 969-99), however, unprocessed natural foods, 
raw materials and food additives are ex empt from the labelling requirement. 
(ix) Sanitary and phytosanitary measures 
90. The Health Code (Decree No. 90-97) and th e Plant and Animal Health Law (Decree 
No. 36-1998) of 6 May 1998 make up Guatemala's main legislation on sanitary and phytosanitary 
measures.49 
91. The Central American Regulations on Sanitary and Phytosanitary Measures and Procedures 
of 17 September 1999 apply to imports originating in other CACM countries.  They apply to all 
imports and are based on the international regula tions.  According to the authorities, domestic 
legislation is consistent with the Agreement on the Application of Sanitary and Phytosanitary 
Measures.  As provided in Article 4 of these Regul ations, sanitary and phytosanitary measures must 
be based on scientific principles and their purpose or  effect must not be to create unnecessary barriers 
to trade.  The same principle is laid down in Ch apter V of the FTA with Mexico as far as bilateral 
trade between Guatemala and Mexico is concerned.   Guatemala recognizes as equivalent the sanitary 
and phytosanitary measures of other countries.  Th e authorities have indicated that the measures must 
be based on scientific principles and risk analysis  in order to provide th e appropriate level of 
protection.  The equivalence of SPS measures is not automatic but requires a procedure that must be 
followed in order to reach the leve l of protection considered satisfactory for Guatemala even if the 
SPS measures are not the same. 
92. The MAGA and the MSPAS are responsible for complying with the obligations and for 
exercising rights under the WTO Agreement on the Application of Sanitary and Phytosanitary 
Measures.  The MSPAS is responsible for enforci ng sanitary technical regulations for processed food 
products, medicines and related pr oducts;  granting import and export authorizations;  certifying the 
quality and safety of products;  evaluating complia nce with the relevant regulations;  and conducting 
health inspections.  The MAGA is responsible for enforcing th e regulations on the safety of 
unprocessed natural foods;  compliance with the regu lations on animal and plant health;  inspection 
and certification of plants and rela ted products intended for export or  domestic consumption;  and for 
verifying whether imported products comply with  the sanitary and phytosanitary regulations.50 
93. An import permit issued by the MAGA is required for all imports of foods of animal or plant 
origin.  In order to be given such a permit, imports must be accompanied by the following:  a 
phytosanitary and/or sanitary certificate;  certificate of origin;  commercial invoice;  certificate that 
the product can be freely sold in the country of origin ;  bill of lading;  and (in the case of unprocessed 
natural products of animal origin) a microbiological certificate.  The MAGA's Standards and Regulations Unit verifies that all these requirement s are met.  For processed products, permits from 
both the MSPAS and the MAGA are required. 
94. Guatemala has notified the WTO that its enquiry point for the Agreement on the Application 
of Sanitary and Phytosanitary Measures is the MAGA .  The latter's Standards and Regulations Unit is 
                                                     
 
49 Other important legal texts in this respect are:  Ministerial Decision No. 617-2004 establishing the 
regulations applicable to the import of plants, products and by-products of plant origin;  Ministerial Decision 
No. 1.128-2001, on the recognition of testing procedures;  Government Decision No. 969-99, establishing the 
food safety regulations;  and Decree No. 6-55, of 7 May 1955, ratifying the International Plant Protection 
Convention. 
50 Online information from the MAGA.  Viewed at:  http://portal.maga.gob.gt/portal/page/portal/uc_ 
unr/SANIDAD%20ANIMAL/Insumos1. Guatemala WT/TPR/S/210 
 Page 47 
 
 
responsible for transmitting all notifications to the sectors concerned by the sanitary and phytosanitary 
measures adopted by WTO Members.  Notifications transmitted by other WTO Members are circulated to all the organized groups concerned for information. 
95. Guatemala is a member of the Codex Alimenta rius Commission;  its contact point for this 
body is also the MAGA.  Guatemala's representativ e at the World Organisation for Animal Health 
(OIE) is the head of the animal health departme nt, in the MAGA's Standards and Regulations Unit.  
Guatemala ratified the International Plant Protection Convention (IPPC) in 1955;  its contact point is 
the head of the MAGA's phytosanitary department. 
96. Pursuant to Ministerial Decision No. 617- 2004 and Government Decision No. 745-99, 
importers of plants, seeds and rela ted products must apply for a phytosanitary import permit issued by 
the MAGA's Standards and Regulations Unit.  The application must be accompanied by the following 
documents, inter alia :  a phytosanitary certificate issued by the competent national authority in the 
country of origin;  a quarantine certificate issued in the country of origin;  a certificate of origin;  a 
copy of the invoice;  and the results of the testing procedures, if required by the Unit.  If plants or seeds originate in areas that may be subject to plan t pests or diseases or if the imported products may 
carry exotic diseases, the Unit may require a risk analysis, which must comply with Guatemalan 
regulations. 
97. Government Decision No. 969-99 on food safety cont ains special standards applicable to food 
imports.  Pursuant to this Decision, products which do not meet these standards are rejected or, if they 
constitute a threat to public health, they are destroye d at the cost of the importer;  their rejection is 
notified to the competent authorities in the country of origin through the importer.  Pursuant to 
Article 66, the MSPAS, the competent authority for authorizing the import of processed foods and raw materials, requires a valid registration certificate and, if necessary, a sanitary or phytosanitary permit issued by the MAGA's Standards and Regulati ons Unit, showing that the imported products do 
not constitute a threat to the health of animal s or plants or hydrobiological resources.  The 
MAGA's decision must be based on scientific evidence.  Government Decision No. 249-2002 
contains the Regulations on the Authorization and Sanitary Control of Facilities for Preparing Food 
and Non-Alcoholic Beverages in Ma rkets, Fairs and in Public Areas.
51 
98. Ministerial Decision No. 1.128-2001 lays down the rules for MAGA's recognition of testing 
procedures.  The laboratories must meet recognized scientific standards and must be in a position to 
provide services on a permanent basis.  The Deci sion does not contain any conditions preventing 
MAGA's recognition of the results of foreign laborat ories and, in practice, the Guatemalan authorities 
recognize the testing carried out and the certificates issued in other countries. 
99. The Sanitary Reference Register, kept by th e MSPAS, requires that, before a food product 
with a trade name can be marketed, it must have an  authorization from the Ministry of Health as well 
as a sanitary reference registration or sanitary cer tification from the Ministry.  Any processed product 
covered by a trade name must have a sanitary regist ration, producers, distributors, etc.  The Sanitary 
Reference Register guarantees the food's safety and qu ality and is the basic model for regular checks 
on products on the market.  The time taken to issu e the user with a Sanitary Reference Register 
number and the corresponding certification depends on the product's risk:  30 days for products 
deemed to be high risk ("A") and not more than three days for low-risk products ("B").  The requirements for the Sanitary Reference Register ar e also based on risk criteria.  The cost of the 
sanitary registration procedure is Q 1,650 per produ ct (US$211).  Sanitary registration remains valid 
for five years.  Unprocessed products, raw material s and food additives are exempt from registration. 
                                                     
 
51 Online information from the MSPAS.  View ed at:  http://www.mspas.gob.gt/DGRVCS/DRCA/ 
documentos/REGULACIONES/AG249_2002.pdf. WT/TPR/S/210 Trade Policy Review 
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100. Registration in other Central American countri es, with the exception of Costa Rica, is 
recognized.  Packaged foods entering Guatemala may al so be registered in the Products Register at 
the request of the interested party.  The Departamento de Regulación y Control de Alimentos  – DRCA 
(Food Regulation and Control Department) under the MSPAS Directorate-General of Health 
Regulation, Surveillance and Control is responsible fo r this register.  It issues a sanitary registration 
number after the product has undergone laboratory test s.  The registration number is valid for five 
years and takes six weeks to obtain in the case of pr oducts deemed to be of hi gh risk such as bovine or 
poultry meat.  Products deemed to be without any risk take approximately 48 hours to register. 
101. The Plant and Animal Health Law (Decree No. 36-98) provides that sanitary and 
phytosanitary (SPS) measures are drawn up on the basis of an assessment of the real risks involved.  
The implementing regulations for this Law, Artic les 15 and 25 of Government Decision No. 745-99, 
give effect to this provision.  Article 15 provid es that, where it is sought to import plants, animals, 
products or by-products or inputs for agricultural or animal use from an area or country in which there 
are quarantine diseases or there is a reasonable doubt concerning their plant or animal health status, 
the product is inspected in the country of origin or source, the cost being covered by the interested 
party, and if necessary a risk analysis of the pest or disease is carried out, paid by the interested party.  
Nevertheless, if the import or export of a product is  in the national interest, the MAGA bears the cost 
of the risk analysis.  Article 25 gives the MAGA's  Standards and Regulations Unit the authority to 
determine requirements, restrictions and prohibitio ns on the total or partial import covered by the 
application, on the basis of an analysis of th e risk of pests or diseases and scientific evidence. 
102. Decree No. 36-98 allows those seeking to import goods to conduct and present their own risk 
analysis, which is examined by the Standards and Regulations Unit and then endorsed or rejected by the technical committees on risk analysis, pursuan t to Articles 29 and 30 of the Plant and Animal 
Health Law.  According to the authorities, su ch cases do occur but are rare.  The Standards and 
Regulations Unit may also initiate a risk analysis procedure when importers seek to market a new 
product and/or the animal or plant health situati on in the exporting country has changed, subject to 
payment of a fee laid down in Ministerial Decision No. 137-2007. 
103. The authorities have indicated that all the measures adopted by the Unit since 1999, as 
required by the implementing regulations for the Plan t and Animal Health Law, have been based on a 
risk analysis of pests and diseases.  Between 1999 and May 2008, 25 plant health risk analyses and 
five animal health risk analyses were carried out. 
104. The Plant and Animal Health Law and its im plementing regulations provide that goods are 
inspected at the point where they enter Guatemal a.  There are inspection manuals for border posts, 
ports, entry points by land or air, which set out in detail the inspection criteria and, where necessary, 
the taking of samples to confirm pests and di seases by means of laboratory diagnoses and analyses. 
105. Declarations that a country is free of a pest or disease or that it is not very prevalent must 
have legal, technical and scientific backing fro m the competent authority in the country which 
declares that the area is free.  Accordingly, the interested country mu st request the MAGA for 
recognition of the said area, and for this purpose th e MAGA carries out an analysis and review of the 
documents relating to all the monitoring and inspecti on undertaken for the purpose of the declaration.  
A risk analysis may also be undertaken to evaluate  the measures to be applied to the product and/or 
goods coming from those areas.  This is confirmed by  a visit on the spot to verify the information 
provided in the corresponding documentation.  Nevert heless, if international guidelines on declaring 
areas free of a disease or with low prevalence are met, the MAGA will recognize them as such. Guatemala WT/TPR/S/210 
 Page 49 
 
 
106. Guatemala does not at present ban the import of genetically modified products.  It has set up a 
genetically modified organisms biology group (GOB) to  deal with this issue, but by May 2008 it had 
not yet started to operate.  The GOB's regular work  will involve preparing new technical regulations 
and standards for the import of genetically m odified products, taking into account commercial and 
environmental aspects.  Guatemala has legislati on on testing and producing genetically modified 
seeds.  This is contained in Ministerial Decisi on No. 386-2006, which lays down requirements on the 
import, transport and handling of live modified organisms (LVOs) for agricultural use within Guatemala, the establishment of field trials and production for export.  LVOs must also meet the requirements laid down in Decree No. 68-86 (L aw on the Protection and Improvement of the 
Environment).  Under Decree No. 44-200, Guatemala ratified the Cartagena Protocol on Biosafety to 
the Convention on Biological Diversity, whic h governs the cross-border movement of LVOs. 
107. Before being put up for adoption and except in emergency circumstances, draft SPS measures 
must be notified to the WTO by the MAGA so that WTO Members may present their observations and comments within a period of 60 days.  Duri ng the period under review, Guatemala adopted 
38 phytosanitary measures and four sanitary measures (T able III.8).  Over the same period, Guatemala 
notified the WTO of 34 sanitary and phytosanitary measures.
52  These included Guatemala's 
notification to the WTO of three emergency measures concerning the import of bovine meat and ornamental plants affected by a certain insect.
53  The quality standards laid down for the control and 
certification of foods are based on those establishe d by COGUANOR.  In the absence of any specific 
domestic regulations, those laid down in the Code x Alimentarius and in other internationally 
recognized regulations apply.  The inventory or regi ster of SPS measures and the legislation in effect 
can be viewed on the Internet site www.maga.gob.gt , through the computerized system of import 
permits and animal health authorizations. 
108. At the Central American level, work is goi ng on to harmonize registration and sanitary and 
phytosanitary control procedures and, as a result,  some procedures have changed (Table III.9).  
Guatemala has concluded two bilate ral agreements on sanitary and phytosanitary measures, one with 
the United States and the other with Central Amer ican countries.  The ag reement with the United 
States is governed by Ministerial Decision No. 34 0-2006 (Provisions on recognizing the equivalence 
of United States food safety measures for inspection procedures for unprocessed products of bovine, pig and poultry meat).  The agreement with Cent ral America is governed by Resolution COMIECO 
No. 80-2001 (Recognition of sanitary registration of pr epared foods produced in the Central American 
region). 
109. In 2006 and 2007, Guatemala replied to the ques tions posed by Mexico concerning its import 
and licensing system for eggs.
54 
Table III.8 
Sanitary and phytosanitary measures adopted, 2002-2008 
Instrument  Purpose or scope of the measure  
Min. Decision 899-2002 Regulations on the c ontrol of lethal yellowing of coconut palms in the department of Izabal 
Gov. Decision 411-2002 Regulations on abattoir s for bovine animals, swine and poultry 
Min. Decision 10-16-2002 Quarantine measures regulating the import of produc ts of plant origin from countries where the 
pepper fruit fly is found 
COMIECO Decision 599-2002 Technical re gulations on fortified wheat flour 
Table III.8 (cont'd) 
                                                      
52 WTO documents G/SPS/N/GTM/10-43 of 28 August 2003 to 17 January 2008. 
53 WTO documents G/SPS/N/GTM/21 of 13 February  2004, G/SPS/N/GTM/27 of  3 February 2005 and 
G/SPS/N/GTM/42 of 18 May 2006. 
54 WTO documents G/LIC/Q/GTM/1 of 16 June 2006 and G/LIC/Q/GTM/3 of 12 July 2007. WT/TPR/S/210 Trade Policy Review 
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Instrument  Purpose or scope of the measure  
Gov. Decision 72-2003 Granting or renewal of sanitary permits for ope rating facilities, transpor t, import and export of 
unprocessed foods 
Min. Decision 1166-2003 Diagnostic services for avian diseases 
Min. Decision 2055-2004 Certification of packaging for w ood in the rough in order to control quarantine pests 
Min. Decision 693-2004 Preventing the en try of bovine spongiform encephalitis 
Min. Decision 625-2004 Prevention, eradica tion and control of Newcastle disease 
Min. Decision 617-2004 Provisions on the import, export, movement or tran sfer of plants and products or by-products of 
plant origin 
Min. Decision 002-2005 Regulating the import and transit of crops and ornamental plants hosting the insect thrips palmy 
karni  
Min. Decision 131-2005 Register of persons seeking to operate poultry production units 
Min. Decision 1811-2004 Sanitary regulations for the authorization and control of plants synthesizing, manufacturing, 
formulating and/or packaging agricultural pesticides 
Gov. Decision 343-2005 Sanitary regula tions on the operation of facilities pr ocessing hydrobiological products 
Min. Decision 427-2005 Sanitary permits for the operation of milking parl ours, collection centres and modes of transport 
for raw milk 
Min. Decision 726-2005 Preparation, distribution, use, import and marke ting of meat- and bone-meal or mixtures thereof, 
of ruminant origin, to be used for ruminant feeding 
Min. Decision 162-2006 Preventing the en try of bovine spongiform encephalitis 
Min. Decision 340-2006 Recognition of United States food safety meas ures for inspection schemes for unprocessed 
products of bovine, pig and poultry meat 
Min. Decision 355-2006 Sanitary permits for the operation of produc tion units, processing facilities, storage and 
collection of honey 
Min. Decision 312-2006 Prohibiting the entry of  shipments containing quarantine diseases 
Min. Decision 495-2006 Reports on the presence of some diseases affecting animals  
Min. Decision 821-2007 Prohibiting th e registration, use and marketing of clembuterol for livestock 
Min. Decision 813-2007 List of quarantine diseases for the import of grain and flour from North America  
Min. Decision 105-2007 Prohibiting the registration, use and marke ting of chloranphenicol, nitrofuranes and 
nitroimidazole in shrimp farming 
Min. Decision Monitoring to detect histamines in the flesh of tuna and sea bream in processing facilities 
intended for the European Union market 
Min. Decision Monitoring to detect substances and re sidues harmful to human health in farmed shrimps 
Min. Decision Monitoring to detect contaminants harmful to human health in aquatic ecosystems for shrimp 
farming 
Min. Decision 191-2007 Regulations and procedures for fruit hosting th e Mediterranean fruit fly and monitoring the 
marketing of fruit 
Min. Decision 327-2007 Handling of fi sh products on board ship in order to maintain safe conditions 
Min. Decision 596-2007 Manual of procedures for in specting the safety of feed at shrimp farms 
Min. Decision 649-2007 
Min. Decision 665-2007 Hygiene standards for the production, processing and transport of hydrobiological products and 
foods 
Min. Decision 653-2007 Sanitary hygiene provisions on fish products on fishing vessels and freezer ships 
Min. Decision 7-2008 Restriction on pesticides for agricu ltural use containing the active ingredient metemidophos 
Min. Decision 21-2008 Phytosanitary measures for the prevention and control of whitefly pests 
Sanitary measures  
Gov. Decision 127-2002 Regulations on advertising and consuming alcoholic beverages,  wine, beer and fermented 
beverages 
Decree No. 49-2003 Children's programme 
Gov. Decision 715-2003 Regula tions on fortifying salt with iodine  and salt with iodine and fluor 
Decree No. 32-2005 Law on the national food safety and nutritional regime 
Source : Information provided by the authorities. Guatemala WT/TPR/S/210 
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Table III.9 
Central American regulations on sani tary and phytosani tary measures 
Instrument/date of entry into force Purpose or scope of the measure 
Central American regulations on  sanitary and phyto sanitary (SPS) measures and procedures  
COMIECO Resolution 87-2002 (amending 
COMIECO Resolution 37-99), 22.09.02 Regulating SPS measures that may directly or indirectly affect trade between States 
Party in order to ensure that they do not constitute unnecessary barriers to trade and 
implementing the legal provisions for th e gradual and voluntary harmonization of 
SPS measures and procedures in intraregi onal trade and trade with third parties 
Agreements on sanitary and phytosanitary measures at the Central American level  
COMIECO Resolution 117-2004, 27.07.04 Exemption from import author ization and phytosanitary certificates for the export of 
certain products of animal or plant origin;  procedures regulating trade in animals and 
products of animal origin in Central American countries 
COMIECO Resolution 118-2004, 27.07.04 Agreem ents on the harmonization and recognition of registration of agricultural inputs 
in Central America 
COMIECO Resolution 119-2004, 27.07.04 Agreements on the harm onization of registration of seeds in Central America 
COMIECO Resolution 120-2004, 27.07.04 Mutual  recognition of the sanitary regist ration of food produc ts and processed 
beverages prepared in Guatemala, El Salvador, Honduras and Nicaragua 
COMIECO Resolution 121-2004, 28.08.04 Amendments to mutual rec ognition of the sanitary registration of food products and 
processed beverages prepared in Guatemal a, El Salvador, Honduras and Nicaragua 
COMIECO Resolution 124-2004, 18.11.04 Mutual recognition of the sanitary registrati on of cosmetics prepared in Central 
America 
COMIECO Resolution 125-2004, 18.11.04 Mutual r ecognition of the sanitary registration of  hygiene products prepared in Central 
American countries 
COMIECO Resolution 143-2005, 26.03.06 Ce ntral American technical regulations on the labelling of pharmaceuticals 
COMIECO Resolution 148-2005, 30.05. 06 Central American technical regulations on stability studies on medicines for human use 
COMIECO Resolution 166-2006, 27.08.06 Amendments to the Cent ral American technical regulations on the labelling of 
pharmaceuticals 
COMIECO Resolution 175-2006, 04.11.06 Amendment to Resolution 117-2004 
COMIECO Resolution 176-2006, 05.04.07 Requirements for the import of  processed foods for the purposes of display and tasting 
and other regulations on foodstuffs for Central American countries 
COMIECO Resolution 201-2007, 27.01.08 Regulations on the fortif ication of wheat flour in Central American countries 
COMIECO Resolution 215-2007, 11.06.08 Regulations  on the marketing of oils and fats pr epared in Central American countries 
COMIECO Resolution 216-2007, 11.06.08 Amendment to the procedure fo r registration and sanitary lis ting of foodstuffs processed 
in Central American countries 
Source : Information provided by the authorities. 
110. The authorities have indicated that their r esources and capacity do not allow them to 
undertake all the activities required in relation to sanitary and phytosanitary measures.  They have 
also indicated that they consider it to be a priority  to build institutional capacity in this respect, at both 
national and regional levels.  In th is regard, Guatemala has received technical assistance for training 
human resources in relation to sanitary and phytosan itary measures.  Nevertheless, in 2006 Guatemala 
stated that there was a need to build up the capacity  of the professional staff in this area and to train 
them in the new identification techniques in conne ction with laboratories, biotechnology and other 
cutting-edge issues.55  The authorities consider that, althoug h institutional strengthening is necessary, 
there have been substantial improvements in st reamlining import and export formalities and that 
progress continues to be made in reinforcing insp ection, monitoring, control of foodstuffs and 
beverages.  The authorities have also stated that one of the goals achieved since the previous Review 
of Guatemala has been the reduction in the time taken for formalities authorizing the import of foodstuffs as a result of the opening of the MSPAS sanitary authorization centre.
56  The authorities 
hope that in future formalities can be completed el ectronically in order to streamline the procedures 
still further. 
                                                      
55 WTO document G/SPS/GEN/682 of 5 April 2006. 
56 The centre's web site is:  www.mspas.gob.gt/DGRVCS. WT/TPR/S/210 Trade Policy Review 
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(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures, documentation and registration 
111. A Declaración para el Registro y Control de Exportaciones  – DEPREX (Declaration for the 
registration and control of exports),  must be obtained for all exports, with the exception of coffee, for 
the purposes of registration, and a Declaración Única Aduanera  – DUA (Single customs declaration) 
for goods to be exported outside Central America.   The DEPREX was introduced in April 2001 by 
Government Decision No. 142-20 01 and replaced the (foreign exchange) licences for exports 
previously required.  According to the World Bank,  up to 11 documents are needed in order to export 
goods from Guatemala.57  The authorities declare that the estim ated time currently taken to export 
goods as far as the formalities are concerned ranges from one to five  days depending on the product. 
112. For exports to other CACM count ries, exporters must submit the Formulario Aduanero Único 
Centroamericano  – FAUCA (Central American single customs form), which may be obtained from 
the Ventanilla Única para Exportaciones  – VUPE (single window for exports).  There are no 
differences between the forms depending on the produc t in question.  According to the authorities, 
they are issued in just a few minutes as this is done using the Sistema Electrónico de Autorización de 
Exportaciones  – SEADEX (electronic system for export authorization) so the exporter can make an 
export application using the FAUCA, which is sent electronically to the SAT and in the case of El Salvador and Honduras also to the import custom s.  Exports are cleared on the same day on which 
they arrive at the customs post.  With the en try into force of DR-CAFTA, customs cooperation 
mechanisms between the parties ca me into effect and are currently being implemented;  goods going 
to the United States undergo physical inspection. 
113. Guatemala has had the VUPE since 1986.  It is a facility that allows parties involved in trade 
and transport to comply with all the regulatory requirements on import, export and transit, submitting 
standardized information and documents at a single point of entry.  According to an UNCTAD study, 
the initiative led to a reduction in the time take n to process and issue an export licence from 10-12 
days to 6-8 days.
58  A more sophisticated version of the single window was introduced in 2000 and in 
2008, with the new system covering all export transactions except those involving coffee.  Under this 
scheme, the DEPREX can be obtained in just a fe w minutes.  The authorities have indicated that 
currently the majority of document s required for export can be obtained electronically.  This is the 
case for the forestry licence from the Instituto Nacional de Bosques  – INAB (National Forestry 
Institute) (see below) and the phytosanitary and animal health export certificates issued by the 
MAGA.  The VUPE is linked to the customs in El  Salvador and Honduras so declarations can be 
transmitted electronically and duty paid before clearance. 
114. There are special requirements governing the expor t of certain types of product.  To export 
products for human consumption, for example, the following are required:  compliance with all the requirements on incorporating and legalizing firms;  registration with the VUPE and an exporter's 
code number issued by the SEADEX;  completion of export formalities at the VUPE, including the 
DEPREX;  three examples of the planned label must be submitted to the customs with the 
registration;  the certificate of registration for sale on the market issued by the department of registration for the control of foodstuffs at the MSPAS must be submitted;  and a photocopy of the 
                                                     
 
57 These documents are:  the bill of lading, certificat e of origin, commercial invoice, consular invoice, 
customs export declaration,  export licence, foreign exchange authoriz ation, inspection report, packing list, 
health certificate/certificate of  compliance with technical regulations, and terminal handling receipts.  It should 
be emphasized that some of these documents are not required by the SAT, but by other entities and only for 
certain types of export.  (World Bank 2007a). 
58 UNCTAD (2005b). Guatemala WT/TPR/S/210 
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certificate of origin also has to  be provided.  In order to export medicines, chemicals or 
pharmaceuticals for human consumption, the analysis carried out by the unit for the control of food 
and medicines in the MSPAS must be submitted;  samples and documentation on the product must be 
supplied;  a registration form for pharmaceuticals, a form showing the quantity of each ingredient in 
the product, and a registration form for pharmaceutic als must all be completed.  For personal hygiene 
products and cosmetics, the analysis undertaken by the unit for the control of foodstuffs and 
medicines and samples and documentation must be provided. 
115. Exports of coffee, forestry products, sugar, te xtiles and protected species are also subject to 
special criteria.  Exports of coffee must be a ccompanied by a special document (shipping permit) 
issued by the Asociación Nacional del Café  – Anacafé (National Coffee Association).  This document 
is only issued if the company concer ned, the origin of the coffee and its roasting are all supervised by 
Anacafé.  Exporters of forestry products must be registered with the INAB.  All timber exports must be accompanied by a document (permit) certifying that they have been legally obtained.  The 
Asociación de Azucareros de Guatemala  – ASAZGUA (Guatemalan Sugar Producers' Association) 
registers and controls exports of sugar and also a llocates export quotas.  Exporters of products from 
protected areas or of protected species must be registered with CONAP and obtain a special permit for 
each export.  The authorities have indicated that th is procedure is being integrated into the SEADEX 
and it is hoped that it will soon be possible to obta in CITES certificates electronically.  Pursuant to the 
Mining Law, exports of minerals not originati ng in an exploitation in possession of an operating 
licence must be accompanied by a special export authorization.  The authorities have indicated that 
progress has been made on interlinking the VUPE w ith the aforementioned bodies.  They have also 
indicated that it is planned to complete the interli nkage within a period of not more than four years 
(by 2012) so that exporters will no longer have to  approach each entity individually in order to 
complete formalities but will only have to complete  a single electronic procedure in order to obtain 
export authorization. 
(ii) Export taxes and duties 
116. The only export taxes imposed by Guatemala c oncern the coffee sector.  Coffee growers must 
pay 1 per cent of the f.o.b. export value of coffee, of which Q 0.10/100 kg. go to the municipal authorities and the rest to Anacafé (Decree No. 111- 85).  The authorities have indicated that this 
payment is not considered to be a normal tax because  it is not deducted by the State.  The authorities 
have also indicated that there is no inform ation on the income generated by this tax. 
(iii) Export prohibitions and restrictions and licensing regimes 
117. Export prohibitions are mainly imposed for reasons of national security, protection of 
Guatemala's heritage or for environmental reasons. 
118. Guatemala is party to a number of internationa l environmental agreements.  It has been a 
party to the Convention on International Trade in Endangered Species of Wild Flora and Fauna since 
1980 and, as such, has undertaken to impose export r estrictions on specific products.  The authority 
responsible for administering this agreement in Gu atemala is the CONAP Executive Secretariat.  The 
Basel Convention on the Control of Transboundary  Movements of Hazardous Wastes and their 
Disposal came into effect in Guatemala in 1995;  the national contact point for this agreement is the 
Ministry of the Environment and Natural Resour ces.  In 1989, Guatemala ratified the Montreal 
Protocol on Substances that Deplete the Ozone La yer and in 2002 ratified the London, Copenhagen, 
Montreal and Beijing Amendments to the agreement. WT/TPR/S/210 Trade Policy Review 
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119. Under the Forestry Law of 2 December 1996 (Decree No. 101-96), export of logs of more 
than 11 cm in diameter is banned, unless they come from plantations or nurseries registered with the INAB, in which case they require an export licence (Chapter IV(2)).  The authorities have indicated 
that the INAB delegate's signature granting the ex port licence is issued electronically through the 
SEADEX system for over 60 per cent of forestry exports.  The ban does not apply to furniture and 
processed products made from wood.  The Law ag ainst the Traffic in Narcotic Drugs (Decree 
No. 48-92) of 23 September 1992 bans the export of na rcotics.  Article 60 of the Constitution bans the 
export of archaeological, historical or artistic goods that are part of Guatemala's national heritage.  
Guatemala also restricts exports in  order to comply with United Nations Security Council resolutions 
establishing embargoes. 
(iv) Subsidies and other export concessions 
120. In 2001, pursuant to Article 27.4 of the Ag reement on Subsidies and Countervailing Measures 
(SCM), Guatemala asked to be given the tran sition period for phasing out export subsidies in 
conformity with the procedure laid down in document G/SCM/39 in the case of three subsidy 
programmes:  (1) special customs regimes (maquila);  (2) free zones;  and (3) commercial and 
industrial firms operating in the Free Trade and Industrial Zone (ZOLIC).
59  In all three cases, the 
programmes allow exemption from customs duties and other import taxes, including VAT, on the 
import of machinery, equipment, spare parts, components and accessories needed for production in 
the firms coming under each of these programmes. 
121. Guatemala was one of the group of WTO Members which requested that the transition period 
for phasing out export subsidies notified be extended up to 2018.60  In 2007, Guatemala on its own 
submitted a request for an extension of the transition period.61  Consequently, Guatemala is one of the 
Members that benefits from the decision adopted by the General Council allowing continuation of 
procedures for extending the transition period for phasing out export subsidy programmes in developing countries.  The decision allows the Committee on Subsidies and Countervailing Measures 
to continue granting extensions of the transition pe riod up to the end of 2013, with a final period for 
progressive elimination over two years to be complete d at the latest by 31 December 2015.  In this 
connection, with regard to the aforementi oned programmes, the Committee on Subsidies and 
Countervailing Measures decided that the extension for phasing out export subsidies in the form of 
full or partial exemption from import duties a nd internal taxes under these programmes could 
continue until the end of 2008.
62  The authorities consider that, as a result of this decision by the 
General Council, Guatemala has an additional period to bring its domestic policies into line with its 
international commitments and thus not have to fa ce the consequences of what might be eventual 
non-compliance with the WTO Agreements.63 
122. In response to questions raised by other WTO Members concerning the eventual elimination 
of these programmes, Guatemala declared that it w ould take the relevant decision at the opportune 
moment based on its financial, economic and development needs.64  Guatemala states that the 
three programmes notified as containing elements of export subsidies have had a favourable impact in 
the country, being instrumental in promoting and diversifying the export sector with a view to 
                                                      
59 WTO document G/SCM/N/74 /GTM of 11 December 2001. 
60 WTO documents G/SCM/W/535 of 12 April 2006, submitted together with 13 other Members, and 
G/SCM/W/535/Add.1 of 20 July 2006. 
61 WTO document G/SCM/N/163/GTM of 20 September 2007. 
62 WTO documents G/SCM/72/Add.5, G/SCM/73/Add.5 and G/SCM/74/Add.5, all dated 
20 November 2007. 
63 Guatemalan Mission to the WTO (2008). 
64 WTO document G/SCM/Q4/GTM/5 of 11 October 2006. Guatemala WT/TPR/S/210 
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stepping up production of manufactured goods and th ereby reducing dependence on basic agricultural 
products.65  The authorities have also emphasized the effect that these programmes have had on job 
creation, particularly for women, as well as tr ansfer of technology and know-how and poverty 
reduction.  As regards the commitment to eliminat e the export subsidy elements of these programmes, 
the authorities have indicated that Gu atemala is making efforts to convert  its special regimes.  In this 
respect, the authorities have indicated that they reco gnize that the General Council's decision is clear 
as regards the commitments with which Guatemala must comply during the transition period ending on 31 December 2015.  They point out that Guatemala is therefore taking action to comply with this 
decision and expects to finalize an action plan before the end of 2010.  This action plan should contain 
details on how it is expected to comply with the requirement to phase out all elements of the 
programmes notified that are inconsistent with WT O provisions at the latest by the end of 2015. 
123. The vast majority of firms benefiting from the programmes notified, as can be seen from 
Table III.10, are in the yarns, fabrics and clothing sector.  Manufacturers of clothing accounted for 206 of the 450 firms that benefited in 2006 (45.8 pe r cent of the total), while producers of yarns, 
fabrics and other textile articles accounted for a further 37 firms (8.2 per cent). 
124. The Special Customs Regime Programme (maqu ila) consists of exemption from income tax 
(ISR) on income earned from exporting goods that have been processed or assembled in Guatemala 
and exported under special customs regimes.  It al so includes exemption from tariff duties and import 
taxes, including VAT, on the import of machiner y, equipment, spare parts, components and 
accessories needed for production.  The legal b asis for this programme is Legislative Decree 
No. 29-89 of 23 May 1989 or the Law on the Pr omotion and Development of Export and Maquila 
Activities.  The implementing regulations for th is Law can be found in Government Decision 
No. 533-89 of 2 August 1989. 
125. The beneficiaries of the programme are exporting firms approved by MINECO.  The Law on 
the Promotion and Development of Export and Ma quila Activities only applies to exports going to 
countries that do not belong to the CACM, irrespective of the site of production.  The programme 
applies for a non-renewable period of ten years.  The authorities have, however, indicated that 
decisions giving authorization to benefit from the programme are issued for a period ending on 31 December 2015, in conformity with Guatemal a's commitments under the WTO General Council 
Decision, which extended the period during which expor t subsidies could be granted (see above).  The 
authorities have notified the WTO that there is no st atistical information allowing the effects of the 
programme to be quantified. 
Table III.10 
Number of firms benefiting from expo rt incentive programmes by sector, 2006a 
Sector No. of firms 
Manufacture of clothing, excluding footwear 206 
Textile yarns, fabrics and finished goods 24 
Manufacture of plastic products n.e.s. 23 
Manufacturing industries n.e.s. 18 
Non-clothing textile articles 13 
Processed fish, crustaceans and other marine products 11 
Printing, publishing and related industries 9 
Manufacture of basic industrial chem icals, other than fertilizer 9 
Manufacture of soaps, cleaning agents, perfumes, cosmetics, etc. 8 
Manufacture of furniture and fixtures, other than of metal 8 
Table III.10 (cont'd) 
                                                      
65 Idem.  WT/TPR/S/210 Trade Policy Review 
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Sector No. of firms 
Sawmills, planing mills 6 
Manufacture of metal products n.e.s., excluding machinery and equipment 6 
Manufacture of fertilizer and pesticides 6 
Manufacture of pharmaceutical products and medicines 6 
Manufacture of containers and boxe s of paper and paperboard 6 
Manufacture of synthetic resins, plastics and fibres 6 
Manufacture of rubber products n.e.s. 6 
Manufacture of leather and leather subs titutes, excluding clothing/footwear 5 
Manufacture of wood and cork products n.e.s. 5 
Manufacture of chemical products n.e.s.. 5 
Basic non- ferrous metal industries 5 
Manufacture of structural metal products 5 
Other 59 
Total 455 
a Special customs regimes; free zones; and ZOLIC. 
Source : MINECO, as reported in WTO document  G/SCM/Q4/GTM/5 of 11 October 2006. 
Special customs regimes programme (maquila industry) 
126. Pursuant to the Law on the Promotion and De velopment of Export and Maquila Activities, 
imports by maquila firms are exempt from import duties and taxes, including VAT, provided that the 
final product is exported or re-e xported to countries that are not members of the CACM within 
one year as of the date of acceptance of the import document for the inputs.  In addition, it must be 
guaranteed that inputs imported under this regime ar e used exclusively for re-export.  Maquila firms 
are exempt from income tax for a period of 10 years.  Decree No. 3.804/2004, published on 11 January 2005, abolished the requirement that  goods intended for re-export under the temporary 
entry regime covered by the Law must have a mini mum identifiable foreign content of 51 per cent.  
Pursuant to Article 39 of the Law, maquila firms ma y sell their products on the Guatemalan market or 
in other CACM countries, but only if they pay the import duties and taxes corresponding to the imports they have bought, including income tax on th e earnings that would have been generated by 
export. 
127. Some traditional products are not covered by  the benefits granted under the Law on the 
Promotion and Development of E xport and Maquila Activities or the Free Zone Law.  These include, 
inter alia , the following:  jewellery, wrist watches, arms, ammunition, cameras, cardamom berries, 
coffee, crude petroleum, natural gas, fresh bananas,  natural rubber, sugar, uncarded cotton and various 
types of wood. 
Free zones 
128. Decree No. 65-89 (Free Zones Law) of 14 November 1989 and Decree No. 29-89 of 
23 May 1989 (Law on the Promotion and Developm ent of Export and Maquila Activities) are the 
two main legal instruments for export promotion in Guatemala.  The implementing regulations for the 
Free Zones Law are contained in Government Deci sion No. 242-90 of 5 March 1990.  The Free Zones 
Law applies to all exports of goods produced in th e special zones, which are geographically defined. 
129. The MINECO is responsible for authorizing zones.  The Supervisory Authority for Tax 
Administration has offices in the zones and is r esponsible for verifying the proper declaration of 
imports and re-exports.  The Law does not have any requirements on nationality or residence for Guatemala WT/TPR/S/210 
 Page 57 
 
 
applicants.  Only exports from firms that have the st atus of maquila industries are subject to a foreign 
content requirement (see below). 
130. The Free Zones Law gives firms situated in a zone the following benefits:  exemption from 
tariffs and VAT on imports;  exemption from ISR for a period of five years for trading companies and 
10 years for industrial and services companies and management firms;  exemption from VAT on sales 
between free zones or within them.  Exports fro m free zones to other CACM countries and their 
respective free-trade zones are exem pt from import tariffs and taxes.   Up to 50 per cent of the goods 
produced in free zones may be sold on the domestic  market or exported to other CACM countries 
subject to payment of the corresponding taxes. 
131. Even though they are not subject to import duty, products imported into free zones must 
comply with all the regulations usually applicable to imports.  Guatemala's labour and environmental 
legislation applies fully in these zones. 
132. The data in Table III.11 show that in 2007 13 free zones were operating.  Two of these 
accounted for around two thirds of the total number of users and over one half of industrial users.  In 
addition to these 13 zones already operating, by the end of 2007 the commenc ement of operations had 
been authorized in a further nine zones although they  had not yet started to operate.  One of the zones 
currently operating is managed by the State whereas the others are private.  The largest market for 
exports from Guatemala originating in free zones is  the United States.  Over 95 per cent of exports 
from these zones go to this market. 
Table III.11 
Authorized users and users established in free zones, 2007 
Zone Trading 
companies Industrial 
companies Services 
companies Total users 
Zofracro  58  5  2  65 
Zeta la Unión  42  14  5  61 
Sadinsa  9  4  1  14 
Centro Industrial para la Exportación  9  3  2  14 
Zofracsa  7  3  1  11 
Terminal, L.C.  6  0  1  7 
Cropa  3  1  1  5 
Incoinsa  2  2  1  5 
Buenos Aires  1  1  1  3 
Del Atlántico  2  0  0  2 
Zofratusa  1  1  0  2 
El Cacao  1  0  0  1 
Inversiones Nuevo Siglo INSSA  1  0  0  1 
Total  142  34  15  191 
Source : Information provided by the authorities. 
133. The percentage of exports benefiting from free zone and maquila industry programmes 
accounted for 39.0 per cent of total exports of  goods in 2007 (some US$2,700 million, see 
Table III.12).  Of these, around 88 per cent operate d under the maquila regime and the remainder 
under the free zone regime.  Although the amount of exports benefiting fro m the two regimes has 
continued to increase, their share of the total has fallen since 2004, when it reached a peak of 47.1 per 
cent of the total.  Exports from free zones and the ma quila industry increased by 43.1 per cent over the 
period 2002-2007, a much lower figure than expo rts from Guatemala's customs territory, which 
increased at twice this rate.  The authorities consid er that the increase in exports under the special 
regimes in effect in Guatemala is a result of the en try into force of DR-CAFTA inasmuch as it allows 
exports under these regimes.  Moreover, the rules of origin under DR-CAFTA are not only more WT/TPR/S/210 Trade Policy Review 
Page 58 
 
 
flexible than those provided under the Caribbean Basin Initiative (CBI) and the Generalized System 
of Preferences (GSP) but also give both expor ters and importers a degree of legal certainty. 
Table III.12 
Exports under the maquila and free zone regimes, 2002-2007 
(US$ million and per cent) 
 2002 2003 2004 2005 2006 2007 Percentage 
change 
2002-2007 
Total exports 4,162.05 4,459.43 5,036.50 5,380.82 6,025.16 6,925.75 66.4 
Maquila and free 
zone regimes 1,886.22 2,046.90 2,372.63 2,354.76 2,601.09 2,699.66 43.1 
Maquila 1,700.49 1,824.85 2,104.70 2,002.36 2,309.23 2,382.32 40.1 
Free zones 185.73 222.05 267.93 352.40 291.86 317.34 70.9 
Percentage of total 45.3 45.9 47.1 43.8 43.2 39.0 n.a. 
Customs territory 2,275.83 2,412.53 2,663.87 3,026.06 3,424.07 4,226.09 85.7 
Percentage of total 54.7 54.1 52.9 56.2 56.8 61.0 n.a. 
n.a. Not applicable. 
Source : Bank of Guatemala.  Viewed at:  http://www.bangua t.gob.gt/estaeco/. 
134. In 2004, the most recent year for which inform ation is available, free zones provided 22,000 
jobs.  Although trading firms account for the largest number of users, the biggest investors are 
industrial users.  The clothing sector accounts for approximately one third of Guatemala's exports 
from free zones and maquila zones.  Other important export items are silver ores, semi-processed natural rubber, paperboard boxes, ethyl alcohol, and processed or frozen tuna. 
Free Trade and Industrial Zone (ZOLIC) 
135. This programme is covered by Decree No. 22-73 of 21 March 1973 and its purpose is to 
promote economic development in the Department of Izabal, taking advantage of its geographical 
situation as Guatemala's only door onto the Atlant ic Ocean.  Benefits under this regime include 
exemption from income tax on income derived from ac tivities as an administrator or user in the Free 
Trade and Industrial Zone (ZOLIC) and exemption from tariffs and VAT on the import of machinery, equipment, spare parts, components and accessories n eeded for production.  The beneficiaries of these 
incentives are trading and/or industrial firms operati ng under this special regime.  The programme is 
for a period of 10 years.  There is no st atistical information on this programme. 
(v) Export financing, insurance and guarantees 
136. During the period under review, Guatemala did not  have any official programme on financial 
support, insurance or guarantees for exports.  Nevert heless, Guatemalan exporters are eligible for 
credit from the Central American Bank for Economic Integration (CABEI). 
137. The Programa de apoyo a la produ cción exportable Centroamericana  – PAPECA 
(Programme in Support of Central American Exporta ble Production) is a CABEI project in support of 
production with export potential in Ce ntral America.  Guatemala's privat e sector is eligible for this 
Programme.  Under it, short-term credit is grante d (multiple 30-day periods for up to 180 days) for 
pre- and post-shipment operations, im port of inputs, letters of credit and working capital.  The interest 
rate is the Libor 180 + 1.50 points. 
138. From its creation in 1961 up to 31 December 2006, the net amount of CABEI loans approved 
for Guatemala amounted to US$2,855.9 million an d the accumulated disbursement amounted to Guatemala WT/TPR/S/210 
 Page 59 
 
 
US$3,107.7 million (the difference being due to th e existence of some revolving credit).  In 2006, 
loans approved for Guatemalan users amounted to US$541 million or 24 per cent of the loans granted 
by the CABEI that year;  disbursement was US$600.6 million, corresponding to 36 per cent of disbursement in 2006;  40 per cent of this di sbursement was channelled through the Guatemalan 
financial system.
66 
139. Guatemalan exporters may also turn to the Central American Export Promotion Fund 
(FOEXCA), financed by the European Union and the CABEI, whose fixed interest rates are 
determined according to the international market.  This Fund finances an integrated programme of 
credit, training and technical assistance with th e aim of building the export capacity of Central 
American countries.  The loans are granted to comp anies that export non-traditional products in the 
manufacturing, agro-industry, agriculture, fishing and services sectors.  The authorities have indicated 
that they had no information on the financing gran ted under this programme for the period 2002-2007. 
(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Creation and taxation of companies 
140. Commercial corporations in Guatemala are governed by the Commercial Code (Decree 
No. 2-70 of the Congress of the Republic) of 28 Jan uary 1970.  The Code recognizes as commercial 
corporations companies that are set up in the form  of general partnerships , limited partnerships, 
partnerships limited by share capital, limited liability  companies and public limited companies.  In 
order to be registered as a local firm in Guatemala,  an application must be submitted by a minimum of 
two natural or legal persons (with  no restrictions as to nationality).  The company's articles of 
incorporation must be drawn up by a notary in the form of a deed and a legalized copy of this 
(First Declaration) must be registered in the Central Commercial Register within 30 days, with a notification of registration published in the Official Journal (Central American Official Journal).  The company may, however, commence its activities once it is provisionally registered.  Provisional 
registration takes approximately 48 hours (the  maximum period is 72 hours), whereas final 
registration is granted within a maximum of 30 working days.  There are no restrictions on the 
number or percentage of forei gn nationals who may belong to a company's board of directors. 
141. All Guatemalan and foreign companies wishing to operate temporarily or permanently in 
Guatemala, as well as their respective legal represen tatives, trading companies, individual traders and 
all modifications of such entities must be registered  in the Central Commercial Register.  Registration 
of an individual company in the Commercial Register requires minimum capital of Q 2,000 (around 
US$263) and completion of the formalities.  Once it  has been registered, the company is given a 
business licence, which attests to registration of the company in the Commercial Register. 
142. In 2007, the Government introduced the streamlined window in order, inter alia , to facilitate 
registration of companies in the Comme rcial Register, with the SAT and the Instituto Guatemalteco 
de Seguridad Social  – IGSS (Guatemalan Social Security In stitute).  Entrepreneurs who wish to 
register their company may do so at the streamlin ed window using the single form for registration of 
companies in the Guatemalan Commercial Register .  Registration may be completed electronically.
67 
143. The Commercial Code sets out the requirement s applicable to registration of a branch, 
subsidiary or agency of a foreign company in Guatemala and the rules governing its operation in the country.  Foreign investors wishing to initiate operati ons in Guatemala have two options:  either to set 
up a branch, subsidiary or agency of the parent company, or to become established as a Guatemalan 
                                                     
 
66 CABEI (2006). 
67 Online information from the Commercial Register .  Viewed at:  www.registromercantil.gob.gt. WT/TPR/S/210 Trade Policy Review 
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company.  The difference between the two options is  that, in the first case, the company has already 
been established in another country and, in order to  be registered in Guatemala, it must meet the 
requirements laid down in Articles 214, 215 and 216 of the Commercial Code on the establishment of 
companies incorporated abroad in Guatemala, if it is for an indefinite period, or Article 221 of the 
Code if it only wishes to operate on a temporary basis for a maximum of two years.  A Guatemalan 
company must meet the requirements laid down in Ar ticles 46 and 47 of the Code on Notary Services 
and those prescribed in the Commercial Code for the re gistration of corporations.  If the subsidiary of 
a foreign company operates as a public limited compan y in its country of origin, it can also become 
established as a public limited company in Guat emala.  In both cases, the companies must be 
registered with the IGSS as employers and as taxpayers in the Registro Tributario Unificado  – RTU 
(Unified Tax Register) at the SAT and obtain a code  from the Bank of Guatemala in order to carry out 
foreign exchange operations.  According to the Foreign Investment Law (Decree No. 9-98) and as 
explained in Chapter II, foreign investors are free to  repatriate any profits or earnings generated in 
Guatemala if they set up a branch, s ubsidiary or agency in Guatemala. 
144. The requirements for commencing operations as a branch or agency of a foreign company 
include registration in the Commercial Register.  A company that is legally established abroad may be 
registered in the Commercial Register for an indefin ite period in order to engage in activities or set up 
branches or agencies in Guatemala if it meets certa in requirements, including appointing a permanent 
agent in Guatemala, who may be a foreign national or a Guatemalan citizen, in order to carry out 
activities and represent the company.  It must also deposit initial capital with an authorized bank and 
assume liability for the activities carried out in Guatemala by posting a bond of not less than the 
equivalent in quetzales of US$50,000 in favour of thir d parties if the period is to be indefinite or in 
favour of the State of Guatemala if it is for less than two years, as dete rmined by the Commercial 
Register.  Operations may commence within a pe riod of one year as of the date of provisional 
registration in the Register.  Foreign companies may also request authorization from the Commercial 
Register to carry out operations temporarily in Guatemala for a period not exceeding two years, with 
requirements similar to those concerning definitive re gistration.  If a foreign company opens a branch 
or agency it becomes eligible for the be nefits under the Foreign Investment Law. 
145. If a foreign company becomes established as a Guatemalan company it has the same 
obligations and benefits as a local company and is  subject to the same re gistration requirements, 
without the need to post a bond in favour of third parties or to appoint an agent in Guatemala.  With 
some exceptions, however, such as hotels and the maquila  industry, it is not eligible for the incentives 
under the Foreign Investment Law.  All foreign co mpanies, irrespective of the form they have 
adopted, must publish a general statement of accounts for their operations in Guatemala.  It is not 
allowed to impose requirements such as mandatory transfer of technology or the creation of a 
specified number of jobs. 
146. The SAT requires that any trader or individual person must be registered in the RTU and the 
person is given a Número de Identificación Tributaria  – NIT (tax identification number).  The NIT is 
compulsory for any economic activity.  Registration must be completed within 30 working days following registration in the Commercial Register and prior to commencing activities.  Depending on 
the revenue generated by sales, firm s or persons may be registered  as small taxpayers or regular 
taxpayers.  If the company plans to generate earni ngs of up to Q 60,000 annually (around US$7,900), 
it may be registered as a "small taxpayer", in wh ich case, it may pay tax quarterly corresponding to 
5 per cent on the company's quarterly sales, and does not have to submit a sworn declaration of the corresponding income tax. 
147. Total income tax in Guatemala, as can be seen from Table III.13, is 31.5 per cent on profits.  
This is significantly lower than the average for all Latin American and Caribbean countries (56.6 per Guatemala WT/TPR/S/210 
 Page 61 
 
 
cent) or all OECD countries (46.2 per cent).  It is  the second lowest rate in Central America after 
El Salvador (33.8 per cent).68  A World Bank study ranked Guatemala 65th out of 178 countries with 
regard to the level of taxation.  Nevertheless,  the same study gave Guatemala a lower ranking as 
regards the ease of paying taxes.69  The World Bank also calculated that, in terms of tax to be paid by 
a medium-sized company in Guatemala, the amount was on average 37.5 per cent of its profits. 
Table III.13 
Principal company taxes 
Tax or mandatory contribution Tax rate (%) Tax base 
Extraordinary and temporary tax (IETAAP) 1.0 and 1.25  Turnover 
Corporate income tax 31.0 (5.0) Taxable profit (turnover) 
Social security contributions 12.7 Gross salaries 
Capital gains tax 31.0 Capital gains 
Property tax 0.9 Property value 
Tax on interest 10.0 Interest income 
Advertising tax 0.5 A dvertising expenses 
Source : World Bank, Paying Taxes in Guatemala .  Viewed at:  http://www. doingbusiness.org/ExploreTopics/ 
PayingTaxes/Details.aspx?economyid=81 
148. In 2007, the World Bank ranked Guatemala 114th out of a total of 178 economies as regards 
"ease of doing business", a compound estimate that takes into account several aspects of the regulations and business environment in a country .  The report recognized, however, that recent 
reforms had led to some improvements, for exampl e, as regards the procedures to be followed when 
starting up a business in Guatemala.  The 2006 report mentioned 15 procedures required, taking an 
average of 39 days;  two years later the number of procedures had fallen to 11 and the average time to 
26 days.
70 
(ii) Price controls and competition policy 
(a) Price controls 
149. There are no price controls in Guatemala;  the State plays no role in controlling or fixing 
prices for the goods and services marketed in the country. 
(b) Competition policy 
150. Guatemala does not have any general competiti on law as such.  Nevertheless, its Political 
Constitution contains a number of provisions refe rring to competition on the domestic market.  The 
Constitution prohibits monopolies and calls on the State to restrict the operatio ns of companies which 
absorb or are likely to absorb production in one or  more domestic industries to the prejudice of the 
domestic economy (Article 130) and to prevent the u tilization of excessive practices that lead to the 
concentration of goods or means of production to the detriment of the population as a whole 
(Article 119).  The Constitution also provides that  the State shall protect the market economy and 
prevent associations that tend to restrict the free play of market forces or prejudice consumers 
(Article 130).  In addition, some sectoral laws in clude provisions on competition policy.  For example, 
the new Banking Law regulates bank mergers, even  though the Law only determines procedures for 
their merger and some rules on controlling such institutions, but does not specifically refer to 
                                                      
68 Online information from the World Bank.  Viewed at:  http://www.doingbusiness.org 
/ExploreTopics/Paying Taxes/. 
69 World Bank (2007b). 
70 World Bank (2007a), p. 2. WT/TPR/S/210 Trade Policy Review 
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restrictions or abuse of a dominant position.  Th e Law on the Marketing of Hydrocarbons regulates 
some types of conduct, but does not prescr ibe any corrective measures or penalties. 
151. Moreover, Articles 360 to 367 of the Comme rcial Code reiterate the prohibition on 
monopolies and contain provisions to protect free co mpetition.  These provisions define various acts 
that constitute unfair and prohibited competition and give examples.  Both the party affected, as well 
as the respective professional association or the Office of the Attorney General, may initiate 
proceedings against unfair competition.  The authorities have indicated that, during the period under review, no complaint in this regard was investigated  by the Office of the Attorney General.  Legal 
proceedings are heard before the corresponding cour t.  MINECO’s Vice-Ministry for Investment and 
Competition is responsible for monitoring competition policy in Guatemala. 
152. During the previous Review of Guatemala's tr ade policy, it was indicated that the new 
Competition Law would place greater emphasis on ho w the market operated rather than on its 
structure and that it was in the process of being dr afted.  The authorities have indicated that this 
proposal was not approved by Congress and was blocke d by some parliamentarians opposed to it.  A 
new draft Competition Law was being discussed and examined in mid-2008.  The authorities have 
also indicated that, in August 2008, the draft was with the President's Office, which was examining it 
in detail.  According to the authorities, the ne w draft, which is based on the model legislation 
proposed by the OECD and UNCTAD, includes th e creation of a more independent entity to 
investigate matters relating to competition;  the draf t provides for investigation of both horizontal and 
vertical concentrations and empowers the competitio n authority to impose fines and order the splitting 
up of activities. 
153. Cartels of exporters, impor ters and producers are not prohibited under Guatemala's 
legislation, but neither do they exist in practice.  There are no marketing boards or similar institutions 
in the agricultural sector. 
154. A recent study by ECLAC examined the genera l situation of competition in Guatemala and 
noted, for example, that the sugar industry showed a high degree of vertical integration, as did the 
poultry industry, where integration extended from th e production and distribution of eggs to sale to 
the end consumer in fast-food restaurants.  Th e ECLAC study also mentioned an oligopoly in 
domestic production of alcoholic bevera ges and a monopoly in cement production.
71  These comments 
are in line with the conclusion of an UNCTAD study in 2005, which stated that there were anti-competitive practices in certain  sectors in Guatemala (for example, cement, sugar, canned goods 
and beans) and that it would therefore be of econom ic benefit to Guatemala to develop and enforce 
the relevant legislation.
72 
155. Lack of competition on the Guatemalan market has also been noted by the authorities, in 
particular, the MINECO, which, in a recent study, in dicated that given the relatively small size of the 
economy and the numerous regulations in effect, dom estic markets showed little sign of competition.  
The study also pointed out that, in those industr ies where prices are not fixed or suggested by 
wholesalers, they tended to be in line with an  implicit agreement which placed suppliers in a 
comfortable position but gave consumers few options and concluded that it could be stated that the 
most notable feature of the domestic market was the generalized presence of monopolies, oligopolies 
and cartels.73 
                                                      
71 Romero (2006). 
72 UNCTAD (2005a). 
73 Ministry of the Economy (2007a). Guatemala WT/TPR/S/210 
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(iii) Incentives 
156. As mentioned above (Section 3(iv)), the Free Zones Law and its implementing regulations 
(Decree No. 65-89 and Government Decision No. 242-90), the Law on the Promotion and Development of Export and Maquila Activities and its implementing regula tions (Decree No. 29-89 
and Government Decision No. 533-89), and the Fore ign Investment Law (Decree No. 9-98) contain 
regulations on exports and imports. 
157. In addition, Guatemala gives micro-, sma ll and medium-sized enterprises incentives for 
research and development.  Support for micro-, sm all and medium-sized enterprises is a key element 
of Guatemala's development strategy.  MINECO’s Vice-Ministry for the Development of Micro-, 
Small and Medium-Sized Enterprises at the MINECO is responsible for developing the strategies and 
coordinating the relevant policies.
74  According to the authorities, between January 2000 and March 
2008, this Office disbursed around Q 300 million fo r organizations undertak ing business development 
initiatives and projects.  The services offered genera lly consisted of capacity building and technical 
assistance in the areas of finance, production and marketing.  The government decision on promotion of micro-enterprises (Government Decision No. 253-94) established the National Council for the 
Promotion of Micro- and Small Enterprises as the entit y responsible for developing such enterprises.  
Government Decision No. 178-2001 amended G overnment Decision No. 253-94 and introduced 
certain changes concerning the responsibilities of the National Council.
75 
158. The Consejo Nacional de Ciencia y Tecnología  – CONCYT (National Science and 
Technology Council), established by the Law on the Promotion of National Scientific and 
Technological Development (Decree No. 63-91) of 18 July 1991, is the principal government 
institution in Guatemala for promoting and c oordinating research and financing research and 
development projects carried out through the Sistema Nacional de Ciencia y Tecnología  – SINCYT 
(National Science and Technology Scheme).76  CONCYT is composed of nine representatives of the 
government, private and academic sectors, and is  responsible for preparing, implementing and 
following up the Scientific and Technological Deve lopment Plan and its corresponding programme of 
work.  The Fondo Nacional de Ciencia y Tecnología  – FONACYT (National Science and Technology 
Fund), established by Decree No. 73-92, is the fina ncial mechanism that allows CONCYT to obtain 
the necessary funds for the effective guidance, coor dination and financing of national scientific and 
technological development.  The FONACYT's funds  come from the State's annual budget, loans and 
grants and from bilateral and multilateral cooperation programmes.   In 2006, total effective 
disbursement under the FONACYT amounted to Q 18.68 million (US$2.4 million).77 
159. In 2007, fiscal spending on trade and productio n was Q 6,781 million (US$892 million).  The 
largest amount went to the transport sector (Q 5,029 million, US$661 million), followed by the agricultural sector (Q 896 million, US$118 million), finance and insurance (Q 298 million, US$38 million), industry and trade (Q 163 million,  US$21 million), communications (Q 159 million, 
                                                     
 
74 Further information on Guatemala's enterprise development policy can be found at:  
http://www.mineco.gob.gt/microempresa/. 
75 The text of these Decisions can be viewed on MINECO's web site at:  http://www.mineco.gob.gt/ 
Presentacion/LeyesNormas.aspx. 
76 Online information from CONCYT.  Viewed at:  http://www.concyt.gob.gt/pag.hp?id 
=15&idioma=1. 
77 Secretaría Nacional de  Ciencia y Tecnología  – SENACYT (National Science and Technology 
Secretariat).  Statement of  accounts.  Fiscal year 2006.  Viewed  at:  http://www.concyt.gob.gt/uploads/ 
archivos/presentacion%20rendicion %20de% 20cuentas%202006.pdf. WT/TPR/S/210 Trade Policy Review 
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US$21 million), tourism (Q 75 million, US$10 milli on), energy (Q 59 million, US$7.8 million), 
mining (Q 29 million, US$3.8 million) and ot her sectors (Q 60 million, US$8 million).78 
(iv) State-owned enterprises and privatization 
160. In 2002, Guatemala notified the Working Party on State-Trading Enterprises that it did not 
have any State-trading enterprises within the mean ing of the Understanding on the Interpretation of 
Article XVII.79  According to the authorities, the same  situation as that in 2002 still applies to 
State-trading enterprises. 
161. In past decades, the State played an important role in the economy, but this changed when the 
economic reform and privatization process started in 1991.  Under the programmes to eliminate 
monopolies, in 1993 a strategy for the selective sale of government assets that were little used and not 
very profitable was implemented.  As indicated in the previous Review of Guatemala, most of the 
privatization took place during the 1990s.  The companies that were privatized included the Empresa 
Eléctrica de Guatemala  – EEGSA (Guatemalan Electricity Comp any) and the distribution companies 
of the Instituto Nacional de Electrificación  – INDE (National Electrification Institute), and 
Telecomunicaciones de Guatemala  – TELGUA (Guatemalan Telecommunications). 
162. During the period under review, privatization of the EEGSA was completed, concessions 
were granted for various port management compani es and the privatization of the airline Líneas 
Aéreas de Guatemala was also completed (see also Chapter IV(4) and 5(iv) and (v)).  Following the 
privatization programme, only a few companies remain State owned.  These include the Banco de 
Crédito Hipotecario Nacional  (National Mortgage Bank), one of the country's biggest, and the 
Industrial and Trade Free Zone Santo Tomás de Ca stilla, the two major ports (Puerto Quetzal and 
Puerto Santo Tomás de Castilla), as well as La Au rora International Airport in Guatemala City. 
(v) Government procurement 
163. Guatemala is not party to the WTO Plurilate ral Agreement on Government Procurement.  
According to the authorities, the question of gove rnment procurement is an item on Guatemala's 
international trade agenda, but no decision has yet been taken regarding participation in the 
Agreement. 
164. In 2007, the Central Government's current spending on goods and services amounted to 
Q 3,500 million (some US$460 million), or 2 pe r cent of the GDP, while capital expenditure 
amounted to Q 4,665 million.80  The procedure most frequently fo llowed is a public tender, which 
accounted for 58.2 per cent of contracts in 2007, followed by direct purchasing with 13.3 per cent, 
price quotation with 6.7 per cent and open contract s with 3.7 per cent.  Procedures which constituted 
an exception to the aforementioned methods accounted for 18 per cent of the total.  The authorities do 
not have any data on the percentage of contracts awarded to foreign suppliers. 
165. The Dirección Normativa de Contrataciones y Adquisiciones del Estado  – DNCAE 
(Department for Government Contracts and Procurem ent) at the Ministry of Finance is the body 
regulating government procurement.  For some ti me the Government has been making efforts to 
ensure the transparency of its procuremen t procedures by using methods such as the Sistema 
                                                      
78 Online information from the Ministry of Finance.  Viewed at:  http://transparencia.minfin.gob.gt/ 
transparencia/gastos. 
79 WTO document G/STR/N/8/GTM of 29 May 2002. 
80 Online information from the Ministry of Fina nce.  Viewed at:  http://www.minfin.gob.gt/ 
archivos/estadisticas/doc1.pdf. Guatemala WT/TPR/S/210 
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Integrado de Administración Financiera  – SIAF (Integrated Financ ial Management Scheme), 
updating the Government Procurement Law based on  the rules of the United Nations Commission on 
International Trade Law (UNCITRAL), and through the introduction of an electronic system for 
government procurement and contracts ( Sistema de Información de Contrataciones y Adquisiciones 
del Estado de Guatemala  (Government Contracting and Procurement Information System)) known as 
GUATECOMPRAS.81 
166. In Guatemala, government procurement is decentralized.  Each government body is 
responsible for its own planning and for procurem ent based on this planning and on the financial 
resources available.  Government procurement is regulated by the Law on Government Procurement 
(Decree No. 57-92) of 21 October 1992 and its impl ementing regulations, contained in Government 
Decision No. 1.056-92 and amendments thereto.  The Law and its implementing regulations apply to 
all State bodies, including decentralized and autonomous entities, municipal authorities and State-owned enterprises.  Neither the Law nor its  implementing regulations contain any provisions 
providing for different treatment for goods, services or public works provided by Guatemalan or foreign nationals.  There are no provisions either giving preferential treatment to suppliers from one 
country in comparison with another. 
167. There is no discrimination between Guatemalan or  foreign natural or legal persons as far as 
government procurement and government contracts are c oncerned.  Foreign nationa ls may take part in 
any bidding procedure provided that they meet the requirements laid down and that they act through a 
legally accredited representative in Guatemala. 
168. The implementing regulations for the Law on Government Procurement provide for a 
Register of Suppliers with rules governing registra tion and payment of VAT.  Neither the Law nor its 
implementing regulations contain any requirement re garding nationality or residence for the purposes 
of registration.  There is also a Register of Cont racts, whose legal basis is Articles 74 and 75 of the 
Law. 
169. According to the Law on Government Procuremen t, one of four different methods may be 
used for government procurement depending on the amount of the purchase or the contract and the 
entity concerned: 
 - A public call for tender for all contracts exceeding Q 900,000 (US$115,237).  This 
must be published twice in the Official Jour nal and twice in a national newspaper, as 
well as in GUATECOMPRAS. 
 
 - The price quotation method applies to contracts for amounts ranging from Q 30,000 
(some US$3,840) to Q 900,000.  At least three public quotations are required. 
  - Direct purchasing applies to contracts not exceeding Q 30,000. 
 
 - The open contract system allows govern ment bodies and offices to procure goods and 
supplies without a bidding or price quotation procedure directly from suppliers that 
have signed open contracts with the Minist ry of Finance after being approved and 
registered as suppliers and after a price comparison has been made;  this method 
requires publication of notification twice, firstly in GUATECOMPRAS and afterwards 
in the Central American Official Journal.  At least 40 calendar days must elapse 
between the first publication and the date set  for the submission and receipt of bids. 
                                                     
 
81 Viewed at:  www.guatecompras.gt. WT/TPR/S/210 Trade Policy Review 
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170. The time allowed for the submission of bids de pends on the procurement procedure;  in the 
case of a public invitation to tender, it is a minimum of 40 working days from the date of the latest publication of the invitation to tender.  For each c ontract awarded following a public call to tender or 
under the price quotation regime, a tender/bidding committee is set up, comprising five members for 
public invitations to tender and three under the pr ice quotation regime, who must preferably be 
government officials belonging to the procuring entity and are appointed by the higher administrative authority.  The committee is the only body  empowered to receive and approve bids. 
171. Article 44 of the Law provides for exceptions to the obligation to use an invitation to tender 
or a price quotation in certain cases related to the need to protect the borders, territorial integrity, 
states of emergency, goods or services for offices abroad, arms procurement, purchasing of property and the supply of specific professional services.  In other cases, there may be exceptions to the 
obligation on government entities to issue a public i nvitation to tender, but not to the obligation to 
obtain a price quotation;  this is the case for studi es, designs and technical supervision of works and 
services;  scientific, artistic or literary works; even ts related to election campaigns, etc.  Procurement 
by the Ministry of Defence is usually exempt from the obligation to issue an invitation to tender or 
obtain a price quotation. 
172. Pursuant to Article 5 of the Law on Govern ment Procurement, government entities may, 
exceptionally, import goods or services directly if they are not produced or put up for sale by representatives in Guatemala and if the price is not  higher than that determined in the quotation 
regime.  Guatemalan and forei gn bidders alike must pay VAT. 
173. During the period under review, a number of measures were adopted through domestic 
legislation and international agre ements to enhance the transparency of Guatemala's government 
procurement system.  One reform enacted in 2006 amended the Law and its implementing regulations 
and provided that entities must publish the informat ion needed to manage and register government 
contracts in the GUATECOMPRAS computerized system .  This contains notifi cations and invitations 
to tender, as well as all information concerning the procurement, sale and contracting of goods, 
supplies, works and services that must be acquired through tenders, price quotations or any other type 
of procurement.  It is provided that this info rmation shall be made pub lic through the web site 
www.guatecompras.gt
. 
174. Article 48 of the General Budgetary Law on Government Revenues and Expenditures 
(Congress Decree No. 92-05) for the 2006 fiscal year  provides for transparency in the use of 
government funds so that any private or joint venture, Guatemalan or foreign entity handling 
government funds must publish in GUATECOMPRAS  any procurement or contracting exceeding 
Q 30,000 (US$3,841).  Decree No. 92-05 of the Congress of the Republic makes it mandatory for 
government entities to utilize the GUATECOMPRAS sy stem.  This obligation also applies to 
non-governmental organizations, associations, found ations, charitable organizations, cooperatives, 
committees, regional and international bodies, trusts and all other private or joint Guatemalan or 
foreign entities that have contracts with the Government. 
175. For the fiscal year 2008, the General Budgetary Law on Gove rnment Revenues and 
Expenditures declared that contracts and procur ement must be published in GUATECOMPRAS, just 
as it did for 2006 and 2007.82  Guatemala's legislation was also amended to revise Government 
Decision No. 1.056-92, containing the implemen ting regulations for the Law on Government 
Procurement with a view to:  developing th e GUATECOMPRAS system in order to make 
                                                      
82 Decree No. 70-2007. Guatemala WT/TPR/S/210 
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government procurement more transparent and fac ilitate government and soci al oversight;  updating 
the regulations in order to avoid inconsistencies between the Law and the implementing regulations;  
and improving open contract procurement procedures.83  Government Decision No. 401-2006 
amended Article 17 of Government  Decision No. 1.056-92, implementing regulations for the Law on 
Government Procurement, in order to determine a minimum period of eight working days between the 
publication of notifications and the date set by th e procuring entity for the submission and receipt of 
bids.  The authorities have indicated that this amendment was made in order to bring the implementing regulations for the Law on Govern ment Procurement into line with Article 39 bis of the 
Law itself, which was amended for the purpose of  implementing DR-CAFTA.  The purpose of the 
amendment is also to speed up the process of procur ement through price quotation.  In addition, the 
time-limits for open contracts were amended in order to bring them into line with the provisions of 
DR-CAFTA.  According to the authorities, as a resu lt of the amendments made in order to comply 
with the commitments under DR-CAFTA, the process has become more transparent. 
176. The Integrated Accounting Systems (SICOIN WEB) and the Computerized Management 
System (SIGES) also implemented by the G overnment of Guatemala interact with the 
GUATECOMPRAS system.  Pursuant to Minister ial Decision No. 01-2006, the executing agencies 
must register in the SIGES the form of procur ement used (call to tender, price quotation, open 
contract, or any other form governed by the respec tive law), and for this purpose it must be published 
in the GUATECOMPRAS system. 
177. The GUATECOMPRAS EXPRESS project, the new version of the GUATECOMPRAS 
system, fully computerizes the management of open contracts, i.e. electronic notification, electronic 
bids, electronic purchasing orders and other releva nt procedures.  An electronic catalogue of open 
contracts will be compiled and will make public the processes following the award of a contract, 
because at present the public does not have access to them, for example, price fluctuations, purchasing 
orders issued, or the evaluation of suppliers and products.
84  The authorities have indicated that, as 
currently planned, it is expected that the system w ill be ready by the end of  2009.  Once it has been 
fully implemented, GUATECOMPRAS EXPRE SS will replace paper-based management of 
procurement by electronic management.  It has a number of components which are being 
implemented in stages. The first component, electronic follow-up of invoices pending payment, was implemented in May 2007.  The second component, the compilation of an electronic catalogue of goods and services available so that any government entity can procure them through an open contract 
without the need for price quotations or calls to  tender, was implemented in December 2007.  The 
DNCAE is responsible for the catalogue of products for open contracts and keeps it up to date.  In 
March 2008, contracts in United States dollars were  incorporated into the electronic catalogue for 
open contracts. 
178. The Register of Pre-approved Contractors was set up under the Law on Government 
Procurement;  the regulations implementing the Regi ster were issued in 2002 and have been amended 
on several occasions by means of Ministerial Decisions.
85  The Register comes under the Ministry of 
Communications, Infrastructure and Housing and its purpose is to approve, classify and, where appropriate, register persons (natur al or legal persons, whether Guatem alan or foreign) listed in the 
Commercial Register interested in taking part in price quotations or public calls to tender for the 
building, expansion or modification of works of State bodies, their decentralized, autonomous or 
                                                     
 
83 These revisions have been incorporated through the following Government Decisions:  
Nos. 80-2004, 644-2005, 368-2006, 401-2006, 512-2006 and 151-2007. 
84 Viewed at:  http://www.guatecompras.gt/info/guatecomprasExpress.aspx. 
85 Regulations on the Register of Pre-approved Contractors (Ministerial Decision No. 1.265-2002), 
revised by Ministerial Decision No. 1.730-2005, Ministerial Decision No. 2.676-2007, and Ministerial Decision No. 207-2008. WT/TPR/S/210 Trade Policy Review 
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semi-autonomous entities, executing agencies, m unicipal authorities and State or municipal 
government enterprises, pursuant to the Law on Government Procurement, its implementing 
regulations and other relevant legislation.  Th e Approval Qualification Commission, composed of 
four members appointed by the Ministry of Communications, Infrastructure and Housing, is 
responsible for evaluating, approving and deciding upon the registration of those interested in the 
Register of Pre-approved Contractors;  it also decides on updating registration. 
179. In 2006, an IMF mission identified areas in which the Government of Guatemala's 
government procurement practices could be revised.  While it welcomed the obligatory adoption of 
GUATECOMPRAS by much of the public sector, considering it to be a measure that would afford 
greater transparency in contracting processes, the mission also made several recommendations on 
fiscal transparency and procurement.86  It recommended, inter alia , that in order to enhance 
transparency, Guatemala should reduce the number of  activities and entities which in practice are not 
covered by application of the Law on Gove rnment Procurement and use of GUATECOMPRAS.87  
The authorities have indicated that, since r eceiving these recommendations, they have approved 
relevant reforms such as the adoption of GUATECOMPRAS for the whole of the public sector. 
180. The Guatemalan Construction Industry Associ ation, with the support of USAID, has 
introduced a Sistema de Información y Monitoreo de la Obra Pública  – SIMOP (Public Works 
Information and Monitoring Scheme) intended to f acilitate access to information on the award of 
construction contracts.88 
181. Government procurement is one of the areas in  which Guatemala and its preferential partners 
have made reciprocal commitments.  In Guatemala,  the decree enacting the legal reforms needed for 
compliance with DR-CAFTA, inter alia , amended the Law on Government Procurement.89  The legal 
reforms for the implementation of DR-CAFTA cont ained in Decree No. 11-2006 include the use of 
GUATECOMPRAS. 
(vi) Intellectual property protection 
182. Guatemala is a member of the World Intellectual Property Organization (WIPO) and party to 
a number of international agreements on prot ection of intellectual property rights (IPRs) 
(Table III.14).  In addition to these multilateral tr eaties, Guatemala has acceded to three regional 
conventions:  the Convention on the Protection of Patents of Invention,  Designs and Industrial Models 
(Buenos Aires, 1910), the General Inter-America n Convention on Protection of Marks and Trade 
Names (Washington, 1929), and the Inter-American Convention on Copyright in Literary, Scientific 
and Artistic Works (Washington, 1946).  Guatemala is  not party to the following WIPO-administered 
treaties:  the Convention Relating to the Distribu tion of Programme-Carrying Signals Transmitted by 
Satellite (Brussels Convention, 1974), the Universal  Copyright Convention (Geneva Convention) and 
the two Protocols thereto, and the Lisbon Agreement for the Protection of Appellations of Origin and 
their International Registration. 
                                                      
86 IMF (2006), p. 31. 
87 Ibid., p. 32. 
88 Online information from SIMOP.  Viewed at:  www.simop.info. 
89 Decree No. 11-2006 of 18 May 2006.  See also:  Ministry of the Economy (2005a). Guatemala WT/TPR/S/210 
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Table III.14 
Intellectual property agreements ratified by Guatemala 
International agreement Date of ratification 
Convention establishing the World Intellectual Property Organization (WIPO)  April 1983 
Copyright and related rights  
Rome Convention for the Protection of Performe rs, Producers of Phonograms and Broadcasting 
Organizations (Rome Convention, 1961)  January 1977 
Berne Convention for the Protection of L iterary and Artistic Works  July 1997 
Convention for the Protection of Producers of Phonogr ams against Unauthorized Duplication of their 
Phonograms (Geneva Convention, 1971)  February 1977 
WIPO Performances and Phonograms Treaty (WPPT, 1996)  January 2003 
WIPO Copyright Treaty (WCT, 1996)  February 2003 
Trademarks and other distinctive signs  
Paris Convention for the Protection of Industrial Property  August 1998 
Patents, industrial designs and utility models  
Paris Convention for the Protection of Industrial Property  August 1998 
Patent Cooperation Treaty  October 2006 
Other  
Budapest Treaty (Deposit of Microorganisms)  October 2006 
Nairobi Treaty (Protection of the Olympic Symbol)  February 1983 
Source : WIPO. 
183. On 31 May 1989, Guatemala signed the Washington Treaty on Intellectual Property in respect 
of Integrated Circuits, but by mid-2008 this agreemen t had not yet entered into force.  Guatemala is 
not a member of the International Union for the Protection of New Varieties of Plants (UPOV of 
1991).  In this connection, the authorities have indi cated that Guatemala is still engaged in internal 
procedures regarding participation as a member.  On  16 June 2006, the Central American Official 
Journal published Decree No. 19-2006 approving th e "International Convention for the Protection of 
New Varieties of Plants of 2 December 1961,  revised at Geneva on 10 November 1972, 
23 October 1978 and 19 March 1991", this being the first step towards membership of UPOV.  In 
September 2008, the initiative on appr oval of Guatemala's "Law on the Protection of New Varieties of 
Plants" was still awaiting approval by the Congress of the Republic. 
184. The Intellectual Property Register in the MINECO  is responsible for enforcement of IPRs and 
for their listing and registration, as provided in Government Decision No. 89-2002, Basic Internal 
Regulations of the MINECO.90  The Intellectual Property Register is also the contact point for the 
purpose of Article 69 of the TRIPS Agreement.91 
185. Guatemala protects IPRs through a combination of domestic and international provisions.  It 
notified to the TRIPS Council several amendments to its legislation and new la ws adopted prior to its 
previous Review.92  Guatemala's IPR legislation was revi ewed by the Council for Trade-Related 
Aspects of Intellectual Property Rights in 2001.93 
186. Guatemala did not enact any new intellectual property laws during th e period under review.  
The only significant changes in its legislation c oncern the adoption of implementing regulations for 
the laws enacted during the previous review period and the amendments introduced to the Industrial 
Property Law and the Law on Copyright and Rela ted Rights by Decree No. 11-2006 in order to 
harmonize them with DR-CAFTA.  In 2004, Guatem ala notified the implementing regulations for 
                                                      
90 Further information on the Register can be found at:  http://www/rpi/gob/gt. 
91 WTO document IP/N/3/Rev.3/Add.4 of 15 April 1999. 
92 WTO documents IP/N/1/GTM/C/1 and IP/N/1/GTM/C/1/Rev.1 of 13 October 2000 and 
20 November 2000, respectively. 
93 WTO document IP/Q/GTM/1, IP/Q2/GTM/1, IP/Q3/GTM/1, IP/Q4/GTM/1 of 11 May 2001. WT/TPR/S/210 Trade Policy Review 
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copyright and industrial property to the WTO Co uncil for Trade-Related Aspects of Intellectual 
Property Rights.94 
187. Guatemala's legislation covers most of the aspects mentioned in the TRIPS Agreement 
(Table III.15).  In some areas, for example, copy right, Guatemala grants rights which exceed the 
minimum terms prescribed in the Agreement.  Title III, Chapter I, of Guatemala's Industrial Property 
Law, Decree No. 57-2000 of the Congress of the Re public, deals with the characteristics which a new 
plant variety must have in order to receive pr otection under a patent in Guatemala (Article 97). 
Table III.15 
Summary of IPR protection in Guatemala, 2008 
Legislation Term Scope 
Copyright and related rights   
Law on Copyright and Related Rights, 
Decree. 33-98 of the Congress of the 
Republic, in force since 22 June 1998;  
Decree No. 56-2000 containing revisions thereto, in effect since 1 November 2000;  
and Government Decision No. 233-2003, 
implementing regulations for the Law on Copyright and Related Rights, in force 
since 29 May 2003. Irrespective of nationality, 
protection is given 
throughout the lifetime of 
the author and for 75 years after his death.  Computer 
programs, collective and 
audiovisual works are protected for 75 years from 
the date of first publication 
or exhibition. Scope:  artistic, literary and audiovisual works and computer 
programs.  The copyright owner's economic rights include the 
right to authorize or prohibit distribution to the public of the 
original or copies of the works, whether by sale, rental, hire, loan or any other manner.  Special provisions apply to computer 
programs and databases, audiovi sual and three-dimensional 
works of art, musical compositions and newspaper articles.  Protection is given irrespective of any formality. 
Patents   
Industrial Property Law, Decree 
No. 57-2000, in force since 1 November 2000;  G overnment Decision 
No. 862-2000, Industrial Property Fees, 
in effect since 9 January 2001;  implementing regulations for the 
Industrial Property Law, Government 
Decision No. 89-2002, in force since 1 April 2002;  the Central American 
Convention for the Protection of 
Industrial Property, Decree No. 26-73, applicable to applica tions filed prior to 
the entry into force of Decree 
No. 57-2000;  and Decree No. 153-85, 
Law on Patents, Utility Models and Industrial Designs, applicable to 
applications being examined prior to the 
entry into force of Decree No. 57-2000.
 Protection gives the inventor or applicant exclusive rights for 20 years within 
Guatemala. Scope:  Protection is granted for the invention concerned in 
respect of its reproduction, import, marketing or use.  An invention may be patented if it is new, represents an inventive 
step and is susceptible to industrial application.  Contractual 
licences for working a patent shall only have legal effects 
against third parties if th ey have been registered. 
Products, processes and met hods that do not constitute 
inventions or that are excl uded from patentability include 
economic methods and business plan s;  mathematical formulas;  
biological processes and materials as they appear in nature 
(with the exception of microbiological processes);  computer programs considered in isolation;  diagnostic, therapeutic or surgical methods;  and all inventions whose commercial 
exploitation would be contrary to  public health, human, animal 
or plant life and the environment. 
Industrial designs and utility models   
The same as for patents. Ten years for drawings, 
industrial designs and utility models, renewable once 
only for a further five years. The Law contains definitions of  industrial designs and utility 
models, but not drawings. 
Layout-designs of integrated circuits   
There is no legislation.   
Trademarks   
The same as for patents. The right to exclusive use of 
a trademark is given for a 
period of 10 years and may 
be renewed indefinitely for further 10-year periods. Any visually perceptible, figurative or three-dimensional sign 
capable of distinguishing products or services.  The owner of a 
trademark is entitled to oppose re gistration of an identical or 
similar sign, prevent its use and request the authorities to prohibit or suspend imports of products that make use of such 
signs. 
Table III.15 (cont'd)
                                                      
94 WTO documents IP/N/1/GTM/C/2 and IP/N/1/GTM/I/2, both of 14 April 2004. Guatemala WT/TPR/S/210 
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Legislation Term Scope 
Geographical indications   
There is no special legislation.  The Industria l Property Law contains general provisions on 
geographical indications.  The use of a false geographical indication or one liable to mislead is deemed to be an offence. 
Undisclosed information (including test 
data)   
The same as for patents. Indefinitely. The submi ssion of undisclosed information is required by the 
competent administrative authority as a condition for approving 
the marketing of pharmaceuticals or  agricultural chemicals that 
use new chemical substances.  Criteria are laid down for the 
protection of such data against unfair commercial use and 
against disclosure, provided that those submitting the information have requested  a specific guarantee of 
confidentiality. 
There are exceptions regarding di sclosure when the authority 
deems it necessary in order to protect the public or when 
measures have been taken to ensu re that the data are protected 
against unfair commercial use. 
New varieties of plants   
The same as for patents.  In the special case of new plant varieties, they must meet the 
criteria of novelty, distinctiveness, homogeneity and stability. 
Source : WTO Secretariat. 
188. Guatemala has no special legislation on layout-desi gns of integrated circuits.  The authorities 
have indicated that in this regard the provisions  in the TRIPS Agreement are deemed to be the 
domestic law.  Even though there is no special le gislation, the Industrial Property Law contains 
general provisions relating to  geographical indications. 
189. The Industrial Property Law does not allow the ow ner of an IPR the right to request that 
parallel imports be prohibited.  Consequently, the owner of a right in Guatemala may not prevent the 
import of products marketed and legally acquire d in another country simply because they are 
protected by a patent, trademark or other type of intellectual property covered by the Industrial 
Property Law.  The Law on Copyri ght and Related Rights, Decree No. 33-98 of the Congress of the 
Republic (Article 21 f), revised by Article 85 of Decree No. 11-2006 of the Congress of the Republic, 
provides that the owner of copyright and any persons specifically authorized by him have the right to 
prohibit the import or export of legally manufactur ed copies of their works or phonograms and the 
import or export of copies manufactured without their consent.95 
190. The Industrial Property Law allows the grantin g of compulsory licences for reasons of 
emergency or national security, public health or non-commercial public use or to remedy any 
anti-competitive practice.  In such cases, the owner of the right must be given adequate compensation.  
The Industrial Property Law, Decree No. 57-2000 of the Congress of the Republic, provides for 
"compulsory licences" in Articles 134 to 138.  They are also covered in Article 78 of the 
implementing regulations for the Industrial Prope rty Law, Government Decision No. 89-2002.  The 
authorities have indicated that there has not been any case of a compulsory licence being granted in 
Guatemala.  Test data are protected for a peri od of five years in the case of pharmaceuticals and 
10 years for agricultural or crop chemicals as of the date of granting the first authorization for marketing in Guatemala of a new chemical compone nt or a new product which uses or incorporates 
this new chemical component.  During this period,  the competent sanitary or  phytosanitary authority 
may not grant any other registration, licence or marketing authorization for identical or similar 
                                                     
 
95 The text of Decree No. 11-2006 can be viewed at:  http://www.sice.oas.org/TPD/USA_ 
CAFTA/Implementation/GUA_leg islation/Dec_112006_s.pdf. WT/TPR/S/210 Trade Policy Review 
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chemical components or products, taking as a basis the information or test data given in abbreviated 
or simplified form by the first person registering it unless the latter or the owner of the information or 
test data, depending on the case, gives his consen t in writing and with a legalized signature.96 
191. Guatemala replied to the questions posed by Me mbers regarding the enforcement of IPRs in 
2000.97  Since the previous Review of its trade po licy, Guatemala has continued to improve the 
enforcement of IPRs by strengthening the ins titutions responsible for prosecuting offences, in 
particular through action by the Special Prosecu tor's Office for Intellectual Property Offences. 
192. The authorities have indicated that there have recently been improvements in enforcement of 
IPRs.  These include the strengthening of the in stitutions responsible for prosecuting intellectual 
property offences through the creati on, in 2001, of the Special Pr osecutor's Office for Intellectual 
Property Offences in the Attorney General's Office, as  well as the training given to this Office and to 
the judges dealing with these matters.  Between  2002 and 2007, the Special Prosecutor's Office 
received 1,026 complaints of infringement of IPRs, the majority of which led to the adoption of a 
conclusory act. 
193. Guatemala's legislation allows civil proceedings  and fines.  The use of a false geographical 
indication in trade or an indication that may mislead  the public as to the origin of a good or service or 
the identity of the goods and the manufacturer or trader  distributing them, is deemed to be an offence 
under the Criminal Code and is liable to payment of  civil liability claims, a term of imprisonment of 
one to four years and a fine of Q 1,000 to Q 500,000 (US$128 to US$64,020). 
194. Both the Industrial Property Law and the La w on Copyright and Related Rights include 
provisions on the enforcement of the respective right s, including the possibility of bringing criminal 
proceedings.  Any owner of an IPR may bring civil proceedings in order to claim his rights.  If the 
owner of an IPR has a domicile or headquarters out side Guatemala, he must be represented by a 
practising lawyer belonging to the professional associ ation and with his domicile in Guatemala.  
According to the Industrial Property Law and th e Law on Copyright and Related Rights it is the 
responsibility of the Attorney General's Office to  bring criminal proceedings for any classified 
intellectual property offence.  The competent authorities may not act on their own initiative;  the 
customs authorities may withhold the goods at the border and notify the judicial authorities, which are empowered to decide upon and order border meas ures.  The measures provided by the legislation 
include a public or private caution, fines and te mporary suspension or annulment of the company's 
licence.  Persons infringing the Industrial Property La w or the Copyright Law may be the subject of a 
monetary sanction or be punished with up to six years' imprisonment. 
195. The Civil and Commercial Code of Procedure governs civil proceedings for infringement of 
IPRs in conformity with the provisions of the Industrial Property Law and the Copyright Law.  
Pursuant to these two Laws, a judge may order prev entive measures, including the following:  seizure 
of the infringing products and the means predominan tly used to commit the offence;  the immediate 
cessation of their use, application and marketing;   a prohibition on imports;  and other measures 
needed to prevent the continuation or repetition of th e offence.  Proceedings for civil offences may be 
initiated ex officio by the Office of the Attorney Ge neral or at the request of the owner of the right. 
                                                     
 
96 Article 177 of Decree No. 57-2000.  Viewed  at:  http://www.rpi.gob.gt/descargas/Ley%20 
Propiedad%20Industrial.pdf. 
97 WTO document IP/N/6/GTM/1 of 10 November 2000.