Paraguay WT/TPR/S/245 
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III. TRADE POLICIES BY MEASURE 
(1) OVERVIEW  
1. Since the previous Review in 2005, Paraguay h as continued to adopt measures to streamline 
and modernize its trade regime.  For example, effo rts have been made by the Paraguayan authorities 
to simplify customs formalities and facilitate trade.  In July 2010, a Single Window for Imports (VUI) 
was set up in order to make foreign trade operati ons more transparent and efficient, enabling all 
formalities for goods purchased abroad to be completed electronically.  In addition, a Single Window for Exports (VUE) is also operating.  Paraguay has not made use of any preshipment inspection system (PSI) since 1999.  Imports are cleared throug h three channels:  green, orange or red.  Goods 
sent to the red channel undergo documentary checks,  physical inspection and verification of customs 
value. 
2. During the period under review, Paraguay applied reference values to certain products for a 
limited period, mainly textiles and made-up articles.  According to the authorities, the purpose of this 
measure is to prevent unfair trade practices such as false declarations of value and tax evasion, and this is why in 2009 Paraguay established mechanisms for verifying the declared value of imports of 
used automobiles because the transacti on value could obviously not be used. 
3. There was a slight easing of tariff protection over the period under review.  Paraguay applies 
MERCOSUR's Common External Tariff (CET), with ex ceptions concerning 23 per cent of all tariff 
lines, giving an average tariff that is lower than  MERCOSUR's average CET.  The arithmetic average 
of applied MFN rates in 2010 was 8.5 per cent, lower than the 8.9 per cent recorded in 2004, mainly 
owing to the lowering of tariffs on capital goods.  The average applied MFN tariff is 10 per cent for 
agricultural products (WTO definition) and 8.3 per cent for non-agricultural products.  Paraguay 
grants at least MFN treatment to all its trading partners.  All rates are ad valorem  and are levied on the 
c.i.f. value of the product imported.  Paraguay did not make use of temporary or variable levies on 
imports during the review period. 
4. In the Uruguay Round, Paraguay bound all its ta riff universe at a ceiling rate of 35 per cent;  
when it acceded to the GATT, Paraguay had bound its  tariffs at rates ranging from 10 to 35 per cent, 
giving Paraguay an average bound tariff of 32.4 per cent.  As already indicated in the previous 
Review, the gap between applie d and bound tariffs remains relatively wide.  Market access 
commitments on agricultural products are not subject to tariff-quota-based limitations. 
5. In addition to tariffs, imports are subject to other duties and taxes, including the "valuation 
fee" of 0.5 per cent of the transaction value, a consular fee for endorsing documents, and duty 
equivalent to 7 per cent of the consular fee to fina nce the National Indigenous Institute (INDI).  Value 
added tax (VAT) is imposed on imported and dom estic goods and services alike.  In 2010, VAT 
applied at a general flat rate of 10 per cent, with the exception of certain household necessities, 
pharmaceuticals and books, to which a reduced rate of  5 per cent applies.  Agricultural products in 
their natural state are exempt from VAT.  The reve nue earned from VAT is still the largest source of 
tax revenue, accounting for 48.2 per cent of the total in 2009.  The selective consumption tax applies 
to a group of products, whether imported or dom estically produced, essentially tobacco, alcoholic 
beverages, perfumes, petroleum fuels, etc., at rates ranging from 1 to 38 per cent. 
6. Paraguay has some special regimes for exports , such as temporary admission, free zones, 
in-bond processing ( maquila ), investment regimes, the raw materials regime and the automotive 
regime.  Enterprises under the maquila  regime pay a flat rate tax of 1 per cent of the national value 
added or the invoicing, whichever is higher.  Enterprises exclusivel y engaged in expor t and operating WT/TPR/S/245 Trade Policy Review 
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under the free zone regime pay a flat rate free zone  tax of 0.5 per cent on gross income from exports;  
in addition, enterprises in free zones may sell fi nished goods and services in Paraguayan customs 
territory in an amount equivalent to a maximum of  10 per cent of the enterprise's gross income from 
sales, only paying the flat rate free zone tax. 
7. Paraguay makes use of prior authorizations and import prohibitions for health, environmental, 
safety, economic development, balance-of-payment s or safeguards reasons, and to protect domestic 
industry from imports.  Since the previous Revi ew, new requirements on registration and prior 
licensing for imports of made-up articles, meat pr oducts and poultry offal have been introduced.  
Some new import prohibitions introduced for safet y, health and environmental reasons concern 
products such as vehicles and articles of clothing. 
8. In Paraguay, several bodies issue technical regulations, and each of them follows its own 
procedures.  Since the previous Review, efforts ha ve been made to coordinate action by all public 
entities possessing the legal authority to draw up techni cal regulations and standards.  This has mainly 
been done by setting up the National Information and Notification System (SNIN) in 2005, which 
covers technical regulations, st andards and conformity assessment procedures.  The regulations 
governing the SNIN prescribe that all draft regulati ons must be notified and that periods of 60 and 
90 days must be provided for sending in comments, except in cases where emergency approval is required.  All technical regulations must be publishe d on the SNIN website and in the Official Journal 
and apply to both imports and domestic producers.  The conformity of imports with the technical 
regulations is verified at the border. 
9. Since November 2006, when Paraguay first notified a draft technical regulation, the 
Paraguayan authorities have notified the WTO of a ll the proposed technical regulations deemed to 
affect trade, even where these are identical to regional or internatio nal standards.  By November 2010, 
Paraguay had notified 32 draft technical regulations to the WTO.  Paraguay has accepted the Code of 
Good Practice annexed to the WTO Agreement on Technical Barriers to Trade. 
10. Since the previous Review in 2005, a number of regulatory provisions on sanitary and 
phytosanitary (SPS) measures have been adopted.  Fo r some of these, the objective was to reform the 
institutional framework and to create new bodies such  as the National Plant and Seed Quality and 
Health Service (SENAVE) and the National Animal  Quality and Health Service (SENACSA).  In 
other cases, legislation to implement international ag reements or adopting inte rnational standards has 
been enacted.  During the period under review, Paraguay greatly increased the number of its 
notifications of SPS measures, but in the vast ma jority of cases these concerned measures already 
adopted and not draft regu lations or legislation. 
11. Paraguay has no special domestic legislati on governing competition policy, even though 
certain laws contain relevant pr ovisions.  In December 2010, the National Congress was reviewing a 
preliminary draft law on the subject, prepared by the Ministry of Industry and Trade (MIC) with the 
participation of the private sector.  At the regional level, Paraguay has signed MERCOSUR's 
Competition Protocol (PDC) and its implementing re gulations, which have been incorporated into 
Paraguay's internal legal structure.  Paraguay does no t in general have any pr ice controls on goods or 
services, with the exception of electricity rates for low-income households and a maximum selling 
price for certain types of diesel fuel. 
12. Paraguay provides a series of incentives, for the most part fiscal, for investment and 
production, for which both Paraguayans  and foreigners are in general eligible.  Some benefits are 
contingent on use of domestic capital goods or the i nvolvement of Paraguayan c onsultants.  Official 
credit programmes are also in place, some targ eting specific sectors.  The automotive industry Paraguay WT/TPR/S/245 
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benefits from a special regime, last revised in 1998, which requires an increasing use of national 
components. 
13. Paraguay is not a signatory to the WTO Plurila teral Agreement on Govern ment Procurement.  
During the period under review, Paraguay continued to reform its regulatory and institutional 
framework for government procurement, commenced  in 2003, in order to improve government 
procurement procedures and make them more efficien t.  Nonetheless, it has also used the government 
procurement system as an economic policy tool to promote domestic pr oduction and employment, 
mainly by giving price preferences for local goods and services.  Paraguay could do better in terms of opening up and developing this mark et, and in control and transparency, as has been noted by several 
international organizations. 
14. Paraguay's intellectual property legislation was amended following ratification of the 
Uruguay Round Agreements, as required by the prov isions of the TRIPS Agreement.  During the 
period under review, a number of changes to the legal regime were introduced, for example an 
amendment to the Patent Law in Law No. 2.593/2005 revised the granting of compulsory licences, publication of patent applications and their substantive examination, inter alia .  During the period 
under review the authorities also continued to make efforts to improve the enforcement of intellectual 
property rights, inter alia , by reforming the Penal Code in order to increase the penalties and by 
creating an intelligence unit to iden tify, prevent and prosecute piracy, counterfeiting and tax evasion.  
Despite these endeavours to impr ove enforcement, the issue rema ins a matter of concern for both 
Paraguay and its trading partners.  Owing to these enforcement problems, Paraguay remains subject to 
monitoring by the United States Trade Representative (USTR) under section 306 of the United States 
Trade Act. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures, registration and documentation 
15. The National Customs Directorate (DNA) is responsible for implementing and monitoring 
import procedures.  Customs procedures are codi fied in the Customs Code, Law No. 2.422 of 
5 July 2004, in force since 11 January 2005, and its  implementing regulations in Decree No. 4.672/05.  
The authorities consider that, in giving the customs financial autonomy, the Customs Code has enabled it to function better.  The Code requires th at all importers be registered with the DNA.  
Importers that have registered their companies th rough the SOFIA computer system (see below) are 
exempt from this requirement, pursuant to Resolution DNA No. 1/02 of 7 January 2002.  In order to 
register, importers must be listed in the trade re gister and be in possession of a business registration 
certificate.  There are simplified regi stration procedures for imports under the maquila  or special 
regimes. 
16. In addition to the general registration requireme nts, importers of cert ain products are required 
to be registered under provisions other than the Customs Code (Table III.1).  The authorities have 
indicated that the numerous registration requirements applicable in Paraguay underline an institutional 
weakness.  In general, the purpose of registration is  not to act as an obstacle or trade barrier, but is 
required in order to implement regulations pr operly or to make them more transparent. WT/TPR/S/245 Trade Policy Review 
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Table III.1 
Registration requirements for importers  and imported products, December 2010 
Products Entity Period Legal basis 
Food products and beverages MSPBS  5 years Law No. 836 of 15 December 1980 (Health Code), as 
amended by Law No. 115 of 4 January 1991 
Sugar (HS 1701) MIC Annual  Resolution No. 251/02 of 9 January 2002 
Ozone-depleting substances (ODS) MAG Annual Decree No. 3.980 of 6 July 1999 
Mate [ Yerba mate ] MIC Annual Decree No. 17.595/02 of 17 June 2002 
Made-up articles (NCM chaps. 61, 62 and 63) MIC Annual Decree No. 1.421/09 of 5 February 2009 
Meat products and offal of fowls of the species 
Gallus domesticus (NCM 0207.11.00;  
0207.12.00;  0207.13.00;  and 0207.14.00) MIC Annual Decree No. 1.443/09 of  9 February 2009, extended by 
Decree No. 3.002 of 2 October 2009 and 
Decree No. 4.878 of 10 August 2010 
Wheat flour (NCM 1101.00.00) MIC Annual Resolution No. 807 of 12 October 2007 
Beef MIC Annual Decree No. 8.153 of 11 September 2006;  Resolution 
No. 538 of 12 September 2006 
Medicines, proprietary pharmaceuticals 
(phytotherapeutic and homeopathic) MSPBS 5 years Law No. 1.119 of 21 August 1997;  
Decree No. 7.442/00 
Hygiene products for domestic use and 
cosmetics MSPBS 5 years Law No. 836 of 15 December 1980 (Health Code), as 
amended by Law No. 115 of 4 January 1991 
Animals, products and by-products of animal origin SENACSA 1 year Law No. 2.426/04 of 28 July 2004;  Resolution 
No. 47/71 (MAG) 
Toxic or dangerous substances of the type used 
in domestic sanitary products (Risk I) MAG Once Law No. 836 of 15 December 1980 (Health Code), as 
amended by Law No. 115 of 4 January 1991 
Phytosanitary products for agri cultural use SENAVE Variable 
depending 
on the 
category  Law No. 2.459/04 of 4 October 2004;  Law No. 123/91;  
Law No. 3.742/09 of 10 December 2009;  Resolution 
No. 446/06  
Plant products and by-products SENAVE Annual La w No. 2.459/04;  Decree No. 139/93;  Resolution 
No. 202/10 
Lubricant oils and fats for automotive and industrial uses MIC Annual Resolution No. 87 of 18 March 2002 
Petroleum by-products MIC Once for 
each import  Decree No. 10.911 of 25 October 2000;  Decree 
No. 10.397/07 and Decree No. 11.833/08 
Raw materials or machinery to produce compact 
disks, as well as audiovisual materials and 
software RISMOMPP, 
at the MIC Annual Decree No. 1.175 of 27 January 1999, as amended by 
Decrees No. 10.106/00 of 22 August 2000 and 
No. 603/2003 of 20 October 2003 
Medical, odontological and laboratory 
apparatus, instruments, equipment and devices MSPBS 5 years  Law No. 836 of 15 December 1980, as amended by 
Law No. 115 of 4 January 1991 
Cement MIC Annual Decree No. 18.352/02 of 26 August 2002 and 
Resolution No. 962/06 of 28 December 2006 
Used vehicles MIC Annual  Decree No. 17.554 of 17 June 2002 
Products and by-products of animal origin SENACSA  Annual Law No. 2.426/04 of 28 July 2004;  Decree 
No. 1.635/99 
Products for veterinary use (pharmaceutical and 
biological products, animal feed) SENACSA 5 years Law No. 2.426/04 of 28 July 2004;  Law No. 667 of 
18 September 1995 
Live animals and genetic material  SENACSA Annual Law No. 2.426/04 
Live animals and genetic material of cattle, 
sheep and goats SENACSA Annual Law No. 2.426/04 
Note: MAG - Ministry of Agriculture and Livestock;  MIC - Ministry  of Industry and Trade;  MSPBS - Ministry of Public Health an d 
Social Welfare;  RISMOMPP - Register of Importers of Magne tic and Optical Media and Raw Materials used in the Production 
Thereof;  SENACSA - National Animal Quality and Health Serv ice;  SENAVE - National Plant and Seed Quality and Health 
Service. 
Source : WTO Secretariat. 
17. The intervention of a customs broker is usually  required for customs clearance (except in 
certain cases specified in the Customs Code).  Th e broker is authorized to pay customs duties and 
other charges.  Customs clearance is computer ized, using the SOFIA computer system, which 
interacts directly with users:  customs brokers , transport companies, warehouse managers, customs 
officials and foreign trade-related bodies.  The SO FIA system allows customs brokers or transport 
agents to be interconnected and complete their import/export formalities or manifests directly from 
their own offices or in public centres authorized for this purpose.  With the SOFIA system, a customs Paraguay WT/TPR/S/245 
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broker goes to the customs to carry out the formaliti es, for verification of documents and/or physical 
inspection and then to withdraw the goods, dependi ng on the channel attributed by the system.  The 
duty on imports is paid electronically through the SOFIA system and solely by means of a deposit 
with a commercial bank as the DNA's authorized payment counters have been abolished since the 
previous Review. 
18. Customs clearance requires the pr esentation of a bill of entry, together with the commercial 
invoice, the bill of lading, the airway bill (or consignment note), as well as special documents 
according to the type of goods, and a certificate of origin where necessary.1  A declaration of value is 
required for all imports whose value exceeds US$500.2  Goods covered by tariff preferences require a 
certificate of origin in order to receive prefer ential treatment (see section (2)(iv)(d)).  Prior 
authorization and a sanitary, phytosanitary or health  certificate is required for the import of products 
subject to sanitary, safety or other controls (sections (2)(vi) and (ix)). 
19. There is a simplified procedure for clearance of imports of lesser value (up to 
US$2,500 f.o.b.).  For these imports, a document entitled " Despacho de Importaciones Menores " 
(minor imports clearance) is submitted to the customs, accompanied sole ly by the commercial 
invoice.  Use of the simplified regime does not, however, waive the obligation to submit the import 
documents required by other institutions depending on the goods in question, for example, sanitary or 
phytosanitary certificates or certificates of origin for goods to which tariff preferences apply.  This 
simplified regime does not apply to importers of agricultural and horticultural products (with the 
exception of potatoes, onions, pears, peppers, ga rlic, plums, apples, peaches and nectarines).3 
20. In August 2010, MERCOSUR member countries, meeting in San Juan, Argentina, adopted 
the final text of a MERCOSUR Framework Customs Code.  This is contained in 
Decision CMC No. 27/10 and has still to be ratifie d by member countries before it can enter into 
force.  By November 2010, Paraguay had not yet ra tified this Code.  The introduction of a single 
customs document (DUAM) at MERCOSUR level has been under discussion for some years, but by 
November 2010 it had not yet been adopted.  To f acilitate intra-zone trade within MERCOSUR, rules 
for the creation of the necessar y mechanisms have been adopt ed, for example, Resolution 
GMC No. 21/05 "Mechanism for facilitation of intr a-zone trade" and Resolution GMC No. 02/09 
"Streamlined customs clearance pr ocedure for intra-MERCOSUR trade". 
21. The VUI has been operating since July 2010 with  the aim of making foreign trade operations 
more transparent and efficient.  The agencies participating in the VUI include SENAVE, SENACSA, 
DNVS (National Health Monitoring Directorate) , INAN (National Food and Nutrition Institute), 
INFONA (National Forestry Institute), DMM (M erchant Marine Directorate), SENAD (National 
Anti-Drug Secretariat), DINAC (National Civi l Aviation Directorate), SEAM (Environment 
Secretariat), and DIMABEL (Armaments Directorate).  In September 2010, SENAVE, SENACSA and DNVS were already implementing the VUI.  Its full implementation will allow electronic 
clearance of goods purchased abroad.
4  The DNA uses the VUE's (see be low) electronic platform for 
the VUI.  The authorities consider that since the VU I started to operate there has been a dramatic 
decline in the number of import formalities.  For ex ample, the import of raw materials and inputs now 
involves three formalities instead of 22, and the time required has gone dow n from 72 to two hours. 
                                                      
1 MERCOSUR Decision No. 16/94 and Article 79 of Law No. 2.422/04. 
2 Decree No. 13.721/01. 
3 Decree No. 13.749/01 of 6 June 2001, as amended by Decree No. 16.675/02 of 14 March 2002. 
4 The VUI is an initiative that forms part of the Th reshold Program II of the United States Agency for 
International Development (USAID), through the component for strengthening the National Customs 
Directorate.  DNA online information.  Viewed at:  http://www.aduana.gov.py/noticia/225. WT/TPR/S/245 Trade Policy Review 
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22. Paraguay has not made use of any preshipme nt inspection system (PSI) since 1999. 
23. As provided in the Customs Code, imports are cl eared through three channels:  green, orange 
or red.  Goods sent to the green channel by the cu stoms are cleared immediately, without any type of 
control;  the documents for goods sent through the orange channel are verified, while there are not 
only documentary checks on goods sent through the red channel but also physical inspection and 
verification of customs value.  The authorities have  indicated that the average time taken to clear 
imports not sent through the red channel has been shortened considerably, in the green channel from 
eight hours to 30 minutes in 2010, and in the orange channel from 16 hours to 45 minutes.  When a declaration is made using the computer system, cl assification is automatic, taking into consideration 
the parameters and profiles previously determined  by the customs authorit y.  The channels are 
attributed on the basis of the risk profile for the transaction, which takes into account:  the type of 
goods, the tariff heading, the origin, the destination,  the carrier, the importer, the exporter, and other 
data or information that can be used to draw up a risk profile.  Declarations concerning goods selected 
for an examination of their customs value are auto matically directed to the red channel.  Most 
imports (71.3 per cent of the total in 2009) go th rough the red channel, followed by the orange 
channel (19.7 per cent), and lastly the green channel (9.7 per cent).  The percentage of imports going 
through the green channel decreased  between 2007 and 2010 (Table III.2). 
Table III.2 
Operations by channel:  2005 to 2010 (October) 
  EXPORTS IMPORTS 
Year Channel Volume Percentage (%) Volume Percentage (%) 
Orange 0 0.00 2,064 2.22 
Red 20,870 87.78 75,323 80.87 2005 
Green 2,905 12.22 15,754 16.91 
Total 2005 23,775 100.00 93,141 100.00 
Orange 160 0.61 3,354 3.62 
Red 17,516 66.27 66,133 71.34 2006 
Green 8,755 33.12 23,215 25.04 
Total 2006 26,431 100.00 92,702 100.00 
Orange 4,348 14.95 17,647 13.80 
Red 8,691 29.89 68,853 53.84 2007 
Green 16,035 55.15 41,389 32.36 
Total 2007 29,074 100.00 127,889 100.00 
Orange 11,620 40.78 37,402 21.79 
Red 8,818 30.95 112,698 65.65 2008 
Green 8,054 28.27 21,574 12.57 
Total 2008 28,492 100.00 171,674 100.00 
Orange 12,207 42.86 28,492 19.20 
Red 7,343 25.78 105,809 71.30 2009 
Green 8,928 31.35 14,107 9.51 
Total 2009 28,478 100.00 148,408 100.00 
Orange 11,275 43.96 24,144 16.46 
Red 6,096 23.77 111,929 76.30 2010 
Green 8,276 32.27 10,618 7.24 
Total 2010 (up to October) 25,647 100.00 146,691 100.00 
Source : Directorate-General of Customs.  
24. Claims by importers regarding errors as to quantity, quality, damage, or disagreements 
concerning product classification or valuation or paym ent of taxes, have to be addressed to the 
competent customs administrator before the goods leave the customs warehouse and within 
three working days from the date of notification of  the action taken by the customs.  Once the goods 
have been cleared and left the customs warehouse, interested parties may only claim formal errors, 
i.e. arithmetical errors in payment or differences in  the rate of a customs tariff or customs valuation Paraguay WT/TPR/S/245 
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indicated in the text of the customs clearance documents, other documents or other evidentiary 
material.  Appeals against resolutions issued by the customs administrator in open summary 
proceedings may be made to the National Director of  Customs within five working days from the date 
of the relevant notification.  The National Director of Customs is required to take a decision within a 
period of 20 working days, which in exceptional circ umstances may be extended for a further 20 days.  
Appeals against decisions by the National Director of Customs may be made to the Audit Tribunal. 
25. During the period under review, Paraguay con tinued to take measures to improve customs 
administration and increase customs revenue.  The authorities have indicated in this connection that the DNA has introduced a quality manageme nt system with certification under 
ISO Standard 9001/2000 for several procedures, including:  import clearance;  export clearance;  entry 
into customs warehouses;  import clearance from customs warehouses;  and re-export clearance from 
customs warehouses.  In addition, 14 customs office s have been certified under this Standard.  The 
authorities consider that certification and impl ementation of a quality management system has 
resulted in considerable progress being made, for ex ample:  less bureaucratic and more transparent 
procedures;  shorter time needed for formalities;  fewer contacts between officials and users;  
standardization of procedures;  and formalities centr alized in one place.  The authorities have also 
indicated that progress has been made in comb ating smuggling and under-inv oicing, with the DNA 
seizing 174 per cent more goods in the first ten months of 2010 than in the whole of 2009. 
26. More efficient internal control programmes and the use of new inspection methods for foreign 
trade clearance operations have helped to impr ove the DNA's revenue-co llecting capacity, which 
represents some 60 per cent of total fiscal revenue.  For example, in April 2010, the revenue collected 
by the DNA was over 30 per cent higher th an that recorded in April 2009.
5 
(ii) Customs valuation 
27. Paraguay has applied the WTO Customs Valu ation Agreement (CVA) since 2001, after 
benefiting from a six-year delay for the application of certain provisions and invoking the reservation 
concerning the use of minimum values.6  Customs valuation is governed by Decree No. 13.721 of 
3 July 2001, notified to the WTO in 2004.7  Article 261 of the Customs Code provides that the 
customs value of imported goods constitutes the tax base for levying customs duty, pursuant to the 
international agreements in force such as the CVA.  The Code also provides that the DNA is 
exclusively responsible for controlling and verifying the value of imported goods.  A valuation fee of 
0.5 per cent is imposed on the tax base of imported goods.  Tax-related offences are punishable by a 
fine equivalent to 50 per cent of the amount of the customs duty concerned. 
28. During the period under review, Paraguay continued to use reference values on several 
occasions and for several products.  According to th e authorities, the purpose of this measure is to 
prevent unfair trade practices such as false declarat ions of value and tax evasion.  Resolutions DNA 
No. 84 of 9 September 2008 and No. 521 of 13 Augu st 2009 therefore introduced reference values as 
a preventive measure for imports of clothing of any origin or source included in Chapters 61, 62 and 
63 of the MERCOSUR Common Nomenclature (NCM).  Resolution No. 722 of 12 November 2009 repealed the provisions in Resolution No. 521 and rest ricted the use of reference values to a period of 
90 days, which ended in February 2010.  At the e nd of this period, the DNA issued a new Resolution, 
No. 89 of 12 February 2010, which restricted the us e of reference values for imports of clothing of 
                                                     
 
5 DNA, Noticias y Novedades .  Viewed at:  http://www.aduana.gov.py/noticia/227. 
6 WTO documents G/VAL/2/Rev.3 and WT/Let/1/Rev.2 of 15 April 1996 and 2 May 1995, 
respectively. 
7 WTO document G/VAL/N/1/PRY/1 of 21 September 2004. WT/TPR/S/245 Trade Policy Review 
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Chapters 61, 62 and 63 of the NCM to those of Asian origin or source.8  The reference values are 
employed as selectivity criteria for the purpose of a de tailed analysis of the value declared to the 
customs.  If the value declared is  lower than the reference value, before the goods can be cleared the 
DNA must be provided with a guarantee equal in valu e to the difference between the duty payable on 
the basis of the reference value and that payable on the basis of the declared value.  The guarantee is 
returned or credited if the importer justifies the price difference, within a period of 30 days, after 
which the guarantee is encashed. 
29. Resolution DNA No. 194/2009 provides that, instead of the transaction value, the methods set 
out in Articles 2 to 7 of the CVA can be used for the import of used automobiles from the 
United States of America, Europe and Asia.9  The Resolution prescribes that the transaction value 
shall reflect the price actually paid for the imported good, but this is not applicable to the import of 
used automobiles because these are generally purchased  on preferential terms and are declared to the 
customs at prices that are considerably lower than t hose for similar vehicles, so it is necessary to use 
the other methods provided in the CVA. 
(iii) Rules of origin 
30. Paraguay only applies preferential rules of orig in, and has notified the WTO that it does not 
have any non-preferential rules of origin.10 
31. Paraguay's preferential rules of origin are set within the context of the LAIA11, including 
MERCOSUR.12  For LAIA agreements which do not ha ve their own rules of origin, general 
LAIA rules of origin apply.  Under these rules, origin  is conferred:  (a) if the products are processed in 
the territory of one of the signatory countries using only materials from other signatory countries;  or 
(b) where non-originating materials are used, if there is a change in the tariff heading;  or (c) where 
this criterion cannot be met, if the c.i.f. value of inputs from third countries does not exceed 50 per 
cent of the f.o.b. value of the final product;  or (d) in the case of assembly operations, the c.i.f. value 
of inputs from third countries is allowed to exceed 50 per cent of the f.o.b. value of the final product.  
For Paraguay, as a relatively less developed country , the percentage of inputs from third countries 
may, in any event, be up to 60 per cent. 
32. There are general and specific rules of  origin in the MERCOSUR framework.13  In order to 
facilitate application of the MERCOSUR regime of origin both for the competent authorities and for 
businessmen, the Common Market Council (CMC) appr oved Decision No. 01/09, which brings all the 
rules on the MERCOSUR regime of origin together in  one single instrument.  This Decision has yet to 
be approved by all member countries and, in th e meantime, Decision No. 01/04 still applies.  
According to the general rules, products are deemed originating pr oducts if:  (a) they have been 
wholly obtained and produced in MERCOSUR;  (b) where materials originating in third countries are 
used, there has been a cha nge in the tariff heading (a change in heading is deemed to apply when the 
                                                      
8 These resolutions are available on the DNA 's website at:  http://www.aduana.gov.py/ 
resoluciones/2009 and http://www.aduana.go v.py/resoluciones/2010, respectively. 
9 Further information on this Resolution can be f ound on the DNA website at:  http://www.aduana.gov. 
py/resoluciones/2007. 
10 WTO document G/RO/N/21 of 20 July 1998. 
11 LAIA Resolutions No. 78 of 24 November 1987 and No. 252 of 4 August 1999. 
12 WTO document G/RO/N/12 of 1 October 1996. 
13 The MERCOSUR rules of origin are contained in MERCOSUR Decisions Nos. 6/94, 23/94, 16/97, 
3/00, 01/04, 03/05, 20/05 and 16/07, Resolution No. 27/01 and Directives Nos. 06/05, 05/06, 10/07, 21/07 and 
12/08.  These regulations have been implemented in Paraguay by means of Decrees No. 17.326/02 of 29 May 2002, No. 17.549/02 of 13 June 2002, No. 6.663 of 28 November 2005 and No. 2.413 of 6 July 2009. Paraguay WT/TPR/S/245 
 Page 37 
 
 
value of the inputs used in production does not exceed 10 per cent of the f.o.b. value of the goods);  or 
(c) the f.o.b. value of the final product does not contain more than 40 per cent of inputs from 
third countries (c.i.f. value).  This percentage is  the same for assembly operations.  In both cases, 
Paraguayan exports to other MERCOSUR countries are given preferential treatment, with a 40 per 
cent regional content requirement.  This provision should increase from 2023 onwards when 
Paraguayan exports will become subject to the same treatment as thos e of other MERCOSUR 
countries, in other words, the regional content will ha ve to be 60 per cent.  Trade in dairy products, 
vegetable oils, meat and fish prep arations, vegetable, fruit and food preparations, chemicals, textiles 
and made-up articles, footwear, steel and telecomm unications and computer products is subject to 
special rules of origin. 
33. The general criterion used to determine origin in MERCOSUR's Agreements with 
Chile (ECA No. 35) and Bolivia (ECA No. 36) is a change in tariff classification.  If this criterion 
cannot be used, origin is conferred if the c.i.f. value of the materials originating in third countries does 
not exceed 40 per cent of the f.o.b.  export value of the final product.   In the Agreement with Chile, 
Paraguay has a different regime of origin until 31 D ecember 2018 for a list of products that appears in 
Appendix 2 to the Agreement;  there are also special rules of origin for products of Chapters 28 and 
29 of the Harmonized System (HS), and for telecommunications and computer products, inter alia .  In 
some cases, these special rules of origin are determined in accordance with specific production 
processes.  In the Agreement with Bolivia, the 40 per cent rule has to be followed for assembly 
operations even if there is a change in the tariff heading.  The bilateral partial scope agreements 
Paraguay has signed with other countries also c ontain special rules:  for oilseeds, sugar and 
coffee (Colombia);  for dairy produce, oils, sugar, juices, cigarettes and essential oils (Mexico);  for oils, textiles and clothing, footwear, iron and steel and zinc and copper products (Peru);  and for oils 
and petroleum and its by-products (Ven ezuela).  The MERCOSUR Agreement with 
Mexico (ECA No. 55), in force for all members of MERCOSUR except Paraguay, is intended to liberalize trade in the automotive industry and defines the rules of origin for this sector. 
34. MERCOSUR's Agreement with Peru (ECA No. 58) confers origin on:  goods wholly obtained 
in the territory of a signatory;  goods manufactured  in the territory of a signatory exclusively from 
materials originating in any of the signatories;  a nd goods manufactured in the territory of a signatory 
incorporating materials not originating in a signatory to the Agreement.  In the latter case, the general 
criterion used is a change in the tariff classification.   Where this criterion does not apply or in the case 
of goods resulting from assembly or mounting, origin is conferred if the c.i.f. value of the materials 
originating in third countries does not exceed 50 per cen t of the f.o.b. export value of the final product 
for the first three years, 45 per cent for the fourth, fifth and sixth years, and 40 per cent as of the seventh year of validity of the Agreement.  The Agreement also provides for special origin regimes 
for Uruguay and Paraguay for some products of Chap ters HS 50, 51, 52, 53, 55, 64 and 87.  The 
Agreement allows regional cumulation, including materials originating from Bolivia and other 
countries belonging to the Andean Community. 
35. In the Agreement between the MERCOSUR me mber countries and Colombia, Ecuador and 
Venezuela (ECA No. 59), rules of origin are define d according to criteria that differ depending on the 
signatory country.  Origin is allowed for products wholly obtained in the signatory country;  products 
made from materials not originating in signatory countries but resulting from a process (including 
assembly or mounting) in a signatory country which gi ves rise to a change in tariff heading or if the 
c.i.f. value of the non-originating materials does not  exceed, in the case of Paraguay, 50 per cent up to 
2011 (the first seven years in which the Agreement is in force) and 45 per cent as of 2012;  and 
products wholly obtained from materials originatin g in signatory countries.  The Agreement also 
determines special rules of origin for the automo tive industry and for some  other products, depending 
on the signatory country, which take preced ence over the general rules of origin. WT/TPR/S/245 Trade Policy Review 
Page 38 
 
 
36. There are also rules of origin in the agreements signed with the SACU and Egypt, but they are 
not in force. 
37. The MIC is responsible for issuing and contro lling certificates of origin under preferential 
agreements.  Applications for certificates of orig in are submitted electronically, after registration in 
the VUE.  Pursuant to Decree No. 19.225/02, five ot her entities in addition to the MIC are authorized 
to issue certificates of origin:  the National Cham ber of Commerce and Services of Paraguay;  the 
Paraguayan Chamber of Exporters of Cereals and Oilseeds (CAPECO);  the Paraguayan Chamber of 
Cotton Producers (CADELPA);  the Paraguayan Fe deration of Timber Producers (FEPAMA);  and 
the Paraguayan Industrial Union. 
(iv) Tariffs 
(a) Structure 
38. In March 2010, the tariff applied by Paraguay had 9,806 lines (at eight-digit level) and 
comprised 24 rates ranging from 0 to 30 per cent.14  The tariff is based on the MERCOSUR CET, 
with some exceptions (Table AIII.1), and is expressed in the NCM, based on the Harmonized 
Commodity Description and Coding System (HS, updated to HS 2007).  By Law No. 2.953/06, 
Paraguay approved the International Conventi on on the Harmonized System, and by Decree 
No. 8.850/07 adopted the NCM adapted to the Fourth Amendment to the HS. 
39. The arithmetic average of the MFN rates app lied in 2010 was 8.5 per cent, a decrease in 
comparison with the 8.9 per cent applied in 2004.  The reason for this decrease in the average tariff 
was the lower rates applied to capital goods, desp ite the temporary increase in the MERCOSUR tariff 
on manufactures, especially footwear, textiles and clothing, because Paraguay does not have to apply 
this tariff increase.  The average applied MFN tariff  is 10 per cent for agricultural products (WTO 
definition) and 8.3 per cent for non-agricultural pr oducts (Table III.3).  Paraguay grants at least 
MFN treatment to all its trading partners. 
40. All the tariff rates applied by Paraguay are ad valorem  and are levied on the taxable value 
determined on the c.i.f. basis of the product impor ted.  Paraguay did not make use of temporary or 
variable levies on imports during the review period. 
41. In 2009, the revenue earned from import duties amounted to G 972,906 million (some 
US$205 million).  This figure represented 10.7 per cent of tax revenue for that year, compared to 10.8 per cent in 2003.  The weighted average im port duty applied to goods originating outside 
MERCOSUR was only 2.8 per cent in 2009, substantially lower than the average tariff, which reflects 
the large number of tariff lines to which a zero rate applies. 
                                                     
 
14 The rates are:  0;  2;  4;  5;  6;  7;  8;  9;  10;  11;   12;  13;  14;  15;  16;  17;  18;  19;  20;  22;  25;  26;  
28;  and 30 per cent. Paraguay WT/TPR/S/245 
 Page 39 
 
 
Table III.3 
Summary of tariffs, 2010 
 MFN 
Description Number of 
lines Average 
(%) Range 
(%) Coefficient of 
variation Average 
bound 
tariffa 
(%) 
Total 9,806 8.5 0 - 30 0.8 32.4 
HS 01-24 1,065 10.1 0 - 30 0.5 33.1 
HS 25-97 8,741 8.3 0 - 28 0.9 32.3 
By WTO category      
Agricultural products 944 10.0 0 - 30 0.5 32.9 
 - Animals and animal products 110 8.2 0 - 16 0.5 33.3 
 - Dairy products 34 15.1 12 - 16 0.1 34.3 
 - Coffee and tea, cocoa, sugar, etc. 169 13.8 0 - 30 0.4 34.4 
 - Cut flowers and plants 55 7.1 0 - 25 0.9 35.0 
 - Fruit, vegetables and garden produce 193 10.0 0 - 14 0.4 32.2 
 - Cereals 35 6.2 0 - 12 0.8 31.2 
 - Oilseeds, fats and oils 116 7.7 0 - 12 0.5 33.0 
 - Alcoholic beverages and liquids 42 17.0 0 - 20 0.2 30.5 
 - Tobacco 18 14.2 0 - 20 0.3 21.0 
Non-agricultural products (including  petroleum) 8,862 8.3 0 - 28 0.8 32.3 
- Non-agricultural products (excluding  petroleum) 8,836 8.4 0 - 28 0.8 32.3 
  - Fish and fish products 232 9.8 0 - 16 0.3 34.7 
  - Minerals, precious stones and metals 449 7.3 0 - 20 0.8 33.7 
  - Metals 770 10.8 0 - 18 0.5 34.4 
  - Chemicals and photographic products 3,151 6.6 0 - 18 0.8 28.8 
  - Leather, rubber, footwear, and travel articles 240 12.4 0 - 25 0.5 34.8 
  - Wood, wood pulp, paper and furniture 378 10.3 0 - 18 0.5 33.1 
  - Textiles and clothi ng 1,006 17.1 0 - 26 0.3 33.6 
  - Transport equipment 202 7.7 0 - 28 1.0 30.5 
  - Non-electrical machinery 1,118 2.3 0 - 20 2.2 32.5 
  - Electrical machinery 600 6.5 0 - 22 1.1 32.8 
  - Non-agricultural products n.e.s. 690 10.0 0 - 20 0.8 32.8 
- Petroleum 26 0.4 0 - 6 3.6 35.0 
By ISIC sectorb      
Agriculture and fishing 418 7.2 0 - 25 0.6 32.4 
Mining 127 3.1 0 - 10 0.6 33.8 
Manufacturing 9,260 8.6 0 - 30 0.8 32.3 
By HS chapter      
01 Live animals and animal products 372 9.0 0 - 16 0.4 34.0 
02 Plant products 353 7.9 0 - 25 0.6 33.1 
03 Fats and oils 71 9.6 4 - 12 0.2 32.7 
04 Food preparations, etc. 269 14.6 0 - 30 0.3 32.2 
05 Mineral products 206 2.4 0 - 6 0.8 34.2 
06 Products of the chemical and rela ted industries 2,969 6.3 0 - 18 0.8 28.3 
07 Plastics and rubber 423 10.1 0 - 18 0.6 34.6 
08 Hides and skins 115 10.9 2 - 20 0.5 35.0 
09 Wood and articles of wood 129 8.4 2 - 14 0.4 34.3 
10 Wood pulp, paper, etc. 225 10.5 0 - 16 0.5 32.1 
11 Textiles and textile artic les 980 16.9 0 - 26 0.3 33.5 
12 Footwear, hats and other h eadgear 66 19.6 16 - 25 0.1 35.0 
13 Articles of stone 216 10.2 0 - 20 0.4 34.1 
14 Precious stones, etc. 64 9.6 0 - 18 0.6 33.7 
15 Base metals and articles of base metal 740 11.4 0 - 20 0.4 34.5 
16 Machinery and mechanical appliances 1,746 3.8 0 - 22 1.6 32.3 
17 Transport equipment 215 7.5 0 - 28 1.0 30.9 
18 Precision instruments 457 7.7 0 - 20 1.1 32.6 
19 Arms and ammunition 20 20.0 20 - 20 0.0 34.8 
20 Miscellaneous manufactured articles 163 16.6 0 - 20 0.3 34.6 
21 Works of art, etc. 7 4.0 4 - 4 0.0 33.6 
By stage of processing      
First stage of processing 912 6.8 0 - 25 0.7 33.2 
Semi-processed products 3,733 8.3 0 - 30 0.7 33.9 
Fully processed products 5,161 8.9 0 - 28 0.9 31.4 
a As the bound rates correspond to the HS96 classification and the applied rates to HS2002, there may be a difference in the 
number of lines included in the analysis. 
b ISIC (Rev.2), excluding electricity (1 line). 
Source : WTO Secretariat estimates based on data provided by the Paraguayan authorities.  WT/TPR/S/245 Trade Policy Review 
Page 40 
 
 
42. The MERCOSUR tariff structure applied by Para guay shows relatively low dispersion, with a 
coefficient of variation of 0.8.  Some 16.7 per cen t of all tariff lines are duty free (Table III.4), while 
tariff lines with a rate above zero but not exceeding 5 per cent (in general 2 and 4 per cent) represent 
26.0 per cent of total lines.  Only four HS headings (170111, 170112, 170191 and 170199) are subject 
to the maximum rate of 30 per cent, and 18 HS h eadings of Chapter 52 (mai nly cotton fabrics), as 
well as one heading of Chapter 87 (vehicles), have a tariff exceeding 25 per cent but less than 30 per 
cent.15  In 2010, the groups of products on which th e average tariffs were highest were arms and 
ammunition (20 per cent), footwear (19.6 per cent) , and textiles and clothing (16.9 per cent).  As 
already mentioned, although MERCOSUR raised tari ffs on textiles, footwear and made-up articles in 
2008, Paraguay is exempt from applying this increase.16  Decree No. 1.731/09 imposed temporary 
special tariffs on the import of certain chemicals and paints originating in MERCOSUR.  The Decree ceased to apply at the end of 2009. 
Table III.4 
Structure of MFN tariffs, 2004 and 2010 
(Percentage) 
 2004 2010 
1. Total number of tariff lines 9,750 9,806 
2. Non- ad valorem  tariffs (% of all tariff lines) 0.0 0.0 
3. Non- ad valorem  tariffs without AVEs (% of all tariff lines) 0.0 0.0 
4. Tariff quotas (% of all tariff lines) 0.0 0.0 
5. Duty-free tariff lines (% of all tariff lines) 14.0 16.7 
6. Average of lines exceeding zero (%) 10.3 10.2 
7. Domestic tariff peaks (% of all tariff lines)a 0.1 0.2 
8. International tariff peaks (% of all tariff lines)b 22.7 21.6 
9. Bound tariff lines (% of all tariff lines) 100.0 100.0 
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average applied rate. 
b International tariff peaks are de fined as rates above 15 per cent. 
Source : WTO Secretariat estimates based on data provided by the Paraguayan authorities.  
43. The tariff shows signs of escalation in most indus tries, imports of raw materials being subject 
to a lower average tariff (6.8 per cent) than semi-processed  (8.3 per cent) and fully processed (8.9 per 
cent) products. 
44. Paraguay has applied MERCOSUR's CET, with  exceptions, since 1995.  The exceptions 
represent around 23.2 per cent of tariff headings, and may involve the application of tariffs that are 
higher or lower than the CET, taking into account the tariff binding commitment s made in the WTO.  
It is expected that the adoption of the CET rates and gradual convergence with them will lead to an 
increase in average nominal tariff protection.  The Paraguayan authorities have indicated that 
MERCOSUR has not yet defined the deadline for full adoption of the CET by the four countries.  
Decision CMC No. 7/94 and amendments thereto allow Paraguay to maintain a specific number of 
exceptions to the CET, as set forth in the Basic List  of Exceptions, in addition to the common sectoral 
lists covering capital goods and computer and te lecommunications goods (see below).  Moreover, 
Decision MERCOSUR/CMC/DEC No. 18/09 authorizes any member to apply a tariff rate other than the CET for up to two years, in accordance with its WTO obligations, when this has been authorized 
                                                     
 
15 Decision MERCOSUR/CMC/DEC No. 17/09, raised the CET on a group of dairy products 
(HS 0402, 0404 and 0406) to 28 per cent.  Paraguay was, however, authorized to continue applying tariffs to 
these products at the previous rates ranging from 14 to 16 per cent. 
16 Pursuant to the provisions laid down in the Decisions of the MERCOSUR's CMC Nos. 37/07, 27/08, 
26/09 and 27/10.  As a result of the application of these provisions, three tariff headings (HS 4202.22.10, 
4202.22.20 and 4202.92.00) should have been subject to a tariff of 35 per cent since January 2010, pursuant to Decision MERCOSUR/CMC/DEC No. 27/09, but Paraguay did not make this adjustment. Paraguay WT/TPR/S/245 
 Page 41 
 
 
by the WTO Dispute Settlement Body or as a resu lt of negotiations under Article XXVIII of the 
GATT 1994. 
45. The national list of exceptions, called the Basic List of Exceptions (LBE), contains 421 tariff 
lines (corresponding to 399 products), over 90 per cen t of which are subject to tariffs lower than the 
CET, while tariffs equal to the CET apply to th e remaining lines.  This list was extended until 
31 December 2011 by Decision MERCOSUR/CMC/DEC No. 28/09.  Decision CMC No. 68/00 and extensions thereto also allow any member of MERC OSUR to maintain a list of 100 tariff lines with 
CET exceptions.  Although it was initially planned th at there should be convergence with the CET in 
2006, MERCOSUR Decisions No. 31/03 and No. 34/ 03 granted extensions up to 2010 for Paraguay 
and Uruguay.  In 2009, Decision MERCOSUR/CMC/ DEC No. 28/09 granted a further extension up 
to 31 December 2011 for Paraguay and Uruguay. 
46. In addition to the foregoing, each member of MERCOSUR has lists of CET exceptions that 
include capital goods (BK list) and computer and telecommunications equipment (BIT list).  Decision MERCOSUR/CMC/DEC No. 58/08 extended the possib ility given to members to maintain national 
regimes for the import of capital goods and computer and telecommunications goods up to 
31 December 2010.  In 2010, the BK list contained 1,20 0 headings at the eight-digit tariff level, with 
tariffs of 0 and 2 per cent, the majority lower than the CET.  The BIT list contained 390 headings with 
tariffs of 0 and 2 per cent, the major ity at levels lower than the CET. 
47. Furthermore, MERCOSUR Decision No. 31/03 a nd amendments thereto allow Paraguay to 
keep 150 additional tariff headings as CET exceptio ns and these may be used until 31 December 2011 
as a result of the extension granted by Decision CMC No. 28/09. 
(b) Tariff bindings 
48. During the Uruguay Round, Paraguay bound all its ta riff lines at a uniform rate of 35 per cent.  
Taking into account the commitments made by Pa raguay on its accession to the GATT, when it bound 
its tariffs at rates ranging from 10 to 35 per cent,  Paraguay's average bound tariff is 32.4 per cent.  
Bindings are currently expressed in the HS 2002 six-digit classification and all lines are ad valorem  
(Schedule XCI Paraguay - WT/Let/574).  Market  access commitments on agricultural products are 
free from tariff quota-based limitations. 
49. The authorities have indicated that, in any even t, at the time of import Paraguay applies as a 
maximum the tariff level bound in the WTO (Schedule XCI Paraguay - WT/Let/574).  This practice has been incorporated into MERCOSUR legisl ation by Decision MERCOSUR/CMC/DEC No. 17/09, 
which specifies that if an applied tariff higher than the tariff bound by the member country is 
determined at MERCOSUR level, the member  will apply the tariff bound in the WTO. 
(c) Tariff concessions 
50. Paraguay makes use of tariff concessions and exemptions under three different types of 
regime:  (a) the various customs regimes which gr ant special treatment for exports (described in 
section (3) below);  (b) the investment regime (des cribed in Chapter II);  and (c) the raw materials 
regime.  In addition to the foregoing, tariff c oncessions are granted under the National Automotive 
Regime, established in 1998, which provides tari ff exemptions for various inputs used in the 
automotive industry and also grants tariff reduc tions for a range of automotive products (see 
section (4)(iii)).  Tariff concessions are also granted under the tourism regime. 
51. Under the raw materials regime, introduced by  Decree No. 16.416/97 of 27 February 1997, 
agricultural and industrial enterprises are given a ta riff exemption for imports of raw materials and WT/TPR/S/245 Trade Policy Review 
Page 42 
 
 
other inputs used in production.  A minimum import value of US$1,500 is required in order to qualify 
for the benefits.17  This regime has been extended several times;  the latest extension was up to 
31 December 2010, as stipulated in Decree No. 1.332/09 of 19 January 2009.18  T h i s  r e g i m e  i s  
administered by the MIC's Directorate of Special Regimes. 
52. Since 2008, tariff concessions have also been granted for the import of raw materials and 
inputs to be used for high-tech goods such as co mputer and similar products .  These benefits are 
available under the "Regime for the promotion of  production and development of high-tech goods", 
contained in Decree No. 11.961 of 25 March 2008. 
53. Law No. 536/95 on promotion of forestry and re forestation allows the import of propagating 
material for forestry free of all levies or taxes, subject to authorization by INFONA. 
(d) Preferences 
54. Paraguay grants tariff preferences (December 2010) to imports originating from Argentina, 
Brazil and Uruguay under the MERCOSUR framework ;  from Chile, Bolivia, Peru and Cuba under 
Economic Complementarity Agreements (ECAs) Nos.  35, 36, 58 and 62, respectively;  and from 
Colombia, Ecuador and Venezuela under ECA No. 59.  Preferences are also given to Mexico under 
Partial Scope Agreement No. 38 on renegotiation of the historical heritage.  Paraguay grants 
preferences to LAIA countries under the Regional Tariff Preference (RTP) scheme and gives 100 per 
cent preferences bilaterally to Bolivia and Ec uador under the regional agreement on opening up 
markets for a limited list of products.  Preferences are also granted to Israel (since March 2010 on all 
products under the Free Trade Agreement (FTA) endorsed by MERCOSUR) and to India (since 
June 2009)19, under the Preferential Trade Agreement (PTA) with India. 
55. In addition, under two trade agreements Para guay has negotiated tariff preferences that were 
not yet in effect by December 2010:  the MERCOSUR-SACU PTA and the MERCOSUR-Egypt FTA (Chapter II(5)), which are awaiting ratification by Paraguay. 
56. Under the LAIA's RTP scheme, members give  a 20 per cent preferential tariff reduction on 
imports from other members at the same level of development, a smaller reduction on imports from 
members at an intermediate level of developm ent and relatively more developed members, and 
greater reductions on imports from relatively less developed countries.
20  As a relatively less 
developed member, therefore, Para guay grants a reduction of 20, 12 and 8 per cent to other members, 
depending on their level of econom ic development.  The list of exceptions for relatively less 
economically developed member countries may c ontain up to 1,920 headings;  Paraguay's list 
contains 1,919 headings in the LAIA nomenclat ure (NALADI) and mainly covers products such as 
                                                      
17 Further details on this regime can be found on the MIC website at:  
http://www.mic.gov.py/index.php?  option=com_content&task=view&id=73&Itemid=123. 
18 The text of this Decree, and the preceding decr ees, is available at the website leyes.com.py:  
http://www.leyes.com.py/todas_disposiciones/2009/decretos/decreto-1332-09.php#1. 
19 MERCOSUR agreed to give India tariff preferences consisting of a 10 to 20 per cent reduction 
(100 per cent for a few products) on the MFN tariff for a list of 452 headings in the Harmonized System, 2002 
Nomenclature.  This list can be viewed on the website of the Paraguayan Ministry of Foreign Affairs at:  
http://www.mre.gov.py/dependencias/tratados/mercosur/ registro%20mercosur/Acue rdos/2004/español/69.%20
Acuerdo%20Preferencial %20MSUR-India.pdf. 
20 Under the LAIA framework, Paraguay, Bolivia and Ecuador are relatively less economically 
developed countries. Paraguay WT/TPR/S/245 
 Page 43 
 
 
organic chemicals, wood, wood charcoal and arti cles of wood, inorganic chemicals, animal or 
vegetable fats and oils, and articles of apparel and clothing accessories.21 
57. Under the MERCOSUR-Chile Agre ement, in 2010 Paraguay granted duty-free entry to all 
goods of Chilean origin except "sensitive" products, which accounted for 2.2 per cent of all tariff lines 
and are included in annexes 6, 8 and 9 to ECA No. 35.  Annex 6 contains exceptions;  Annex 7 
exceptions with a "historical heritage", including m eat, for which there is a quota of 14,000 tonnes;  
Annex 8 covers sugar;  and Anne x 9 wheat and meslin, for which th e preference is less than 100 per 
cent.22  According to WTO estimates, the average ta riff applicable to Chilean imports in 2010 was 
barely 0.2 per cent (Table III.5).  Full implemen tation of the Agreement will be completed in 2011. 
58. Under the MERCOSUR-Bolivia Agreement, impo rts of a range of agricultural products, 
articles of clothing and capital goods, have been free of duty since 2006.  For products such as textiles 
and clothing, machinery and equipment, and moto r vehicles, tariff reductions should reach 100 per 
cent in 2011, and for agricultural products it should be  2014.  In practice, in 2010 the average tariff on 
imports from Bolivia was 0.1 per cent, in other words, almost 96 per cent of the tariff universe was duty free. 
Table III.5 
Summary of preferential tariffs, 2010 
Average (%) 
Description Number 
of lines MFN Bolivia Chile Colombia  Ecuador Peru Venezuela
Total 9,806 8.5 0.1 0.2 4.3 3.3 3.4 4.2 
HS 01-24 1,065 10.1 0.0 0.1 4.6 3.6 3.6 4.5 
HS 25-97 8,741 8.3 0.1 0.2 4.3 3.3 3.4 4.2 
By WTO category         
Agricultural products 944 10.0 0.1 0.1 4.6 3.8 3.6 4.5 
- Animals and animal products 110 8.2 0.2 0.2 3.3 3.6 2.4 3.3 
- Dairy products 34 15.1 0.0 0.0 7.4 9.6 6.6 7.1 
- Coffee and tea, cocoa, sugar, etc. 169 13.8 0.2 0.3 6.5 4.8 4.5 6.1 
- Cut flowers and plants 55 7.1 0.0 0.4 3.8 3.5 3.0 3.9 
- Fruit, vegetables and garden produce 193 10.0 0.0 0.2 4.5 3.0 3.4 4.4 
- Cereals 35 6.2 0.0 0.3 4.7 4.8 5.0 4.7 
- Oilseeds, fats and oils and their products 116 7.7 0.0 0.0 3.5 3.5 3.1 3.5 
- Alcoholic beverages and liquids  42 17.0 0.0 0.0 8.4 6.7 8.4 8.1 
- Tobacco 18 14.2 0.0 0.0 6.1 3. 8 4.1 5.6 
- Other agricultural products n.e.s. 172 7.3 0.0 0.0 3.1 2.0 2.3 3.0 
Non-agricultural products (including 
petroleum) 8,862 8.3 0.0 0.2 4.3 3.3 3.3 4.2 
- Non-agricultural products (excluding 
 petroleum) 8,836 8.4 0.1 0.2 4.3 3.3 3.4 4.2 
- Fish and fish products 232 9.8 0.0 0.0 4.1 2.4 3.0 4.3 
- Minerals, precious stones and metals 449 7.3 0.0 0.0 3.2 1.8 2.1 3.1 
- Metals 770 10.8 0.0 0.0 4.7 2.7 3.1 4.5 
- Chemicals and photographic products 3,151 6.6 0.0 0.0 4.5 3.6 4.0 4.4 
- Leather, rubber, footwear, and travel 
 articles 240 12.4 0.3 0.3 6.1 4.1 4.5 5.7 
- Wood, wood pulp, paper and furniture 378 10.3 0.1 0.1 5.1 3.5 3.6 5.1 
- Textiles and clothing 1,006 17. 1 0.2 0.3 8.0 7.9 6.3 7.8 
- Transport equipment 202 7.7 0.2 2.5 3.3 1.8 2.0 3.3 
- Non-electrical machinery 1,118 2.3 0.1 0.1 1.0 0.6 0.7 1.0 
- Electrical machinery 600 6.5 0.3 0.4 3.2 2.2 2.0 2.9 
- Non-agricultural products n.e.s. 690 10.0 0.0 0.1 4.3 2.4 2.7 4.3 
                                                      
21 Regional Agreement No. 4, Second Amending Protocol. 
22 The full lists of products and tariff reductions are available at:  http://www .sice.oas.org/ Trade/msch/ 
mschind.asp. WT/TPR/S/245 Trade Policy Review 
Page 44 
 
 
Average (%) 
Description Number 
of lines MFN Bolivia Chile Colombia  Ecuador Peru Venezuela
- Petroleum 26 0.4 0.0 0.0 0.2 0.1 0.1 0.1 
By ISIC sectora         
Agriculture and fishing 418 7.2 0.1 0.1 3.4 2.6 2.8 3.5 
Mining 127 3.1 0.0 0.0 1.4 1.0 1.0 1.3 
Manufacturing 9,260 8.6 0.2 0.2 4.4 3.4 3.4 4.3 
By HS chapter         
01 Live animals and animal products 372 9.0 0.0 0.1 3.8 3.1 2.8 3.9 
02 Plant products 353 7.9 0.0 0.2 3.8 2.9 2.9 3.8 
03 Fats and oils 71 9.6 0.0 0.0 4.3 4.3 3.7 4.2 
04 Food preparations, etc. 269 14.6 0.0 0.2 6.8 5.1 5.4 6.5 
05 Mineral products 206 2.4 0.0 0.0 1.0 0.7 0.8 0.9 
06 Products of the chemical and related 
 industries 2,969 6.3 0.0 0.0 4.3 3.5 3.8 4.2 
07 Plastics and rubber 423 10.1 0.0 0.2 6.0 4.5 4.9 5.7 
08 Hides and skins 115 10.9 0.0 0.0 5.1 3.5 3.8 5.1 
09 Wood and articles of wood 129 8.4 0.0 0.2 3.7 2.2 2.4 3.7 
10 Wood pulp, paper. etc. 225 10.5 0.0 0.0 5.2 3.7 3.3 5.2 
11 Textiles and textile articles 980 16.9 0.1 0.3 7. 9 7.9 6.2 7.6 
12 Footwear, hats and other headg ear 66 19.6 0.0 0.0 8.7 6.3 6.4 8.9 
13 Articles of stone 216 10.2 0.0 0.0 4.6 2.7 3.0 4.5 
14 Precious stones, etc. 64 9.6 0.0 0.0 4.2 2.5 2.8 4.2 
15 Base metals and articles of base metal 740 11.4 0.0 0.0 4.9 2.8 3.2 4.7 
16 Machinery and mechanical appliances 1,746 3.8 0.0 0.2 1.8 1.2 1.2 1.7 
17 Transport equipment 215 7.4 0.2 2.3 3.2 1.7 1.9 3.2 
18 Precision instruments 457 7.7 0.0 0.0 3.3 1.8 2.3 3.3 
19 Arms and ammunition 20 20.0 0.0 0.0 7.8 3.8 5.0 7.8 
20 Miscellaneous manufactured articles 163 16.6 0.0 0.2 7.9 4.9 5.3 7.9 
21 Works of art, etc. 7 4.0 0.0 0.0 1.6 0.8 1.0 1.6 
By stage of processing         
First stage of processing 912 6.8 0.0 0.1 3.1 2.2 2.4 3.0 
Semi-processed products 3,733 8.3 0.0 0.1 4.7 3.5 3.9 4.5 
Fully processed products 5,161 8.9 0.0 0.2 4.3 3.4 3.2 4.2 
a ISIC (Rev.2), excludi ng electricity (1 line). 
Source : WTO Secretariat estimates based on data provided by the authorities.  
59. As regards MERCOSUR's agreements with othe r countries in the Andean region, in 2010 
Paraguay granted an average preferential tariff of 3.3 per cent on imports from Ecuador;  3.4 per cent 
in the case of Peru;  4.2 per cent to Venezuela;  a nd 4.3 per cent to Colombia.  Implementation of the 
preferences in the agreement with Peru will be c oncluded in 2017 and implementation relating to the 
agreement with the other Andean Communi ty countries (except Bolivia) in 2018. 
60. Paraguay, as a party to MERCOSUR, approved the Protocol for the Accession of 
MERCOSUR to the Agreement on the Global System of Trade Preferences among developing countries (GSTP).
23  By December 2010, however, Paraguay ha d not granted GSTP preferences as the 
law ratifying MERCOSUR's accession to the GSTP ha d not yet come into effect while awaiting 
accession and ratification by Argentina and Uruguay. 
(v) Other charges affecting imports 
61. Law No. 125/92 of 9 January 1992 and the amendments thereto introduced by 
Law No. 2.421/04 of 5 July 2004 govern appli cation of VAT.  This is imposed on imported and 
domestic goods and services alike.  In 2010, VAT applie d at a general flat rate of 10 per cent, with a 
                                                      
23 MERCOSUR Decision No. 51/00 and Law No. 2.323/03. Paraguay WT/TPR/S/245 
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reduced level of 5 per cent for certain household necessities such as rice, noodles, maté, edible oils, 
milk, eggs, raw meat and flour, iodized salt, pharmaceuticals, books, magazines, newspapers and 
other printed matter, loans and financing, and contracts for the assignment of assets or the disposal of real estate.
24  The 5 per cent tax rate was introduced by Law No. 2.421/04. 
62. Pursuant to Law No. 2.421/04, VAT is not payable on imports and domestic sales of 
medicines covered by Law No. 77/92 of 27 November 1992 (for treating cancer, AIDS, diabetes and for organ transplants), agricultural products in their na tural state, in addition to game and fish in their 
natural state or that have not been subject to any processing, foreign coins and public and private 
securities, estate left to either the residual or sole heirs, excluding assignees, assignment of 
receivables, and reviews of educational, cultural or scientific interest.  Imports of such products are 
also free of duty.  The sale of capital goods prod uced by local manufactur ers for direct use in 
industrial or agricultural production by investors c overed by Law No. 60/90 is likewise exempt from 
VAT. 
63. VAT on imports is calculated on the basis of th e customs value (c.i.f. value) expressed in 
foreign currency, plus customs duties (even if the pr oducts benefit from tariff exemption) and all other 
charges levied prior to customs clearance and intern al taxes.  Some goods going to other countries are 
subject to a special payment regime and a reduced  tax base amounting to 15 per cent of the value 
referred to above.
25 
64. The VAT collected still represents the largest source of tax revenue, accounting for 48.2 per 
cent of total tax revenue in 2009.26 
65. The selective consumption tax applies to a sp ecific group of products, whether imported or 
domestically produced, mainly tobacco, alcoholic bevera ges, perfumes, etc.  Its rate is determined 
taking into account the maximum rates fixed for each product in Law No. 2.421/04 and amendments 
thereto contained in Law No. 4.045/10.  Law No . 2.421/04 empowers the Executive to determine 
different rates for various types of product under each heading.  The rates applicable are:  11 per cent 
on tobacco products;  13 per cent on cigarettes;  5 per cent on carbonated non- alcoholic beverages;  
9 per cent on beer;  and 11 per cent on wines and liqueurs, with the exception of champagne or 
equivalent, to which a rate of 13 per cent applies.  In the case of petroleum-based fuels, the maximum 
rate is 50 per cent.27  A rate of 5 per cent applies to perfum es, toilet waters and beauty and make-up 
products;  precious or semi-precious stones and pear ls;  watches;  and ar ms, ammunition and parts 
thereof.  The rate is 1 per cent on certain ai r-conditioning machines and appliances;  electrical 
(household and other) appliances;  data-processing machines;  magnetic or optical readers;  
photocopiers;  and recorders, televisions, video mon itors and projectors;  cellular telephony devices;  
and portable terminals (Table AIII.3). 
                                                      
24 The text of Law No. 2.421/04 is available at:  http://www.set.gov.py. 
25 The goods concerned are listed in Decree No. 15.199/96 of 21 October 1996, as amended by Decrees 
Nos. 16.067/97 of 20 January 1997 and 10.624/00 of 25 September 2000. 
26 Ministry of Finance (2010b). 
27 A 38 per cent rate applies to unleaded nafta  (petrol) of 97 octanes or more;  a 24 per cent rate applies 
to motonafta  (regular grade petrol) and alconafta  (petrol and alcohol mixture) not exceeding 85 octanes;  34 per 
cent applies to supernafta  (premium grade petrol) of over 88 octanes but not exceeding 96.9 octanes;  20 per 
cent to aviation fuel;  18 per cent to gas oil (diesel);  10 per cent to kerosene, fuel oil and liquefied gas;  1 per 
cent to turbo fuel.  The exceptions include a rate of 0.25 per cent for fuel oil imported by the National Cement 
Industry, up to a quota of 55,000 m3 (under Decree No. 282/03);  and a 1 per cent rate for deodorized propellant 
gas isopropyl butane (tariff heading 2711.19.90), up to a quota of 20,000 m3 (under Decree No. 4.046/10). WT/TPR/S/245 Trade Policy Review 
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66. In the case of imported articles, the selective consumption tax is calculated on the basis of the 
customs value expressed in foreign currency, plus cu stoms duties, even if the products are exempt, as 
well as other taxes payable before customs cleara nce, apart from VAT.  For domestic products, the 
basis for calculation is the ex-factory selling pri ce less VAT.  In some cases, the tax base for the 
application of indirect taxes is subject to certa in adjustments, depending on the product:  (a) pursuant 
to Decree No. 3.668/09, the tax base for gas oil/di esel fuel is determined taking into account a 
presumed value of G 3,333.33/litre;  (b) for beer  and cigarettes (tariff heading 2402.20.00), the 
general tax base is increased by 20 per cent;  (c) fo r petrol, petrol and alcohol mixtures and premium 
grade petrol, the selling price to the public at the pu mp in the capital and in th e Central Department is 
used. 
67. In 2009, revenue earned from the selective c onsumption tax accounted for 16.4 per cent of 
total tax revenue;  of this amount, the selective c onsumption tax on fuel accounted for 11.5 percentage 
points, while the selective consumption tax on ot her products represented 4.9 percentage points. 
68. Pursuant to Article 263 of Law No. 2.42 2/04, imports, including those from other 
MERCOSUR countries, are also subject to a "valua tion fee" of 0.5 per cent on the taxable value 
determined on the basis of the c.i.f. value.  Th e revenue from this tax is included in the General 
Budget of the Nation and is used to defray the expenses of the DNA. 
69. A consular fee is also imposed for the com pulsory endorsement of documents required for 
import, pursuant to Law No. 1.844/01.  This is colle cted by Paraguayan consulates abroad and ranges 
from US$0.10 to US$60, with the exception of impor ted cattle on the hoof, for which the rate is 
0.15 per cent.  An additional duty equivalent to 7 per cent of the consular fee is levied to finance the 
INDI and is payable for endorsement of the followi ng documents:  cargo manifes t;  ballast manifest;  
commercial invoice;  and bill of lading for mar itime, river, rail, land or air transport. 
(vi) Import prohibitions, restrictions and licensing 
70. In 2003, Paraguay, notified its domestic legislation on import licensing to the WTO.28  A  
further notification was submitted in September 2010.29  According to the new provisions, all 
applications for prior import licences addressed to the MIC must be accompanied by a copy of the 
export commercial invoice proving that the pr oduct has been exported to Paraguay.30 
71. Pursuant to Paraguay's legislation, it is prohibited to import produc ts that may endanger 
national security, public order, public health, animal and plant health, or public morals (Table III.6).31  
The Law also authorizes import restrictions and prohibitions for economic development or 
balance-of-payments reasons and to protect domestic industry from imports that may cause injury.  
Prior authorizations from the competent public body are required for products subject to sanitary and 
phytosanitary, environmental, safety or any other t ype of control.  Prior authorizations are not 
automatic. 
                                                      
28 WTO document G/LIC/N/1/PRY/1 of 12 June 2003. 
29 WTO document G/LIC/N/1/PRY/2 of 14 September 2010. 
30 The Resolution is available on the MIC we bsite at:  http://www.mic.gov.py/images/ 
resolucion-103.pdf. 
31 Articles 1, 6 and 9 of Law No. 1.095/84 of 14 December 1984. Paraguay WT/TPR/S/245 
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Table III.6 
Import prohibitions, 2010 
Product Reason invoked Legal basis 
African bees ( Apis mellifera adansonil)  Health and environmental 
protection Decree No. 25.045 of 19 October 1987 
Swine, as well as semen, products, by-products and 
derivatives of domestic or wild pigs originating in areas 
where there is African swin e fever and vesicular swine 
disease Human and animal health Article 1 of MAG Resolution No. 175 of 
21 June 1978 
Cloramphenicola Protection of human health MAG Resolution No. 21 of 
24 January 1989 
Used articles of apparel and clothing accessories and parts thereof and other articles of headings 6309 0010 to 
6309 0090, and 6310 1000 to 6310 9000 (NCM) Health protection Decree No. 7084/00 of 11 January 2000 
Used footwear Health protection Decree No. 6.432/05 of 
26 September 2005 
Methyl and ethyl parathion-based productsa Protection of human health and the environment MAG Resolution No. 488 of 16 June 2003
Metamidophos-based products in all concentr ations Protection of human health and 
the environment MAG Resolution No. 493 of 
17 June 2003;  SENAVE Resolution 
No. 68/06 
Monocrotophos- and phosphamide-based products in all concentrations Protection of human health and 
the environment MAG Resolution No. 493 of 
17 June 2003;  SENAVE Resolution 
No. 69/06 
Organochlorine-based insecticidesa Protection of human health and the environment MAG Resolution No. 447 of 24 May 1993
Dangerous industrial residues or toxic wasteb Health and environmental 
protection Law No. 42 of 18 September 1990 
Hormonal substances for the fattening of animals for 
human consumption Protection of human health Decree No. 3.255 of 19 October 1989 
Live animals, genetic material of cattle, sheep and goats, 
products and by-productsa Protection of human health and the environment Decree No. 12.126/01 of 7 February 2001;  
Decree No. 21.517 of 21 July 2003 
Live animals, genetic material , products and by-products of 
sheep and goats Protection of human health and 
the environment Resolution No. 2 of 19 January 2001 
Live birds, products, by-products and genetic  material Protection of human health and 
the environment Resolution No. 23 of 19 May 2004 
Hormonal substances Protection of human and animal 
health Decree No. 3.255/89 
Organochlorines Protection of human and animal 
health Resolution No. 447/93 (MAG) 
Nitrofuranes Protection of human and animal 
health Resolution No. 307/98 (MAG) 
Hydrolysates of ruminant origin Protection of human and animal 
health Resolution No. 07/2002 (MAG) 
Proteins of ruminant origin Protection of human and animal 
health Resolution No. 15/04 (MAG) 
Olaquindox Protection of human and animal 
health Resolution No. 278/08 (SENACSA) 
Used motor vehicles and lorries of a capacity of less than 
20 tons and more than 10 years old (calculated from the year of production) Consumer protection Law No. 2.018 of 8 November 2002;  Law 
No. 2.153 of 4 July 2003 
a For the purposes of the Rotterdam Convention pursuant to Law No. 2.135/03. 
b Products prohibited under the Basel Convention on the Transbounda ry Movements of Hazardous Wastes and their Disposal. 
Source : WTO Secretariat.  
72. Prior authorization is required to import firear ms, ammunition and explos ives;  food products;  
narcotics, hypodermic syringes and needles;  pest icides, fertilizers and similar products;  plant WT/TPR/S/245 Trade Policy Review 
Page 48 
 
 
products and by-products;  and raw materials and machinery used to produce CDs, as well as other 
audiovisual materials and computer software.  In  addition to these authorizations, import licences are 
required for sugar and some petroleum by-product s.  Since the previous Review in 2005, the 
Paraguayan authorities have also introduced new prior licensing requirements for the import of 
various products such as:  cosmetic and personal hygi ene articles;  soya beans;  and offal of fowls of 
the species Gallus domesticus  (Table III.6).  At the same time, ame ndments have been introduced into 
the sugar import licensing system;  the import of poultry offal is also subject to quotas. 
73. New requirements on registration and prior licensi ng have also been introduced since the 
previous Review for the import of made-up articles,  pursuant to Decree No. 1.421 of 5 February 2009 
and MIC Resolution No. 51 of 5 February 2009.  Some new import prohibitions have also been 
introduced for safety, health and environmental re asons, and these concern products such as vehicles 
and articles of clothing and accessories (Table III.7). 
74. Decree No. 1.443 of 9 February 2009 requires regi stration of importers of meat products and 
offal of fowls of the species Gallus domesticus , of tariff headings NCM 0207.11.00, 0207.12.00, 
0207.13.00 and 0207.14.00.  The Under-Secretariat of State for Trade in the MIC is responsible for 
maintaining the relevant Register.  The adoption of  this measure is a response to the substantial 
increase in the value of imports of such products, an d is permitted by Decree No. 1.443 on the basis of 
Article 9 of Law No. 1.095/84, which authorizes the Executive to adopt transitional measures to 
protect and promote the country's economic and soci al development, maintain the trade balance and 
the payments balance or to offset unfair competition from foreign products. 
75. Licences are valid for 30 days after issue.  Th e products covered by the Decree remained 
subject to a restricted volume of imports of 20 tonnes per month for a period of 180 days up to 
August 2009.  These quotas were sub sequently renewed and, as at October 2010, continued to be 
applied pursuant to Decree No. 4.878/10.  Volumes are allocated to each importer in proportion to its 
relative import share over the period January-Decem ber 2008, setting aside a volume equivalent to 
10 per cent of the total (i.e. 2 tonnes per month) fo r new importers.  A prior licence must be obtained 
from the MIC in order to be able to benefit from the corresponding quota. 
Table III.7 
Import licensing and prior authorization, 2010 
Product Issuing authority Reason invoked Legal basis 
Prior authorization requirement     
Firearms, ammunition, explosives 
and the like DIMABEL National security Law No. 1.910/02 of 19 June 2002;  Law No. 4.026/10 
of 11 August 2010 
Sanitary products for agricultural use SENAVE Phytosanitary 
protection Law No. 2.459/04;  Law No. 123/91;  Law 
No. 3.742/09;  Resolution No. 446/06;  Resolution 
No. 49/01 
Hypodermic syringes and needles MSPBS Health La w No. 1.340 of 22 November 1998, as amended by 
Law No. 68/92 of 16 November 1992;  Decree-Law No. 9/92 of 17 February 1992;  and Law No. 1.881/02 
of 24 June 2002 
Magnetic media for digital or 
analogue recording MIC Action to combat 
piracy Decree No. 1.175 of 27 January 1999, as amended by 
Decrees No. 10.106/00 of 22 August 2000 and 
No. 603/03 of 20 October 2003;  Resolution No. 134/99 
Dangerous drugs SENAD Health Law No. 1. 340 of 22 November 1988, as amended by 
Law No. 68/92 of 16 November 1992;  Decree-Law No. 9/92 of 17 February 1992;  and Law No. 1.881/02 
of 24 June 2002 
Non-marketable food products MAG and INAN Health Decree No. 15.298/01 of 13 October 2001;  Resolution 
No. 619/01;  Law No. 3.742/09:  Decree No. 1.635 of 
12 January 1999 Paraguay WT/TPR/S/245 
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Product Issuing authority Reason invoked Legal basis 
Plant products and by-products 
(phytosanitary accreditation for 
imported plant products (AFIDI)) SENAVE Phytosanitary 
protection Decree No. 139/93; 
Resolution No. 202/09 
Narcotic substances and dangerous drugs MSPBS and 
SENAD Health Law No. 1.340 of 22 November 1988, as amended by 
Law No. 68/92 of 16 November 1992;  Decree-Law No. 9/92 of 17 February 1992;  and Law No. 1.881/02 
of 24 June 2002;  Decree No. 4.817 of 15 February 1990
Recyclable materials SEAM Certificate of 
innocuity Resolution No. 374/07 
Prior licensing requirement    
Import and sale of household 
insecticides MIC Health MIC Resolution No. 171 of 14 April 2008 
Sugar MIC Protection of the 
domestic industryResolution No. 251/02 of 9 January 2002; 
Resolution No. 631 of 8 August 2008 
Maté MIC Protection of the 
domestic industryResolution No. 201/06 of 21 April 2006 
Wheat flour MIC Registration Reso lution No. 807/07 of 12 October 2007 
Cement MIC Regulation of 
production and 
import Decree No. 18.352/02 of 26 August 2002; 
MIC Resolution No. 51/09 of 5 February 2009 
Certain petroleum by-products MIC Environmental 
protection Resolution No. 760/01 of 12 December 2001 
Ozone-depleting substances SEAM Environmental 
protection Decree No. 3.980 of 6 July 1999 
Meat products and offal of fowls of 
the species Gallus domesticus  (NCM 
0207.11.00, 0207.12.00, 1207.13.00, 0297.14.00) MIC Protection of the 
domestic industryDecree No. 1.443 of 9 February 2009; 
MIC Resolution No. 74/09 of 17 February 2009 
Beef MIC Administrative 
procedures MIC Resolution No. 538/06 of 12 September 2006;  
MIC Resolution No. 607/06 
Soya beans MIC Phytosanitary 
protection MIC Resolution No. 476 of 21 August 2006 
Made-up articles (NCM Chapters 61, 
62 and 63) MIC Protection of the 
trade balance Decree No. 1.421 of 5 February 2009; 
MIC Resolution No. 51 of 5 February 2009 
Personal hygiene, make-up, cosmetic 
and household sanitary products 
classified under risk I MIC Health Decree No. 3.214/09 of 21 October 2009;  Resolution 
No. 1.029 of 23 December 2008;  Resolution MIC 
No. 171/09 of 14 April 2009 
Birds and bird products SENACSA Protection of 
animal health Decree No. 3.214/09 of 21 October 2009;  Resolution 
No. 1.029 of 23 December 2008;  MIC Resolution 
No. 171/09 of 14 April 2009;  Decree No. 21.945/98 of 
17 July 1998 (MAG);  Decree No. 11.524/00 of 
15 December 2000;  Decree No. 15.000/96 
Bovine or other animals for breeding 
susceptible to tuberculosis SENACSA Protection of 
animal health Decree No. 18.613/97; 
Resolution No. 475/04 (MAG) 
Pigs SENACSA Protection of 
animal health Decree No. 21.946/98 of 17 July 1998 (MAG);  Decree 
No. 15.000/96 
Cattle and sheep from Argentina, Brazil and Uruguay SENACSA Protection of 
animal health Resolution No. 475/04 (MAG) 
Frozen semen and embryos of animal 
origin SENACSA Protection of 
animal health Resolution No. 1.026/08 (SENACSA); 
Decree No. 15.000/96 
Note: MAG:  Ministry of Agriculture and Livestock;  MIC:  Minist ry of Industry and Trade;  MSPBS:  Ministry of Public Health an d 
Social Welfare;  INAN:  National Food and Nutrition Institute ;  SENAD:  National Anti-Drug Secretariat;  SENAVE:  National 
Plant and Seed Quality and Health Service;  SENACSA:  Nationa l Animal Quality and Health Service;  DIMABEL:  Armaments 
Directorate;  SEAM:  Environment Secretariat. 
Source : WTO Secretariat, based on WTO document G/LIC/N/1/PRY/2 of 14 Sept ember 2010 and information provided by 
the Paraguayan authorities.  
76. Decree No. 1.421 of 5 February 2009 introduced a prior registration and prior licensing 
requirement for imports of made-up articles.  Th e Register of Importers of Clothing Products was 
created in the MIC.  The measures apply to a group of products classified in NCM tariff headings of WT/TPR/S/245 Trade Policy Review 
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Chapters 61, 62 and 63.32  MIC Resolution No. 51 of 5 February  2009 implements the provisions of 
Decree No. 1.421/09.  The justification for these meas ures is to safeguard the trade balance and the 
balance of payments, to regulate domestic trade, and the need to have appropriate measures that provide enough flexibility and a wide enough margin of manoeuvre to be able to react to the current 
financial crisis and prevent the problems it may cause for Paraguay's domestic industry. 
77. MIC Resolution No. 631 of 8 August 2008 regulates certain aspects of Resolution No. 251 of 
24 June 2002, which created the S ugar Importers Register and estab lished the Prior Import Licensing 
Regime.  Resolution No. 631/08 lays down new requirements for granting prior import licences for sugar, for which the following are required:  (a ) a certificate of registration in the MIC's Sugar 
Importers Register, which has to be renewed ev ery quarter;  (b) an authenticated copy of the 
registration of establishment issued by INAN;  (c) an  authenticated copy of the health registration for 
food products, obtained from INAN;  and (d) a lega lized commercial invoice showing that the product 
has been exported to Paraguay or, in its absence, an authenticated copy of the invoice.  A prior import 
licence is granted for each import transaction and is valid for 30 successive days from the date on which it is granted. 
78. MIC Resolution No. 171 of 14 April 2008 regulates the import and marketing of insecticides 
for household use classified in ri sk category II, making a licence a requirement for importing these 
products.
33  In order to be able to apply for a licence, th e importer must be registered in the Register of 
the MSPBS, with the DNA and in the Register of  Services Suppliers (REPSE);  the importer must 
also obtain approval from the MSPBS for importing the product.  A licence is granted for each 
transaction and is valid for a renewable period of 30 days. 
79. MIC Resolution No. 1.029 of 23 December 2008 governs the import and marketing of 
personal hygiene, make-up and cosmet ic products and household sanitary products classified in risk 
category I under NCM tariff headings:  3307.20.10;  3307.20.90;  3401.11.90;  3401.19.00;  3401.20.10;  3401.20.90;  3401.30.00;  3402.20.00;  and 3402.90.39, specifying that an import licence 
must be obtained from the MIC.  In order to obtain the licence, the importer must, inter alia , obtain 
approval from the MSPBS for importing the product, t ogether with an environmental licence from the 
SEAM.  A licence is required for each import tran saction and is valid fo r a renewable period of 
60 days. 
80. MIC Resolution No. 476 of 21 August 2006 lays down the prior import licensing 
requirements for soya beans (NCM 1201.00.90).  Li cences are granted by the MIC and are valid for a 
renewable period of 30 days.  In order to be issued  with a licence, the importer must be registered 
with SENAVE and obtain an environmental licence issued by the SEAM.  To enable the DNA to 
clear imports of soya beans, a phytosanitary import accreditation (AFIDI), issued by SENAVE, also has to be obtained. 
                                                     
 
32 NCM headings 6103.43.00, 6106.20.00, 6107.12.00, 6108.22.00, 6109.10.00, 6109.90.00, 
6110.30.00, 6115.10.93, 6115.96.00, 6116.93.00, 6203.2 3.00, 6203.43.00, 6204.23.00, 6204.62.00, 6204.63.00, 
6205.30.00, 6212.10.00, 6307.90.09, 6201.13.00, 6203.3 3.30, 6203.42.00, 6205.20.00, 6206.40.00, 6211.29.00, 
6301.40.00, 6302.21.00, 6302.60.00, 6304.19.90, 6306.12.00. 
33 The NCM headings for risk category II are the following:  3808.50.10, 3808.91.10, 3808.94.10 and 
2828.90.11. Paraguay WT/TPR/S/245 
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(vii) Contingency measures 
(a) Anti-dumping and countervailing duties 
81. Paraguay has incorporated the results of th e Uruguay Round of Multilateral Negotiations, 
including the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs 
and Trade 1994, the WTO Agreement on Subsid ies and Countervailing Measures, and the 
WTO Agreement on Safeguards, into its legal structure by means of Law No. 444/94.  Decree No. 15.286/96 of 28 October 1996 and Decree  No. 1.837/99 of 29 January 1999 appointed the 
MIC and the Ministry of Finance as the bodies responsible for implementing the Law, and lay down the relevant administrative procedur es for implementing these Agreements.
34 
82. Paraguay has notified its legislation on anti- dumping measures, subsidies and countervailing 
measures to the WTO.  This legislation was cons idered by the Committee on Anti-Dumping Practices 
and the Committee on Subsidies and Countervailing Measures in 1997.35 
83. The Trade Defence and Safeguards Commission,  governed by Decrees No. 15.286/96 and 
No. 1.837/99 and composed of representatives of the MIC, the Ministry of Finance, the MAG and the 
Ministry of Foreign Affairs (MRE), and chaire d by the representative of the MIC, is the body 
responsible for making recommendations to the Minist er of Industry and Trade and the Minister of 
Finance on the administrative procedures implemen ted and the corresponding measures.  The MIC is 
responsible for deciding to initiate and for conducting an investigation a nd, together with the Ministry 
of Finance, it takes any decision on whether or not to apply provisional or definitive measures.  It is 
the responsibility of the MRE to notify the WTO of resolutions containing provisional or final 
determinations. 
84. Paraguay did not apply any countervailing measures or new anti-dumping measures during 
the review period.  It has submitted the releva nt notifications to the WTO on both countervailing 
measures36 and anti-dumping measures37 for 2004-2009.  During the period under review, Paraguay 
applied no countervailing measure and only one anti- dumping measure (see below), which culminated 
with Resolution No. 730 of 4 November 2009. 
85. Since Paraguay acceded to the WTO, the MIC has received three applications to initiate an 
investigation with a view to imposing anti-dumping measures and has acted on two of them.  In 1999, 
Paraguay initiated an investigation and imposed definitive anti-dumping duties of 
US$0.69 per 440 cc. package on imports of the in secticides Baygón Verde Ultra in aerosols, and 
US$0.43 per 440 cc. package on imports of Baygón Azul Ultra, from Argentina.38  This measure was 
                                                      
34 MIC online information.  Viewed at:  http:// www.mic.gov.py/index.php?option=com_content&task 
=view&id=34&Itemid=40. 
35 WTO document G/ADP/N/1/PRY/2 and G/SCM/N/1/PRY/2 of 3 March 1997. 
36 WTO documents G/SCM/N/106/Add.1/Rev.4 of 28 April 2009;  G/SCM/N/113/Add.1/Rev.4 of 
28 April 2009;  G/SCM/N/122/Add.1/Rev.3 of 28 April 2009;  G/SCM/N/144/Add.1/Rev.3 of 25 April 2008;  
G/SCM/N/153/Add.1/Rev.2 of 25 April 2008;  and G/SCM/N/186/PRY of 18 February 2010. 
37 WTO documents G/ADP/N/132/Add.1/Rev.5 of 25 April 2008;  G/ADP/N/139/Add.1/Rev.4 of 
25 April 2008;  G/ADP/N/145/Add.1/Rev.3 of 25 April 2008;  G/ADP/N/153/Add.1/Rev.2 of 25 April 2008;  
G/ADP/N/158/Add.1/Rev.3 of 27 April 2009;  G/ADP/N/166/Add.1/Rev.2 of 27 April 2009;  
G/ADP/N/173/PRY of 12 October 2009;  G/ADP/N/180/Add.1/Rev.1 of 16 October 2009;  G/ADP/N/188/Add.1 of 16 October 2009;  and G/ADP/N/195/Add.1 of 21 April 2010. 
38 WTO documents G/ADP/N/126/PRY of 10 February 2005;  G/ADP/N/132/PRY of 22 April 2008;  
G/ADP/N/139/PRY of 22 April 2008;  G/ADP/N/145/PRY of 21 April 2008;  G/ADP/N/153/PRY of 22 April 2008;  G/ADP/N/158/PRY of 21 April 2008;  G/ADP/N/166/PRY of 22 April 2008;  WT/TPR/S/245 Trade Policy Review 
Page 52 
 
 
terminated in 2004.  In 2004, Paraguay imposed definitive anti-dumping duties of US$0.066/kg. on 
imports of cement from Brazil produced by the Companhia de Cimento Portland Itaú S.A.39  T h i s  
measure remained in force until 4 February 2010.   In Resolution No. 730 of 4 November 2009, the 
MIC decided to terminate the measure and it ended in February 2010.40 
86. Pursuant to Decree No. 15.286/96, an anti-dumpi ng or countervailing inv estigation is initiated 
upon a written application to the MIC by or on be half of the domestic industry or, under special 
circumstances, ex officio.  In order to initiate an investigation, the domestic producers specifically 
supporting the request must represent at least 25 per cen t of total domestic output of the like product.  
Once it has received the application, the MIC has 30 da ys in which to accept it, reject it, or request 
further information.  If the application is accep ted, the MIC must issue a resolution ordering the 
initiation of an investigation.  The MIC may recommend the imposition of provisional measures within a maximum period of 90 days, which may be  extended by a further 30 days, following the 
initiation of the investigation.  The imposition of provisional measures is published in the Official 
Journal and may be ordered only if  a preliminary determination has been made that the increased 
imports or the dumping or subsidi zation have caused injury to the domestic industry concerned;  at 
least 60 days must have elapsed following the date of publication of initiation of the investigation.  
The provisional measure may not be greater than the provisionally estimated margin of dumping and may not be applied for a period exceeding four months , which may be extended to six or nine months. 
87. The MIC must convene the Trade Defence a nd Safeguards Commission within three months, 
which may be extended by 30 days, following the date of the joint ministerial resolution containing 
the preliminary determination, in order to s ubmit the conclusions and recommendations of the 
investigation to the Commission for examination an d discussion.  The MIC must issue its conclusion 
and definitive recommendation within a maximum period of one month from the date on which the 
Commission was convened.  The Minister of Industry and Trade and the Minister of Finance must issue a reasoned joint ministerial resolution contai ning the final determination with respect to the 
imposition of duties within 30 days.  This resolution is published in the Official Journal within the 
following three days.  Investigations must be concluded no later than 12 months, which may be 
extended up to 18 months, from the date of the resolu tion ordering the initiation of the investigation.  
Appeals against resolutions may be made through the administrative courts. 
88. Anti-dumping or countervailing duties must be levied on imports of a product from any 
source found to be dumped and causing injury and mu st be applied in amounts equal to or less than 
the margin of dumping or subsidization determined .  Anti-dumping or countervailing duties must be 
terminated within a period of five years, unless it is determined that termination of the duty would 
lead to continuation or recurrence of the injury and of dumping or subsidization.  After a period of at 
least one year has elapsed since the imposition of the definitive duty, at the request of an interested 
party or on its own initiative, the MIC may initiate a review procedure to ex amine the need for the 
continued imposition of the duty. 
(b) Safeguards 
89. The WTO Agreement on Safeguards, incorporated into Paraguay's legislation by means of 
Law No. 444/94, constitutes Paraguay's safeguards legisl ation.  The MIC and the Ministry of Finance 
are responsible for applying safeguard measure s, while the Trade Defence and Safeguards 
                                                                                                                                                                    
 
G/ADP/N/180/PRY of 12 October 2009;  G/ADP/N/188/P RY of 12 October 2009;  and G/ADP/N/195/PRY of 
8 March 2010. 
39 MIC Resolution No. 780 of 20 October 2004;  WTO documents G/ADP/N/126/PRY of 
10 February 2005 and G/ADP/N/195/PRY of 8 March 2010. 
40 Notified to the WTO in document G/ADP/N/202/PRY of 4 October 2010. Paraguay WT/TPR/S/245 
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Commission is responsible for making recommendations  to the Minister of Industry and Trade and 
the Minister of Finance on the administrativ e procedures implemented and the corresponding 
measures. 
90. During the period under review, Paraguay did not make use of any safeguard measures. 
91. Decree No. 1.837/99 defines the administrative procedures for applying safeguards, in line 
with the WTO Agreement on Safeguards.41  These procedures are similar to those for the imposition 
of anti-dumping or countervailing m easures and involve the same institu tions.  An application for the 
imposition of a safeguard measure must be subm itted to the MIC, accompanied by sufficiently 
probative evidence of increased imports, serious injury or threat thereof and a causal link between the 
two, as well as an adjustment plan to enhan ce the domestic industry's ability to compete with 
imports.42  The MIC must examine the admissibility of the application within a maximum period of 
20 days from its receipt and conduct an investigation in order to determine the increase in imports of 
the product at issue, serious injury or threat thereo f to the domestic industry producing like or directly 
competitive products, and a causal link between the incr eased imports and the serious injury or threat 
thereof.  If the application is accepted, the Unde r-Secretariat of State for Trade in the MIC must 
submit, within a maximum period of 40 days, a report to the Minister of Industry and Trade on the 
appropriateness of initiating an investigation, a nd within 20 days from receipt of the report the 
Minister must decide whether to initiate an inves tigation, issuing a ministerial resolution published in 
the Official Journal. 
92. An investigation for application of a safeguard  measure must be concluded within a period 
not exceeding nine months following its initiation, wh ich may be extended by a further two months.  
If provisional measures are applied, the maximum duration of the investigation must be 200 days from the date of application of such measures.  In  order to determine whethe r increased imports have 
caused or are threatening to cause serious injury to  a domestic industry, in addition to the relevant 
factors defined in the WTO Agreement on Safeguard s the price of imports and the trend in domestic 
prices of like products must be taken into account.  If there is a threat of serious injury, consideration 
must be given to factors that may lead to serious injury, such as the rate of increase in exports and 
export capacity in the country of origin or export. 
93. The Minister of Industry and Trade and the Minister of Finance may apply a provisional 
safeguard measure by means of a joint ministerial re solution published in the Official Journal.  The 
application of provisional measures requires eviden ce of critical circumstan ces such as increased 
imports within a relatively short period and that an y delay in applying the measures would result in 
the serious injury or threat thereof being difficult to repair.  Provisional safeguard measures must take 
the form of increases in import duties, additional to the CET, and may be:  ad valorem  duties, specific 
duties, or a combination of the two.  Definitive saf eguard duties are also applied by means of a joint 
ministerial resolution, and may take the same forms as provisional duties, as well as the form of 
quantitative restrictions. 
94. Although the safeguard measures provided in th e Agreement on Agriculture may be applied 
to agricultural products, pursuant to Decree No. 1. 827/99, Paraguay has not reserved the right to use 
the special safeguards provided in  Article 5 of the Agreement. 
95. MERCOSUR's regulation on safeguards applied to third countries is MERCOSUR Decision 
No. 17/96, which is based on the WTO Agreement on Safeguards.  This Decision establishes the 
                                                     
 
41 Decree No. 1.827/99 of 29 January 1999, notifie d to the WTO in WTO document G/SG/N/1/PRY/2 
of 20 August 1999. 
42 WTO document G/SG/N/1/PRY/2 of 20 August 1999. WT/TPR/S/245 Trade Policy Review 
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procedure for the application of safeguard measures by MERCOSUR as a single entity or by 
individual member States.  Safeguard measures ar e not applied to other MERCOSUR countries.  In 
the case of safeguards adopted under the WTO rul es, products covered by safeguard measures are 
subject to the MERCOSUR rules of origin in intra-MERCOSUR trade.  MERCOSUR's bilateral 
agreements with Chile, Bolivia, Peru and Colo mbia, Ecuador and Venezuela allow safeguard 
measures to be applied for a maximum period of two years until implementation of the agreements is 
completed.  These measures may take the form of the removal or elimination of preferences.  Once the agreements are fully implemented, safeguard measures may not be applied between the parties. 
(viii) Technical regulations and standards 
(a) Institutional and legal framework 
96. Several bodies in Paraguay enact technical regula tions, for example, the MIC, MSBPS, MAG, 
and other ministries, and each follows its own proce dures.  Technical regulations may or may not be 
based on national or international standards.  As a rule, there are two methods for the adoption of 
technical regulations:  (a) the agency drafts its  own technical regulations based on regional or 
international standards;  or (b) a decree or resolu tion declares that a national standard issued by the 
National Institute of Technology, Standardization an d Metrology (INTN) is mandatory.  All technical 
regulations must be published in the Official J ournal and placed on the SNIN website.  Technical 
regulations apply to imports and domestic products alike.  The INTN does not directly draw up 
technical regulations, but may be consulted by govern mental agencies when they are being prepared.  
The conformity of imported products that are regulated is verified at the border in accordance with 
internationally recognized procedures. 
97. Standards are elaborated by the INTN.  The fra ming and coordination of policies on technical 
regulations are the responsibility of the MIC, which coordinates the recently created National 
Technical Committee on Technical Barriers to Trad e, established by Decree No. 1.765/09.  The 
National Council for Science and Technology (CONAC YT), established by Law No. 1.028/97, whose 
basic structure was subsequently modified by La w No. 2.279/03 in order to incorporate the National 
Quality System, is responsible for formulating Pa raguay's national policies and strategies on science, 
technology and innovation, a nd quality.  CONACYT also has the task of coordinating and directing 
standardization, metrology, and accreditation activities and the preparation of technical regulations, as 
well as other activities relating to quality.  The Na tional Accreditation Agency (ONA) is part of 
CONACYT and is a member of Inter-American Accreditation Cooperation (IAAC). 
98. Up to 2006, Paraguay had not made any notifications to the WTO Committee on Technical 
Barriers to Trade on technical regulations adopted  or in the process of being adopted.  In 
September 2006, Paraguay submitted a notification to the WTO describing the administration of the 
Agreement on Technical Barriers to Trade in Paragua y, the bodies responsible and the creation of the 
SNIN.  The first technical regulation was no tified in November 2006 and concerned a draft 
MERCOSUR regulation on cosmetics.
43  Since then and up to the end of September 2010, Paraguay 
has submitted 32 notifications on draft technical regulations to the WTO (Table AIII.2).44  In 2003, 
Paraguay notified the WTO of the acceptance of  the Code of Good Practice annexed to the 
WTO Agreement on Technical Barriers to Trade.45 
99. Paraguay has notified two contact points for en quiries relating to technical regulations.  
Questions on technical regulations, standards a nd conformity assessment procedures should be 
                                                      
43 WTO document G/TBT/N/PRY/1 of 28 November 2006. 
44 The latest notification is contained in WTO document G/TBT/N/PRY/32 of 18 August 2010. 
45 WTO document G/TBT/CS/N/151 of 25 April 2003. Paraguay WT/TPR/S/245 
 Page 55 
 
 
addressed to the Coordinating Unit of the SNIN in  the MIC, created in 2005, while the agency 
responsible for providing information on WTO noti fications, and for requests for information and 
formal questions from Members concerning technical barriers to trade is the WTO Reference Centre in the Directorate of Multilateral Economic Organi zations - Under-Secretariat of Economic Relations 
and Integration in the MRE.
46 
100. The SNIN is the national information and no tification system for technical regulations, 
standards and conformity assessment procedures.  Decree No. 1.765/2009 approved the implementing 
regulations and defined the strategy for the SNIN.  The regulations specify that all draft regulations 
must be notified and that periods of 60 and 90 days  must be provided for sending in comments, except 
in cases where emergency approval is required.  The Decree appoints the MRE as the WTO focal 
point and determines that information should be centr alized in the SNIN Coordinating Unit so that the 
latter can serve as the focal point for the private sector.47 
101. The authorities have indicated that, with the est ablishment of the SNIN, Paraguay intends to 
coordinate action by all governmental agencies empowered to draw up technical regulations and 
standards, to encourage participation by priv ate institutions representing the production sector in 
Paraguay, and to comply with the principles to be followed for good regulatory practice.  They also 
indicated that the purpose of establishing the SNIN is  to comply with the notification, transparency 
and information obligations under the Agreement on T echnical Barriers to Trade, and to coordinate 
and define positions for negotiations at the multilate ral, regional (MERCOSUR) and bilateral levels.  
Another purpose of the SNIN is to inform rural producers, industrialists, exporters and importers 
about TBT in export markets and in Paraguay and to put in place an information system based on 
notifications from other WTO Members in order to f acilitate international trade.  By November 2010, 
the SNIN had compiled 32 Paraguayan notificati ons and 1,450 international notifications. 
102. Since November 2006, the Paraguayan author ities have notified the WTO of proposed 
technical regulations deemed to affect trade, even where these are identical to regional or international 
standards.  Of the 32 notifications submitted by Paraguay up to the end of November 2010, a period 
of 60 days was provided for the submission of comments by Members in 24 of them;  for the 
remaining eight, five did not specify any period an d in three cases the notification was submitted after 
the regulation had been adopted.  Around half of th e draft technical regulations notified by Paraguay 
during the period under review correspond to regulations at the MERCOSUR level. 
103. By November 2010, the SNIN had reported 246 technical regulations issued between 1971 
and November 2010.48  Technical regulations adopted since the previous Review concern products 
such as toys, pesticides, cosmetics, food additives, steel wire and bars, PVC-insulated cables, primary 
cells and batteries, and liquefied petroleum gas, as well as fuel refining, labelling for textiles and 
household sanitary products, agricultural chemicals,  pre-packaged goods sold in bulk, fish and 
shellfish, wheat and tomatoes;  other regulations  concern low voltage electric cables and conductors, 
low voltage electrical products, liquid fuel pumps, and storage of compressed gas, inter alia . 
104. Ministries and bodies responsible for drawing up technical regulations follow similar general 
procedures, based on Decree No. 1.765/09.  They may initiate the preparation of a technical regulation on their own initiative or at the request of a third pa rty.  If the proposed technical regulation is deemed 
                                                     
 
46 WTO document G/TBT/ENQ/36 of 5 February 2010. 
47 The private sector and the follo wing governmental agencies partic ipate in the SNIN :  MIC, MRE, 
INTN, MSPBS, the Ministry of Public Works, ONA, SENAVE, SENACSA, INAN, DNVS, the National 
Transport Directorate (DINATRAN) and SEAM. 
48 SNIN online information, Paraguay, Technical Re gulations.  Viewed at:  http://www.snin.gov.py./ 
publico/normapy.aspx. WT/TPR/S/245 Trade Policy Review 
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to affect trade, the draft is sent to the WTO to allow Members to submit comments.  The SNIN is in 
charge of handling international comments.  Once  all the comments and suggestions received have 
been examined, the ministry or competent body decides whether to adopt the technical regulation, with or without amendments.  Technical regulations are adopted in the form of laws, decrees or 
resolutions, as appropriate, and are published on the SNIN's website and in the Official Journal. 
105. Products subject to Paraguayan technical regulat ions (see below) must be certified by 
appointed and accredited agencies.  Compliance with  technical regulations is monitored at the 
customs points of entry into Paraguay, in the case of  imports, or inspection at the retail trade level. 
106. MERCOSUR's main executive body, the Common Market Group (GMC), issues 
MERCOSUR technical regulations in the form of resolutions.  Sub-Working Group (SGT) No. 3 
(Technical Regulations and Conform ity Assessment) is responsible fo r drafting technical regulations, 
incorporating comments resulting from the internal consultation process, and submitting the final draft 
to the GMC for approval.  The measure is notified to  the WTO after internal consultation, but before 
it is adopted by MERCOSUR or incorporated into the internal legal system.
49  Paraguay has 
incorporated MERCOSUR's regulations on TBTs by  means of Decree No. 8.064/06, which contains 
76 GMC resolutions on foodstuffs, toys and metrology, inter alia ;  Decree No. 12.085/08, containing 
23 GMC resolutions on the labelling of tex tiles, foodstuffs and pre-packaged goods, inter alia ;  and 
Decree No. 4.432/10, which incorporates a GMC resolu tion on the definition of alcoholic beverages.  
Decree No. 8.064 was notified to the WTO in November 2006.50 
107. In Paraguay, SGT No. 3 is coordinated by the MIC.  This Ministry, together with other 
institutions (INTN, INAN, SENAVE, SENACSA, ONA) takes part in the technical work of the 
various committees belonging to SGT No. 3:  Foods tuffs;  Conformity Assessment;  Metrology;  
Safety of Electrical Products;  Automotive Industry;  Gas;  Toys and Safety of Bicycles for Adult Use.  
These committees are organized into sub-working groups composed of experts from the States 
Parties, who work on drawing up technical regulations. 
108. Paraguay has not signed any mutual recognition agreement and has not notified the WTO of 
any multilateral recognition agreement on confor mity assessment.  Paraguay does not accept as 
equivalent the technical regulations adopted or the testing carried out by its trading partners. 
109. The INTN is responsible for metrology activities,  pursuant to Law No. 937 on metrology of 
13 September 1982, Decree No. 1.988 of 16 February 1999 implementing this Law, 
Law No. 2.279/03, and Law No. 2.575 of 7 June 2005  (Reform of the INTN's Basic Charter).  These 
provisions appoint the INTN as the national metrol ogy agency, responsible for the implementation 
and functioning of the National Metrology Laborat ory (operated by the governing board of the 
INTN's national metrology agency), for keeping an d safeguarding national measurement standards, 
and for drawing up technical regulations in each specific area of metrology.  The INTN is also responsible for providing the services for controlling measuring instruments used in business, industry 
and in health services, as well as for monitoring th e content of packaged goods.  The INTN also 
manages the National Calibration Laboratory, which was accredited by the Deutscher Kalibrierdienst (DKD) in April 2008.
51  Paraguay is a member of the International 
Organization of Legal Metrology (OILM), through the INTN, and of the Inter-American Metrology 
System (SIM). 
                                                      
49 MERCOSUR online information.  View ed at:  http://www.mercosur.int/. 
50 WTO document G/TBT/N/PRY/2 of 28 November 2006. 
51 INTN online information.  Viewed at:  http://www.intn.gov.py/metrologia-intn.php. Paraguay WT/TPR/S/245 
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110. The Paraguayan National Codex Alimentarius Committee (CONACAP), created by 
Decree No. 17.487 of 11 June 1997, is composed of  representatives of the government and private 
sectors and is entrusted with the task of analys ing, evaluating and making recommendations to the 
Government concerning food-related standards,  and for harmonizing dom estic legislation and 
regulations on foodstuffs with the standards, dir ectives and codes of practice drawn up by the Codex 
Alimentarius Commission.  The INTN acts as th e permanent executive secretariat of the CONACAP. 
(b) Conformity assessment 
111. A number of regulatory bodies are responsible  for the adoption of conformity assessment 
procedures.  The steps followed in adopting these pr ocedures are similar to those for the adoption of 
technical regulations, with a period for public co nsultation and publication of the results in the 
Official Journal. 
112. Conformity assessment may be through certification,  control of retail trade or, at the ports of 
entry in the case of imported products, sampling.  Certification is mainly carried out by accredited third parties and is generally voluntary, except for products subject to Paraguayan technical 
regulations, for which certification is mandatory.  Pr oducts subject to mandatory certification include:  
fuel (unleaded petrol, aviation fuel, kerosene, diesel fuel, and fuel oil) ;  steel bars;  cement;  electric 
cables;  measuring apparatus and instruments;  LPG gas containers;  fire extinguishers and matches;  
vehicles;  steel rods and bars;  toys;  and tyr es.  Paraguay does not automatically recognize product 
and system certification by foreign certification agencies, except in special cases and for a limited 
period. 
113. Paraguay imposes specific labelling requirements on products such as foodstuffs, malt beer, 
grape and wine-growing products, products and by-p roducts of plant origin, seeds, pesticides, 
fertilizers, soil dressing and related products, tex tiles and footwear, househol d sanitary products, and 
medicines.  The Law on Consumer and User Prot ection (Law No. 1.334/98 of 18 June 1998) also 
contains non-specific requirements pertaining to information on the supply of goods and services 
(section (iv)(ii)). 
(c) Accreditation 
114. The National Accreditation Agency (ONA) was created in 1998 by Decree No. 20.660 of 
20 April 1998, within the CONACYT framework.  It  is currently governed by Law No. 2.279/03 of 
26 June 2003 and its principal task is to accredit testing and calibration laboratories and bodies that 
certify products, quality management or environm ental management systems, and individuals.  
Accreditation by ONA authorizes these entities to carry  out activities in the mandatory as well as the 
voluntary sphere.  ONA keeps a register of assessors and technical experts and is a member of IAAC.
52 
115. Since 2010, ONA accreditation has been mandato ry for all conformity assessment bodies 
providing services to the Paraguayan State, as  prescribed in Decree No. 3.900/2010 of 
5 February 2010.  ONA has three accreditation progra mmes:  for testing and calibration laboratories 
(based on standard NP-ISO/IEC 17025);  produc t certification (NP-ISO/IEC 65 Guide);  and 
inspection/verification (NP-ISO/IEC 17020). 
116. An application for accreditation has to be made to ONA, accompanied by substantiating 
documentation, which is examined before an evaluation is carried out in situ .  Application forms can 
                                                      
52 ONA online information.  Viewed at:  http ://www.conacyt.gov.py/ona/que-es-el-ona.php. WT/TPR/S/245 Trade Policy Review 
Page 58 
 
 
be found on ONA's website.53  For accreditation to remain valid, the body accredited must undergo 
regular evaluations.  Laboratories and other entities ar e accredited in conformity with international 
standards, in particular ISO/IEC 17011, which la ys down the requirements for accreditation bodies, 
and with the guidelines of International La boratory Accreditation Cooperation (ILAC), the 
International Accreditation Forum (IA F) and IAAC guidelines.  In orde r to be accredited, applicants 
must also comply with ONA's policies, regulati ons, criteria and procedures.  By December 2010, 
17 conformity assessment bodies had been accredited for quality systems:  three certification bodies 
accredited to certify products;  five testing laborator ies;  five calibration laboratories;  and four 
inspection bodies, all established in Paraguay.54  In addition, seven accreditation procedures were 
under way:  four for testing laboratories;  three fo r calibration laboratories;  one product certification 
body;  and one inspection/verification body. 
117. Table III.8 summarizes the accreditation requirements applicable in Paraguay at 
September 2010, as well as the bodies responsible fo r the legislation implementing the certification 
requirements for accreditation of certification bodies. 
Table III.8 
Regulations in force on mandatory accreditation, 2010 
Entity Law/Regulation Type of entity accredited International 
regulation 
MIC Law No. 3.107/2006  "Regulating the import, 
manufacture, assembly, tran sit, transport, storage 
and marketing of primar y cells and batteries, 
commons of carbon and zinc and alkaline of manganese, harmful to human health or the environment." Product certification entity NP-ISO/IEC 65 Guide 
(Model ISO 
1b-ISO/IEC 67 Guide) 
MIC Decree No. 4.926/2010  "Implementing Law 
No. 3.107/2006 'Regulating the import, manufacture, 
assembly, transit, transport, storage and marketing of 
primary cells and batteries, commons of carbon and 
zinc and alkaline of manganese, harmful to human 
health or the environment'."  Testing laboratory NP-ISO/IEC 17025 
Product certification entity NP-ISO/IEC 65 Guide 
(Model 5) MIC Resolution No. 553/09  "Regulating the manufacture, 
import and marketing of cables insulated with polyvinyl chloride (PVC) for nominal voltage up to 
450-750 V."  Testing laboratory NP-ISO/IEC 17025 
Law No 3.481/08 "Promotion and control of organic 
production." Product certification entity NP-ISO/IEC 65 Guide SENAVE, SENACSA 
Decree No. 4.577/10 "Implementing Law 
No. 3.481/08.  Promotion and control of organic 
production."  Testing laboratory NP-ISO/IEC 17025 
SENACSA Resolution VMG No. 35/2004 "Establishing 
requirements and obligations for enterprises 
certifying bovine meat going to the Republic of Chile."  Product certification entity NP-ISO/IEC 65 Guide 
SENAVE Law No. 3.742/09 (Art.8) "Control of phytosanitary 
products for agricultural use." Testing laboratory 
 NP-ISO/IEC 17025 
Inspection entity 
 NP-ISO/IEC 17020 
Testing laboratory 
 NP-ISO/IEC 17025 SENAVE Resolution No. 101/10 (Art.3) "Approving the 
requirements for registration of natural or legal 
persons providing commercial sampling services for 
sesame for analytical pur poses and suppliers of 
laboratory testing services within the framework of 
SENAVE Resolution No. 016/10." Product certification entity NP-ISO/IEC 65 Guide 
                                                      
53 CONACYT online information.  Viewed at:  http://www.conacyt.gov.py/admin/docs/FOR0 21%20 
Solicitud%20de%20Acreditación%20LE.pdf (testing labora tories);  http://www.conacyt.gov.py/admin/docs/ 
FOR035%20Solicitud%20acreditacion%20OI.pdf (inspecti on bodies);  http://www.conacyt.gov.py/admin/ocs/ 
for025solic.acreditacionlc.pd f (certification bodies). 
54 ONA online information.  Viewed at:  http ://www.conacyt.gov.py/ona/que-es-el-ona.php, and 
information provided by the authorities. Paraguay WT/TPR/S/245 
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Entity Law/Regulation Type of entity accredited International 
regulation 
Testing laboratory 
Calibration laboratory NP-ISO/IEC 17025 
Medical laboratory ISO/IEC 15189  
ISO/IEC 17021  
NP-ISO/IEC 65 Guide Certification entity  
ISO/IEC 17024 CONACYT-ONA Decree No. 3.900/10 "Implementing Articles 15 and 
16 of Law No. 2.279/03 on Science and 
Technology." 
Inspection/verification entity  NP-ISO/IEC 17020  
Source : Information provided by the Paraguayan authorities.  
118. The authorities consider that the Paraguayan Stat e needs to attach more direct importance to 
accreditation as a tool for supporting the national produc tion system in order to enhance the quality of 
the processes, products and services it uses and that, in addition, support is needed to develop the 
competitiveness of conformity assessment bodies. 
(d) Standards 
119. The INTN is an autonomous and decentralized body responsible for drawing up standards at 
the national level.  It was created by Law No. 862 of 26 June 1963 and reorganized by Law No. 2.575 
of 7 June 2005, which extended its  scope.  Relations between the INTN and the Executive are through 
the MIC.55 
120. The INTN prepares and approves Paraguayan st andards through its 49 technical committees, 
18 of which are operational, and is in charge of mandatory product certification.  Although the 
application of the INTN's standards is not mandato ry, they are often used by other governmental 
institutions as a frame of reference for the elaborati on of technical regulations .  A voluntary standard 
may be made into a technical regulation if so decided by the competent authority.  It is made mandatory by means of a technical regulation.  The INTN is also the national certification agency, pursuant to Decree No. 15.552 of 26 November 1996 (see above).  In Law No. 937 on metrology of 
13 September 1982 and its corresponding Implementing Decree No. 1.988 of 16 February 1999, the 
INTN was given responsibility for metrology and for the implementation and functioning of the 
National Metrology Laboratory. 
121. The INTN is a corresponding member of the International Standardization 
Organization (ISO), the Pan American Standards Commission (COPANT), the Ibero-American Programme of Science and Technology for Deve lopment (CYTED), the Joint FAO/WHO Codex 
Alimentarius Commission, the International Organization of Legal Metrology (OIML), the 
MERCOSUR Standardization Associa tion (AMN), and the Inter-American Metrology System (SIM).  
It is also the focal point and permanent executive sec retariat of the Codex Alimentarius for Paraguay. 
122. Paraguayan standards are prepared, adopted or  harmonized by the INTN, usually at the 
request of the private sector.  Upon receipt of a re quest, the INTN convenes the appropriate technical 
committee or sets up a new committee to draw up a dr aft standard.  The draft is submitted to a public 
enquiry for a period of 60 days, following which it is  approved by means of an INTN Resolution.  The 
procedures utilized in this process are based on in ternational guides and standards (ISO/IEC).  The 
standards drawn up are sent to the ISO/IEC in formation centre in Geneva, through the INTN's 
participation in ISONET.  In October 2010, ther e were 566 Paraguayan standards in 49 different 
                                                     
 
55 INTN online information.  Viewed at:  http://www.intn.gov.py/index.php. WT/TPR/S/245 Trade Policy Review 
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areas.56  Most INTN standards apply to the constructi on, textiles, dairy products, electricity, oils and 
fats, and timber sectors. 
123. As a member of the AMN57, the INTN takes part in MERCOSU R's work on standards.  The 
AMN is the regional non-governmental organizati on responsible for harmonizing technical standards 
and is composed of the standardization bodies of ea ch member country.  Pursuant to an agreement 
signed in 2004 between the CMG and the AMN, th ese work together through SGT No. 3 (Technical 
Regulations and Conformity  Assessment).  The purpose is to cooperate as regards information so the 
AMN submits an annual programme of work to  SGT No. 3, which must take into account 
MERCOSUR's priorities.  In addition, it must subm it a half-yearly report on progress in its work, to 
which the standards approved ar e attached.  The AMN conducts its activities through sectoral 
committees, which represent the industrial bran ches in each country and which elaborate and 
harmonize standards that are then approved by the AMN. 
124. The adoption of MERCOSUR standards as national standards or technical regulations by each 
member country is voluntary.  Paraguay, like the other MERCOSUR countries, has continued to make 
efforts to harmonize standards.  The regional body responsible for this task is the AMN.  By 
September 2010, 601 MERCOSUR standards had been  adopted, six were awaiting a vote at the 
national level and two were in the process of bei ng approved.  The programme of work contained a 
further 505 drafts.58 
(ix) Sanitary and phytosanitary measures 
125. The application of sanitary and phytosanitary (SPS) measures is governed by domestic 
legislation and the WTO SPS Agreement.  Since June 2007, the bodies responsible for the national 
enquiry point for the WTO have been SENAVE and SENACSA.59  In October 2010 this list was 
updated to include the MAG as the enquiry point for SPS measures. 
126. The MRE is responsible for notifying the WT O of SPS measures and receives questions and 
formal objections regarding regula tions notified, which are transmitted to the sectoral bodies through 
the various committees.60  The MRE is also a member of the CONACAP National Committee (see 
above).61  The various ministries coordinate their po licies and action in the (interministerial) 
Committee on Sanitary and Phytosanitary Measur es.  As at December 2010, a mechanism for 
notifying draft standards to the WTO was in the process of being approved. 
127. SENAVE began operating in April 2005, as a result of the merger of the Plant Protection 
Directorate (DDV), the Seeds Directorate (DISE), the Cotton and Tobacco Inspectorate (OFAT), and 
the Department of Marketing Standards for plant products and by-products in the MAG's Marketing 
                                                      
56 Sugar and sweeteners;  electricity;  alcoholic beverages;  metallurgy;  leather;  textiles;  oils and fats;  
timber;  cassava flour;  essential oils;  welding;  irradiat ed foodstuffs;  food additives;  plant products;  fuel;  
construction;  balanced foods;  fruit, vegetables and garden produce;  meat and meat products;  security;  
metrology;  commercial grains;  water;  milk and milk pr oducts;  ice-cream;  alcoho l for automotive use;  soaps 
and detergents;  tanks;  structures;  transport of perishable goods;  bread products;  geotechnics;  herbs;  
informatics;  quality management and conformity assessment;  automotive industry;  environment;  toys;  food 
hygiene;  organic production;  and handicrafts.  INTN online information.  Viewed at:  http://www.intn.gov.py:8000/. 
57 AMN online information.  Viewed at:  http://www.amn.org.br/es/. 
58 AMN online information.  Viewed at:  http://www.amn.org.br/br/. 
59 WTO document G/SPS/ENQ/25 of 15 October 2010. 
60 WTO document G/SPS/NNA/15 of 15 October 2010. 
61 Further information on the CONACAP can be obtained on its website at:  http://www.intn.gov.py/ 
conacap/indice_4.htm. Paraguay WT/TPR/S/245 
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Directorate.62  Among the tasks assigned to SENAVE by Law No. 2.459/2004 are:  implementation of 
international agreements on plant quality and health;  phytosanitary protection in Paraguay (with the 
authority to introduce quarantine systems);  aut horization and inspection of the import of plant 
products, pesticides and fertilizers;  certification of  plant products exported;  and the definition and 
monitoring of maximum levels for p esticide residues in plant products. 
128. SENAVE's work focuses on four main areas:  plant health, quality and safety, seeds, 
pesticides, fertilizers, soil dressing and related pro ducts.  The authorities have indicated that the 
relevant regulations are based on Paraguayan standard s, international standards in the International 
Plant Protection Convention (IPPC) and the Codex A limentarius.  As regards plant health, SENAVE 
is involved in plant quarantine, phytosanitary monito ring and agricultural protection.  With regard to 
seeds, SENAVE keeps the national registers and is  responsible for certifying production of seeds and 
for protecting the rights of breeders of new plan t varieties.  SENAVE monitors the quality of 
pesticides, fertilizers, soil dressing and related produ cts, mainly by controlling inputs and registering 
enterprises.  Lastly, SENAVE must guarantee th e quality and safety of plant products and 
by-products, whether for export, import or for domestic consumption, taking into account the 
guidelines and standards of the competent internationa l and national organizations;  for this purpose, it 
verifies the quality and safety of these products and by-products, mainly by certifying quality. 
129. Law No. 2.426 of 28 July 2004 created SENAC SA, as a decentralized autonomous body 
following the merger of the Livestock Protection Dir ectorate and the Directorate of Standards for the 
Control of Foodstuffs of Animal Origin in the Vice-Ministry of Livestock within the MAG.  
SENACSA started to operate in January 2005 and is Pa raguay's official animal health agency.  It is 
responsible for designing, coordinating, implem enting and controlling nati onal policy on animal 
health and the quality and safety of products and by-p roducts of animal origin .  In this respect, it 
authorizes and defines sanitary requirements for the import of:  (a) animals and genetic material (semen and embryos) of various animal species;  (b ) products and by-products of animal origin;  and 
(c) inputs for veterinary use (medicines, biological  inputs and feed).  SENACSA also determines the 
criteria to be met for approval of industrial facilities (slaughterhouses, processing plants, carcass 
dressing plants) for products of animal origin and inputs for veterinary use, inter alia . 
130. In addition to the aforementioned bodies, ther e are several governmental organizations with 
authority to issue regulations for the protection of human, animal or  plant health.  The DNVS in the 
MSPBS is responsible for regulating medicines for hum an use, chemical products and reagents for the 
pharmaceutical or non-pharmaceutical industry,  cosmetics and household products, as well as 
syringes and needles for human use.   Intervention by an MSPBS institution is required for the customs 
clearance of certain products for import or ex port.  The DNVS intervenes in the case of the 
above-mentioned products, INAN in the case of food products and beve rages, and the Directorate of 
Establishments and Professions (DEP) for medical, dental and laboratory apparatus, instruments, 
equipment and appliances.  The import of reagen ts for diagnostic purposes in clinical analysis 
laboratories and such entities must be authorized by the Central Laboratory of the MSPBS. 
131. The DNVS requires authenticated copies of th e following for customs clearance of products 
within its competence:  the definitive commercial invoice, the packing list, the transport waybill and 
the analysis certificate clearing ea ch batch of pharmaceutical produc ts.  The DNVS also controls 
clearance, including the registration of the compan y in the MSPBS register, the sanitary registration 
of the products, where appropriate, and the origin and source of the product, inter alia . 
                                                     
 
62 Law No. 2.459 of 4 October 2004. WT/TPR/S/245 Trade Policy Review 
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132. The various agencies involved in activities relating to SPS measures participate in 
coordination forums in order to harmonize their activ ities and the private sector also takes part in 
these.  The forums are the Technical Comm ittee on Sanitary and Ph ytosanitary Measures63, the SNIN 
and the CONACAP.  Institutions such as SENAVE , SENACSA, INTN, SEAM, MAG, MIC, MRE, 
DNVS, INAN and representatives of private groups also participate in these coordination forums. 
133. Paraguay has signed several international agreem ents such as the International Convention for 
the Protection of New Varieties of Plants and the IPPC.64  Paraguay also participates in the Southern 
Cone Plant Health Committee (COSAVE), a regiona l organization created through an Agreement 
between the Governments of Argentina, Brazil, Ch ile, Paraguay and Uruguay, under the framework of 
the IPPC.65  COSAVE's main objective is to reinforc e regional phytosanitary integration and take 
action to resolve phytosanitary problems of common interest to member countries.  In compliance with COSAVE's recommendations, Paraguay appli es a phytosanitary accreditation system for 
imported plant products (AFIDI).
66 
134. The principal legal provisions on SPS measur es include:  Paraguay's Health Code, Law 
No. 836/80;  Law No. 123/91 "Adopting new standard s of phytosanitary protection";  Law No. 385/94 
"Seeds and protection of cultivars";  Law No. 672/24 "Organic law on the Agricultural Protection and 
Plant Health Inspection Directorate";  Law No. 2.459/04 "Establishing the National Plant and Seed Quality and Health Service (SENAVE)";  Law No. 2.426/06 "Establishing the National Animal 
Quality and Health Service (SENACSA)" and its  Implementing Decree No. 6.419/05;  and Law 
No. 3.742/09 of 10 December 2009 on "Control of phytosanitary products for agricultural sanitary 
use". 
135. Law No. 123/91 defines phytosanitary responsibilities and obligations for the control of pests 
and the general conditions for produc tion, transfer, storage, and entry and exit controls.  Pursuant to 
this Law, the import, temporary entry or transit of  plant products requires prior authorization by the 
responsible authority, namely SENAVE.  The import authorization allows the issue of phytosanitary 
import accreditation (AFIDI).  Paraguay's regula tions on SPS measures include a ban on importing, 
distributing and marketing animals or products of animal origin from certain countries where 
particular diseases are present (Table III.9).  Import of birds requires prior authorization and is subject to special requirements.  All imports of animals and/or plants must be accompanied by a sanitary 
certificate (for plant products, imports must be ac companied by a phytosanitary export or re-export 
certificate from the country of origin) issued in acco rdance with the relevant international standards, 
for example, those of the IPPC, and the World Organisa tion for Animal Health (OIE).  It is the role of 
SENAVE and SENACSA to verify that products ente ring Paraguay through the land border, ports or 
airports comply with the sanitary and phytosanitary measures for imports. 
136. Law No. 385/94 regulates the production of seeds and lays down conditions for their 
production, marketing and export.  This Law created the National Register of Commercial Cultivars 
and the National Register of Protected Cultivars.  Law No. 3.742/09 on the control of phytosanitary 
products for agricultural use determines the lega l regime for registrati on and control of all 
phytosanitary products for agricultural use as of thei r entry into Paraguay, for example, synthesis, 
formulation, fractioning, transport, storage, labelling,  marketing, advertising, application, elimination 
                                                     
 
63 Established by Decree No. 6.626/2005, creating the National Technical Committee for Sanitary and 
Phytosanitary Measures.  The text of this Decree  is available at:  http://www.senave.gov.py/docs/ 
DecretoN6626.pdf. 
64 Laws No. 988/96 and No. 2.721/2005, respectively. 
65 Further information on COSAVE can be found  on its website at:  http://www.cosave.org/. 
66 Decree No. 139 of 3 September 1993. Paraguay WT/TPR/S/245 
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of residues and final disposal of the empty containe rs, and out-of-date pesticides, in order to protect 
human, animal, plant and environmental health. 
Table III.9 
Sanitary and phytosa nitary requirements for imports in force as at December 2010 
Products Requirement Legal basis 
Animals and anim al products 
Queen bees, swarms or any 
living material Prior authorization Decree No 25.045 of 19 October 1987 
(MAG) 
Animals and animal 
products or preparations 
from Belgium, Netherlands and France Sanitary certificate required attesting that certain animals and 
products of animal origin (headings 0101 to 0511 and 23.09 of 
the MERCOSUR nomenclature) are free of dioxins Decree No. 10.021/00 of 16 August 2000 
Live animals, genetic 
material of cattle, sheep and 
goats, products and by-products Ban on imports (products of HS Chapters 01, 02, 05, 15, 16 
and 23) from countries inf ected with bovine spongiform 
encephalopathy (BSE) Decree No 12.126/01of 7 February 2001;  
Decree No. 21.517 of 21 July 2003 
Live animals, genetic material, products and 
by-products of sheep and goats Ban on imports from countries where scrapie is prevalent or 
where no information on the matter is available Resolution No. 2/2001 of 19 January 2001
Live birds, products, 
by-products and genetic 
material Ban on imports susceptible to infection with avia n influenza Resolution No. 023/2004 of 19 May 2004 
Birds and bird products Prior authorizati on and sanitary certificate issued by the 
country of origin;  SENACSA  is the controlling entity Decree No. 21.945/98 of 17 July 1998 
(MAG) and Decree No. 11.524/00 of 
15 December 2000;  Decree 
No. 15.000/96 
Bovine or other animals for breeding susceptible to 
tuberculosis Sanitary certificate issued by th e country of origin;  sanitary 
inspection by SENACSA Decree No. 18.613/97 of 6 October 1997;  
Resolution No. 475/04 (MAG) 
Pigs Certificate of vaccination and diagnosis for pigs older than 
two months, issued by the country of origin and authenticated, 
attesting that the animals display no clinical sign of classical swine fever and that farms are regularly inspected by the 
country's sanitary authorities Decree No. 21.946/98 of 17 July 1998 
(MAG);  Decree No. 15.000/96 
Cattle and sheep from Argentina, Brazil and 
Uruguay Certificate of vaccination against foot-and-mouth disease, 
issued by the country of origin;  imports are subject to sanitary 
inspection and quarantine Resolution No. 475/04 (MAG) 
Frozen semen and embryos 
of animal origin Sanitary certificate issued by the country of origin;  imports are 
subject to quality and health controls Resolution No. 1.026/08 (SENACSA);  
Decree No. 15.000/96 
Hormonal substances Ban on import, marke ting and use of hormonal substances for 
fattening animals Decree No. 3.255/89 (MAG) 
Cloramphenicol Ban on import, manuf acture, fractioning, marketing and use Resolution No. 21/89 (MAG) 
Organochlorines Ban on import, form ulation, distribution, sale a nd use Resolution No. 447/93 (MAG) 
Nitrofuranes Ban on import, distribution, ma rketing and use Resolution No. 307/98 (MAG) 
Hydrolysates of ruminant 
origin Ban on production, import and mark eting Resolution No. 07/2002 (MAG) 
Proteins of ruminant origin Ban on feeding ruminants w ith proteins of mammal origin Resolution No. 15/04 (MAG) 
Olaquindox Ban on import, ma rketing and use Resolution No. 278/08 (SENACSA) 
Products of plant origin 
Wild and exotic species of 
flora and fauna Prior authorization Law No. 96/93 of 24 December 1993 
Products of plant origin Prior authorization;  phyto sanitary inspection and requirement Law No. 2.459/04 
Grape and wine-growing 
products Compliance with MERCOSUR re gulations concerning grape 
and wine growing (MERCOSUR Resolution No. 45/96);  
subject to analysis and a certificate permitting marketing of the product, issued by the MIC Decree No. 18.953/97 of 
5 November 1997 (MIC) WT/TPR/S/245 Trade Policy Review 
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Products Requirement Legal basis 
Seeds Prior authorization Law on Seeds and Protection of Cultivars 
Other products 
Food products Sanitary registration of products (including imports) with the 
MSPBS;  registration is valid for five years, but all imports 
(including those from MERCOSUR) are controlled Law No. 836/80 of 15 December 1980 
(Health Code);  Decree No. 1.635/99 of 
12 January 1999 
 INAN is authorized to approve  and register entities (including 
importing entities) handling food  products, beverages and 
additives for human consumption Decree No. 16.611/02 of 7 March 2002 
Salt for human and animal 
consumption Importers, producers and warehouses of wholesalers of salt and 
related products have to be regi stered with INAN;  sanitary 
registration is also mandatory for the salt itself;  labelling 
requirements for non-edible salt Law No. 836/80 of 15 December 1980 
(Health Code);  Decree No. 3.597/99 of 
11 June 1999;  Resolution No. 144 of 
31 March 2003;  Resolution No. 163 of 3 March 2009 
Agricultural inputs Importers, and the pr oducts, have to be registered with 
SENAVE Law No. 3.742/2009 
Processed timber Specific requirements for the import of processed timber Resolution No. 234 of 29 August 2006 
Note: MAG:  Ministry of Agriculture and Livestock;  MIC:  Minist ry of Industry and Trade;  MSPBS:  Ministry of Public Health an d 
Social Welfare;  SENAVE:  National Plan t and Seed Quality and Health Service;  SENACSA:  National Animal Quality and 
Health Service;  INAN:  National Food and Nutrition Institute. 
Source : WTO Secretariat.  
137. Since the previous Review of Paraguay in 2005, a series of regulatory provisions on 
SPS measures has been adopted.  The purpose of some  of these was to reform the institutional 
structure and to create new bodies such as SENAV E and SENACSA.  Others were intended to 
improve the harmonization of Paraguay's provisions with those of MERCOSUR.  Lastly, in some 
cases, legislation was adopted to implement intern ational agreements or to adopt international 
standards (Table III.10). 
138. One of the most important developments in the SPS regulatory framework during the period 
under review was the enactment of Law No. 3.742 of 10 December 2009 on "Control of phytosanitary 
products for agricultural sanitary use", which establi shes a regime for registration and control of such 
products as of their entry into Paraguayan territory.67  Since this instrument entered into force, 
importers have had to register with the implemen ting authority, SENAVE, together with the product;  
the Law makes it mandatory to register any phyt osanitary product for agri cultural use as soon as it 
enters Paraguayan territory.  Synthesis, formulat ion, fractioning, transport, storage, labelling, 
marketing, advertising, application,  elimination of residues and final disposal of empty containers and 
out-of-date pesticides must also be registered in order to protect human, animal, plant and 
environmental health.  The Law also makes it mandatory  to register laboratories which analyse, test or 
generate information on phytosanitary products.68 
                                                      
67 The Law defines a phytosanitary product as:  "Any substance or mixture of substances intended to 
prevent, control or destroy any harmful organism, including undesirable species of plants, animals or 
microorganisms which harm or interfere negatively in the production, development or storage of plants and plant products".  The term includes de siccants and substances applied to plants before or after the harvest in 
order to protect them against deterioration in the course of storage and transport. 
68 The text of Law No. 3.742/2009 is available on the website of the Paraguayan Senate at:  
http://www.senado.gov.py/leyes/ups /leyes/6838ley%203742-2009.doc. Paraguay WT/TPR/S/245 
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Table III.10 
SPS regulatory instruments approved since 2004 
Number and date Title 
Laws   
No. 2.426 of 28 July 2004 Creation of the National Animal Quality and Health Service (SENACSA) 
No. 2.459 of 2 September 2004 Creation of the National Pl ant and Seed Quality and Health Service (SENAVE) 
No. 2.721 of 3 October 2005 Approval of the International Plant Protection Convention 
No. 3.194 of 25 May 2007 Approval of the international treat y on philogenetic resources for food and agriculture 
No. 3.519 of 25 June 2008 Protection of test data requested by the sanitary authorit y for approval of phytosanitary products 
No. 3.742 of 10 December 2009 Control of ph ytosanitary products for agricultural use 
Decrees   
No. 4577 of 17 June 2010 Implementing regulations for Law No. 3481/08 on promotion and control of organic production 
Resolutions   
No. 1105 of 1 September 2004 Establishment of new technical guidelines and principles fo r developing pest risk analyses for 
imports of products and by-products of plant orig in from countries or regions with pests of 
quarantine importance 
No. 27 of June 2005 Amendment of the specific regula tions on the production and marketing of certified and/or 
controlled cotton seeds, approve d by Resolution MAG No. 290/2000 
No. 35 of 28 June 2005 Adoption of the inte rnational standard for phytosanitary measures ISPM No. 15 "Regulation of 
wood packaging material in international trade" 
No. 234 of 29 August 2006 Approval of a regime of exemption to  Resolution No. 1105/04 for in ward clearance of processed 
timber and semi-processed timber into Paraguay 
No. 230 of 20 June 2007 Entry into force in the Republic of Paraguay of the resolutions updated and approved by the 
MERCOSUR Common Market Group relating to harmonization of phytosanitary requirements 
No. 322 of 19 June 2008 Updating for the Republic of Para guay of the resolutions updated and approved by the 
MERCOSUR Common Market Group relating to harmonization of phytosanitary requirements 
Note: MAG:  Ministry of Agriculture and Livestock;  MIC:  Mini stry of Industry and Trade;  SENAVE:  National Plant and Seed 
Quality and Health Service;  SENACSA:  Na tional Animal Quality and Health Service. 
Source : WTO Secretariat, on the basis of information provided by the authorities.  
139. Enterprises which synthesize, formulate and/or fr action phytosanitary products must also be 
registered and must employ a chemical expert to be responsible for controlling the quality of 
production at the plant.  Such enterprises must have a quality control system for phytosanitary 
products and have a production plan in  order to be registered;  they must also obtain an environmental 
licence from SEAM. 
140. Paraguayan laboratories must be register ed and approved by SENAVE, prove their 
competence in the field and be accredited by ONA.  In order to be recognized, laboratories analysing 
the quality of phytosanitary products and situated  in COSAVE member countries must be accredited 
by the national accreditation agencies or the phytosan itary authorities in the country in question.  
Registration of laboratories is valid for three year s and may be renewed.  The Law does not mention 
the registration of laboratories in third countries;  the authorities have indicated that, in order to be registered, they must first be accredited by ONA. 
141. The term of validity for regist ration of phytosanitary products  depends on their classification 
as "experimental", "definitive" or "for export".
69  For products classified as experimental, registration 
                                                      
69 Pursuant to Law No. 3.742/2009, experimental registration is given to new technical grade active 
substances and products formulated on the basis of new technical grade substances.  Definitive registration is 
granted for the following products:  (a) new or original technical grade active substances;  (b) equivalent 
technical grade active substances;  (c) products formulated on the basis of new technical grade active substances with field trials of their effectiveness conducted according to an approved protocol;  (d ) products formulated on 
the basis of equivalent technical grade active substances;  and (e) products formulated on the basis of microbial 
biological control agents with fiel d trials of their effectiveness con ducted according to a protocol.  Export 
registration is given to products synthesized or formulated in the country exclusively for export purposes. WT/TPR/S/245 Trade Policy Review 
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is for two years, renewable for a further two years,  during which the products must undergo field trials 
of their effectiveness and may not be marketed.  Fo r products classified as definitive or for export, 
registration is for an indefinite period subject to pa yment of an annual fee for maintaining registration. 
142. In December 2010, implementation of the new Law was still awaiting the preparation of the 
implementing regulations, for which SENAVE had initiated a participatory consultation process.70 
143. Activities related to genetically modified organisms (GMOs) are governed by Decree 
No. 12.706 of 13 August 2008, "Extending and amending Decree No. 18.481/97".  The amendments introduced by these new provisions in comparison with  the previous legislation mainly concern the 
creation of SENAVE and ratification of the Cartagen a Protocol on Biosafety to the Convention on 
Biological Diversity.  Decree No. 12.706/08 maintains a consultative body for biosafety which is now 
entitled "Agricultural and Forestry Biosafety Co mmission" (COMBIO), composed of representatives 
of the MSPBS, MIC, SENACSA, SENAVE, the Na tional University of Asunción and SEAM. 
144. COMBIO, which took over the tasks of the Biosafety Commission, is responsible, inter alia , 
for ensuring that persons and institutions working with GMOs comply with the safety measures for 
their use, handling and release into the environment, as well as for authorizing entry into Paraguay.  It 
is COMBIO's role to evaluate GMOs and to ma ke all relevant recommendations concerning their 
introduction, field trials, research-experiments, c ontrolled release into the environment and other 
proposed uses.  It is also responsible for propos ing biosafety standards and defining monitoring 
criteria.  Imports of all agricultural products  have to be approved by the MAG following a 
recommendation from COMBIO.  The import of GMOs is not prohibited, but, like imports of other 
plant and animal products, they must undergo a risk  assessment.  Cross-border movement of GMOs is 
governed by the principles in the Cartagena Protoc ol on Biosafety to the Convention on Biological 
Diversity, which Paraguay ratified by Law No. 2.309 of 3 December 2003. 
145. Decree No. 3.255/89 bans the production, import, marketing and use of hormonal substances 
for fattening animals whose meat and products are intended for human consumption and regulates the 
use of hormones in animal breeding. 
146. During the period under review, Paraguay significantly increased the number of its 
SPS notifications.  The previous Review showed  that it had only submitted one notification on 
SPS measures, in 1999.  The authorities have indicated  that following this and taking into account the 
comments made by Members during the 2005 Tr ade Policy Review, Paraguay took action to 
overcome the lacunae in the list of notifications.  As a result of these effort s, there has been an 
improvement in compliance with its obligations since 2005, with a total of 22 notifications on 
SPS measures since the WTO came into being, of wh ich 21 have been submitted since the previous 
Review in 2005. 
147. Most of these notifications concern one of th e following aspects:  wood packaging material, 
pesticides, or emergency measur es (foot-and-mouth disease).  For example, a temporary ban on the 
import from Bolivia of products of animal origin  susceptible of transmitting foot-and-mouth disease 
was notified during the period under review.  Th e incorporation of MERCOSUR regulations on 
phytosanitary requirements for fruit and horticultural products into Paraguay's legal system was also 
notified. 
148. Despite the increase in the number of notificati ons of measures adopted, in the vast majority 
of cases notifications concerned measures already adopt ed and not draft regulations or legislation.  
Paraguay still has to establish mechanisms to gi ve other WTO Members an opportunity to comment 
                                                     
 
70 For further information, see the SENAVE website at:  http://www.senave.gov.py/noticia03.html. Paraguay WT/TPR/S/245 
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on the SPS measures to be adopted within a reasonabl e time, in accordance with the procedure set out 
in Annex B to the SPS Agreement.  In this conn ection, the authorities have indicated that, as at 
December 2010, a mechanism for notifying draft sta ndards to the WTO was in the process of being 
approved. 
149. Within MERCOSUR, harmonization of sanitary and phytosanitary measures is the 
responsibility of Sub-Working Group No. 8 - Agricu lture (SGT No. 8), based on the principles, 
guidelines, criteria and parameters for agreements on the equivalence of sanitary and phytosanitary 
control systems, established in document RES/GMC/60/99.71  SGT No. 8 meets on a regular basis and 
is composed of officials from the regulatory bodies in each country, who in advance and 
simultaneously conduct the consulta tions with the committees mentioned in paragraph XX(4).  During 
the period under review, Paragua y continued to adopt MERCOSUR' s harmonized SPS measures, in 
particular for plant products and by-products. 
150. Paraguay has continued to incorporate ME RCOSUR regulations on SPS measures.  In 
relation to animal health, by means of Decrees Nos. 15.000/96 and 891/98, eight GMC/MERCOSUR resolutions were incorporated into Paraguay's legi slation;  by means of Resolutions MAG Nos. 475, 
476 and 478/04, another five were incorpor ated;  and Resolution SENACSA No. 1.026/08 
incorporated a further eight.  All these resolutions  refer to health certification requirements for the 
import of live animals and genetic  material (semen and embryos) of various species of animal. 
151. Law No. 3.481 of 6 June 2008 laid down prov isions on the promotion and control of organic 
production.  The regulations appoint the author ities for promotion (MAG), accreditation (ONA), and 
registration, supervision and c ontrol (SENACSA and SENAVE) for this purpose.  The Law also 
defines the procedure for certification and cont rol and the penalties for non-compliance with the 
Law's provisions.  The Technical Committee on th e Promotion of Organic Production has been 
established for promotion purposes and to make legislative proposals on fiscal incentives and 
approval of lines of credit.  By December 2010,  no regulations on incentive mechanisms had been 
published.  The Committee has, however, develope d a long-term national strategy (2017) with 
activities to develop the following:  markets, tec hnology, organizations, in formation and knowledge 
management systems, incentives and institutional strengthening. 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures and documentation 
152. Export procedures are codified in the Customs Code (Law No. 2.422/04), which came into 
force on 11 January 2005 and is implemented by D ecree No. 4.672/05.  The Code provides that all 
exporters must be registered in the National Re gister of Exporters (RNE), which is the only 
mandatory register in effect since November 2004.  Listing in this Register is valid for the same 
period as the documentation submitted. 
153. Pursuant to Decree No. 7.290/06 "Authorizing the application of the simplified export system 
entitled Single Window for Exports (VUE)", the VUE ca me into effect and brought to an end the 
gradual streamlining of export formalities.  The programme and the creation of the VUE were the 
responsibility of the Under-Secretariat for Trad e in the MIC, with assistance from the IDB.72  The 
VUE was implemented in two stages:  firstly, the introduction of the RNE and then the procedures, 
which came into effect in 2007.  The VUE is now also used for the industrial registration of 
enterprises. 
                                                      
71 Incorporated into Paraguay's domestic legislation by Decree No. 10.846/00. 
72 Decree No. 13.652/01 of 27 June 2001. WT/TPR/S/245 Trade Policy Review 
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154. Implementing the VUE allowed a single RNE to be introduced and this is administered by the 
VUE.  It also enabled the interconnection of all government and private bodies involved in export.  
The objectives sought include smoother flow of info rmation, lower costs and less time required for 
completing formalities, and making more precise statisti cal data on exports available.  To meet these 
objectives, the VUE maintains contacts and interacts with State agencies and pr ivate entities such as:  
the Ministry of Finance, MIC, MAG (SENACSA, SENAVE), MSPBS, the Ministry of Public Works and Communications (MOPC), INFONA, and bodies which issue certificates of origin, inter alia .
73 
155. Customs clearance requires an export declarati on, which is submitted electronically through 
the SOFIA system.  The commercial invoice has to be submitted for this purpose and, depending on 
the case, a sanitary, phytosanitary or animal health  certificate may also be required.  An insurance 
policy can be required for temporary exports, but this is not applied in practice. 
(ii) Taxes, levies and other export charges 
156. Paraguay has no export taxes.  Those on agricu ltural products in their natural state were 
repealed on 1 January 2005 under Decree No. 2.939/04 of 26 July 2004, which implemented the provisions in Law No. 2.421/04 "Administrative reorganization and fiscal adjustment" and Decree 
No. 4.305/04 "Implementing Article 4 of Law No . 2.421/04 'Administrative reorganization and fiscal 
adjustment'", which concerns income tax on agricultu ral activities.  Prior to this Law, taxes were 
imposed on leather in its natural state and soya. 
(iii) Export prohibitions, restrictions and licensing 
157. The Customs Code and its implementing regula tions provide for the possibility of applying 
restrictions or prohibitions on the export of goods in accordance with the regulations in force. 
158. Most of the export prohibitions, restrictions or licensing applied by Paraguay are for 
environmental or safety reasons.  For example,  Law No. 96/92 bans the hunting, commercial 
exploitation or export of wild animals without the express authorization of SEAM in order to protect 
Paraguay's biodiversity.  Law No. 1.340/88, update d by Decree No. 18.425/02, bans trafficking, 
marketing and development of da ngerous drugs and narcotics. 
159. Some other restrictions are for both environmental purposes and the development of a 
domestic industry, with the resulting increase in th e value added of production.  For example, under 
Law No. 515/94 of 9 December 1994, as amended by Law No. 2.848/05, the export of all unprocessed 
or semi-processed wood (roundwood or logs) of an y species is banned.  Exports of sawn wood, 
including planed wood, of the species cedrela spp  (cedar), Tabebuia Spp  (lapacho), Myrocarpus Spp  
(incense) and Cordia Trichotoma  (petereby) are regulated by Decree No. 8.463/91, as amended by 
Decree No. 8.574/06. 
160. Exports of Petit Grain  essential oil are regulated by Law No. 268/71 and Decree 
No. 26.067/72.  This Law made industrializa tion of part of the domestic production of Petit Grain  
compulsory;  up to 60 per cent of domestic produc tion may be exported in unprocessed form, while 
the remaining 40 per cent of exports must be pre-refined. 
161. Exports of aluminium or copper waste and c opper/tin-based alloys (bronze) need a prior 
licence from the MIC, as provided by Decree No. 21.00 3/2003 "Creating a register of exporters of 
aluminium, copper and bronze and establishing the prior export licensing regime", and its 
implementing regulations in Resolution No. 219/ 2003.  Since November 2009, such licences have 
                                                     
 
73 VUE website:  http://www.vue.org.py/ objetivos_propositos/objetivos.html. Paraguay WT/TPR/S/245 
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been processed electronically pursuant to Reso lution No. 729/2009 "Implementing the electronic 
management system for issuing prior export licen ces for aluminium, copper and bronze, established 
by Decree No. 21.003/2003". 
162. A prior export authorization is also require d to satisfy the requirements of multilateral 
environmental agreements ratified by Paraguay su ch as the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora (CIT ES) and the Basel Convention on the Control of 
Transboundary Movements of Hazardous Wastes and their Disposal.  The competent authorities for granting prior authorizations are:  the Administ rative Authority of SEAM, for CITES and the Basel 
Convention;  the Armaments Directorate (DIMABEL ), the National Environmental Health Service, 
the Under-Secretariat of State for Agriculture, th e National Atomic Energy Commission, or SEAM, 
depending on the nature of the products  concerned, for the Basel Convention. 
163. Pursuant to Law No. 123/91 of 9 January 1991, all products of plant origin must have a 
phytosanitary export certificate.  A certificate issued  by SENAVE is also required for the export of 
agricultural chemicals (pesticides, fertilizers, soil dressing and related products).  A prior 
authorization from INFONA is required to export timber, which must undergo a physical inspection 
before clearance.  A sanitary certificate issu ed by the MSPBS is required for the export of 
pharmaceuticals. 
(iv) Tax concessions, free zones and other fiscal incentives 
(a) Special customs procedures 
164. There are several special customs procedures in the Customs Code, for example:  drawback;  
temporary admission, and temporary admission for inward processing;  and the transit and customs 
warehousing procedures. 
165. The transit procedure allows the movement of domestic or foreign goods within the customs 
territory from one customs point of exit to another poi nt of destination, with payment of customs duty 
suspended.  The customs transit operation may be:  (a) from a customs entry point to a customs exit 
point (international direct transit);  (b) from a cust oms entry point to an inte rnal customs post (internal 
transit);  or (c) across a river, a stretch of wh ich includes the customs territory (river transit). 
166. The customs warehousing procedure allows the entry and storage of imported foreign goods 
and of domestic goods for export in bonded ware houses, with full suspension of customs duty until 
the goods either come under another customs procedure or are reshipped.  There are two forms of storage:  (a) storage under which the goods may rema in under customs control in order to be included 
in another authorized customs procedure, within the time limit defined for this purpose, without any 
handling that changes their value or modifies their na ture or state;  and (b) commercial storage, under 
which the goods may be the subject of operations in tended to facilitate their marketing, for example 
improving their presentation, preparing them for distri bution or sale, without modifying their nature or 
state. 
167. The temporary admission procedure allows the entry of foreign goods into Paraguay with 
total or partial suspension of import duty subj ect to their subsequent re-exportation without 
modification. 
168. The temporary admission for inward processing procedure allows for the full or partial 
suspension of duty on products to be processed (eit her through transformation, preparation, repair, 
restoration and finishing, conditioning, packing or  packaging) provided that the final product is 
exported. WT/TPR/S/245 Trade Policy Review 
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169. Under the drawback procedure, exporters may r ecover all or part of the customs import tax 
paid for goods exported or for the products cont ained therein or consumed during the production 
process. 
170. Law No. 125/91 exempts exported products from VAT and the selective consumption tax.  In 
accordance with Law No. 2.421/04, the VAT and selec tive consumption tax paid on goods or services 
used to produce goods for export may be refunded as tax credits (section (2)(v)). 
(b) Free zones and free ports 
171. Paraguay has a law and regulatory decrees providing for a free zones scheme for trade 
(inward clearance of goods through zones without any processing, including storage, selection, 
classification, handling and mixing of goods or raw materials), industry (processing or assembly of 
goods for export by transforming raw materials a nd semi-processed domestic  or imported products) 
and services (repair and maintena nce of equipment or machinery and other services that may be 
authorized by the Executive).  The free zone  regime is covered by Law No. 523/95 of 
16 January 1995, amended in part by Law No. 2.421/04 (see below), and Decrees No. 15.554/96 of 
29 November 1996 (authorizing and establishing th e regime), No. 19.461/02 of 22 November 2002 
(approving the rules for its functioning and operation), No. 20.395/03 (on administrative measures to 
broaden the regulations on imports from free zone s), and No. 21.309/03 of 10 June 2003 (amending 
certain provisions of the earlier decrees in order to facilitate transit to free zones).  Paraguay has not 
notified any of these laws and decrees to the WTO. 
172. Free zones are areas established in Paraguayan national territory, separated from the customs 
territory, and they must be enclo sed by a perimeter fence.  According to Law No. 523/95, free zones 
must be established and operated by the privat e sector and are not open to government sector 
enterprises.  The National Council of Free Z ones (CNZF), establishe d by Law No. 523/95, is 
responsible for supervising the functioning of the fr ee zones and is composed of representatives of the 
Ministry of Finance, the MIC, the MOPC, one representative of the concession holder and one representative of the user enterprises.  According to the MIC, the main objectives of the free zones 
policy are:  to expand the marketing of domestic goods and the contracting of local services;  to create 
poles of growth in certain regions;  to generate new sources of foreign currency;  to develop business 
centres;  to combat smuggling and pi racy;  and to enhance competitiveness.
74  The Paraguayan 
authorities consider that free zones offer a series  of advantages, including a smaller volume of 
inventories hence lower financial costs for stoc king goods, facilities for distributing products of 
MERCOSUR origin and speedy deliveries to MERCOSUR countries.75 
173. Pursuant to Law No. 523/95, any legal person, by means of a contract signed with the 
Executive, may acquire the right to develop, mana ge and operate a free zone through a concession.  
Concessions are granted for a period of 30 years, renewable for a further 30 years.  Investment 
projects for developing free zones must be submitte d for consideration by the CNZF, which makes a 
recommendation to the Executive, through th e Ministry of Finance, for a decision.76 
                                                      
74 MIC (2007b). 
75 Idem . 
76 The CNZF has the following members:  Ministry of Finance (Vice-Minister of Taxation);  MIC 
(Vice-Minister of Trade);  Ministry of Public Works and Communications (Vice-Minister of Public Works and 
Communications);  and users and concession holders of the free zone.  The National Director of Customs and 
the Director General of REDIEX are honorary members, pursuant to Resolutions CNZF No. 3/06 and CNZF No. 3/07, respectively. Paraguay WT/TPR/S/245 
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174. Under Law No. 523/95, a free zone has two principal actors:  the concession holder, 
responsible for installing the infrast ructure needed to enab le the free zone to operate, and the user, a 
natural or legal person, with Paraguayan or fore ign private status, responsible for conducting the 
business, industrial or services activities.  Conces sion holders are eligible for the investment 
incentives determined in Law No. 60/90 and are exempt from paying VAT on the services supplied to 
users, but they do not qualify for the exemptions  and benefits available to users according to Law 
No. 523/95.  Users of free zones are exempt from al l national, departmental and municipal taxes on 
the end product of the activities carried out in the zones.  The tax exemption also applies to the 
establishment of companies using the free zones and to the transfer of profits or dividends to 
third countries.  Users of free zones are also ex empt from royalties, commissions, fees, interest and 
any other remuneration for services, technical assistan ce, technology transfer, loans and financing and 
any other services supplied from third countries.  Ca pital goods (machinery and equipment) entering 
the free zones are exempt from duty and all other taxes (including goods on hire with an option to buy). 
175. Enterprises solely engaged in export pay a flat  rate free zone tax of 0.5 per cent on gross 
income from exports.
77  Enterprises engaged in business, indus trial and service activities and situated 
in a free zone may sell finished goods and services in Paraguayan customs territory for a maximum amount equal to 10 per cent of the enterprise's gross sales revenue, paying only the flat rate free zone 
tax (Article 16 of Law No. 523/95).  If in addition  to exporting to third countries an enterprise in a 
free zone engages in sales in Paraguayan customs te rritory exceeding 10 per cent of the enterprise's 
gross sales revenue, it is liable for income tax on the share of its sales in the customs territory in its 
total gross income, with the possibility of deducti ng its costs in the same proportion, and without 
prejudice to payment of the flat rate free zone tax on exports to third countries.  Exports to 
Paraguayan customs territory by enterprises in free zones are subject to the payment of duty and any 
other import tax. 
176. Decree No. 7.068/06 of 6 January 2006 defines measures for the import of goods originating 
in MERCOSUR from free zones developed in Paraguay into customs territory, which are eligible for 
the tariff benefits established for the custom s union.  Decision MERCOSUR/CMC/DEC No. 8/94 
provides that States Parties should apply the CET or, in the case of exempt products, the national tariff in effect to goods from commercial or industria l free zones, from export processing zones and from 
special customs areas when these products enter their own countries. 
177. In October 2010, Paraguay had tw o approved free zones, both situated in the department of 
Alto Paraná:  the Zona Franca Global del Paraguay , with a concession given to the enterprise Zona 
Franca Global del Paraguay S.A.C.S .;  and the Zona Franca Internacional  (ZFI), with a concession 
granted to Consorcio Trans Trade S.A. & Asociados .  These two free zones st arted to operate in 2003, 
with concessions granted for 30 years, as provided by Decree No. 17.003/02 of 24 April 2002.  By 
October 2010, a total of 160 users had been authori zed to operate in the two free zones, of which 
129 were in the Zona Franca Internacional  and 31 in the Zona Franca Global .  The value of exports 
to third countries from users of the free zones we re not significant until early 2007, with virtually 
everything entering being stored temporarily and th en cleared into Paraguayan customs territory.  
Since then, however, free zone exports have risen sharply, to US$14.7 million in 2009 and 
US$16.2 million during the first nine months of  2010.  Between 2003 and September 2010, total 
exports amounted to US$62.5 million.  The free z one tax collected over this period amounted to 
US$312,424.  Despite growing sales outside th e country, during the period under review 
approximately 90 per cent of the goods leaving the free zones went to Paraguayan customs territory, 
and the rest was exported to third countries.  Th is explains why between the establishment of the 
                                                     
 
77 Pursuant to Law No. 523/95 of 16 January 1995. WT/TPR/S/245 Trade Policy Review 
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free zones in 2003 and September 2010 the tax collect ed by the customs on goods entering free zones 
(and then re-exported to Paraguayan custom s territory) amounted to US$179.6 million. 
178. In order to make better use of free zon es, in October 2007 the CNZF signed a framework 
agreement on cooperation and mutual assistance with  the MIC's REDIEX.  Under this agreement, the 
CNZF will make efforts to attract foreign and dom estic investment through the regime covered by 
Law No. 523/95, seeking mechanisms to streamline,  facilitate and boost business, industrial and 
services operations and provide the right framework for expanding i nvestment by Paraguayans and 
foreigners in industry, trade and services through th e free zones.  REDIEX will be responsible for 
facilitating export from free zones through support activities.78 
179. The authorities have indicated that, so far,  the free zone regime implemented by Law 
No. 523/95 in Paraguay has not shown the same ec onomic dynamism noted in free zones in other 
countries of the Americas.  The authorities consider th at, for this to be achieved, the regime will have 
to be given the tools enabling it to offer potential investors more a nd better opportunities for business, 
for example by providing more services, allowing sales to tourists, and improving infrastructure, inter alia . 
(c) Maquila 
180. The maquila  regime consists of subcontracting in  Paraguay for processing and export.  It 
functions on the basis of a contract between a foreign firm and a maquila  company, under which the 
foreign firm supplies the maquila  company with goods or services for the latter to perform certain 
value-added activities such as transformation, elabora tion, repair, finishing or industrial processing.  
The maquila  company may operate purely on a maquila  basis or by using idle plant capacity.  
Maquila  companies may in turn subcontract some indus trial processes to local companies;  if the 
subcontractor so requests and the maquila  programme is approved, the status of maquila  
subcontractor is conferred. 
181. The maquila  regime is governed by Law No. 1.064/97 of 13 May 1997 " Maquila  export 
industry", as subsequently amended by Law No. 2. 421/04 (see below), and is implemented by Decree 
No. 9.585/00 of 17 July 2000.  The maquila  regime has been operating since March 2001.  Since 
2001, a chamber of maquila  enterprises has also been in operati on, with the objective of promoting 
the development of maquila  enterprises and providing impetus to the maquila  industry in Paraguay. 
182. The most important benefits of the maquila  regime are:  application of a single maquila  tax of 
1 per cent on the national value added or the invoici ng, whichever is higher;  suspension of duty and 
import taxes, including VAT, on raw materials and inputs, and capital goods
79;  the elimination of tax 
on capital remittances abroad for a period of ten years, applicable to investment exceeding 
US$5 million;  and VAT ref unded through tax credits.  Maquila  companies are exempt from all other 
national, departmental or municipal taxes;  VAT on internal operations is recovered through negotiable credit certificates.  The maquila  subcontract is also subject to a flat rate tax of 1 per cent by 
way of income tax on the amount of the invoice giving details of the services subcontracted. 
                                                     
 
78 MIC online information.  Viewed at:  http:// www.mic.gov.py/index.php?option=com_content&task 
=view&id=529&Itemid=646 [16 August 2010]. 
79 These goods are imported under the temporary admission regime with payment of tax suspended.  
Suspension of payment of VAT, duty and other taxes requires the maquila  company to provide security for the 
amount of any applicable charges, which may take the form of a mortgage or pledge, or of insurance policies issued by Paraguayan companies. Paraguay WT/TPR/S/245 
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183. The maquila  regime is open to forei gn or Paraguayan natural or legal persons domiciled in 
Paraguay and authorized to engage  in business, which register as maquila  companies with the 
National Council of Maquila  Export Industries (CNIME) and submit a maquila  programme to the 
CNIME for approval.80  Maquila  programmes must be approved by a joint resolution of the MIC and 
the Ministry of Finance.  Some of the CNIME's most important tasks are to develop and evaluate 
policies to promote the maquila  industry and it is responsible for evaluating maquila  programmes for 
subsequent approval by the MIC and the Ministry of Finance.81  Maquila  companies may be set up 
anywhere in Paraguay, the only limitations being imposed by national, departmental and municipal 
urban development plans and environmental criteri a.  They may be established as public limited 
companies, partnerships, limited liability companie s, subsidiaries of foreign companies or as an 
individual enterprise with limited liability.  Maquila  companies may have 100 per cent foreign capital 
and are eligible for all the national and foreign investment guarantees provide d in Law No. 117/91 on 
investment. 
184. The final products or services of maquila  companies must be exported.  The maquila  regime, 
nevertheless, allows up to 10 per cent of the previous year's exports to be sold in the domestic market, 
as of the second year, subject to inward clearance of the inputs imported with suspension of duty.  The 
law allows maquila  industry products to be sold in the Para guayan market if this is necessary to meet 
domestic demand for goods or if the goods are not produced in the domestic market.  Sales to the 
domestic market require authorization from the CN IME, payment of the duties and taxes applicable 
for placing the product on the domestic market and of income tax on the share sold in the domestic 
market, according to a "profitability coeffi cient" established by the tax authority. 
185. MERCOSUR origin may be conferred on products processed by a maquila  company so that 
they may then be exported to other States Parti es without being liable to the CET.  The minimum 
content of national input or input from ot her MERCOSUR countries is 40 per cent, rising 
subsequently to 60 per cent as of 2023, except for those products listed in Annex I to Decision No. 01/04 "MERCOSUR regime of origin", with specific origin requirements that take precedence 
over the general criteria.  For services, the national value added must be 100 per cent. 
186. As at September 2010, 47 enterprises were operating under the maquila  regime and exports 
over the period 2006-September 2010 amounted to  a total of US$390 million, of which 
US$71 million were for the first eight months of 2010.
82  The goods produced include non-traditional 
items such as dressed leather, made-up articles, ort hopaedic and sports articles,  filters for cigarettes, 
synthetic laminates, mattress supports, soluble coff ee and barley, particle board and mouldings of 
wood, pharmaceutical chemicals, dental equipment, software and call centre services.  The principal 
markets are Brazil, Argentina, Canada, the Unit ed States of America, Germany, France, the 
Netherlands, Japan, Chinese Taipei and Mexico.  Some 50 per cent of the exports go to MERCOSUR 
countries. 
                                                      
80 The CNIME is composed of representatives of the MIC, the Ministry of Finance, the Central Bank, 
the Technical Secretariat for Economic and Social Development Planning and the MRE. 
81 MIC online information.  Viewed at:  http:// www.mic.gov.py/index.php?option=com_content&task 
=view&id=135&Itemid=237. 
82 CNIME Executive Secretariat (2010). WT/TPR/S/245 Trade Policy Review 
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(d) Export subsidies 
187. Paraguay has notified the WTO that it provided no export subsidies for agricultural products 
between 2004 and 2007 or in 2008 and 2009.83 
188. Pursuant to its notification obligations under Article XVI of the GATT and Article 25 of the 
Agreement on Subsidies and Countervailing Measures,  Paraguay has also notified that it neither 
grants nor maintains in its territory any subsidy w ithin the meaning of Article 1.1 of the Agreement on 
Subsidies and Countervailing Measures.84  As a developing country, Pa raguay had until 2003 to bring 
its legislation into line with WTO provisions and it di d not request the extension that could have been 
granted pursuant to the Doha Ministerial Declaration. 
(v) Export promotion, financing, insurance and guarantees 
(a) Export promotion and marketing support 
189. Export promotion is the responsibility of REDIEX, an MIC body created by Decree 
No. 4.328/05 of the Executive in order to implement the National Export Plan approved in December 2004.  In carrying out this plan, RE DIEX interacts with government officials, 
representatives of business, universities and civil soci ety organizations;  its vision is that export and 
attracting investment are the most effective t ools for achieving Paraguay's economic and social 
development.
85  REDIEX replaced and took over the responsibilities of the Directorate-General for 
Export and Investment Promotion (PROPARAGUAY). 
190. REDIEX currently has eight main sectoral co mmittees:  meat and leather;  information 
technology and communications;  tourism;  textiles a nd made-up articles;  for estry products;  fruit and 
vegetables;  biofuels;  and stevia (sweetener).  A ninth committee deals with products with export 
potential not covered by the other committees, es pecially products from family farms (herbs, 
bee-keeping, fish farming, etc.).  In addition to  these sectoral committees, there are also units which 
provide exporters with assistance and supply fore ign trade-related information, both to those 
exporting for the first time and those which wish to improve their export capacity. 
191. REDIEX also finances investment projects inte nded to boost exports, using resources from an 
IDB loan.  If the project involves one or two comp anies, financing may cover up to 65 per cent of the 
amount;  where three or more companies are involved, the figure is up to 75 per cent;  and up to 100 per cent for projects that are a REDIEX initiative.  The financing may not be used for investment 
in capital goods.  Financing is also available for projects which seek to strengthen the sectoral 
committees.  All enterprises taking part in these co mmittees are eligible for such financing, which 
may cover up to 85 per cent of the amount of the project or up to 100 per cent if the project is 
proposed by REDIEX.  The funds may be used to lease and decorate stands at fairs, for tickets, 
catalogues and web pages, international publications, specific consultancy, organization of events and 
promotion abroad, studies and research, and sending out  samples.  REDIEX is also responsible for 
promoting Paraguay vis-à-vis  potential investors, attracting investment and giving investors advice on 
investment for export and/or Paraguay's social, econom ic and technological development.  As part of 
its investment promotion activities, REDIEX supports various initiativ es intended to enhance 
Paraguay's business and investment climate.  These cover areas such as logistics (air, river and land), 
                                                     
 
83 WTO documents G/AG/N/PRY/13 of 5 November 2008, G/AG/N/PRY/15 of 21 October 2009 and 
G/AG/N/PRY/17 of 13 October 2010. 
84 WTO document G/SCM/N/186/PRY of 18 February 2010. 
85 REDIEX online information.  Viewed at:  h ttp://www.rediex.gov .py/informacion-institucional-i1. Paraguay WT/TPR/S/245 
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incentives for investment and export, and streamlining formalities.  According to  the authorities, these 
initiatives are essentially based on the criteria in the World Bank's Doing Business Index . 
192. REDIEX is implementing a US$10 million project using resources from an IDB loan.  The 
first year of the line of credit was 2010:  during the first eight months of 2010, 13 projects were 
approved, with total financing of US$600,000 from REDIEX and US$200,000 from private sector 
funds. 
(b) Export financing, insurance and guarantees 
193. The National Development Bank (BNF), an auto nomous institution with its own legal status 
created by Decree-Law No. 281 of 14 March 1961 and reorganized by Law No. 2.100 of 
21 March 2003, whose resources are legally separate fro m those of the State, provides producers with 
financing from its own resources for activities that ma y include export (and import), and also channels 
resources from international organizations (see section (4)(iii)).86 
194. Low-income rural producers who do not gene rally have access to commercial banks and who 
are engaged in small-scale production of items an d/or products for the domestic market and for 
export, may have access to the lines of credit prov ided by the Agricultural Equipment Bank (CAH).  
The CAH was set up in 1943 and is governed by Law No. 551/75.  It is one of the State's autonomous 
financing entities with its own legal status, assets,  accounts and administration, and specializes in 
providing loan services to the rural sector (see section (4)(iii)).87 
195. The Livestock Fund (FG), a first-tier State financing entity, provides financial services to 
rural producers in the livestock sector, including for e xport;  meat exporters in particular benefit from 
the FG. 
196. Export insurance is provided by private insuran ce companies.  According to the authorities, 
however, there is no significant demand for export insu rance, which is only used for specific products, 
such as electro-mechanical components.   They have also indicated that, in practice, export insurance, 
when needed, is taken out abroad. 
197. The Paraguayan Government does not  offer any export guarantees. 
(4) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal framework for business, including registration 
198. Various types of private enterprise can be set up in Paraguay and the principal legal forms are 
as follows:  public limited companies (S.A.), limi ted liability companies (SRL), capital-based and 
industrial companies (SCI), general partnerships (SC)  or limited partnerships (SCS).  In addition to 
these legal forms, pursuant to Law No. 1.034 of 6 December 1983 (Traders' Law), individual limited 
liability companies (EIRL) may also be set up.88  Non-profit-making cooperative associations with 
their own legal status may also be established.89 
                                                      
86 BNF online information.  Viewed at:  http://www.bnf.gov.py/historia.htm. 
87 Further information on the CAH can be found at:  http://www.cah.gov.py. 
88 The Traders' Law can be viewed at:  http ://www.bcp.gov.py/resoluciones/superseguro/Ley% 
20del%20Comerciante.pdf. 
89 Law No. 438 of 21 October 1994. WT/TPR/S/245 Trade Policy Review 
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199. The Civil Code (Law No. 1.183 of 23 December 1985) and the Traders' Law govern business 
activities in Paraguay.  Both Paraguayan and forei gn enterprises are free to set up and sell assets.  
Foreign companies do not have to enter into a partnership with a Paraguayan company or a 
Paraguayan national in order to invest or engage in any activity.  According to the Civil Code, 
subsidiaries of foreign firms have the same lega l responsibilities and enjoy the same benefits as 
similar Paraguayan companies.  There are no restrictions on the repatriation of capital or profits. 
200. Once the requirements specific to the establishmen t of each type of enterprise have been met, 
there are three registration formalities to be complete d in order to set up an enterprise in Paraguay:  
with the local authority, in the Public Register of  Legal Persons and Associations (RPPJA), and in the 
Single Taxpayers' Register (RUC) of the Ministry of Finance. 
201. Since the previous Review, efforts have been made to streamline registration formalities and 
improve the business climate.  For example, in November 2006, a unified system for setting up enterprises (SUAE) was created as a single window for receiving applications and for official registration so as to facilitate and speed up the process of establishing new companies.  The SUAE 
allows formalities to be completed in a single pl ace, thereby facilitating procedures for investors and 
saving time and resources;  through its website, it al so gives immediate access to information on the 
status of an application.  According to the au thorities, the creation of the SUAE has allowed the 
estimated cost of registration to be brought dow n from US$840 to US$250, with a reduction in the 
number of steps required in order to set up a co mpany reduced from 17 to one, and the average time 
taken to complete all registration formalities falling from 74 to 25 days. 
202. The RPPJA was created by Law No. 879 of 19 November 1981, which provides that articles 
of incorporation of legal persons that engage  in commercial activity (apart from cooperative 
associations) must be registered in the RPPJA.  This is a requirement for acquiring legal status.
90  
Registration in the RPPJA requires payment of a judicial fee and, in the case of public limited companies, the nationality of the partners must be disclosed.
91  All this is done through the SUAE. 
203. The Public Trade Register (RPC) was created  by Law No. 879 of 19 December 1981 and is 
administered by the Directorate of Public Register s.  Entry in the Register is free of charge and 
mandatory for all companies that engage in trad ing activities, EIRLs and subsidiaries of foreign 
companies that have been set up in Paraguay and whose corporate structure resembles any 
Paraguayan company. 
204. The RUC was created by Law No. 1.352 of 13 December 1988 and is administered by the 
Ministry of Finance.  Entry in the RUC is free of  charge and mandatory within 30 days following the 
start-up of operations or 30 days following regist ration in the RPC for public limited companies and 
limited liability companies. 
205. Companies involved in manufacturing, import, export, and wholesale activities (including 
artisanal units producing exportable goods) must also  be registered in the Permanent Register of 
Economic Activities (RPAE), created by Law No. 29 .326 of 14 November 1972 and administered by 
the MIC. 
206. Despite the reforms undertaken, th ere are still some procedural aspects that could be modified 
in order to make it easier to do business in Paraguay.  For example, to register a public limited 
                                                      
90 Pursuant to Article 1.050 of the Civil Code, as amended by Law No. 388 of 18 August 1994.  Even 
though Law No. 117 of 17 December 1992, which created SCIs, does not require them to be registered in the 
RPPJA, failure to register entails unlimited legal liability for the partners vis-à-vis  third parties. 
91 Law No. 388 of 8 July 1994, Article 4. Paraguay WT/TPR/S/245 
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company or a subsidiary, an application has to be  made to the First Instance Civil and Commercial 
Court (JPICC), which orders registration of th e company in the RPPJA and the RPC.  In 
September 2010, the introduction of a law to abol ish this practice and eliminate the judiciary's 
participation in the registration of companies in the Public Register was in the process of being 
approved by Congress. 
207. A foreign company wishing to do business in Pa raguay may do so by setting up an S.A., an 
SRL or an SCI, by establishing a joint venture with a Paraguayan company or through a subsidiary, a representative, a distributor or an agent.
92  A subsidiary of a foreign company must be certified by a 
public official of the Chamber of Commerce in the country in which the parent company is legally 
registered. 
208. Companies only pay tax on the income genera ted in Paraguay, pursuant to the Tax Code, 
regulated by Law No. 125 of 28 December 1991.  Th e main taxes levied on companies are the income 
tax on commercial activities (IRACIS), the tax on agricultural activities (IMAGRO), the value added 
tax (VAT), and the property tax (II).93  In October 2010, the IRACIS and the IMAGRO were levied at 
10 per cent of net income, VAT was also 10 per cent, while the II was 1 per cent of the fiscal value.  
In 2006, the IRACIS was reduced from 20 per cen t to 10 per cent.  Law No. 125/91, however, 
provides for an additional 5 per cent levy if the company distributes the profit remaining after paying the tax.  If this profit is sent abroad, in additi on to the 10 per cent tax and the 5 per cent additional 
levy on distribution of profits, the company has to pay 15 per cent for transferring profits abroad. 
(ii) Competition policy and price control 
209. Paraguay's Constitution (1992) guarantees free comp etition in markets and does not allow the 
creation of monopolies or artificial increases or decreases in prices which distort free competition.
94  
Law No. 561/58, which lays down provisions for pr otecting the national economy, empowers the MIC 
to adopt measures to prevent combinations aimed at cornering the market in consumer goods and 
artificial increases or decreases in product prices to th e detriment of the national economy and the cost 
of living.  The Traders' Law (No. 1.034/83) establis hes some general provisions on trade competition.  
The Law on Consumer and User Protection (Law No . 1.334/98) reaffirms and protects the rights of 
consumers in their relations with suppliers of goo ds and services.  Nevertheless, in December 2010, 
Paraguay was one of only two Latin American countries that did not have a special law to protect 
competition so the National Congress was examining a preliminary draft law on the subject submitted 
by the MIC. 
210. The Traders' Law lists, but not exhaustively, some of the acts deemed to constitute unfair 
competition and provides that a decision qualifying an  act as such shall prohibit its repetition and 
establish measures to eliminate its effects, making the offender liable for repairing the injury caused.95  
The acts of unfair competition covered in the Trad ers' Law are dealt with by a decision from the 
JPICC circuit judge.  The same Law also provides that free competition may be exercised as long as it 
does not adversely affect national economic interest s, but does not specify what these interests are.96 
                                                      
92 The establishment of joint ventures is auth orized by Law No. 117 of 6 December 1991. 
93 The regulations defined in Law No. 125 were developed by means of subsequent legislation.  In the 
case of the IRACIS and the IMAGRO, the most important  are Decree No. 14.002 of 23 June 1992 (IRACIS), 
and Decree No. 10.800 of 3 October 1995 and Resolution No. 429 of 17 April 1996 (IMAGRO). 
94 Article 107 of the Paraguayan Constitution. 
95 Articles 108, 109 and 110 of the Traders' Law. 
96 Article 105 of the Traders' Law. WT/TPR/S/245 Trade Policy Review 
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211. The Law on Consumer and User Protection lays  down the basic rights of consumers and the 
mechanisms for their protection.97  The Directorate-General of Consumer Protection (DGDC), which 
is answerable to the MIC, deals with compla ints by consumers and settles disputes resulting from 
application of the Law.  The Integrated National Consumer Protection System, administered by the 
MIC, provides information, guidance, conciliation, mediation, investigation, inspection and dispute 
settlement services under the Law on Consumer and User Protection. 
212. At the regional level, Paraguay has signe d MERCOSUR's Competition Protocol (PDC), 
which governs competition among companies domiciled in member States and h as been incorporated 
into Paraguay's legal system through Law No. 1.1 43/97.  Paraguay also adopted the implementing 
regulations for the PDC by means of Law No. 3.026/2006, which establishes a MERCOSUR 
Committee for the Protection of Competition and regulates the Committee's relationship with national competition bodies.
98  The Paraguayan authorities have indicated that both instruments were taken 
into account when preparing the MIC's preliminary dr aft law to protect competition.  At the time of 
preparing this Report, Paraguay still did not have  any national body specializing in competition. 
213. The Paraguayan authorities recognize and advocate the pressing need to have a national law 
to protect and promote free competition in the domestic market for the benefit of economic 
development and consumers' well being.  In or der to improve the business climate and attract 
investment, the objectives in the Government's Economic and Social Strategic Plan 2008-2013 
(PEES) include the formalization and regulation of th e market so as to facilitate free competition and 
the adoption of a new law on competition.  Severa l preliminary draft laws on protecting competition 
have been submitted to the National Congress since 20 03.  In September 2010, a preliminary draft for 
a law on protecting competition, prepared by the MIC with participation by the private sector, was put 
before the National Congress.  The purpose of this preliminary draft is to protect and promote free competition in markets.
99  Its scope covers all acts, practices or agreements by natural or legal 
Paraguayan or foreign persons unde r public or private law that affect competition in Paraguayan 
territory, with the exception of legislated limita tions.  These include central government bodies and 
decentralized entities which have a monopoly, as well as those carrying out economic activities 
outside the country, provided that their acti on has an effect in the domestic market. 
214. The MIC preliminary draft specifies the pr actices, agreements and decisions among 
enterprises that are prohibited if they are aimed at, or produce or might produce the effect of, hampering, restricting or distorting competition in a ll or part of the domestic market.  The preliminary 
draft does, however, provide for the possibility, un der certain conditions, of authorizing agreements, 
decisions or practices which help to boost the production or marketing of goods and services, 
economic efficiency, technical progress, free competition, or whose purpose is to promote exports or bring about a significant increase in the so cio-economic level of depressed areas. 
215. The preliminary draft also defines what is meant by prohibited abusive conduct, abusive 
trade-offs and mergers, and makes it compulsory to notify merger operations in advance, according to 
thresholds, giving the MIC the power to authorize or reject them.  The preliminary draft provides for 
                                                     
 
97 Article 6(e) of the Law on Consumer and User Protection (Law No. 1.334/98) provides that the basic 
rights of the consumer include the ri ght to "adequate protection against mi sleading publicity, coercive or unfair 
trade methods …". 
98 The PDC and its implementing regulations have not yet entered into force as only Brazil and 
Paraguay have incorporated them into th eir respective internal legal systems. 
99 Preliminary draft law on the protection of competition, submitted to the Paraguayan National 
Congress on 9 September 2010.  Legislative Information System (SIL).  Viewed at:  http://www.congreso. 
ov.py/silpy/main.php?pagina=por_ acapite&paginaResultado=resultado_con sulta&tipoConsulta=2&txtAcapite=
defensa de la competencia&sCamara=0&sTipo=0. Paraguay WT/TPR/S/245 
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the creation, for the first time, of a competition aut hority, i.e. the National Competition Institute, to be 
composed of the National Competition Commission (CNC) and the National Directorate of Investigation and Promotion (DNIP), as the executive organ.  Rules of procedure are also proposed, 
together with administrative penalties for violati ons of the law.  In December 2010, the preliminary 
draft of the Competition Law was being examined by Congress. 
216. Paraguay does not in general apply price cont rols on goods and services, with the exception 
of electricity tariffs for low-income households and a maximum selling price for certain types of 
diesel fuel (Chapter IV(4)).  Using the author ity given to it by Law No. 561/58, the MIC has 
nevertheless intervened in specific situations (for example, in 2006 and 2010), determining maximum 
reference prices for sales of certain cuts of beef to final consumers because their price was increasing 
as a result of the boom in exports.  The authoriti es have indicated that the MIC adopted these 
measures after consulting representativ es of producers and consumers. 
(iii) Incentives and other government support 
217. In February 2010, Paraguay notified the WTO Committee on Subsidies and Countervailing 
Measures, in conformity with the special proce dure adopted for new and full notifications every 
two years, that it did not grant or maintain in its territory any subsidy within the meaning of 
Article 1.1 of the Agreement on Subsidies and C ountervailing Measures, and specifically as defined 
in Article 2 of the Agreement.
100 
218. Paraguay does, however, have se veral general incentive schemes for investment, in addition 
to some government support programmes target ing specific activities, which apply to both 
Paraguayan and foreign investors.  The general fra mework for investment incentives in Paraguay is 
contained in Law No. 60 of 20 December 19 90, implemented by Decrees No. 15.657 of 
30 November 1992, No. 7.692 of 23 February 2000, No. 22.031 of 14 August 2003 and Law 
No. 2.421 of 25 June 2004, amending Law No. 60/90.  Law No. 60/90 provides tax incentives for investment of capital of Paraguayan or foreign or igin in production activities.  The body responsible 
for granting incentives is the Investment Council, ch aired by the MIC.  The incentives are given by 
means of a joint resolution of the MIC and the Mi nistry of Finance, based on a recommendation from 
the Investment Council. 
(b) Law No. 60/90 
219. Law No. 60/90 provides for tax exemptions which apply, inter alia , to investment in:  
financing, capital goods, trademarks, models and tec hnology transfer in general, specialized technical 
assistance, mining, the hotel trade, leasing of  capital goods, supply of air cargo and passenger 
transport services, river transport, land freight transp ort in general, public passenger transport, health, 
radio, television, press, rural and urban fixed tele phony, mobile telephony, scientific research, silos, 
warehousing, and data transmission services.  The aims of the Law are to:  increase production of goods and services;  create permanent jobs;  boost e xports and substitute impo rts;  and incorporate 
technology to enhance production efficiency and make greater and better use of domestic raw 
materials, labour and energy resources.
101  These aims are taken into account by the Investment 
Council when making its recommendation. 
220. The specific incentives provided by Law No. 60/90  (including amendments thereto) are the 
following:  (a) exemption from the payment of VAT on the purchase of imported and Paraguayan 
                                                      
100 WTO document G/SCM/N/186/PRY of 18 February 2010. 
101 MIC online information.  Viewed at:  http://w ww.mic.gov.py/index.php?option=com_content&task 
=view&id=77&Itemid=127. WT/TPR/S/245 Trade Policy Review 
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capital goods for direct use in the industrial or agricultural production cycle by the investors102;  
(b) exemption from the payment of all taxes levied on the incorporation, listing or registration of 
companies and enterprises;  (c) exemption from the payment of duty and internal taxes on imports of 
capital goods, raw materials and inputs for use in investment projects for the manufacture of capital 
goods;  (d) exemption from taxes or other levies on remittances and payments abroad in respect of 
interest, commissions and capital payments, with no specific time limit, where the investment is 
financed from abroad and amounts to at least US$5 million;  and (e) exemption from the payment of 
taxes on dividends and profits ge nerated over a period of ten years, where the project entails 
investment of at least US$5 million.  If a project is US$5 million or higher, it must be drawn up by 
experts and/or consulting ente rprises established in Paraguay. 
(c) Special regimes 
221. The special regime for the import of raw materials, covered by Decree No. 11.771/00 and 
amendments thereto (Decree No. 1.332/09 and Reso lution No. 1/01 of the Ministry of Finance), 
allows the import of raw materials and inputs at zero rate tariff if it is shown that they are used as such 
in the related production process.  This regime is administered by the Special Regimes Directorate 
(DRE) of the Under-Secretariat of State for Industry in the MIC, which deals with special regimes in 
support of domestic industry with the aim of pr omoting investment and boosting existing industrial 
enterprises, especially SMEs, by means of tariff exemptions. 
222. Since 2008, all formalities required to qualify fo r incentives under the special regime for the 
import of raw materials have been completed electr onically and require prior entry in the Industrial 
Register for authorization under the electronic system .  An application is submitted to the DRE for its 
consideration and to a Technical Commission (composed of representatives of the MIC, the MAG, the Ministry of Finance and the Industrial Union of Paraguay (UIP)).  If the Commission approves it, the DRE issues a certificate providing exemption from the customs tariff.  To be given DRE certification:  (a) the enterprise must have a DRE-approved annual production plan;  (b) the raw material or input in 
question must not be produced domestically;  and (c ) the amount of the import must not be less than 
US$1,500 f.o.b. The beneficiary enterprise has to provide the DRE with a report every two months on 
the use and destination of the raw materials and i nputs imported under the special regime, as required 
by Article 9 of Resolution No. 1/01 of the Ministry of Finance. 
223. According to the information provided by the au thorities, imports of raw materials under this 
special regime rose to US$108.1 million in 2009;  for the first seven months of 2010, imports 
benefiting from the special regime amounted to US $93.8 million, and were over 50 per cent more 
than for the same period in 2009. 
(d) Automotive regime 
224. Paraguay also has an incentive regime for i nvestment in the automotive industry.  Decree 
No. 21.944 of 16 July 1998 of the Executive est ablishes the National Au tomotive Regime (RAN), 
which was expanded by means of Decree No. 406 of  16 July 1998.  The strategic objective of the 
RAN is to strengthen Paraguay's automotive industr y in the domestic market and in the MERCOSUR 
regional market, by building the capacity of enterprises and sectors involved in the industry so that they can carry out joint t asks that help to increase investment, pr oduction, labour and competitiveness.  
The RAN also focuses on promoting investment, training the work force, facilitating technology 
                                                     
 
102 Law No. 2.421/04 on fiscal adjustment amended Law No. 60/90 to extend the incentives to the use 
of Paraguayan products and to any phase of the production process (previously it only applied to the first phase of production). Paraguay WT/TPR/S/245 
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transfer, and boosting exports.103  The scope of application is Chap ter 87 of the NCM (vehicles, motor 
vehicles, tractors, cycles, and other road vehicl es, their parts and accessories), which also includes 
automobile parts and automobile accessories in gene ral.  In Paraguay's case, production is confined to 
motor cycles, bicycles and tricycles.  The MIC is the implementing authority and is responsible for 
regulation, control and enforcement, through the RAN Directorate. 
225. The RAN establishes benefits for all Paragua yan and foreign enterprises that manufacture 
motor vehicles, tractors, cycles and parts and acc essories thereof.  Capital goods, raw materials, 
components, kits, parts, and manufacturing inputs used  in the production of motor vehicles, auto parts 
and auto components are exempt from the payment of duty and internal taxes specifically applicable.  
Beneficiaries of the regime also receive preferential treatment as far as application of VAT is 
concerned, provided that the tax base for VAT is 20 pe r cent of the total value of the finished product.  
In addition, enterprises benefiting from this regime  are entitled to import motor vehicles, auto parts 
and auto components with a 50 per cent tariff reduction;   the authorities have indicated that in practice 
this is not done because there is no regulation. 
226. To be eligible for the RAN, certain require ments must be met, for example, increased 
production, creation of new permanent jobs, export promotion and/or import substitution, 
incorporation of new technology and investment in  plants for the production and/or assembly of the 
goods defined in the Regime.  A me morandum must be addressed to th e MIC to initiate registration in 
the National Automobile Regime Register and an  investment project must be submitted, which 
includes a detailed plan for development of the in dustrial plant, specification of the goods to be 
manufactured, and a detailed timetable for the gr adual incorporation of Paraguayan inputs and 
components into production. 
(e) Other regimes and benefits 
227. Paraguay has a Guarantee Fund for micro, sma ll and medium-sized enterprises (MSMEs), 
regulated by Law No. 606 of 3 July 1995, "Cr eating a guarantee fund for micro, small and 
medium-sized enterprises" and Decree No. 2.196 of 5 June 2009 implementing this Law.  The 
purpose of the Guarantee Fund is to provide gua rantees for MSMEs in the agricultural, forestry, 
industrial, artisanal, trade or services spheres.  This guarantee can be used to cover investment credits 
or to purchase goods and services.  The percentage  covered by the guarantee ranges from 50 to 80 per 
cent depending on the amount of the loan.  The maxi mum term of the guarant ee depends on the term 
of the loan guaranteed.  The Guarantee Fund did not conduct any operations during the period under 
review. 
228. The role of the National Development Bank (BNF), created by Decree-Law No. 281 of 
14 March 1961 and reorganized by Law No. 2. 100 of 20 March 2003 and Law No. 2.502 of 
20 December 2004, is to catalyze Paraguay's econom ic and social development by promoting and 
financing programmes to boost production sectors.  The BNF finances investment in production, 
including operating capital, international operati ons (including export), as well as loans to 
micro-entrepreneurs and artisans granted on wh at are considered to be market terms.104  Pursuant to 
Law No. 2.502/04, there is a ceiling of US$150,000 on lo ans.  This limit applies to natural and legal 
persons that are not cooperative associations ;  for cooperative consumption and production 
                                                      
103 MIC online information.  Viewed at:  http://w ww.mic.gov.py/index.php?option=com_content&task 
=view&id=78&Itemid=128. 
104 For example, interest rates are 10 to 13 per cent in dollars for development credits of over one year.  
VAT at 5 per cent applies to loans and financing on the interest, commission and other charges.  Further information is available at:  http://www.bnf.gov.py/. WT/TPR/S/245 Trade Policy Review 
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associations, there is no limit.105  Loans granted using resources from  international organizations are 
governed by their respective regulations. 
229. The loan disbursement programme for 2010 amounted to G 913,000 million (some 
US$192 million) of which G 534,000 million (US$112 million) was earmarked for production, over 
80 per cent of it for the agricultural sector. 
230. The BNF grants loans for industry, agriculture and micro-enterprises, inter alia .  Loans to the 
industrial sector are used to build operating capita l for activities requiring the transformation of raw 
materials.  Up to 60 per cent of the total cost of the investment project may be financed, subject to the 
ceiling laid down in Law No. 2.502/ 04.  The loans can also  be used to purchase raw materials.  The 
interest rate is 15 per cent annually for loans in guaranis and 13 per cent annually for loans in 
United States dollars.  The loans are for up to 18 months, and 30 per cent of the loan plus interest 
must be repaid after six months, a further 30 per cent after 12 months and the balance after 
18 months.106  A first-tier mortgage in favour of the BNF is required and also, where necessary, 
collateral security. 
231. The BNF applies similar terms to loans to the ag ricultural sector.  Here the loans can only be 
used for soya, wheat, maize or cotton,  or for agricultural diversification (to rice, sugarcane, sunflower, 
rapeseed, ka'a he'e, cassava, herbs, pineapple, beans, water melon, melon, sesame, sorghum, 
vegetables and fruit);  loans for cotton and for agri cultural diversification may only be granted in 
guaranis.  Financing can be for operating capital a nd technical inputs (seeds, fertilizers, pesticides, 
herbicides, bags, etc.).  The interest rate is 11 pe r cent annually for loans in guaranis and 12 per cent 
for loans in dollars;  in both cases, th e loans are repaid in one instalme nt when they expire at the end 
of each crop's growing season. 
232. Loans to micro-enterprises are for natural or le gal persons involved in agricultural, industrial, 
trading, services and artisanal production activities and are for a maximum amount of G 30 million.  
They can be used to finance up to 60 per cent of the total cost of the project in order to acquire 
operating capital and/or purchase fixed assets.  The loans are in guaranis and for up to 30 months, 
with an interest rate of 20 per cent annually on the debit balance.  Loans for production go to 
producers in general, whether natural or legal persons, engaged in produc tion-related exploitation 
and/or intermediation.  Up to 60 per cent of the co st of the project is financed, except in the case of 
cooperative associations, where financing may be up to 100 per cent.  Loans are for up to five years 
and can be used to purchase fixed assets, animals,  or for operating capital (up to 30 per cent of the 
total amount of financing).  The inte rest rate is 12.5 per cent annually. 
233. The CAH has lines of financing for small-scale pr oduction, mainly by natural persons but also 
by producers' associations in the rural sector .  The production sectors targeted by the CAH are 
agriculture, livestock breeding, rural handicrafts and small-scale industry.  The loans are for different 
terms depending on the activity or the investment to  be financed and may be for one to seven years, 
while interest rates range from 15 to 30 per cent annually depending on the type of financing given to 
the client.  Financing by the CAH showed a sharp rise during the period under review, from G 75,409 million (US$16.2 million) in 2005 to G 13 3,700 million (US$28.7 million) in 2010.  The 
number of users increased from 23,000 in 2005 to 45,000 in 2010. 
234. The Development Finance Agency (AFD), created by Law No. 2.640 of 27 July 2005, as 
amended by Law No. 3.330/2007, is the only second- tier public bank in Paraguay and grants loans to 
first-tier public or private financia l intermediation institutions;  it is also the only executing agency for 
                                                     
 
105 Law No. 2.502/04 of 30 December 2004. 
106 BNF online information.  Viewed at:  http://www.bnf.gov.py/. Paraguay WT/TPR/S/245 
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development loan agreements guaranteed by the Pa raguayan State.  The AFD is an autonomous and 
decentralized legal person under public law.  Since it started up in June 2006 to the end of 
August 2010, the AFD approved operations amounting to US$230.4 million;  during the first eight 
months of 2010 the total approved was US$50 million.  Of these, 15 per cent was for the agricultural 
sector, 24 per cent for livestock breeding, 15 per cen t for industry, 10 per cent for micro-enterprises 
and the remainder mainly for financing the real estate sector. 
235. The range of products currently offered by the AFD includes micro-credits for micro and 
small enterprises and a product called ProPYMES for small and medium-sized enterprises (in industry, agriculture, trade and services).  AFD loan s for the growth of SMEs are used to provide 
financing in guaranis or dollars for up to ten years,  with a two-year grace period, and for up to 100 per 
cent of the investment, in manufacturing, agricu ltural, commercial or services activities.  The 
beneficiaries (micro-enterprises) must be resident  in Paraguay and their annual sales must not exceed 
G 15,000 million (some US$3.1 million).
107 
236. In the future, Paraguayan enterprises will also  be able to make use of the MERCOSUR 
Guarantee Fund for Micro, Small and Medium-Sized Enterprises, created by Decisions 
CMC/DEC No. 23/08, CMC/DEC No. 41/08 and CMC/DEC No. 42/08.  This Guarantee Fund was 
set up with capital of US$100 million contributed by Brazil (70 per cent), Argentina (27 per cent), 
Uruguay (2 per cent), and Paraguay (1 per cent).  It guarantees loans for new fixed investment and 
research and development, as well as for producti on and marketing for export by enterprises in 
member countries which participate in production integration initiatives.  The Fund must give priority 
to guarantees for enterprises in Paraguay and Urugu ay.  The guarantee's maximum cover is 80 per 
cent of the loan taken out.  In December 2010, the MERCOSUR Guarantee Fund had not yet started to function. 
237. In order to place the trade sector engaged in the local sale of certain products, especially 
electronics, on a more formal basis, in 2005 a speci al regime was introduced for payment of internal 
taxes on the import of goods to be marketed with in Paraguay and subsequently exported, known as 
the "tourism regime".
108  Decree No. 6.406 of 19 September 2005 provides that total tax on these 
goods is the VAT paid at the border on the taxable value plus an amount of 0.6 per cent, also on the 
taxable value, as advance payment on income tax provi ded that the goods are sold to natural persons 
not domiciled in Paraguay by "registered distributors", subject to the regime.109  Export and/or local 
sale of goods covered by the regime to natural pers ons not domiciled in Paraguay is not eligible for 
refund of VAT. 
238. The authorities have indicated that, in Decemb er 2010, a draft law on industrial development 
policy was being drawn up in order to revise the ex isting incentive schemes.  The idea is that the 
benefits will be granted ex post, in other words, after the production or export of the goods or service 
has taken place. 
                                                      
107 Information on the AFD and its products is available at:  http:/www.afd.gov.py. 
108 These products are defined in Decr ee No. 2.545/2004, which sets the levels of the taxes for so-called 
informatics and telecommunications good s (BIT), and amendments thereto. 
109 "Registered distributors" means all taxpayers, le gal persons and/or individual enterprises with 
limited liability specially registered with the DNA fo r the purposes of the regime established by Decree 
No. 6.406/2005. WT/TPR/S/245 Trade Policy Review 
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(iv) State trading, State-owned enterprises and privatization 
239. In 1998, Paraguay notified that the Centra l Bank of Paraguay (BCP) and the Tourism 
Directorate were State-trading enterprises within  the meaning of Article XVII of the GATT 1994.110  
During the previous Trade Policy Review in 2005,  however, the Paraguayan authorities had stated 
that these notifications had been made for the sake of transparency and that neither of the 
two institutions should be considered as a State-tradi ng enterprise.  In 1998, it also notified that there 
were no State-trading enterprises promoting or marketing agricultural products.111  Paraguay has not 
made any notifications on State-trading enterprises since then. 
240. Most of Paraguay's industry producing goods and services is in private hands.  There are only 
eight non-financial State-owned enterprises in Paragu ay:  the National Electricity Authority (ANDE), 
the National Shipping and Ports Authority (ANNP), the National Civil Aviation Directorate (DINAC), Paraguayan Petroleum (PETROPAR),  the Paraguayan Communications Company 
(COPACO, S.A., a private regime enterprise in wh ich the State holds 100 per cent of the shares), the 
national rail company Ferrocarril Presidente Carlos  A. López, Cañas Paraguayas S.A. and the 
National Cement Industry (INC).  Although they are few, these companies cover some of the key 
economic sectors in Paraguay.  The State also has stakes in various banks and State funds, including 
the BNF, the CAH, the Livestock Fund, the Loan F und of the Ministry of National Defence, and the 
AFD (see Chapter IV(5)(ii) for further details). 
241. The ANDE has the sole right to supply the pub lic with electricity and lighting, while 
COPACO and PETROPAR have monopolies of fixe d telephony and oil refining.  The INC has a 
monopoly of the import and distribution of clinker cement. 
242. In many cases, State-owned enterprises require government authorization before they can 
change their prices;  this is the case for cement and electricity.  They are also subject to the 
government procurement regime and to the preferences established in the relevant  law (see below).  In 
connection with this Review, representatives of several State-owned enterprises expressed their 
dissatisfaction at this situation, which raises their co sts without allowing them to change their prices.  
With a view to greater efficiency, it would be advisable for State-owned enterprises to be given more 
autonomy so that they can become more efficient and contribute towards a more dynamic and competitive economy. 
243. Paraguay has no general legislation concerning th e administration of State-owned enterprises.  
It has had no legal framework for privatization since 2002 either, as Congress, in Law No. 1.932 of 
5 June 2002, indefinitely suspended the effect s of Law No. 1.615 of 31 October 2000, which 
governed the privatization process, and consequently  since then it has been at a standstill.  Only 
four enterprises were privatized between the in itiation of the process and its suspension:  the 
Paraguayan Alcohol Authority, the State's merchant  fleet, Aceros Paraguayos S.A. (Paraguayan Steel) 
and Lineas Áereas Paraguayas S.A. (Air Paraguay). 
(v) Government procurement 
244. During the period under review, Paraguay continued to reform its regulatory and institutional 
framework for government procurement, commenced in 2003, in order to enhance the transparency, 
quality and efficiency of government procurement pr ocedures.  At the same time, Paraguay has used 
the government procurement system as an economic policy tool by applying price preferences for 
                                                     
 
110 WTO documents G/STR/N/4/PRY of 5 October 1998 and G/STR/N/4/PRY/Suppl.1 of 
26 October 1998. 
111 WTO document G/STR/N/4/PRY/Suppl.2 of 26 November 1998. Paraguay WT/TPR/S/245 
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national goods and services.  There is still room to  improve the opening up and development of the 
government procurement market.  Furthermore, some international organizations have remarked that 
Paraguay needs to make substan tial improvements to its government  procurement regime as regards 
internal controls, transparency and auditing, inter alia .112 
245. During the period under review, the value of th e government procurement market in Paraguay 
tripled, with the amount of contracts awarde d reaching US$1,541 million in 2009.  Of total 
government procurement over the period 2007-2009, 55 per cent was for goods and 44 per cent for 
services (including public works).  According to data  provided by the authorities, there are 15,000 to 
18,000 procurement procedures annually.  State-owned enterprises are the main  contracting agencies, 
accounting for 53 per cent of the total value of  government procurement between 2004 and 2009, 
followed by the Executive (23.8 per cent), public soci al security entities (6.2 per cent), departmental 
authorities (2.6 per cent), autonomous decentralized  entities (2.3 per cent), joint ventures (2.2 per 
cent) and municipal authorities (2.14 per cent).113  Among the State-owned enterprises, the major 
contracting agencies are ANDE, PETROPAR and COPACO. 
246. Paraguay has not signed the WTO Plurilateral Ag reement on Government Procurement.  At 
the regional level, Paraguay is party to the MERCOSUR Protocol on Government Procurement.114  In 
recent years, Paraguay has continued to work with va rious international organizations, particularly the 
IDB, to modernize and improve the transparency and efficiency of its government procurement regime. 
247. The principal legal instrument for govern ment procurement in Paraguay is Law 
No. 2.051/2003 (Law on Government Procuremen t, hereinafter the LCP) and its implementing 
regulations (Decree No. 21.909/2003, as amended by Decree No. 5.174/2005).
115  Furthermore, in 
December 2007, Law No. 3.439 was enacted and pa rtly amended the LCP, creating the National 
Government Procurement Directorate (DNCP) as th e body responsible for regulating and monitoring 
government procurement, to replace the Directorat e-General of Government Procurement (or Central 
Regulatory Technical Unit), which structurally was part of the Ministry of Finance. 
248. The DNCP is an autonomous institution with its ow n assets and legal status.  Its role is:  to 
develop policy and general rules on government proc urement;  to disseminate, control and monitor 
government procurement procedures from the planning stage through to execution of the contracts;  
and to settle complaints and impose penalties.  Th e DNCP is also responsible for administering the 
Government Procurement Information System (SICP) , which has a website that publishes information 
on government procurement, including invitations to bid, prequalification, specifications and the 
award of contracts.  The website also has a system for receiving complaints, protecting the 
complainant, where complaints about corruption at  any stage of the procurement process can be 
made.116 
249. Some of the main amendments introduced by La w No. 3.439 concern the greater power given 
to the regulatory agency, the DNCP, to monito r government procurement procedures, including 
execution of the contract, with the authority to require all relevant information from the purchasers 
                                                      
112 IDB and World Bank (2007). 
113 Information provided by the National Government Procurement Directorate. 
114 MERCOSUR Decision No. 27/04 of 9 December 2004. 
115 The amendments introduced by Decree No. 5.174 of 2005 include some concerning the distribution 
of documents through the government procurement information system, prequalification of consultants, and the 
method for applying preference margins in in ternational competitive bidding procedures. 
116 The website is available at:  http://www.contratacionesparaguay.gov.py. WT/TPR/S/245 Trade Policy Review 
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and the suppliers.117  This Law also authorizes the DNCP to ca rry out investigations into acts in any 
government procurement procedure subject to the LCP, either on its own initiative or following a 
substantiated complaint.118 
250. During the period under review, a State Suppliers  Scheme (SIPE) was introduced and came 
into effect, consisting of prior, voluntary registra tion free of charge, whereby suppliers electronically 
receive one document to replace all the documents usually required in order to take part in 
government procurement.119  Other changes introduced during the review period to enhance 
transparency and efficiency in government proc urement procedures include:  implementation of a 
computerized system for direct payment of State suppliers120;  preparation of mandatory and 
non-mandatory standard specifications for procurement121;  and introduction of a system of public 
hearings coordinated by the DNCP to exam ine the basic specifications and terms. 
251. Another highlight was the creation of the Electronic Reverse Auction System (SBE) in 2008, 
allowing suppliers to make offers openly on the Inte rnet.  The SBE applies to procurement of goods 
and services and, since November 2010, has also  applied to procurement of public works and 
consultancy services.122  It does not set any ceiling on the amount of the contract or the form of 
procurement.  The authorities consider that th e SBE helps to speed up procurement procedures, 
enhance transparency and generate savings for the State, and it is hoped to extend its use to cover 
50 per cent of government procurement in the future. 
252. Simultaneously, Paraguay has used the government procurement regime as a tool for 
promoting domestic production and employment.  In  2009, price preferences were introduced for 
goods and services of Paraguayan orig in in national bidding procedures.123  Preferences were 
extended by Decree No. 4.008 of 26 February 20 10, which determines margins of preference for 
Paraguayan products compared to imported products of the same t ype in government procurement 
procedures at the national level.  For manufactures with a national content exceeding 50 per cent, the 
contracting agency determines a margin of preferen ce of 5 to 70 per cent of the total price of the 
imported goods.  For primary products  of agricultural origin, the margin is 20 to 70 per cent.  For 
procurement of works, the contracting agency may require the contractors to recruit at least 70 per 
cent of the labour required from local personnel in th e place where the work is to be carried out.  
When purchasing software, programs developed in Paraguay are given a preference margin of 10 per 
cent.  Decree No. 4.008 remains in effect for one year124, but the preferences may be extended by 
means of a new decree. 
253. Preferences are also applied to encourage pa rticipation in government procurement by 
MSMEs, which account for some 61 per cent of the Stat e's suppliers registered in the SIPE.  Decree 
No. 1.434 of 6 February 2009 provides that, in  government procurement procedures using the 
SBE method, if the bids are technically equiva lent, MSMEs will be given an advantage in the 
                                                      
117 Article 70 of Law No. 2.051/03, as amended by Article 1 of Law No. 3.439/07.  In 2007, the 
Contract Inspection Directorate was set up within the DNCP. 
118 Prior to this, it was the responsibility of the Auditor General's Office in the Executive, the 
Legislature or the Judiciary, or the internal audit offices  in the institutions or those of the municipal authorities, 
as appropriate. 
119 As at September 2010, some 7,000 enterprises had been registered in the SIPE. 
120 For the moment, the system of direct payment to State suppliers applies only to entities in the 
central administration, i.e. to some 40 per cent of the entities subject to the LCP. 
121 At the end of 2010, ten mandatory standard specifications had been approved for purchasing goods;  
procuring public works;  insurance contracts;  air tickets;  and cleaning services, inter alia . 
122 Decree No. 5.517 of 25 November 2010. 
123 Decree No. 1.607 of the Ministry of Finance of 2 March 2009. 
124 Article 2 of Decree No. 4008 of the Ministry of Finance of 6 February 2010. Paraguay WT/TPR/S/245 
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procedure consisting of the possibility of making a second bid, after the final bids have been 
submitted, subject to the following conditions:  the s econd-best bid is up to 5 per cent higher than the 
first-best bid;  and the second-best bid is by a sm aller enterprise than the first bid and it is not an 
MSME.  The aforementioned margin will be 10 per cent in the case of direct procurement.  It should 
be noted that Paraguay does not apply set asid es in its government procurement procedures. 
254. The LCP regulates all government procurement of goods, services and public works by 
bodies belonging to the three arms of the State,  by autonomous and decentralized bodies, by 
State-owned enterprises and municipal authorities, in other words, 307 entities which, in turn, 
comprise over 1,000 operating contracting agencies.125  The binational enterprises of Itaipú and 
Yacyretá are not covered by the LCP.  The LCP sets out the principles that should prevail in 
government procurement, namely, economy, efficien cy, equality and free competition, transparency, 
streamlining and modernization of proce dures, and operational decentralization. 
255. Pursuant to the LCP (Article 16), there are four methods of government procurement:  
(i) public competitive bidding, used for procurem ent exceeding the equivalent of 10,000 minimum 
wage units126;  (ii) offer bidding, used for procurement involving amounts ranging from 2,000 to 
10,000 minimum wage units;  (iii) direct contractin g, which requires a comparison of three bids, for 
amounts of less than 2,000 minimum wage units;  an d (iv) fixed price procurement by the purchasing 
entity for purchases amounting to less than 20 mini mum wage units.  The first two methods entail a 
bidding procedure, whereas direct contracting is  by invitation (even though it is also open to 
interested potential bidders and is published on the SICP), and fixed price procurement involves direct 
purchasing. 
256. The LCP defines the exemptions that may re lieve purchasing agencies from the obligation to 
follow the government procurement procedures dictated by the amount of the procurement, allowing them to use direct contracting from a single sour ce without a competition or to shorten the time-limit 
for submitting bids.  These cases include:  if the cont ract can only be fulfilled by a specific person in 
the case of works of art, ownership of patents, copyri ght or other exclusive rights;  in cases of natural 
disaster;  for reasons of national security;  and in situations of force majeure , emergency or other 
situations in which technical reasons justify direct contracting as an exception.
127 
257. Public competitive bidding may be either nationa l or international.  Only natural or legal 
persons domiciled in Paraguay may take part in the former, whereas the latter is open to participation 
by natural or legal persons not domiciled in the co untry.  International public competitive bidding is 
used as an exception to national public competitive bidding where:  (i) this is required by an 
international treaty;  (ii) it is so stipulated in agreements with internationa l organizations;  (iii) no 
Paraguayan suppliers can be found to supply the goods and services in the volume or of the quality 
required, or the price of such goods or services is  not "suitable";  or (iv) no proposal has been 
submitted in national competitive bidding. 
258. Pursuant to the LCP, a natural or legal pers on not domiciled in Para guay may be barred from 
participating in international public competitive bi dding if that person's country of origin does not 
grant reciprocal treatment to Pa raguayan suppliers, goods or services.128  Participants in international 
competitive bidding are also required to show that  their products have not benefited from any 
                                                      
125 The Public Works Law (No. 1.533 of 2000) was re placed in all aspects by the LCP, except for the 
provisions concerning liability, measurem ent, taxation, execution and signing off on contracts by the contracting 
agencies (Article s 41 to 46). 
126 In 2010, the minimum wage in Paraguay was G 1,507,484 (around US$300). 
127 Article 33 of Law No. 2.051/03. 
128 Article 18 of Law No. 2.051/03. WT/TPR/S/245 Trade Policy Review 
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subsidization or discriminatory pricing (dumpi ng).  Foreign bidders do not have to associate 
themselves with Paraguayan bidders in order to participate in international public competitive 
bidding, but they may not join with national bidd ers in order to participate in national public 
competitive bidding. 
259. Invitations to participate in public competitiv e bidding are published on the SICP and in at 
least one national newspaper for three days.  The specifications of terms and conditions are free of 
charge and are made available to interested parties through the SICP.  The minimum period for 
submitting and opening bids is 20 days  as of the date of the last publication of the invitation in the 
case of national public competitive bidding and 40 days  for international public competitive bidding.  
Depending on the nature of the goods and services to  be purchased, in offer bidding the purchaser 
may reduce the aforementioned time-limits by half pr ovided that this is not for the purpose of limiting 
the number of potential participants or  conferring an advantage on a bidder. 
260. In accordance with the LCP and Decree No. 21.90 9, the contract must be awarded to the 
bidder:  (i) whose bid meets the legal and tech nical criteria in the specification of terms and 
conditions;  (ii) who possesses the qualifications and capacity needed to carry out the contract;  and 
(iii) who offers the price deemed to be the lowest .  Nevertheless, in inte rnational public competitive 
bidding, in the event of equivalent terms contracting entities must purchase goods produced in Paraguay with more than 50 per cent local conten t.  For this purpose, in making an economic 
comparison of the bids, the contracting entities must apply a preference margin of up to 10 per cent to 
the price of the goods with local content compared to the price of the imported goods, in accordance 
with the rules on evaluation laid down in the regulations.
129 
Table III.11 
Amounts of contracts awarded by contracting procedure followed, 2004-2009 
(Percentage (unless otherwise indicated)) 
Procedure 2004 2005 2006 2007 2008 2009 
National competitive bidding 32.5 44.5 34.4 29.8 22.5 41.7 
International competitive biddi ng 26.9 33.5 45.6 34.4 24.4 38.1 
Offer bidding 5.2 4.8 4.2 3.9 3.6 7.4 
Direct contracting 5.5 4.5 3.6 2.9 2.9 3.4 
Contracting following an exceptional 
procedure 29.9 12.7 12.1 9.2 11.6 8.7 
Othera 0.0 0.0 0.0 19.7 35.0 0.8 
Total 100.00 100.00 100.00 100.00 100.00 100.00 
Total (G million) 2,464,890 3,902,168 5,286,101 7,992,365 8,560,702 7,350,044 
Total (US$ million)b 517 818 1,108 1,676 1,795 1,541 
a Includes the rental of real estate, cont racting of training and contracting as a re sult of national or international agreemen ts. 
b Exchange rate at 24 September 2010:  US$1 = G 4,770. 
Source : WTO Secretariat, on the basis of data provided by  the National Government Procurement Directorate.  
261. The data provided by the DNCP shows that na tional and international competitive bidding 
together have increased over the period under revi ew, accounting for close to 80 per cent of the 
contracts awarded in 2009, compared to 60 per cen t in 2004 (Table III.11).  International competitive 
bidding alone accounted for 38 per cent of the amounts of procurement in 2009. 
262. In terms of the number of procedures, however, contracts awarded as a result of national or 
international competitive bidding accounted for only 16 per cent (11.3 per cent in 2004), and the share 
of international competitive bidding was no more than  0.8 per cent (Table III.12).  The total of offer 
                                                      
129 Article 20 of Law No. 2.051/03 and Article 62 of Decree No. 21.909/03, amended by Decree 
No. 5.174/05. Paraguay WT/TPR/S/245 
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bidding and direct contracting (following an invita tion to three suppliers) amounted to 90.4 per cent of 
procurement procedures in 2009, but only 10.8 per cent of the amounts of the contracts awarded, and this can be explained by the low amounts of pr ocurement using these procedures and their frequent 
use by contracting entities.  As far as contracti ng using an exceptional procedure is concerned (with 
no competition), although its share of the total am ount fell from 29.9 per cent in 2004 to 8.7 per cent 
in 2009, it remains more popular than other measu res such as offer bidding and direct contracting 
which, respectively, accounted for 7.4 per cent a nd 3.4 per cent of the amounts in the contracts 
awarded in 2009. 
Table III.12 
Contracts awarded by contracting procedure followed, 2004-2009 
(Percentage (unless otherwise indicated)) 
Procedure 2004 2005 2006 2007 2008 2009 
National competitive bidding 10.4 13.1 14.7 12.3 12.8 15.1 
International competitive biddi ng 0.9 1.0 0.8 0.7 0.7 0.8 
Offer bidding 7.5 9.8 10.9 12.0 12.3 19.0 
Direct contracting 70.3 64.0 62.2 61.5 58.0 52.4 
Contracting following an exceptional 
procedure 10.9 12.1 11.3 8.7 9.7 7.5 
Othera 0.0 0.0 0.0 4.7 5.0 5.1 
Total 100.0 100.0 100.0 100.0 100.0 100.0 
Total number of contracts 14,843 18,794 19,327 20,325 18,786 19,922 
a. Includes the rental of real estate, c ontracting of training and contracting as a result of national or international agreeme nts. 
Source : WTO Secretariat, on the basis of data provided by  the National Government Procurement Directorate.  
263. In an IDB/World Bank report (2007), it is indicat ed that Paraguay has made considerable 
progress in the regulatory and institutional aspects of government procurement and has improved the 
procedures for purchasing and settling disputes.  The report points out, however, that a large number 
of contracts are awarded using the direct contr acting procedure;  that international competitive 
bidding only applies where required by international ag reements or if there are no local suppliers;  and 
that there are problems relating to the financial management of contracts and control systems, 
inter alia .  The report therefore recommends that subs tantial improvements be  made in terms of 
market openness and efficiency, transpar ency, internal controls and auditing.130 
264. For the purposes of this Review, the WTO Secret ariat was informed that some State-owned 
enterprises operating in key sectors of the econom y have encountered problems when applying the 
LCP because of delays in the official procedures for verifying government procurement procedures.  
In June 2010, the DNCP issued a resolution whic h lessened the time taken for verification of the 
various stages and forms of procurement procedures.131  The authorities have indicated that the 
purpose of this reduction is to speed up procedures, but that it does not mean any easing of controls by the DNCP. 
(vi) Intellectual property rights 
(a) Overview 
265. Paraguay's Constitution (Article 110) guarantees in tellectual property rights (IPRs).  Paraguay 
is a member of the World Intellectual Property Organization (WIPO) and has ratified a number of 
international agreements on IPRs (Table III.13). 
                                                     
 
130 IDB and World Bank (2007). 
131 Resolution DNCP No. 948/10 of 17 June 2010. WT/TPR/S/245 Trade Policy Review 
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Table III.13 
International agreements ratified by Paraguay 
International agreement/convention Law and date of ratification 
Paris Convention Law No. 300 of 10 January 1994.  In force since 
28 May 1994 
Convention establishing the World Intellectual Property Organi zation (WIPO) Law No. 1.224 of 23 December 1986.  In force 
since 20 June 1987 
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Law No. 444/94 of 10 November 1994.  In force 
since 1 January 2000 
Buenos Aires Protocol on the Harmonizati on of Intellectual Property Rules within 
MERCOSUR with Regard to Trademarks, Indi cations of Origin and Appellations of 
Origin (DEC GMC 8/95) Law No. 912 of 1 August 1996 
Rome Convention for the Protection of Performers, Producers of Phonograms and 
Broadcasting Organizations Law No. 1.038 of 11 October 1969.  In force since 
26 February 1970 
Convention for the Protection of Producer s of Phonograms Against Unauthorized 
Duplication of their Phonograms, Geneva, 1971 Law No. 703 of 8 August 1978.  In force since 
13 February 1979 
Berne Convention for the Protection of Lite rary and Artistic Works (Paris Act of 
1971, as amended in 1979) Law No. 12 of 23 August 1991.  In force since 
2 January 1992 
International Convention for the Protection of New Varieties of Plants (UPOV) Law No. 988 of 14 November 1996.  In force 
since 8 February 1997 
WIPO Copyright Treaty (WCT) (1996) Law No. 1.582 of 6 October 2000.  In force since 
6 March 2002 
WIPO Performances and Phonograms Treaty (WPPT) (1996) Law No. 1.583 of 6 October 2000.  In force since 
20 May 2002 
Source : WIPO.  
266. The MIC is responsible for IPR policy.  The Industrial Property Directorate (DPI) oversees 
matters relating to industrial prope rty, while the National Copyright Directorate is in charge of 
copyright-related matters.  The DPI deals with app lications relating to patents for inventions and 
utility models, the registration of trademarks a nd industrial designs, and renewals, as well as 
objections, registration of changes in ownership, licen ces for use, and records transfers of applications 
for trademarks, patents, utility models and industri al designs.  The DPI also records company mergers 
and registration of industrial propert y agents, and replies to official  correspondence.  Trademarks and 
industrial designs are registered for a minimum pe riod of six months, for the purposes of benefiting 
from the priority laid down in Article 4 of the Paris Convention, while patents are granted for a 
minimum period of three years.132 
267. Paraguay's intellectual property legislation was amended following ratification of the 
Uruguay Round Agreements in order to bring it into li ne with the provisions in the TRIPS Agreement.  
All Paraguay's IPR legislation has been notified to the TRIPS Council.  During the period under 
review, a number of changes to the legal regi me governing IPRs were introduced and these are 
summarized in Table III.14.  Paraguay's IPR legislation was examined by the TRIPS Council in 
November 2000.133 
                                                      
132 MIC online information.  Viewed at:  http://w ww.mic.gov.py/propiedad_intelectual/marcas.html. 
133 WTO documents IP/Q/PRY/1, IP/Q2/PRY/1, IP/Q3/PRY/1 and IP/Q4/PRY/1 of 23 January 2002. Paraguay WT/TPR/S/245 
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Table III.14 
Overview of the protection of intellect ual property rights in Paraguay, 2010 
Law/Coverage  Duration  Observations, limitations and exclusions  
Copyright and related rights    
Law No. 1.328/98 on Copyright and Related 
Rights.  Decree No. 5.159/99 implementing 
Law No.1.328/98 
Copyright includes moral and economic rights.  
Coverage:  Any original literary, scientific or 
artistic product capable of being disclosed or 
published by any means or process, regardless of 
its type, form of expre ssion, the nationality or 
domicile of its author or right holder, or the place 
of publication.  Related rights include the moral 
and economic rights of performers, and the economic rights of producers of phonograms, and 
broadcasting organizations. Economic rights:  lifetime of the 
author (or last co-author) plus 
70 years.  For collective, anonymous, pseudonymous, audiovisual and 
broadcast works, and computer 
programs:  60 years from the date of disclosure or first publication.  The 
economic rights of performers last for 
50 years as of the year following the performance.  The rights of producers 
of phonograms last for 50 years as of 
1 January of the year following the first publication of the phonogram. Registration is not a condition of protection.
The use of works without gainful intent in 
the cases specifically provided in the Law 
in the chapter on exceptions and limitations 
(or for educational or research purposes) is not considered to be infringement of 
copyright. 
Ideas, procedures, official texts, news and 
data are not protected. 
Patents    
Law No. 1.630 of 21 November 2000 and 
amendments thereto in Law No. 2.593 of 
17 June 2005.  Implementing Decree No. 14.201 of 2 August 2001. 
Coverage:  Any invention, whether product or 
process, that is new, involves an inventive step 
and is industrially applicable;  pharmaceutical 
products since January 2005. 20 years from the date of filing the 
application.  Non-extendable. The following may not be patented:  plants 
and animals, with the exception of 
microorganisms, and essentially biological processes for the production of plants and 
animals that are not biological or 
microbiological processes;  products or processes that are included in the state of the art;  and inventions whose commercial 
exploitation must be prevented in order to 
protect public order, morality, human, animal or plant life or health and the 
environment. 
Compulsory licences may be granted 
three years after the grant of the patent or 
four years after the filing of the application if the invention has not been exploited or no 
serious and effective preparations have been 
made to exploit it, or if exploitation has 
been suspended for a period of more than 
one year, provided that the non-use is not 
attributable to force majeure  (difficulties of 
a technical or legal nature outside the 
control of the patent holder, which render 
the exploitation of the invention impossible, or lack of resources or economic viability). 
 
Industrial designs    
Law No. 868 of 2 November 1981.  Implementing 
Decree No. 30.007 of 5 January 1982. 
Coverage:  Upon registration, new designs.  
Industrial designs must be intended to give a 
special appearance to an industrial or craft product and be used as a model for its manufacture. Five years from the date of filing the 
application.  Renewable for 
two consecutive periods of the same 
duration. Industrial designs may not be registered if 
they are not new, are used solely for 
technical purposes, or are contrary to public 
order, morality or proper practice. 
Utility models    
Law No. 1.630 of 21 November 2000.  Implementing 
Decree No. 14.201 of 2 August 2001. 
Coverage:  Provisions on the form, configuration 
or arrangement of an object that enable it to 
function better or differently or that give it a usage 
or technical effect that it did not previously have.  
Utility models must be industrially applicable and 
novel. Ten years from the date of filing the 
application.  Non-extendable. Protection conferred by a utility model 
patent. 
The following are not considered to be 
utility models:  processes, substances and 
compositions, including those of a chemical 
and metallurgic or other nature, and materials excluded from patent protection. WT/TPR/S/245 Trade Policy Review 
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Law/Coverage  Duration  Observations, limitations and exclusions  
Layout-designs (topographies) of integrated 
circuits    
Protection through registration.  Layout-designs 
must be original. 
TRIPS (no domestic legislation exists). Ten years from the date of filing the 
application. Layout-designs in commercial use for over 
two years anywhere in the world may not be 
registered.  Rights may only be asserted 
against acts carried out for industrial or 
commercial purposes. 
Trademarks    
Law No. 1.294/98 (Trademark Law).  Decree 
No. 22.365/98 implementing Trademark Law 
No. 1.294/98. 
Coverage:  Upon registrati on, any sign serving to 
distinguish products or services in the market, 
including names, commerci al slogans, certification 
marks and collective marks.  Prior use is not a condition for registration.   Includes protection 
against the use and registration of well-known 
distinctive signs. Ten years from the date of registration, 
renewable indefinitely for further 
ten-year periods. 
Use of a mark is compulsory.  Through 
judicial means, registration of a mark 
may be cancelled in the following 
cases:  (a) where its use has not commenced within five years following 
its registration;  (b) where its use has 
been suspended for more than five consecutive years;  (c) where it has 
been used with subs tantial changes in 
its original distinctiv e character.  Use of 
a mark in any country suffices for compliance with the requirement on 
compulsory use. Signs may not be registered as trademarks 
(a) if they reproduce, imitate or contain a 
protected appellation of origin;  (b) when 
their use could create a risk of confusion or 
of association with the appellation or might imply an unfair appropriation of its 
reputation;  (c) if they consist of a 
geographical indication likely to lead to confusion, inter alia . 
Geographical indications    
Law No. 1.294/98 (Trademark Law) 
Coverage:  Signs which identify a product as 
originating in a region, country, locality or other 
place, when its reputation or other characteristics 
are essentially attributable to its geographical origin.  A draft law on geographical indications 
and appellations of origin was before Parliament 
in December 2010. Not specified. It is forbidden to use a geographical 
indication to identify products of the same 
type which do not originate in the place designated by the indication. 
New plant varieties    
Law No. 988/96 approving the International 
Convention for the Protection of New Varieties of 
Plants.  Law No. 385/94 on Seeds and Protection 
of Cultivars.  Implementing Decree No. 7.797/00. 
Coverage:  New, uniform, distinct and stable plant 
varieties. 15 to 20 years depending on the 
species:  currently 15 years for 
agricultural species;  18 years for forest 
species, vines and fruit trees. Protection by means of breeders' 
certificates.  Plant breeders' certificates do 
not confer on the holder the right to prevent 
third parties from using the protected 
variety, when such use is made for non-commercial purposes, experimental 
purposes, or to obtain and exploit a new 
variety. 
Source : WTO Secretariat.  
(b) Copyright and related rights 
268. In Paraguay, copyright and related rights are protected under the 1992 Constitution.  The Law 
on Copyright and Related Rights (Law No. 1.32 8/98) and Decree No. 5.159/99 reaffirm and 
implement this protection.  The National Copyri ght Directorate in the MIC keeps the National 
Register of Copyright and Related Rights.  A work do es not have to be entered in the Register in order 
to receive protection under the Law, but registration serves as proof of the facts and acts registered in 
the event of a dispute;  foreign registration is also accepted as proof. 
269. Applications for registration may be made by:  the author or any of the joint authors of the 
work or their agents;  the producer or director or executor of an audiovisual or phonographic work or 
of software;  the publisher if the work has not b een registered;  the author's legitimate heirs;  
performers of a work in respect of their perform ance;  management bodies and legal representatives of Paraguay WT/TPR/S/245 
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the right holders, and translators.  Registration abroad can be endorsed.134  Works can be registered in 
the form of written works;  oral works;  mu sical compositions;  dramatic, dramatic-musical, 
choreographic and pantomime wo rks;  audiovisual works;  broadcast works;  works of 
three-dimensional art;  architectural plans and work s;  photographic works;  works of applied art;  
illustrations, maps, sketches, plans, outlines, etc.;  collections of works;  and computer programs. 
270. Law No. 1.328/98 grants the right holder both moral and economic rights.  Moral rights 
(disclosure, paternity, integrity and withdrawal  of the work from the market) are perpetual, 
inalienable, unattachable, unrenoun cable and imprescriptible as they are exercised by the author's 
heirs following his death, by the National Copyri ght Directorate, by the competent collective 
management entity or by any person who proves a legitimate interest in the work in question. 
271. Economic rights (public reproduction, comm unication and distribution, import and 
translation) extend to all works of authorship, regardless of their type, form of expression, merit or purpose.  Economic rights remain in effect for the en tire lifetime of the author plus 70 years following 
his death.  Protection is granted without any distin ction as to the nationality or domicile of the author 
or right holder, or the place of publication of the work.  The Law contains special provisions for 
audiovisual and broadcast works, computer programs, architectural and three-dimensional works, and 
news articles. 
(c) Patents and utility models 
272. There is no single industrial property law in Paraguay and institutions are protected by 
different laws.  Patents and utility models are regulated and protected by Law No. 1.630 of 
21 November 2000, the Patent Law, as amended by Law No. 2.593 of 2005, and its implementing 
regulations in Decree No. 14.201 of 1 August 2001.  The Patent Law and Law No. 2.047 of 
19 December 2002 introduced the possibility of gr anting patents for pharmaceutical products as of 
1 January 2005. 
273. In order to be protected by a patent, an inventi on must meet three requirements:  it must be for 
a new product or process;  it must imply an inve ntive step;  and be industrially applicable.  The 
invention must involve an inventive step that is not obvious to a person with an average knowledge of 
the technical sphere.  In addition to being of practi cal use and new, the subject of the invention must 
be accepted as "patentable" in acco rdance with the Law.  The followi ng are not patentable:  scientific 
theories, mathematical methods, new plant or animal  varieties, mere discoveries, business methods or 
methods for medical treatment, or comput er programs considered in isolation. 
274. Patent applications must be filed with the DP I, which first undertakes an examination of form, 
after which it allows a period of 60 working days to  make any corrections.  The application must be 
published within 18 months of the date of filing or of the priority claimed, although the applicant may request that it be published sooner.  After publicati on, there is an examination of the substance.  
During the period between publication of the applica tion and the substantive examination, interested 
third parties may comment on and even challenge the application.  In Paraguay, patentability follows 
the principle of unity of invention;  groups of interrelated inventions are only allowed under the same 
application if they constitute a single inventive concept. 
275. Although Paraguay is not a signatory to the Patent Cooperation Treaty (PCT), the DPI is 
authorized by the Law to recognize, on the basis of  an examination of the relevant documents, duly 
                                                     
 
134 MIC online information.  Viewed at:  http://w ww.mic.gov.py/index.php?option=com_content&task 
=view&id=89&Itemid=156. WT/TPR/S/245 Trade Policy Review 
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certified by the competent office, the results of the patentability examinations made by other industrial 
property offices as being sufficient to demonstrate fulfilment of patentability criteria in Paraguay. 
276. Patents are valid for a non-extendable period of 20 years as of the date of filing the 
application for registration;  annual fees must be paid  in order to maintain the validity of a patent.  
Law No. 1.630 allows the holder or applicant for a patent the right to grant a licence to exploit the 
invention (contractual licence) and to be valid this must be registered with the DPI.  Contractual 
licences are not exclusive and may not contain clauses that restrain competition.  Law No. 1.630 also 
gives the DPI the possibility of deciding to grant a compulsory licence, without the patent holder's 
permission, when applicants have made unsuccessful efforts to obtain such authorization directly from 
the patent holder on reasonable commercial term s and conditions.  In the case of pharmaceutical 
products, which were not protected in Paraguay on  the date on which Law No. 1.630 entered into 
force, if the patent applied for includes raw material s from which the final product is to be developed, 
the licensee is obliged to buy that  raw material, molecule or principle from the patent holder or from 
whomever the patent holder specifies at the intern ational market price.  Should a preferential price 
exist, the patent holder must offer it to the licen see, who may buy the raw material from a third party 
if the price is at least 15 per cent lower than that offered by the patent holder. 
277. Compulsory licences may also be applied for when, three years after a patent has been 
granted or four years after the application has been  filed, the invention has not been exploited, no 
effective preparations have been made to exploit it,  or exploitation has been suspended for more than 
one year for reasons not attributable to force majeur e.  Importing by the patent holder is recognized as 
exploitation.  The Law also provides for the possibi lity of granting compulsory licences in order to 
eliminate anti-competitive practices or for reasons of  public interest such as a health emergency, 
national security or defence, or to foster economic  development of certain strategic sectors.  The 
patent holder must receive remuneration for the use of the patent.  Compulsory licences are non-exclusive. 
278. Utility models are protected through the gran ting of utility model patents and must be 
registered with the DPI.  They are subject to the same procedure as applications for patents for 
inventions. 
(d) Trademarks 
279. The protection of trademarks for products a nd services is governed by Law No. 1.294 of 
6 August 1998 and its implementing regulations in Decree No. 22.365 of 14 August 1998.  In order to 
obtain protection, trademarks must be registered in the DPI's Trademark Register;  registration grants 
the right to exclusive use of a particular tradem ark.  For well-known marks, protection may be given 
without the need to register, in accordance with Article 6 bis of the Paris Convention.  Article 18 of 
Law No. 1.294, however, specifies that the owner of  a trademark for products or services registered 
abroad shall receive the guarantees granted by the Law once the trademark has been registered in 
Paraguay.  Article 2.G of the Trademark Law pr ovides that signs which constitute a reproduction, 
imitation, translation, or total or partial translitera tion or transcription of a distinctive, identical or 
similar well-known sign in the relevant sector belongi ng to a third party may not be registered as 
trademarks.  Trademarks applied for and registered are published each week in the Boletín 
Informativo  (Information Bulletin).
135  Registration confers protection for a period of ten years, 
renewable indefinitely for identical periods. 
280. Use of the trademark is compulsory.  The owne r of a trademark must begin using it within 
five years of its registration and not suspend its use for more than five years.  The owner of a 
                                                      
135 MIC information.  Viewed at:  http://www.mic .gov.py/ propiedad_intelectual/marcas.html. Paraguay WT/TPR/S/245 
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registered trademark may grant a licence for its use, assign it or transfer it, and this must be registered 
with the DPI in order to have effect against th ird parties.  Foreign trademarks enjoy the same 
guarantees as national trademarks if they are regist ered with the DPI, for which the agent must be 
domiciled in Asunción. 
281. The exclusive right to a trade name is acquire d through its first public commercial use and 
registration with the DPI is not a requirement for protection of this right. 
(e) Industrial designs 
282. Legislation on the protection of industrial designs is contained in Law No. 868 of 
2 November 1981 and its implem enting regulations in Regulatory Decree No. 30.007 of 
5 January 1982.  In order to be protected, industria l designs must be registered with the DPI.  For 
registration, they must be new, not used solely for technical purposes and not be contrary to public 
order, morality or proper practice. 
(f) New plant varieties 
283. Law No. 385/94 on Seeds and Protection of Cu ltivars established the Seeds Directorate 
(DISE) and, together with its implementing regula tions contained in Decree  No. 7.797/00, constitutes 
Paraguay's legislation on new plant varieties.  The Law created the National Register of Protected 
Cultivars within the DISE to safeguard the rights of  plant breeders.  Law No. 988/96 approved the 
International Convention for the Protection of New Varieties of Plants (UPOV).  Law No. 2.459/04 
established the SENAVE, which replaced the DISE in October 2004. 
284. Any natural or legal person that produces a new plant variety may request its registration in 
the SENAVE register provided that it meets the re quirements of distinctiveness, homogeneity and 
stability.  Protection is granted through a breeder 's certificate but does not extend to the product 
obtained through application of the variety.  Protect ion lasts for 15 years for agricultural species and 
18 years for forest, vine and fruit tree species. 
(g) Geographical indications 
285. There is no special law on geographical indica tions, which are protected under the provisions 
of the Trademark Law, Articles 57 to 60.  This Law provides that only producers carrying out their 
activities in the place designated by the geographical  indication may use the indication in trade.  
Misuse of a geographical indication may be the subj ect of legal proceedings.  In September 2010, the 
MIC put before the Chamber of Deputies a prelim inary draft law on geographical indications and 
appellations of origin, but by December 2010 it had not yet been examined in plenary session. 
(h) Other intellectual property rights 
286. In December 2010, there was no special legislati on to protect layout-designs (topographies) of 
integrated circuits.  Undisclosed information is  governed by Law No. 3.519/08 of 25 June 2008 on 
protection of test data requested by the health authority for the approval of phytosanitary products, 
and by Law No. 3.283/07 of 3 September 2007 on prot ection of undisclosed information and test data 
for pharmaceutical registration. 
(i) Parallel imports 
287. Parallel imports are permitted in the case of indu strial property rights.  More specifically, the 
Patent Law contains provisions on the internati onal exhaustion of industria l property rights, as does WT/TPR/S/245 Trade Policy Review 
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the Trademark Law.  At the WTO, Paraguay has de fended the importance for a developing country of 
being able to incorporate legislation on the exhaustion of international rights.136  The relevant 
provisions in each of these Laws specify that a right holder in Paraguay may not prevent parallel 
imports from another country in which goods liable to be imported have been placed on the market by 
the right holder or with his authorization.  It is al so stipulated that contractual restrictions that may 
exist in the case of exclusive licences or distribut ion contracts may not prevent parallel imports.  
Parallel imports of a good may be halted if a modi fication is made to the good to which the IPRs 
relate, or to its packaging, without authorization from the right holder. 
288. Parallel imports are not permitted in the case of copyright.  Article 29 of the Law on 
Copyright and Related Rights grants the right holder the exclusive right to authorize, or refuse, the 
entry into Paraguay of copies of a work which have not been specifically authorized for distribution there.  This right prevents free movement at the border, but does not stop the import of single copies 
for personal use. 
(j) Enforcement of intellectual property rights 
289. The National Council for the Protection of Inte llectual Property Rights, established by Decree 
No. 14.870 of 26 September 1996, in which the MIC, the MRE, the Ministry of Finance and the 
Office of the Public Prosecutor participate, is responsible for coordinating activities relating to the 
protection of IPRs at national level, the nego tiation of cooperation and technical assistance 
agreements, and preparing proposals on draft legislati on.  To support the Council's work, the Office of 
the Attorney General has set up prosecution departments specializing in IPRs in Asunción and in the 
border towns of Encarnación and Ciuda d del Este, which deal exclusively with the judicial aspects of 
combating piracy.  The authorities have also indica ted that there is a preliminary draft decree on 
setting up a national interinstitutional commission to d eal with intellectual property issues and whose 
objective, inter alia , will be to follow up and comply with the commitments in the WTO, WIPO and 
MERCOSUR, in addition to conducting bilatera l, multilateral and plur ilateral negotiations. 
290. Procedures for infringement of IPRs must be in itiated within three years of the infringement 
in the case of processes;  the limitation period for acti on is five years after the punishable conduct has 
ended.  In civil proceedings, the time limit is two years from when the right holder was reliably informed of the infringement or four  years from the last time it occurred.
137  Infringement of IPRs 
may give rise to both administrative and criminal proceedings.138  As regards administrative action, if 
the courts so decide, products infringing IPRs may be prevented from entering Paraguay.  Even 
though the customs authorities are not empowered to  take preventive measures at the border on their 
own initiative, such measures may be taken at the requ est of the interested party without the need for 
judicial intervention.  In such cases, the cu stoms authorities may withhold goods that infringe 
trademarks or copyright for up to ten days. 
291. In cases of copyright infringement, Law No. 1.328/98 specifies that fines or custodial 
sentences of two to eight years may be imposed.  The Law provides for compensation for material 
injury and prejudice comprising the amount the right holder ought to have received, plus a minimum 
surcharge equivalent to 100 per cent of the said amount.  The Copyright Law also provides for the possibility of confiscation, seizure and destructi on of the infringing goods and of all materials and 
accessories used.  The Trademark Law also prescrib es administrative and criminal proceedings. 
                                                     
 
136 WTO document IP/C/W/296 of 29 June 2001. 
137 International Association for the Protection of Intellectual Property, online information.  Viewed at:  
http://www.aippi.org/reports /q169/q169_paraguay_e.html. 
138 WTO document IP/Q/PRY/1 of 23 January 2002 contains further information. Paraguay WT/TPR/S/245 
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292. Decree No. 603/03 of 20 October 2003 introduces additional measures to protect copyright 
and prevent piracy and counterfeiting.  According to th is Decree, entry in the Register of Importers of 
Magnetic and Optical Media and Raw Materials used in the Production Thereof (RISMOMPP), 
overseen by the DPI, is required for natural or le gal persons engaged in th e import, recording or 
marketing of audiovisual materials and software .  Importers of industr ial recording equipment 
comprising more than three parts and of raw materials used in the manufacture of magnetic media, compact disks and blank or recorded DVDs, and producers and distributors of audiovisual works, 
compact disks and software must also be registered in the RISMOMPP.  Registration is on an annual basis and is a prerequisite for obtaining prior impor t authorization (non-automatic), which is required 
for blank and recorded products under tariff s ubheadings NCM 85.23.11 and 85.23.13 (magnetic 
tapes), 85.23.20 (magnetic disks) and 85.24.90 (other products). 
293. As was the case at the time of the previous Re view in 2005, enforcement of IPRs remains a 
matter of concern for the Paraguayan authorities and for other WTO Members.  The main problem is still the use of Paraguayan territory as a transit point  and illicit production site for unauthorized copies 
of software, sound recordings and films.  With rega rd to the problems of transit and manufacture of 
pirate copies, the authorities state that, according to  official statistics, the number of blank CD-Rs 
imported in 2009 was 13.1 million, compared to the 270 million indicated in the previous Report 
for 2004. 
294. Enforcement of IPRs in Paraguay is still monitored under Section 306 of the 
1974 United States Trade Act.
139  Paraguay was first identified as a Priority Foreign Country by the 
Office of the United States Trade Representative (USTR) in 1998 as part of a "Special 301" 
out-of-cycle review.140  The USTR has continued to identify Paraguay as a Priority Foreign Country 
ever since.  The USTR's identification of Paragua y as a Priority Foreign Country in 1998 led to the 
signing of a Memorandum of Understa nding on the Protection of IPRs in November of the same year 
and placed the enforcement of IPRs in Paraguay un der monitoring, as provided by Section 306 of the 
1974 Trade Act. 
295. On 30 March 2004, Paraguay signed a new Memo randum of Understanding on IPRs with the 
United States, which sought to enhance IPR legisla tion, administration and enforcement in Paraguay, 
focusing primarily on increasing the Government's capacity to combat piracy and copyright and 
trademark counterfeiting.141  This Memorandum was extended until the end of 2007.  A third 
Memorandum of Understanding was finalized in November 2007 and signed on 30 April 2008, 
originally to remain in effect until 31 December 2009.  In 2009, this Memorandum was extended until 
the end of 2011. 
296. In recent years, efforts have been made to im prove the enforcement of IPRs, for example, by 
increasing the penal, financial and administra tive penalties and recognition that counterfeiting 
constitutes an offence.142  Monitoring has been increased and mo re illegal goods have been seized and 
                                                      
139 Section 306(a) of the 1974 Un ited States Trade Act provides that the USTR shall monitor the 
implementation of measures adopted or agreements in for ce with other countries so as  to enforce United States 
rights under a trade agreement.  In 2010, Paraguay was the only country being monitored under Section 306 
(USTR, 2010). 
140 "Special 301" reports identify countries that th e United States authorities believe are infringing 
intellectual property rights.  Countries classified as Priority Foreign Countries are those whose policies are 
considered to have the greatest or most costly im pact on United States right holders or products. 
141 Available online at:  http://www.state.gov/r/pa/prs/ps/2004/34619.htm. 
142 Changes were introduced into the Penal Code by Law No. 3.440 of 16 July 2008, which came into 
force in July 2009.  These changes include longer terms of imprisonment for infringement of IPRs, from a 
maximum of three years to a new maximum of ei ght years in cases of copyright infringement. WT/TPR/S/245 Trade Policy Review 
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destroyed.  In order to improve enforcement, a Speci al Technical Unit (UTE) has been set up.  This is 
an intelligence unit attached to the MIC and was cr eated by Executive Decree in order to identify, 
prevent and prosecute piracy, counterfeiting and tax evasion.  The UTE is composed of experts from 
the MIC, the Ministry of Finance, the Ministry of  the Interior and the Armed Forces, which work in 
coordination with the Office of the Public Prosecutor. 
297. Despite these efforts, however, Paraguay contin ues to face a serious problem regarding the 
enforcement of IPRs, particularly in relation to piracy and the manufacture and regional distribution of the output, especially electronic products, CDs/DVDs, made-up articles and footwear. 
298. The 2010 Report of the International Intellectua l Property Alliance (IIPA) confirms that there 
are still problems relating to the enforcement of IPRs and that efforts by the customs remain 
insufficient to ensure  their enforcement.
143  The Report highlights the problems encountered by the 
UTE in carrying out its work, which led to a 40 to 50 per cent reduction in seizures between 2008 and 2009, with an even larger drop in value from US $48 million in 2008 to US$7 million in 2009.  It is 
also pointed out that levels of piracy remain high.  The IIPA recommends improving training for UTE officials;  increasing interception and seizure, especially in Ciudad del Este;  improving border 
controls;  creating a specialized IPR court and a special IPR prosecutor and improving training for 
judges.
144 
299. In response to the recommendations made by international observers, the authorities have 
embarked on the reorganization of the UTE, by means of Decree No. 5.446 of 17 November 2010.  
The Paraguayan authorities consider that they are making significant efforts to combat piracy, using 
information campaigns and educating the population, inter alia .  They also underline the importance 
of the changes made to the Penal Code, whic h now prescribes more severe penalties, and the 
reorganization of the UTE. 
                                                      
143 International Intellectual Prop erty Alliance (I IPA) (2010). 
144 Further information in this connection can be found at:  http://www.iipa.com/pdf/2010 
SPEC301USTRHISTORY.pdf;  http://www.iipa.com/ pdf/2010SPEC301HISTORICALSUMMARY.pdf;  and 
http://www.iipa.com/pdf/ 2010SPEC301COVERLETTER.pdf.