Honduras WT/TPR/S/234 
 Page 29 
 
 
III. TRADE POLICIES BY MEASURE 
(1) INTRODUCTION  
(i) Registration, documentation and procedures 
1. Honduras adopted the Uniform Central Amer ican Customs Code (CAUCA IV) and its 
Regulations (RECAUCA)1 in August 2008.  Customs procedures had been governed up to then by 
CAUCA III2 and the National Customs Law (Decree No. 21 2-87).  This Law, wh ich was not amended 
when CAUCA IV and its Regulations came into effect, applies wherever it does not conflict with regional legal instruments and in all matters not pr ovided for in the Code and its Regulations.  The 
Executive Directorate of Revenue, which is res ponsible for customs, draws up the implementing 
regulations for the Central American Regulations. 
2. Under the RECAUCA, the import declaration (Single Customs Declaration, DUA) must be 
made electronically
3 and may be submitted before th e goods arrive in the country.4  The declaration 
must be accompanied by the following documents:  the bill of lading, the commercial invoice, a declaration of the value of the goods, the certificate of origin, documents supporting the exemption regime, if any, and any other documents needed  (for example, phytosanitary permits or import 
licences).
5  Some products, for example, some animal  and plant products, medicines and chemical 
products, require an import licence (section (vii) below).6 
3. Under the CAUCA, the customs administration must verify whether the goods unloaded or 
transshipped match the declaration.  Unloaded good s which do not appear in the manifest must be 
added to it within a period of 15 working days afte r the unloading has been completed, so long as it 
can be proven that there was no intent to de fraud the treasury;  otherwise, the goods will be 
confiscated. 
4. There is no compulsory registration requirement fo r importers in general.  Only importers of 
refrigerants containing chlorofluorocarbons (CFCs) a nd methyl bromide are required to register with 
the Technical Ozone Unit (UTOH) and the Plant Health Directorate of the National Agricultural 
Health Service (SENASA) attached to the Mi nistry of Agriculture and Livestock (SAG), 
respectively.7  However, registration with the Ministry of Health is required in order to import, as well 
as produce, distribute and market, some health-related products:  cosmetics, medicines, hazardous chemical substances, food products  and beverages (section 2(xii)).
8  Importers of dairy products must 
be registered only once in the Register of impor ters of dairy products and food preparations 
containing dairy products.  Cro ss-border imports, small family c onsignments of a non-commercial 
character, and imports of samples having no commercial value are exempt from this requirement.9 
5. Since CAUCA IV came into effect on 25 Augu st 2008, the customs authorities have been 
able to authorize companies involved in any pa rt of the international marketing chain, from 
manufacturing to transport, or simply intermediation, to act as Authorized Economic 
                                                      
1 Approved on 25 August 2008 by Resolution No. 223-2008. 
2 SIECA (2009). 
3 CAUCA Article 78 and RECAUCA Article 318. 
4 For intraregional imports, the Central American single customs form (FAUCA) is used. 
5 Decree No. 157-94 Law on Plant and Animal Health, Official Journal of 13 January 1995. 
6 WTO document G/LIC/N/2/HND/2 of 12 November 2007. 
7 WTO document G/LIC/N/2/HND/2 of 12 November 2007. 
8 Health Code, Decree No . 65-91, Official Journal of 6 August 1991. 
9 Ministry of Industry and Trade, Executive Decision No. A-024-2009. WT/TPR/S/234 Trade Policy Review 
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Operators (AEOs).10  Authorized entities can benefit from simplified customs procedures, fewer 
physical controls, and the possibility of choosing the place of inspection.11  Currently, there is no 
AEO in Honduras. 
6. Up to 2009, the customs administration used the ASYCUDA computeri zed system for most 
customs procedures.  The system handles manifest s and customs declarations, accounting documents, 
transit procedures and suspensive regimes.12  In 2009, Honduras began using the Automated Customs 
Revenue System of Honduras (SARAH).  The syst em has been criticized by both exporters and 
importers, but customs revenues apparently increased l ast July despite the fall in imports due to the 
financial crisis.  According to the authorities, the SARAH system has been criticized, but it has a 
number of advantages, such as:  (a) electronic submission of documents from the point of origin, 
avoiding the need for the documents to be sca nned a second time in customs;  (b) online banking 
services, which allow payments to be made without geographical boundaries;  (c) the system is very 
flexible and can be adapted easily to  any change in customs procedures;  and (d) the system is easy to 
use with any type of computer equipment.  All of this has resulted in reduced  customs clearance times 
and increased revenue. 
7. Goods can enter Honduras under the following cu stoms procedures:  final import, customs 
transit, customs warehousing, temporary import with  re-export in the same state, and re-import. 
8. Goods in transit subject to customs control may be transported from one customs office to 
another with complete suspension of the relevant duties.  Under the customs warehousing procedure, 
goods are stored for a specific time at a site appr oved for that purpose, under customs authority, with 
suspension of the relevant duties. 
9. Goods may be re-imported in the same state in  which they were exported or after additional 
processing that does not substantially affect their nature, with complete or partial exemption from 
import fees and levies.  The re-import of goods export ed temporarily to be repaired or processed in a 
way that substantially changes their nature is subj ect to payment of duties on the value added and on 
the re-import costs incurred.  Re-import free of ch arges and levies is also possible in cases where the 
exported goods are rejected by the importer because they are defective or not in conformity with the 
terms of the contract. 
10. The temporary admission for inward processing regime permits certain foreign goods, 
intended to be exported within a specific period af ter having undergone processi ng or working, to be 
imported with suspension of import dut ies and other applicable taxes. 
11. Only Honduran citizens by birth or nationals of other Central American countries can obtain a 
customs agent licence;  customs transporters, both foreign and domestic, must be accredited by the 
Executive Directorate of Revenue (DEI).13 
12. RECAUCA Articles 623 and 625 provide for two types of appeals against decisions and 
actions taken by the customs service:  an appeal for review, which is submitted to the DEI, and an 
                                                      
10 The Uniform Central American Customs Code (CAUCA IV) defines the role of the AEO in its 
Section XIII, Article 28, and in Articles 159 and 166 of  its implementing regulations, and RECAUCA Article 59 
lays down the requirements for obtaining authorization to act as an AEO. 
11 Information from the DEI. 
12 Information from the DEI, based on ASYCUDA.  Viewed at:  
http://www.dei.gob.hn/descargacateg oria.php?idcategoria_cat=16. 
13 Ministry of Finance Decision No. 1359 of 24 May 2007 and RECAUCA Article 76. Honduras WT/TPR/S/234 
 Page 31 
 
 
appeal to a higher authority, which is submitted to the Ministry of Finance.  If the complainant is not 
satisfied with the administrative decision, he can turn to the Administrative Court. 
(ii) Customs valuation 
13. Since 1 January 2000, the customs valuation of goods has been carried out in accordance with 
the provisions of the WTO Agreement on Customs Va luation.  However, Honduras reserved the right 
to apply minimum values until 1 January 2003.  Since that date, as was notified to the WTO, 
Honduras has not applied minimum values to any product.14  Honduras currently applies reference 
prices for used vehicles, some spare parts a nd other goods.  These prices are applied to goods 
produced in China;  Hong Kong, China;  India;   Panama;  the United States of America;  and 
Viet Nam, and are used as a refe rence when there are "reasonable"  doubts about the declared value.15 
14. The Central American Regulations on Customs Valuation came into effect in Honduras in 
2004, but were repealed when the RECAUCA was appr oved in 2008, since the latter legal instrument 
has a chapter on customs valuation of goods.16  Therefore, the customs valuation of merchandise 
imported or brought into the Central American custom s territory, whether or not subject to duties and 
taxes, will be carried out in accordance with the provisions of the WTO Agreement and the 
RECAUCA.  According to the authorities, the RECAUCA chapter on customs valuation of goods 
follows the same guidelines as the WTO Agreement. 
(iii) Rules of origin 
15. Honduras does not apply non-preferential rules of origin.17 
16. As regards Central American free trade, the rules of origin are governed by the Central 
American Regulations on the Origin of Goods.18  The general principle governing the determination 
of origin of goods under these Regulations  is a change in tariff classification. 
17. In relation to the origin of goods from third countries with which Honduras has bilateral or 
multilateral trade agreements, the rules contained in  those treaties are applied.  Honduras applies 
preferential rules of origin within the framework of the various trade agreements it has signed with 
Chile (Central America-Chile free trade agreemen t (FTA));  Colombia (Colombia-El Salvador, 
Guatemala and Honduras FTA)19;  Mexico (Honduras, Guatemala and El Salvador-Mexico FTA);  
Chinese Taipei (Honduras, El Salvador-Chin ese Taipei FTA);  the Dominican Republic 
(Central America-Dominican Republic FTA);  DR-CAFTA (Dominican Republic-Central America-United States FTA);  and Panama (Central America-Panama FTA).  The general principle for determining origin in these various agreements  is also a change in tariff classification.  
Nevertheless, the rules of origin applying to the same product may vary depending on the agreement, 
                                                     
 
14 WTO document G/VAL/N/4/HND/1 of 29 August 2003. 
15 The complete list of goods subject to reference pri ces can be found on the DEI website.  Viewed at:  
http://www.dei.gob.hn/descargadetalle.php?descarga=361&idcategoria_cat=211. 
16 Central American Regulations on the Valuation of Goods for Customs Purposes;  
COMIECO Resolution No. 115-2004, (Official Journal, No. 143-2004 of 3 September 2004) and Resolution 
No. 224-2008 of 25 April 2008 approving the RECAUCA. 
17 WTO document G/RO/N/3 of 27 July 1995. 
18 COMIECO Executive Resolution No. 156-2006 of 7 June 2006;  COMIECO XXXIX 
Resolution No. 181-2006 of 9 November 2006;  COMIECO XLVI Resolution No. 208-2007 of 19 November 2007;  COMIECO XLVII Resolution No. 218-2007 of 11 Decem ber 2007, and COMIECO 
Executive Resolution No. 247-2009 of 19 June 2009. 
19 Online information from the Ministry of Trade, Industry and Tourism, Bogota.  Viewed at:  
http://www.mincomercio.gov.co/eContent/n ewsdetail.asp?id=5910&idcompany=1. WT/TPR/S/234 Trade Policy Review 
Page 32 
 
 
since each agreement supplements the criterion on a change in tariff classification with additional 
criteria, such as national content. 
Table III.1 
Rules of origin, 2010 
 Criteria 
 Specific 
rules CTCa Regional content value Main tolerance provisions b Cross-cumulationc 
DR-CAFTA Yes Yes 35% or 45%, depending on 
the calculation method; 
other thresholds are applied to certain products. 10% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. Cumulation with Mexico is 
allowed for certain textile 
products used to produce articles of apparel under HS Chapter 62 
Chile Yes Yes 30% 8% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. No 
Colombia Yes Yes Calculated according to a 
formula 10% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. Under negotiationd 
CACM Yes Yes 30% 10% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. No 
Mexico Yes Yes 50% 7% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. Cumulation with the 
United States is allowed for 
certain textile products used 
to produce articles of apparel under 
HS Chapter 62 
Panama Yes Yes 30% 10% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. No 
Dominican 
Republic Yes Yes None 7% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. No 
Chinese 
Taipei Yes Yes Between 35% and 50% 10% of the value or weight of fibres 
or yarns in the case of textiles and 
made-up articles. No 
a Change in tariff classification. 
b Refers to the permitted limits on the use of materials from non-beneficiary countries that w ould otherwise not be accepted. 
c Refers to the existence of provisions under which inputs fr om non-beneficiary countries not parties to the Agreement are 
considered as originating goods. 
d Colombia-El Salvador, Guatemala and Honduras FTA, Chapter IV, Article 4.6. 
Source : WTO Secretariat on the basis of the trade agreements currently in force in Honduras. 
 
(iv) Tariffs 
(a) Structure and levels of the MFN tariff 
18. Tariff policy is defined in accordance with the framework and guidelines of the Central 
American Common Market (CACM).  Honduras app lies the Central American Import Tariff (ACI) 
and its Central American Tariff System (SAC), a system for the official classification of goods based on the Harmonized Commodity Description and Coding System (HS)
20, with some exceptions.  The 
fourth revision of the HS in 2007 was incorporated into the SAC on 1 January 2007 by 
COMIECO Resolution No. 180-2006 of 9 November 2006.  Some 95.7 per cent of the tariff lines 
                                                      
20 From the date on which the Central American Impo rt Tariff came into effect, the Law on the Tariff 
and Customs Regime of Honduras, Decr ee No. 213-87 of 29 November 1987, ceased to have effect, together 
with its amendments, with the exception of Title I, Chapte rs 27 and 87, of the import tariff referring to mineral 
fuels, mineral oils and products of their distillation;  bituminous mineral wa xes;  and motor vehicles, tractors, 
cycles and other land vehicles , and tariff headings and subheadings not negotiated at the Central American level.  
The vehicles item has already been harmonized and forms part of the Central American Import Tariff.  Honduras does not apply an export tariff. Honduras WT/TPR/S/234 
 Page 33 
 
 
under the ACI have been harmonized, while 4.3 per cen t, including medicines, metals, petroleum and 
agricultural products, remain outstanding.21 
19. Honduras only applies ad valorem  tariffs.  Ad valorem  import duties are calculated on the 
basis of the c.i.f. value of the goods.  Honduras im plements a price band system for yellow maize, 
white maize, grain sorghum, corn flour a nd other processed grains (Chapter IV(1)). 
20. In 2009, the Honduran customs tariff contained 6,566 eight-digit lines of the 2007 HS.  The 
average MFN duty applied was 6 per cent (Table III. 2), virtually equal to the one noted in the 
previous report (6.1 per cent).  A rate of 0 per cent was applied to 47.2 per cent of tariff lines.  The 
rates applied to the other lines were around 5, 10 a nd 15 per cent, with 15 per cent (which was applied 
to 21.4 per cent of the lines) being the most common.  The variation in tariff duties was 0 to 164 per 
cent, but the rates were lower than 40 per cent in 99.8 per cent of the tariff universe. 
21. In 2009, an average tariff of 11.1 per ce nt was imposed on agricultural products 
(WTO definition), whereas non-agricultural products were  subject to an average tariff of 5.1 per cent.  
The higher average duty by WTO category applied to  agricultural products, specifically animals and 
products of animal origin, and to dairy products, with tariffs of 20.2 and 21 per cent, respectively.  
The highest tariff was 164 per cent, applicable to imports of poultry meat of headings HS 02.07.13, 
HS 02.07.14 and HS 16.02.32.10.  The second highest rate was 55 per cent, applicable to cigarettes 
(HS 24.02.20.00.00). 
22. The tariff on semi-processed products and fully processed products is increasing (Table III.3).  
Imports of raw materials, on the other hand, are subj ect to a higher average tariff (6.6 per cent) than 
semi-processed products (3.9 per cent). 
Table III.2 
Structure of MFN tariffs, 2010 
(Percentage) 
 2010 
Total number of tariff lines 6,566 
Non- ad valorem  tariffs (% of all tariff lines) 0.0 
Non- ad valorem  tariffs without AVEs (% of all tariff lines) 0.0 
Tariff quotas (% of all tariff lines) 0.0 
  
Duty-free tariff lines (% of all tariff lines) 47.2 
Average of lines exceeding zero (%) 11.3 
  
Simple average tariff rate  
  Agricultural products (WTO definition)a 11.1 
  Non-agricultural products (WTO definition)b 5.1 
  Agriculture, hunting, forestry, and fishing (ISIC 1) 8.1 
  Mining and quarrying (ISIC 2) 1.8 
  Manufacturing (ISIC 3) 5.9 
  
Domestic tariff peaks (% of all tariff lines)c 0.8 
International tariff peaks (% of all tariff lines)d 0.8 
  
Bound tariff lines (% of all tariff lines) 100.0 
a WTO Agreement on Agriculture definitions. 
b Excluding petroleum. 
c Domestic tariff peaks are rates exceeding three ti mes the overall simple average of applied rates. 
d International tariff peaks are rates above 15 per cent. 
Source : WTO Secretariat es timates based on data provided  by the Honduran authorities. 
 
                                                      
21 SIECA (2009). WT/TPR/S/234 Trade Policy Review 
Page 34 
 
 
Table III.3 
Summary of MFN tariffs, 2010 
 MFN 
Description Number 
of lines Average
(%) Range 
(%) Coefficient of 
variation (CV)  Average 
bound tariffa 
(%) 
Total 6,566 6.0 0 - 164 1.3  31.7 
HS 01-24 1,003 11.6 0 - 164 1.1  33.2 
HS 25-97 5,563 5.0 0 - 15 1.2  31.4 
By WTO category       
Agricultural products 939 11.1 0 - 164 1.3  32.9 
 - Animals and animal products 127 20.2 0 - 164 1.5  36.0 
 - Dairy products 31 21.0 0 - 35 0.5  23.0 
 - Coffee and tea, cocoa, sugar, etc. 170 10.6 0 - 40 0.6  32.7 
 - Cut flowers and plants 59 5.8 0 - 15 1.2  33.6 
 - Fruit, vegetables and garden produce 206 13.1 0 - 30 0.4  32.3 
 - Cereals 23 15.0 0 - 45 1.2  33.7 
 - Oilseeds, fats and oils and th eir products 94 5.7 0 - 15 1.0  31.2 
 - Alcoholic beverages and li quids 53 13.7 0 - 30 0.4  32.6 
 - Tobacco 19 8.7 0 - 55 1.4  38.9 
 - Other agricultural products n.e.s. 157 3.6 0 - 15 1.4  33.2 
Non-agricultural products (including petroleum) 5,627 5.1 0 - 15 1.2  31.5 
 - Non-agricultural products (excluding petroleum) 5,603 5.1 0 - 15 1.2  31.6 
    - Fish and fish products 157 9.6 0 - 15 0.6  34.8 
 - Minerals, precious stones and metals 372 5.1 0 - 15 1.2  32.9 
 - Metals 711 2.9 0 - 15 1.7  33.6 
 - Chemicals and photographic products 1,108 2.4 0 - 15 1.9  31.4 
 - Leather, rubber, footwear, and tr avel articles 208 7.6 0 - 15 0.7  34.3 
 - Wood, wood pulp, paper and furniture 453 6.5 0 - 15 0.9  32.0 
 - Textiles and clothing 939 9.8 0 - 15 0.5  34.3 
 - Transport equipment 221 6.1 0 - 15 0.8  28.9 
 - Non-electrical machinery 587 1.4 0 - 15 2.8  29.0 
 - Electrical machinery 339 3.3 0 - 15 1.7  21.7 
 - Non-agricultural products n.e.s. 508 7.1 0 - 15 0.9  30.5 
- Petroleum 24 5.8 0 - 15 1.2  16.1 
By ISIC sectorb       
Agriculture and fishing 411 8.1 0 - 45 0.9  33.3 
Mining 107 1.8 0 - 15 1.8  34.1 
Manufacturing 6,047 5.9 0 - 164 1.3  31.6 
By HS chapter       
  01  Live animals and animal products 299 14.0 0 - 164 1.4  34.2 
  02  Plant products 376 9.9 0 - 45 0.8  32.7 
  03  Fats and oils 54 8.1 0 - 15 0.7  33.3 
  04  Food preparations, etc. 274 12.2 0 - 164 0.9  32.8 
  05  Mineral products 178 2.9 0 - 15 1.5  32.0 
  06  Products of the chemical and re lated industries 962 1.9 0 - 15 2.2  30.9 
  07  Plastics and rubber 335 4.5 0 - 15 1.1  32.2 
  08  Hides and skins 108 8.3 0 - 15 0.7  35.0 
  09  Wood and articles of wood 138 8.6 0 - 15 0.6  34.8 
  10  Wood pulp, paper, etc. 294 5.1 0 - 15 1.1  30.4 
  11  Textiles and textile ar ticles 920 9.6 0 - 15 0.5  34.2 
  12  Footwear, hats and other headgear 64 12.7 0 - 15 0.4  37.2 
  13  Articles of stone 176 6.4 0 - 15 1.0  33.6 
  14  Precious stones, etc. 54 6.9 0 - 15 0.8  34.5 
  15  Base metals and articles of  base metal 697 3.1 0 - 15 1.6  33.6 
  16  Machinery and mechanical appliances 974 2.4 0 - 15 2.1  26.2 
  17  Transport equipment 234 6.1 0 - 15 0.8  29.3 
  18  Precision instruments 237 3.9 0 - 15 1.5  28.1 
  19  Arms and ammunition 21 12.6 5 - 15 0.3  35.0 
  20  Miscellaneous manufactured articles 162 10.6 0 - 15 0.5  35.6 
  21  Works of art, etc. 9 7.8 5 - 10 0.3  35.0 Honduras WT/TPR/S/234 
 Page 35 
 
 
 MFN 
Description Number 
of lines Average
(%) Range 
(%) Coefficient of 
variation (CV)  Average 
bound tariffa 
(%) 
By stage of processing       
First stage of processing 809 6.6 0 - 45 1.1  33.5 
Semi-processed products 2,183 3.9 0 - 40 1.2  32.8 
Fully processed products 3,574 7.1 0 - 164 1.3  30.6 
a As the bound rates correspond to the HS2002 classification and th e applied rates to HS2007, 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 authorities. 
 
(b) Tariff bindings 
23. Honduras bound its entire tariff schedule in the Uruguay Round.  Approximately 85 per cent 
of the tariff universe is bound at 35 per cent.  Less  than one per cent is bound at higher levels ranging 
from 40 to 60 per cent, and the remainder is bound at levels below 35 per cent. 
24. The Secretariat identified seven tariff lines with  an applied rate higher than the respective 
bound rate (Table III.4).22  In the case of butter and iron products, an applied tariff higher than the 
bound tariff had been reported already in 2003.  In 2003 the tariff applied to butter (HS 0405.1000) 
and certain flat-rolled products of iron or st eel (HS 7210.6110 and 7210.6910) was 15 per cent. 
Table III.4 
Products for which the applied tariffs  are higher than the bound tariffs, 2010 
Eight-digit 
HS number Description MFN Bound tariff 
04051000 - Butter 20.00 8.00 
04062090 - Grated or powdered cheese, of all kinds:  other 35.00 20.00 
04063000 - Processed cheese, not grated or powdered 35.00 20.00 
04069020 - Cheddar-type cheese in blocks or slabs 35.00 20.00 
72106110 - Flat-rolled products of iron or non-alloy st eel of a thickness greater than or equal to 
0.16 mm. but less than or equal to 2 mm. 15.00 8.00 
72106910 - Other flat-rolled products of iron or non-allo y steel of a thickness of 0.16 mm. or more but 
not exceeding 2 mm. 15.00 8.00 
85299010 - Furniture and casings (cabinets) of wood 15.00 0.00 
Note: Only lines that are identical in HS2002 and HS2007 were compared. 
Source : WTO Secretariat estimates based on data provided by the authorities. 
 
25. Pursuant to Article XXVIII.5 of the GATT 1994, Honduras reserved the right to modify its 
bound tariffs during the three-year period commencing 1 January 2009.23 
26. Honduras acceded to the Information Technology Agreement (ITA).24  Honduras bound the 
tariffs on these products at levels of 10, 15, 25 an d 35 per cent.  In 2006 Honduras began reducing the 
tariffs applied to these products with a vi ew to reaching the bound level in 2010. 
                                                      
22 In undertaking this analysis, the S ecretariat only took into  account the tariff lines contained in the file 
of Schedule LXXXVIII in the HS96 that are st rictly comparable to those in the HS2007. 
23 WTO document G/MA/208 of 6 October 2008. 
24 WTO document G/MA/TAR/RS/105 of 21 February 2006 and Decree No. 174-2007 of 
12 December 2007 (Officia l Journal No. 31,523 of 1 February 20 08) approving all modifications and 
adjustments to Honduran Schedule XCV. WT/TPR/S/234 Trade Policy Review 
Page 36 
 
 
(c) Preferential tariffs 
27. Honduras grants preferential tariff treatment to  imports from other members of the CACM.  
Most products of Central American origin are trad ed freely, with the exception of sugar, unroasted 
coffee, petroleum products, ethyl alcohol and dist illed alcoholic beverages from El Salvador, and 
roasted coffee from Costa Rica.25 
28. Honduras also extends preferential treatment to imports from countries with which it has 
preferential agreements, that is, Honduras's agreemen ts with:  Chile (Central  America-Chile FTA);  
Colombia (Colombia-El Salvador, Guatemala and Honduras FTA)26;  Mexico (Honduras, Guatemala 
and El Salvador-Mexico FTA);  Chinese Taipei (H onduras, El Salvador-Chinese Taipei FTA);  the 
Dominican Republic (Central America-Dominican Republic FTA);  DR-CAFTA (Dominican 
Republic-Central America-United States FTA) (Table  III.5).  Analysis of the preferential tariffs 
indicates that, in all cases, the preferential rates are substantially lower than the average MFN tariff. 
Table III.5 
Summary of preferential tariffs, 2010 
MFN CAFTA Chile Chinese 
Taipei Dominican 
Republic Mexico Panama 
Description  
Number 
of lines % 
Total 6,566 6.0 1.5 1.7 3.8 1.1 0.8 3.1 
         
HS 01-24 1,003 11.6 4.1 5.0 8.3 2.2 3.7 4.7 
HS 25-97 5,563 5.0 1.1 1.1 2.9 1.0 0.3 2.8 
         
By WTO category         
Agricultural products 939 11.1 4.4 5.3 8.7 2.3 3.9 5.1 
- Animals and animal products 127 20.2 10.6 15.1 17.0 7.1 11.9 15.2 
- Dairy products 31 21.0 11.3 20.7 21.0 2.3 20.3 19.0 
- Coffee and tea, cocoa, sugar, 
etc. 170 10.6 4.7 4.1 8.1 1.1 3.5 4.9 
- Cut flowers and plants 59 5.8 0.2 0.2 0.5 0.0 0.1 0.0 
- Fruit, vegetables and garden 
produce 206 13.1 2.8 4.0 11.2 0.9 1.3 2.8 
- Cereals 23 15.0 14.9 10.8 12.8 9.8 13.0 12.4 
- Oilseeds, fats and oils and 
their products 94 5.7 3.0 2.3 3.6 3.1 0.9 3.4 
- Alcoholic beverages and 
liquids 53 13.7 5.5 6.3 12.2 4.1 2.4 2.5 
- Tobacco 19 8.7 4.2 1.8 8.7 5. 5 6.7 0.7 
- Other agricultural products 
n.e.s. 157 3.6 0.6 0.3 1.1 0.0 0.2 0.7 
Non-agricultural products 
(including petroleum) 5,627 5.1 1.1 1.0 3.0 0.9 0.3 2.8 
- Non-agricultural products 
(excluding petroleum) 5,603 5.1 1.1 1.1 3.0 0.9 0.2 2.8 
 - Fish and fish products 157 9.6 0.0 0.0 1.8 0.0 0.3 0.0 
- Minerals, precious stones and 
metals 372 5.1 1.7 1.2 2.8 0.0 0.2 1.9 
 - Metals 711 2.9 1.0 0.8 2.5 0.0 0.2 1.4 
- Chemicals and 
photographic products 1,108 2.4 0.6 0.6 1.6 0.0 0.0 0.4 
- Leather, rubber, footwear, 
and travel articles 208 7.6 1.9 2.2 4.2 0.0 0.0 3.8 
- Wood, wood pulp, paper 
and furniture 453 6.5 2.1 3.8 5.2 0.0 0.0 2.9 
 - Textiles and clothing 939 9. 8 0.1 0.1 5.1 5.5 0.0 8.4 
 - Transport equipment 221 6.1 3.1 3.9 5.5 0.0 3.1 4.7 
 - Non-electrical machinery 587 1.4 0.5 0.2 0.7 0.0 0.0 0.5 
                                                      
25 SIECA (2009). 
26 Online information from the Ministry of Trade, Industry and Tourism, Bogota.  Viewed at:  
http://www.mincomercio.gov.co/eContent/n ewsdetail.asp?id=5910&idcompany=1. Honduras WT/TPR/S/234 
 Page 37 
 
 
MFN CAFTA Chile Chinese 
Taipei Dominican 
Republic Mexico Panama 
Description  
Number 
of lines % 
 - Electrical machinery 339 3.3 1.1 0.9 0.6 0.0 0.1 1.3 
- Non-agricultural products 
n.e.s. 508 7.1 2.2 1.1 3.6 0.0 0.5 2.9 
- Petroleum 24 5.8 2.3 0.0 0.0 5.6 5.8 0.0 
By ISIC sectora         
Agriculture and fishing 411 8.1 1.6 1.2 4.6 0.5 1.2 1.6 
Mining 107 1.8 0.1 0.2 0.9 0.0 0.0 0.1 
Manufacturing 6,047 5.9 1.6 1.7 3.8 1.2 0.8 3.2 
         
By HS chapter         
01 Live animals and animal 
products 299 14.0 4.8 7.3 8.7 3.3 7.2 7.3 
02  Plant products 376 9.9 2.8 2.5 7.1 1.4 2.0 2.3 
03 Fats and oils 54 8.1 5.0 4.0 6.0 5.3 1.3 5.8 
04 Food preparations, etc. 274 12.2 4.9 6.0 10.0 1.4 2.7 4.8 
05 Mineral products 178 2.9 0.6 0.3 0.7 0.8 1.2 0.4 
06 Products of the chemical 
and related industries 962 1.9 0.4 0.5 1.0 0.0 0.0 0.5 
07 Plastics and rubber 335 4.5 1.4 1.0 3.6 0.0 0.0 0.8 
08 Hides and skins 108 8.3 1.8 1.1 2.8 0.0 0.0 3.8 
09 Wood and articles of wood 138 8.6 3.3 7.4 6.2 0.0 0.0 4.7 
10 Wood pulp, paper, etc. 294 5.1 1.3 1.7 4.6 0.0 0.0 2.2 
11 Textiles and textile articles 920 9.6 0.0 0.1 4. 9 5.6 0.0 8.5 
12 Footwear, hats and other 
headgear 64 12.7 4.0 4.2 9.6 0.0 0.0 6.1 
13 Articles of stone 176 6.4 2.7 2.2 4.9 0.0 0.1 2.8 
14 Precious stones, etc. 54 6.9 1.5 0.0 0.7 0.0 0.0 2.6 
15 Base metals and articles of 
base metal 697 3.1 1.2 0.9 2.7 0.0 0.2 1.6 
16 Machinery and mechanical 
appliances 974 2.4 0.8 0.5 0.5 0.0 0.0 1.0 
17 Transport equipment 234 6.1 3.1 3.8 5.5 0.0 3.0 4.7 
18 Precision instruments 237 3.9 1.2 0.0 2.1 0.0 0.0 1.5 
19 Arms and ammunition 21 12.6 5.7 0.0 5.0 0.0 12.6 10.1 
20 Miscellaneous 
manufactured articles 162 10.6 3.5 3.6 7.4 0.0 0.0 2.9 
21 Works of art, etc. 9 7.8 0.0 0.0 5.7 0.0 0.0 0.0 
By stage of processing         
First stage of processing 809 6.6 1.3 1.1 3.4 0.7 1.1 1.4 
Semi-processed products 2,183 3.9 0.6 0.9 3.3 0.4 0.2 2.2 
Fully processed products 3,574 7.1 2.2 2.3 4.1 1.7 1.1 4.0 
a ISIC (Rev.2), excludi ng electricity (1 line). 
Source : WTO Secretariat estimates based on data provided by the authorities. 
 
(d) Tariff concessions 
29. Goods imported under the processing-for-export regimes are eligible for tariff concessions 
(section 2(iv)). 
30. The temporary export for outward processing re gime allows the temporary export of domestic 
or imported goods, with suspension of any export fees and levies, in order for them to undergo 
outward processing or working and be re-imported su bsequently as "compensating products" (finished 
products that have undergone processing), with comp lete or partial exemption from import fees and 
levies.27 
                                                      
27 RECAUCA Article 528 defines compensating products as goods obtained abroad deriving from 
those exported tempor arily for processing. WT/TPR/S/234 Trade Policy Review 
Page 38 
 
 
31. Used personal effects belonging to persons en tering the country are exempt from payment of 
duties and other import fees and levies.  Travellers  may import tax-free any merchandise that they 
carry with them, in addition to baggage, of a total value not exceeding US$500.  
Two hundred cigarettes or 250 grams of tobacco, 50 ci gars and two litres of alcoholic beverages may 
also be imported free of duties and charges.  Small consignments of a non-commercial character are 
exempt from payment of customs duties.  In add ition, Hondurans who have resided abroad for more 
than one year and who are returning to the country may import their used household effects with exemption from import duties and charges. 
32. Still in effect are "absorption agreements", wh ich allow processors of staple grains (maize, 
sorghum and rice in the husk), who purchase supplies on the local market, to import these grains with 
a preferential tariff of 0 per cent (Chapter IV(1)). 
(v) Tariff quotas 
33. In the Uruguay Round, Honduras did not include any products in its schedule of concessions 
relating to tariff quotas for agricultural products. 
(vi) Other charges affecting imports 
34. Imports, as well as goods and services produced in Honduras, are subject to certain internal 
taxes (Table AIII.1). 
35. Generally speaking, the sales tax is 12 per cen t, except in the case of alcoholic beverages, 
including beer, spirits (" aguardiente "), blended spirits, and cigarett es and other tobacco products, for 
which the rate is 15 per cent.  Products exempt fro m this tax include staple foods, fuels, medicines, 
agrochemicals, cleaning products, books, magazines and educational material, agricultural machinery 
and tools, handicrafts, and capital goods, such as lorr ies, tractors, cranes and computers.  Many of 
these exemptions apply only to Honduran products (for example, fruit, meat, fish) or to products 
containing Honduran raw materials (for example, dairy products and fruit juices) (Table AIII.1).  
According to the authorities, the exemptions appl y to both imported and domestic products, since 
Honduras, as a WTO Member, has to grant national tr eatment, and its Constitution provides that, in 
the event of conflict between an international treat y or convention and nationa l law, the former shall 
prevail.
28 
(vii) Import licensing, permits and other import requirements 
(a) Import quotas 
36. Honduras maintains import quotas in order to co mply with international treaties;  for 
example, it maintains import quotas on some narc otics, psychotropics and controlled chemical 
substances in accordance with various interna tional conventions.  The quotas are administered 
through a licensing system (import certificates) and assigned to Honduran distributors as well as producers. 
37. Imports of CFCs are also subject to a quota syst em in order to comply with the obligations 
that Honduras assumed under the Montreal Protocol.
29  The quotas are distributed among companies 
                                                      
28 Article 18 of the Constitution of the Republic. 
29 Honduras adopted a timetable or calendar for the gradual reduction of imports of CFC refrigerants 
and their elimination in 2010 (the General Regulation on the Use of Substances that Deplete the Ozone Layer, Honduras WT/TPR/S/234 
 Page 39 
 
 
according to the import averages reported and registered in previous years.  Quotas are awarded as 
applications are received.  If the quotas are not utilized, they can be redistributed among other 
registered importers. 
38. Import quotas for refrigerants are valid for onl y one year.  Quotas cannot be accumulated 
from previous years, nor can they be obtained in  advance of succeeding years, since Honduras, as a 
Member of the Montreal Protocol, must not exceed the annual limits permitted under the provisions of 
the Protocol.  The quotas for bromide products are also valid for only one year;  amounts exceeding the quotas are invalid for the follo wing year.  The quotas are administered by the Technical Ozone 
Unit, which, in coordination with the National Agricultural Health Serv ice of Honduras (SENASA) 
attached to the Ministry of Agriculture and Livest ock, monitors the registration system for importers 
and distributors of these substances at the national level.  The quotas are assigned in accordance with 
the quantity imported and used in previous years.  Companies wishing to import must register with the 
SENASA  Office of Plant Health Pesticides.  Quotas ar e assigned to each company at the beginning of 
the year and are granted as applications are receive d.  Imports cannot exceed the limits provided for in 
the Montreal Protocol. 
(b) Import licensing
30 
39. Honduras has an automatic and non-automatic import licensing system in order to protect 
plant and animal health and national security and to comply with international agreements and 
conventions (Table III.6).  The system is applied to products from any country, without exception;  
licences are compulsory and non-transferable.  As was notified to the WTO, the licences are not 
intended to limit the quantity or value of imports.  The authorities indicated that the term "licence" can 
mean import certificate, sanitary register or sanita ry permit, depending on the entity that issues it. 
40. A non-automatic import licence is required to import controlled medicines and chemical 
precursors.  These licences are granted by the Mini stry of Health, which takes 15 days to process 
them, provided that the requirements set out in th e Regulations on the Sanitary Control of Products, 
Services, Food and Beverage Labelli ng and Facilities of Sanitary Inter est have been complied with.  
These licences are intended to ensure that the use of these products by the importer is in keeping with 
the international obligations set forth in the vari ous United Nations conventi ons signed by Honduras.  
Only legally authorized producers and/or distributor s can request a licence.  Licences are valid for a 
single consignment for a non-renewable period of 150 working days.  Import licences for narcotics 
are used to assign the quotas of narcotics that Honduras imports to Honduran distributors and/or 
producers. 
41. Since 2009, for reasons of public health and c onsumer protection, automatic import licences 
have been required to import dairy products.31  These licences are issued by the Ministry of Industry 
and Trade (SIC) and are compulsory for each intended import.  Licences are granted only to importers listed in the Dairy Products Register.  Licences are i ssued within a maximum of ten days from receipt 
of the application and are non-transferable. 
42. A non-automatic licence is also required for the importation of products and by-products of 
plant and animal origin.  The purpose of these li cences is to establish that the plant and animal 
products have been properly inspected and that they  do not constitute a potential risk as carriers of 
pests and diseases.  Accordingly, the application must be submitted at least 15 days prior to the 
                                                                                                                                                                    
 
published in the Official Journal in November 2002, contains information on the annual import quotas for 
CFC refrigerants). 
30 This section is based on, inter alia , WTO document G/LIC/N/3/HND/1 of 12 November 2007. 
31 SIC, Executive Decision No. A-024-2009. WT/TPR/S/234 Trade Policy Review 
Page 40 
 
 
import.  According to the authoriti es, licences are issued within 72 ho urs;  in general, however, they 
are delivered within 24 hours, and in exceptional ca ses, when the goods are in port, they are issued 
immediately, provided that both the condition of  the product and the sanitary and phytosanitary 
certification have been verified.  Licences are gr anted both to Honduran na tural and legal persons 
legally constituted in Honduras and to foreigners residing or legally represented in the country.  
Licences are valid for a period of 30 calendar days and are renewable.  They may be modified or 
revoked, depending on sanitary developm ents in the country of origin. 
Table III.6 
Products subject to import licensing 
Automatic licensing  
Law on Control of Firearms, Amm unition, Explosives and the Like  
Products:  Small arms and hand-held weapons:  revolve rs and semi-automatic pistols up to .45 inches, or 11.5 millimetres calibre;  long 
or shoulder-held weapons:  single-shot and se mi-automatic rifles and carbines up to . 308 calibre;  single-shot or semi-automati c shotguns 
of calibre 10, 12, 16, 20 and . 410, wherever the barrel is no less than 46 cm. or  18 inches in length;  ammunition for the abov e;  
accessories and spares for weapons;  explosives for commercial us e:  those used in the constr uction industry and pyrotechnic in dustrial 
processes;  cartridges used in powder- or other explosive-actuated tools for fasteni ng industrial construction anchors;  gunpow der in any 
composition;  picric acid;  trinitrotoluene;  nitroglycerine;  nitrostarches;  nitroce llulose;  dynamite and amatols;  generall y speaking, any 
substance, mixture or compound with explosive properties;  initiators;  detonators;  safe ty fuses;  detonator cords;  pyrotechn ic devices;  
any instrument or mechanism usable for expl osive purposes;  chlorate;  perchlorates;  sodium metal;  military explosives:  thos e used in 
warfare or manufactured with like intent, exclusively for use by th e armed forces and police forces. 
Executive Decision No.  A-024-2009  
Products:  Milk and cream, not concentrated or cont aining added sugar or other sweetening matte r;  milk and cream, concentrated or 
containing added sugar or other sweetening matter;  buttermilk, curdled milk and cream, yogurt, kephir and other fermented or a cidified 
milk and cream, whether or not concentrated  or containing added sugar or other sweeten ing matter, or flavoured or containing ad ded fruit 
or cocoa;  whey, whether or not concentrated or containing a dded sugar or other sweetening matte r;  products consisting of natu ral milk 
constituents, whether or not containing adde d sugar or other sweetening matter, not el sewhere specified or included;  butter an d other fats 
and oils derived from milk;  dairy spreads;  cheese and curd;  food preparations for infant use, put up for retail sale;  prepa rations of goods 
of headings 04.01 to 04.04, in which some of the constituents ha ve been replaced wholly or partially by other substances;  prep arations for 
infant feeding (infant formulas), other th an those of subheading 1901.10.11 (wherever prepared on the basis of the products of headings 
04.01 to 04.04); other (wherever prepared on the basis of the produc ts of headings 04.01 to 04.04);  modified milk, in powder f orm, other 
than that of subheadings 1901.10.11 and 1901.10.19 (solely follo w-up formulas, and preparations based on the products of headin gs 04.01 
to 04.04);  other (solely food preparations not included in othe r tariff items that are prepared on the basis of the products o f headings 04.01 
to 04.04);  dairy product substitutes (inc luding imitation processed cheese, coffee cr eamers, and powdered soya milk), among ot hers 
(solely imitation processed cheese).  
Non-automatic licensing  
Regulations on the Sanitary Control of Products , Services and Facilitie s of Sanitary Interest  
Products:  Controlled medicines and chemical precursors  
Decree No. 157-94, Law on Plant and Animal Healtha, Amendment to Law on Plant and Animal Health, Decree No. 344-2005b 
Products:  Plant health;  plants, plant products and by-products, and products and inputs for agri cultural use, such as:  fertilizers and 
substrates;  cotton and cotton products;  coffee and coffee pr oducts;  grain and grain products;  sugar cane and by-products;  condiments;  
cut flowers (roses, gardenia, lilac, camellia , rhododendron, azalea, etc.);  fruits, vegeta bles and garden produce;  frozen fru its and 
vegetables;  agricultural inputs;  groundnuts and by-products;  plan t fibre materials;  inert materials as a medium for manufac tured and 
semi-manufactured substrates;  wood and wood products, except for veneered wood, plywood and lamina ted wood;  wicker and rattan  for 
furniture manufacturing;  soil samples;  fo liage, etc.;  ornamental plants;  processe d potatoes;  plants and plant products for  or capable of 
propagation;  aromatic and medicinal plants;  roots and tubers;  seed potatoes;  oils eed for animal feed;  tobacco and tobacco products;  
animals and animal products:  domestic and farm livestock and other species that may carry diseases that could affect Honduran livestock 
and poultry;  products and by-products derive d from animals (livestock) in any manner for commercial or research uses;  poultry  and 
hatching eggs and other avian sp ecies;  animal and avian specimens, tissues or blood products or by-products;  materials that h ave been in 
contact with  samples of dairy products, hay, straw, grasses, etc. for scientific  uses from countries considered to be affected with diseases  
such as foot-and-mouth disease, avian influenza or bovine spongifo rm encephalopathy;  germplasm – semen and embryos (livestock) ;  
organisms that affect certain livestock a nd avian species and various vectors of such  organisms;  veteri nary biological product s, including 
seeds and substrates;  pharmaceutical products for veterina ry use;  balanced animal feed for certain species.  
a The text of the Law can be viewed at the WTO S ecretariat, Market Access Division (in Spanish only). 
b The text of the Law can be viewed at the WTO S ecretariat, Market Access Division (in Spanish only). 
Source : WTO documents G/LIC/N/2/HND/1-3 of 12 November 2007 and G/LIC/N/3/ HND/1/Add.1 of 26 March 2010;  
and Executive Resolution No. A-024-2009. 
 Honduras WT/TPR/S/234 
 Page 41 
 
 
43. Non-automatic licences are required to import refrigerant substances and methyl bromide in 
all forms and for all purposes, in order to comp ly with Honduran obligations under the Montreal 
Protocol.  Licences to import refrigerant substances are granted only to firms registered with the 
Technical Ozone Unit (UTOH), which is under th e Ministry of Natural Resources and the 
Environment (SERNA) and, for methyl bromide, to firms entered in the registration system 
administered by the SENASA and the UTOH.  In princi ple, requests must be made prior to import;  in 
practice, however, a licence may be issued when th e merchandise arrives in a Honduran port, if the 
quantities imported are within the permissible li mits.  Excess or impermissible quantities are 
confiscated.  Each shipment must be accompanied by a licence.  Non-renewable licences are granted 
for a period of validity which varies according to th e distance of the exporting country, the means of 
transport and the entry port.  This is done in order to prevent the same quantity from entering via 
different customs offices.  If the importer does not ca rry out the import within the period of validity of 
the licence, he must submit an additional applica tion explaining the causes or reasons why the import 
was not carried out.  The original authorization is ca ncelled and another authori zation is issued with a 
new period of validity.  Licences to import these subs tances may be denied if the importing firm has 
already used up the quota awarded to it, or if the substance which it seeks to import is not registered 
with the UTOH and there is insufficient techni cal information to identify and classify it. 
44. Pursuant to the Law on Control of Firearms, Ammunition, Explosives and the Like, an 
automatic and non-automatic licensing system is a pplied to control the import of, and trade in, 
firearms and ammunition, as well as the import of e xplosives;  the Ministry of National Defence is 
responsible for administering these import controls.  The purpose of the import licences is to prevent 
persons who are prohibited by law from possessing firearms from acquiring them.  Automatic licences are granted to the Armoury and to firms authorized to import explosives.
32  Non-automatic licences 
are granted to persons seeking to import explosives  and are issued within a period no longer than 
30 days.  Only two firms are authorized to import explosives and firearms.  Import licences are issued 
with no expiration date, and one licence is issued per request. 
(viii) Import prohibitions 
45. Honduras prohibits some imports for reasons of publ ic health and morals and to comply with 
the commitments specified in international agreements  to which it is a signatory.  Generally speaking, 
it also prohibits the import of aerosol products containing CFCs33, with the exception of 
pharmaceutical products authorized by the Directorat e-General of Health Regulation of the Ministry 
of Health and aerosols for technical purposes.  The import of halons by fire brigades and 
telecommunications companies, among others, is exempt.34  Honduras also prohibits the import of 
material or products containing asbestos.35  Also prohibited are the import, transit and production of 
                                                      
32 The Armoury is a unit of the Military Provident Institute.  Its main activity will be the manufacture, 
import, distribution, purchase and sale of weapons, ammunition and similar articles of a commercial nature 
(Circular-DL-No. 296-2008).  DEI online information.  Viewed at:  
http://www.gob.hn/sitioleyes/Circular es/CIRCULAR-DL-296-20080001.pdf. 
33 WTO document G/LIC/N/3/HND/1 of 12 November 2007. 
34 Certain types of air conditioning for motor vehicles;  household and commercial refrigerators, 
air-conditioning units, heat pumps, freezers, dehumidifier s, water coolers and ice- making machines which use 
CFCs in their operation, and insulation panels, piping covers and prepolymers manufactured with the use of 
CFCs can also be imported (information provided by the authorities). 
35 Decision No. 032 of 16 January 2004, Article 5. WT/TPR/S/234 Trade Policy Review 
Page 42 
 
 
anti-personnel mines and anti-detection devices or parts thereof.36  The import of motor vehicles older 
than seven or ten years, depending on the type of vehicle, is also prohibited.37 
(ix) Anti-dumping and countervailing measures 
46. The Central American Regulations on Unfair Business Practices, COMIECO-XLIV 
Resolution No. 193-2007, adopted by Honduras in 2007,  constitute the legal framework in the area of 
anti-dumping and countervailing measures.38  The competent authority in this area is the Ministry of 
Industry and Trade, specifically the Directorate- General of Economic Inte gration and Trade Policy.39  
Honduras notified the WTO that it had not applied any measures of this type between 2003 and 31 December 2009.
40 
47. The Central American Regulations on Unfair Bu siness Practices apply both to intraregional 
trade and to trade with third countries (that is, countries outside the CACM). 
48. Representatives of the domestic industry which manufactures the product injured by imports, 
allegedly as a consequence of unfair trade practices, have the right to request the initiation of an 
investigation.  The request must be submitted to th e Directorate-General of Economic Integration and 
Trade Policy (the investigating authority).  On rece ipt of the request, the Directorate-General analyses 
it, within a period of 30 days, to ascertain whether it complies with the legal requirements.  If those 
requirements are met, the government of the country of origin of the product being investigated is 
notified of the request for the initiation of an inves tigation.  If the request is found to be incomplete, 
the interested party (the firm requesting an investig ation) shall be notified within a period of ten days 
following the review of the request and shall be give n 30 days to comply with the requirements.  This 
period may be extended for an equal period at the request of the party concerned. 
49. If the request is denied, the parties concerned must be notified within ten days following the 
date on which the decision is taken, and the interest ed party may lodge an appeal.  A request may be 
denied if it is determined that it was not submitted on behalf of a domestic industry or that there is 
insufficient proof of unfair business practices or injury  to justify the initiation of a proceeding in the 
case, or if the evidence furnished is insufficient to justify the initiation of an investigation.  If an 
investigation is initiated, the partie s concerned must also be notified.  The investigation must conclude 
within a period of 12 months.  In exceptional ci rcumstances, on the initiative of the investigating 
authority or at the request of the interested party,  this period may be extended for an additional period 
of up to six months. 
50. The investigating authority shall issue a prel iminary finding regarding the existence or 
non-existence of unfair business practices and injury , threat of injury or retardation of the 
establishment of a domestic industry within 60 days  following the initiation of the investigation.  
During the investigation, provisional measures ma y be adopted in alleged cases of dumping or 
subsidization;  such measures may not extend beyond four months. 
                                                      
36 Decree No. 60-2000 of 29 June 2000. 
37 Decree No. 220-2006 of 12 March 2007. 
38 Official Journal No. 31,307 of 19 May 2007 and WTO document 
G/ADP/N/1/HND/3-G/SCM/N/1/HND/3 of 16 March 2009. 
39 WTO document G/ADP/N/14/Add.27-G/SCM/N/18/Add.27 of 28 April 2009. 
40 WTO documents G/ADP/N/98/Add.1-195/Add.1 of 22 April 2003 and 21 April 2010 and 
G/SCM/N/93/Add.1-203/Add.1 of 1 May 2003 and 22 April 2010. Honduras WT/TPR/S/234 
 Page 43 
 
 
51. At any time during the investigation, the initiating party may abandon the proceedings and 
provide reasonable cause.  In that case, the Direct orate-General may continue the investigation if 
50 per cent of Honduran producers expressly request it to do so. 
52. The investigation shall be deemed to have been completed if it is determined that the margin 
of dumping or the amount of the subsidy is de minimis  or that the volume of imports, or the injury, is 
negligible.  After the investigation has concluded, the investigating authority shall submit a technical 
study to the Secretary of State for Industry and Tr ade so that the latter can, within three days, 
announce the conclusion of the investigation, issue a resolution, and decide whether it is necessary to 
impose a definitive anti-dumping or countervailing duty and to revoke or confirm the provisional 
measures adopted, as appropriate. 
53. The resolution imposing a definitive anti-dumpi ng or countervailing duty must be published 
in the Official Journal and shall be notified to the parties concerned and to the Secretariat for Central 
American Economic Integration (SIECA) within a peri od of ten days following its issuance, so that 
SIECA can bring it to the attention of the Executive Committee. 
54. The amount of the anti-dumping or countervailing duties must be sufficient to repair the 
injury or prejudice and never greater than the estimated margin of dumping or the amount of the 
subsidy.  Definitive measures may be maintained for a maximum of five years.  This time-limit may, 
exceptionally, be extended if it is proven that the conditions justifying imposition of the measure 
persist.  Definitive measures may be revised at any time. 
55. For products originating in Central America, th e investigating authority, after issuing the 
resolution imposing a definitive anti-dumping or countervailing duty, shall notify and transmit a 
summary of the file to SIECA, so that the la tter can notify other States and convene the Executive 
Committee to consider the matter.  The State Party affected by the measure adopted shall submit to 
the Executive Committee, through SIECA, a duly substantiated presentation of the case.  The 
SIECA Executive Committee shall make such r ecommendations as it deems appropriate within a 
period of 30 days following receipt of the report. 
56. When a branch of industry of a State Party other than the importing State is affected, the 
government concerned may request the opening of a re gional procedure, to be dealt with by SIECA.  
The procedure shall be initiated when SIECA re ceives the request from the State concerned. 
57. The importing State Party must initiate the investig ation within the prescribed time-limit.  If it 
fails to do so, SIECA shall initiate the regional procedure within ten days and carry out the 
investigation.  During the investigation, any in terested party may provide information or submit 
allegations in writing.  SIECA may recommend the adoption of provisional measures.  The decisions of the Executive Committee imposing anti-dumping or  countervailing duties, whether provisional or 
definitive, shall be carried out by States Parti es in accordance with their domestic legislation. 
(x) Safeguard measures 
58. Honduras notified the WTO in 2007 of the adopti on of the Central American Regulations on 
Safeguard Measures, COMIECO-XLIV Resolution No. 194-2007.
41  These Regulations superseded 
the 1996 Central American Regula tions on Safeguard Measures.  The authority responsible for 
carrying out safeguard investigations is the Dir ectorate-General of Economic  Integration and Trade 
Policy of the Ministry of Industry and Trade. 
                                                      
41 Official Journal No. 31,307 of 19 May 2007. WT/TPR/S/234 Trade Policy Review 
Page 44 
 
 
59. The Central American Regulations on Safeguard  Measures (2007) apply solely to imports 
from third countries (i.e. countries not members of the CACM).  Safeguard measures may be adopted 
in the form of tariffs or quantitative restrictions.  The regulations allow the imposition of provisional 
measures for a maximum of 200 days, and these can only be tariff measures.  Definitive measures 
may be imposed for a period of four years, which may be extended for a maximum of eight years.  
During the period from 2003 to 2009, Honduras has not imposed any safeguard measures, nor has it 
initiated any procedure in this regard. 
60. Instances of unfair business practices concer ning goods originating in CACM member 
countries are brought before the Executive Committ ee of the CACM Secret ariat (SIECA), which 
examines them and makes relevant recommendations.  When several members of the CACM are 
affected by unfair business practices, SIECA and its Executive Committee are required to initiate an 
investigation, and the national authorities are r esponsible for follow-up.  Honduras has not been 
affected by measures of this type. 
(xi) Standards and technical regulations 
61. Honduras does not have a specific national law in  the areas of standardization, metrology, 
certification, verification and labelling, but several laws and regulations cont ain provisions in this 
area.  The WTO Agreement on Technical Barriers to Trade (TBT) is part of Honduran national law.  
Honduras applies the Central American Regulations  on Standardization Measures, Metrology and 
Authorization Procedures42, which were adopted in 1999.43  The Regulations provide that no State 
Party may draw up, adopt, maintain or apply st andardization measures (standards, technical 
regulations or product conformity assessment proce dures) that have the aim or effect of creating 
unnecessary barriers to intraregional trade.  The free trade agreements signed by Honduras also 
contain provisions on standardization and metrology.44 
62. The Ministry of Industry and Trade has accepted the Code of Good Practice for the 
Preparation, Adoption and Application of Standards contained in the TBT Agreement.45  
The TBT Enquiry Point, which is under that Ministry, is the office responsible for answering all 
requests for information and providing documentati on on the technical regulations, standards and 
assessment procedures that have been  or are being adopted in Honduras.46 
63. Honduras observes the national treatment and mo st-favoured-nation principle in relation to 
standardization measures. 
                                                      
42 Online information on the Central American Regu lations on Standardization Measures, Metrology 
and Authorization Procedures, approved by Resolution No. 3799 (COMIECO-XIII) of 17 September 1999.  
Viewed at:  http://www.sieca.org.g t/cache/17990000 000064/17990000 000064.pdf. 
43 Resolution No. 183-99, published in the Official Journal of 11 October 1999. 
44 DR-CAFTA free trade agreement (Chapter Seven:   Technical Barriers to Trade);  free trade 
agreement between El Salvador, Guat emala, Honduras and Mexico (CA3) (Chapter XV:  Measures Relating to 
Standardization);  free trade agreemen t between the Republic of El Salvad or, the Republic of Honduras and 
Chinese Taipei (Chapter 9:  Standardization Measures , Metrology and Authorizati on Procedures);  free trade 
agreement between Central America and the Dominican Republic (Chapter XIII :  Technical Barriers to Trade);  
free trade agreement between Central America and Chile (C hapter 9:  Standardization Measures, Metrology and 
Authorization Procedures);  and fr ee trade agreement between Central Am erica and Panama (Chapter 9:  
Standardization Measures, Metrology and Authorization Procedures). 
45 WTO document G/TBT/CS/N/165 of 27 March 2006. 
46 Online information from the Ministry of Industry  and Trade, TBT Enquiry Point.  Viewed at:  
http://www.sic.gob.hn/otc/index.htm. Honduras WT/TPR/S/234 
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64. Between 2004 and 2009 Honduras made some 60 notifications to the WTO Committee on 
Technical Barriers to Trade.47  The objective of the regulations notified is to protect human, animal or 
plant health, the environment and consumers.  Most  of these regulations are based on international 
standards and they establish requirements for produc tion, packing, labelling, quality, metrology and 
construction.  Among the goods regulated are foods , cement, cosmetics, fertilizers, hydrocarbons, 
medicines and vehicles. 
65. Until 2006, the Inter-Institutional Commission on St andardization (CIN) drew up Honduras's 
standards and technical regulations through a numb er of technical committees, as required by the 
Ministry of Industry and Trade (SIC) and other departments of the Government.48  In 2006 the SIC 
authorized the Honduran Science and Technol ogy Council (COHCIT) to operate as a national 
standardization agency, and the CIN was replaced by the Advisory Council on Technical Regulations.
49  The Honduran Standardization Organization (OHN), which is attached to the 
COHCIT, is responsible for advising the public and private sectors and academic circles on the 
drafting of standards and technical regulations;  to  accomplish that task, it forms technical committees 
made up of representatives of the private sector, the Government, consumer associations and the 
academic sector. 
66. Honduras uses international standards as a basis fo r preparing or applying its standardization 
measures, except where international standards are not  an effective or adequate means of achieving its 
legitimate objectives owing to fundamental factor s related to climate, geography, technology and 
infrastructure, or for scientifically proven reasons.  The role of the Directorate-General of Consumer 
Protection of the SIC is to assist the committees in preparing the draft technical regulations for which 
they are responsible and to coordinate the prep aration of standards for which other governmental 
entities are responsible.50  According to the authorities, the procedure for preparing standards in 
Honduras is equivalent to the international procedure.51 
67. According to information provided by the aut horities, the Advisory Council requests its 
members to propose the necessary technical regulations  and to prepare an annual work plan.  Once the 
work plan has been approved, the Standardization and Metrology Department of the 
Directorate-General of Consumer Protection (DGPC) is authorized to organize the relevant technical 
committees to prepare a draft technical regulation.   The Advisory Council authorizes the publication 
of the approved drafts in the Official Journal a nd their notification to the WTO for public consultation 
for a period of  60 days.  Once the comments have been reviewed and changes made to the draft 
technical regulation, the government body responsib le for application is requested to publish the 
technical regulation in the Official Journal. 
68. According to the Health Code, the Secretaria t of State for Health is responsible, in 
coordination with the SIC, for designing standa rds for the preparation, composition, quality, 
                                                      
47 WTO documents, notifications to the WTO Committee on Technical Barriers to Trade. 
48 Online information from the Directorate-General of Consumer Protection, Department of 
Standardization.  Viewed at:  http://w ww.sic.gob.hn/protecci on/normalizacion.aspx. 
49 The Council's membership comprises:  govern ment agencies with sp ecific competence in the 
provision of goods and services (for example, the ministries of agriculture, natural resources and health), representatives of the private sector, chambers of commerce, professional associations, consumer associations, 
universities and research centres (Decision No. 215-A-2006, Official Journal No. 31,123 of 6 October 2006 and  
Article 28 of the implementing regulations to the Consumer Protection Law, Decision No. 15-2009 of 9 March 2009. 
50 Online information from the Directorate-General of Consumer Protection, Standardization 
Department.  Viewed at:  http://www.pro teccionalconsumidor.gob .hn/normalizacion.html. 
51 Viewed at:  http://www.iso.org/iso/standards_develo pment/processes_and_procedures/stages_description. WT/TPR/S/234 Trade Policy Review 
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contaminant and additive limits, a nd labelling of food prod ucts.  The Ministries of Natural Resources, 
the Economy and Industry, Labour and Social Welfar e, the Interior and Justice, and Defence and 
Public Safety are likewise responsible for regulatin g the manufacture, storage, transport, handling, 
trading and disposal of hazardous substances such as  pesticides, insecticides, herbicides, explosives, 
and corrosive, radioactive and flammable substances. 
69. The Ministry of Health keeps a register of  chemical products, pharmaceuticals, cosmetics, 
biological products and raw mate rials for pharmaceutical use.  Pharmaceutical products may be 
imported only by natural or legal persons duly authorized by the Ministry of Health and must be 
registered beforehand.  The Ministry also determines the articles for household use and the raw 
materials used in manufacturing them that ma y be harmful to health and may prohibit the 
manufacture, import, trading or use of such produ cts.  The technical regulations issued by the 
Ministry establish the permissible limits of con centration of hazardous substances in articles for 
household use.52 
70. In the area of metrology, the SIC verifies the accuracy of measuring instruments and the units 
of measurement used.  The Consumer Protection La w establishes mandatory requirements with regard 
to units of measurement, measuring instruments, measurement methods and official standards for 
calibration.53 
71. Through the Directorate-General of Consumer Protection, the SIC proposes to the various 
State agencies the technical regul ations needed to protect the rights of consumers as regards the 
labelling of goods marketed in the country.54  The Consumer Protection Law stipulates labelling 
requirements.  Generally speaking, pre-packaged goods  for consumption or health must carry a label 
with the following information:  name, designation of origin or source, net contents, quantity or 
specification of measurements, date of manufactur e and expiration or recommended time-limit for use 
or consumption and nutritional information, if appropriate, as well as instructions, warnings and 
counter-indications relating to its use or consump tion.  The regulations classify as an infringement 
false statements of the weight, mass, volume or any other measurement specified on a label, as well as 
the expiration date of the merchandise offered for sale.55  Hazardous products must include an insert 
with the warnings needed for proper handling. 
72. In addition, any product of agricultural orig in marketed in Honduras must be correctly 
labelled in accordance with the standards and regulati ons stipulated by the Ministry of Agriculture.  
For each type of product, SENASA determines additi onal requirements relevant to the packaging or 
the label, which must be legible, visible and in Spanish.56  Foods and beverages packaged for sale to 
the public must have the health registration numb er and expiration date printed on them, along with 
any identifying information defined by the regulations.57 
73. Pharmaceutical products may be put up for di stribution and marketing under their trade or 
generic name.  Their labels must be printed with :   the production date, th e production batch number, 
the expiration or sell-by date, as appropriate, and the name and address of the producing laboratory.  
                                                      
52 Health Code, Decree No . 65-91, Official Journal of 6 August 1991. 
53 Online information from the Directorate-General of Consumer Protection, Standardization 
Department.  Viewed at:  http://www.pro teccionalconsumidor.gob .hn/normalizacion.html. 
54 Consumer Protection Law. 
55 Consumer Protection Law. 
56 Amendment to the 2005 Law on Plant and Animal Health, Decree No. 344-05. 
57 Health Code, Decree No . 65-91, Official Journal of 6 August 1991. Honduras WT/TPR/S/234 
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Foods and beverages which indicate that they ha ve medicinal properties will be considered as 
medicines and must comply with the aforementioned labelling requirements.58 
74. The Health Code, which regulates matters pertai ning to publicity and advertising of foods and 
beverages, pharmaceutical products and other articles for household use,  stipulates that both the trade 
names and the trademarks of articles for househ old use, their advertising and any other public 
information must not give rise to confusion or erro r concerning their true nature, properties and uses.  
Nor can advertising allude to medicinal, curative or nutritive effects that may give rise to false 
assessments regarding the true nature, origin, composition or quality of foods and beverages. 
75. Honduras is a member of the International Or ganization for Standardization (ISO) and the 
Pan American Commission for Technical Standards (COPANT).  DR-CAFTA contains provisions on 
standards, technical regulations and conformity  assessment procedures.  DR-CAFTA Article 7.6 
provides that the regulations of trading partners shall be accepted as equivalent.  At the Central 
American level, the registration and approval of  a large number of technical regulations are 
recognized. 
76. Honduras has no procedures for the revocation of technical regulations that have become 
obsolete. 
77. The agency responsible for enforcing and administering accreditation in Honduras is the 
Honduran Accreditation Office (OHA), a department of  the COHCIT.  Calibrations are carried out by 
the National Laboratory of Metrology, also a department of the COHCIT.59  Conformity assessments 
are carried out by each governmental department in its field of activity, based on international 
standards.60  Honduras recognizes laboratory tests conducted abroad, provided that they are carried 
out by an official or duly accredited laboratory. 
(xii) Sanitary and phytosanitary measures 
78. The objectives of Honduran policy on plant and an imal health are to protect human life and 
health and to protect the national territory fro m the introduction and/or propagation of diseases and 
pests affecting animals and plants and their pr oducts and by-products, thus ensuring the sanitary, 
phytosanitary and safety conditions required for the production and marketing of Honduran 
agricultural products.  The Ministry of Agriculture  and Livestock (SAG) is responsible for designing 
sanitary and phytosanitary policy jointly with other public and private entities. 
79. The measures applied by Honduras depend on th e sanitary and phytosanitary conditions of 
certain diseases and pests, and follow the guidelines or recommendations of the International Health 
Code of the World Organization for Animal Hea lth (OIE), the International Plant Protection 
Convention (IPPC), and the Codex Alimentarius, in accordance with the WTO Agreement on Sanitary 
and Phytosanitary Measures. 
80. In Honduras, the Law on Plant and Animal He alth and its amendments (Decrees Nos. 157-94 
and 344-05) and the Health Code (Decree No. 65-91) constitute the key legislation in the area of 
sanitary and phytosanitary measures.  The Law on Plant and Animal Health of 1994 was amended in 
2005 in order to comply with the commitments ma de under the internationa l agreements signed by 
Honduras, thus ensuring the consistency of national le gislation with those agreements.  According to 
the authorities, the national laws were amended to bring them into conformity with the WTO 
                                                      
58 Health Code, Decree No . 65-91, Official Journal of 6 August 1991. 
59 Resolution No. 338-06, published in the Official Journal, No. 31,211 of 22 January 2007. 
60 Information provided by the authorities. WT/TPR/S/234 Trade Policy Review 
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Agreement on Sanitary and Phytosanitary Measures.  The new Law, like the previous one, is aimed at 
ensuring the protection of animal and plant hea lth, food safety and protection against economic or 
quarantine pests and diseases.61 
81. The Central American Regulations on Sanitary and Phytosanitary Measures and Procedures 
are also part of the Honduran legal framework  and are applied to imports originating in 
CACM member countries.  According to Article 4 of those Regulations, sanitary and phytosanitary 
measures should be based on scientific and technical  principles and should not have the objective or 
effect of creating unnecessary barriers to trade.  Given the harmonization of sanitary and phytosanitary measures at the Central American level, COMIECO approved a list of products which 
do not require a phytosanitary import or export certificate for regional trade.
62  In May 2010, 
517 products exempt from phytosanitary certification ha d been registered, but this list may change as 
the harmonization process continues or because of a change in the phytosanitary situation. 
82. The Ministry of Agriculture and Livestock (S AG) implements the Law on Plant and Animal 
Health through the National Agricultural Health Service (SENASA).63  The SAG applies sanitary and 
phytosanitary measures, diagnoses pests and monito rs their epidemiology, establishes control and 
eradication programmes for diseases and pests, maintain s an information system, determines the need 
for agricultural quarantines, deals with sanitary and phytosanitary certification, controls agricultural 
inputs and organic and biotechnology products of animal and plant origin, and certifies, verifies and 
audits the implementation of procedur es to guarantee food quality and safety. 
83. SENASA acts as one of the three enquiry points that Honduras has set up under the WTO 
Agreement on the Application of Sa nitary and Phytosanitary Measures.   The others are the National 
Enquiry Point for the standardization area of the Directorate-General of Production and Consumption 
of the Ministry of Industry and Trade and the Directorate-General of Health Regulation of the 
Ministry of Health.64  The National Committee on Sanitary and Phytosanitary Measures was 
established in 2004.65  One of the functions of this Co mmittee will be to draw up a national 
programme for the effective implementation of the SPS Agreement.  SENASA is also the contact 
point for the FAO International Plant Protection Co nvention, the World Animal Health Organization 
and the Codex Alimentarius.  The Directorate of  Economic Integration and Trade Policy of the 
Ministry of Industry and Trade has been designated as the national notification authority.66 
84. The Law on Animal and Plant Health requir es the submission of "an application for 
authorization to import products of animal and pl ant origin" for the import of goods of animal and 
plant origin and agricultural inputs.67  Imports of animals and animal and plant products require 
sanitary permits.  Applications for these permits must  be submitted no later than 15 days prior to the 
arrival of the shipment in the country.  A permit may be refused if a product has not been imported 
previously and represents a phytosanitary risk to the country, which must be determined through a 
risk analysis.  If a permit is refused for scientific a nd technical reasons or because of inconsistency in 
the documentation submitted previously, the applican t must be informed;  the latter has no right of 
appeal. 
                                                      
61 Executive Decree No. 344-2005 of  15 December 2005 (G/SPS/N/HN D/10 of 13 January 2006). 
62 Resolution No. 175-2006 (COMIECO-XXXVIII) and SIECA (2009). 
63 SENASA is a Directorate-General of the SAG, wh ich will comprise two technical subdirectorates for 
plant health and animal health. 
64 WTO document G/SPS/ENQ/25 of 15 October 2009. 
65 Decision No. 651-04 of 18 August 2004 (G/SPS/GE N/683 of 5 April 2006). 
66 WTO document G/SPS/NNA/15 of 15 October 2009. 
67 Decree No. 157-94, Law on Plant and Animal Health, published in the Official Journal of 
13 January 1995. Honduras WT/TPR/S/234 
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85. The SAG, through the Technical Subdirectorate of Plant Health and the Technical 
Subdirectorate of Animal Health, is responsible for detecting and diagnosing diseases and pests which 
threaten plant and animal health in the country and defining strategies for managing them, which may entail the imposition of quarantines.
68  If health conditions so warr ant, the SAG designs programmes 
for the prevention, control and eradication of va rious diseases, such as avian salmonellosis and bovine 
brucellosis and tuberculosis.69 
86. The SAG ensures the safety of import and expor t products through the upstream verification 
and certification of the procedures established for this purpose (hazard analysis and critical control 
points (HACCP), sanitation standard operating pr ocedures (SSOP), good livestock practices (GLP) 
and good management practices (GMP)) by firms inte rested in importing into the country;  these same 
rules are applied to national firms. 
87. The SAG may prohibit or restrict the import, production, sale and use of any product which is 
considered to pose a high risk to human and animal  health and the environm ent and which has been 
prohibited in other countries.  In addition, with a vi ew to avoiding the import or export of exotic pests 
and diseases, SENASA identifies the locations and the import, export and transit routes of plants and 
animals and their products and by -products and indicates the requirements for their entry, exit and 
circulation within the country. 
88. SENASA will subject to a pest risk analysis all products and by-products of plant origin 
which are being imported for the first time, or w hose import has been suspended for a period during 
which no information is available on the phytosanitar y situation in the country of origin, or when a 
change is occurring in the phytosanitary situation of the country of origin.  A traceability system 
focusing on risk analysis, which allows the origin of animals, plants, fruits, products and by-products 
to be identified at any stage in the production process, is in effect in Honduras. 
89. The SAG is the authority responsible for ma intaining the border quarantine service.  
Honduras follows national and inte rnational guidelines for determining the need to impose a 
quarantine, which is determined according to the sanitary and phytosanitary situation in the place 
where the product originated, and for establishing a su rveillance system, which will in turn determine 
the need to carry out a risk anal ysis.  These mechanisms establish the scientific and technical bases for 
determining the need to impose a quarantine. 
90. According to the Health Code, the Ministry of H ealth may, in order to protect the health of 
the population, order the relevant health authorities to  subject all means of transport to inspection and 
assessment upon their arrival in the country and to take such health measures as are deemed 
appropriate.  The Directorate-General of Custom s does not admit food products without the proper 
certification issued by the Ministry of Health, conf irming that the circulation of such products is 
authorized, except in the case of samples that are needed for their sanitary registration.  The port and 
border authorities must take the necessary measures to prevent the introduction into Honduras or the 
spread abroad of diseases that could be transmitted to humans. 
91. Cosmetics, medicines, hazardous chemical s ubstances, food products and beverages must be 
registered with the Ministry of Health in order to be imported.70  Fertilizers, pesticides and related 
                                                      
68 Regulation on Phytosanitary Diagnosis, Su rveillance and Campaigns  (G/SPS/N/HND/24 of 
4 December 2007) and Regulation on Agricultural Qu arantine (G/SPS/N/HND/26 of 4 December 2007). 
69 Regulation on the Prevention, Cont rol and Eradication of Avian Sa lmonellosis (G/SPS/N/HND/21 of 
3 December 2007) and Regulation on the Control and Er adication of Bovine Bruc ellosis and Tuberculosis 
(G/SPS/N/HND/23 of 3 December 2007). 
70 Health Code, Decree No . 65-91, Official Journal of 6 August 1991. WT/TPR/S/234 Trade Policy Review 
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substances, as well as veterinary products, must also  be registered before they can be marketed in 
Honduras.71 
92. In the case of domestic products, if the Ministry of  Health determines that a food is not fit for 
human consumption or that violations of the Hea lth Code have been comm itted in its production and 
marketing, the foods may be confiscated and they w ill be denatured or destroyed, as appropriate.  The 
Ministry must also authorize the contents, the container and the packaging process of packaged 
products for human consumption in order for their sale to be permitted. 
93. Foods of plant origin for human consumption must fulfil the requirements established by the 
Ministry of Health.  For example, the Ministry sets the maximum limits of chemical, physical and 
biological residues allowed in water, food and beve rages for human consumption.  According to the 
authorities, those limits are based on the standards of the Codex Alimentarius, the standards of the 
United States Food and Drug Administration (FDA), and pan-American standards.  The health authority must have free access to any premises in which or from foods are handled, stored, preserved, 
transported, warehoused, distributed and sold in or der to carry out the necessary controls and take 
samples for analysis in accordan ce with established standards. 
94. Seeds must be certified and verified prior to importation.
72  The objective of such certification 
is to ensure the genetic, physiological, physical and phytosanitary quality of  the seeds and avoid the 
introduction and dispersal of pests and seed varieties that have not been certified. 
95. The production, processing, import, export and marketing of organic (ecological) agricultural 
products in Honduras are governed by the Regula tion on Organic Agriculture with a view to 
establishing mechanisms to protect producers of organic products against false descriptions.  The 
Regulation defines how the various production pro cesses should be carried out in order for a product 
to be considered organic and the certification pr ocedure for those products.  All phases of production, 
processing, preparation, storage, transport, import,  export and marketing are subject to inspection in 
order to verify compliance with the guidelines set forth in the Regulation.73 
96. Honduras also has a Regulation on Living Modified Organisms for Agricultural Use.74  This 
Regulation seeks to regulate the confined use, cont ained use, release into the environment, research, 
marketing, multiplication, reproduction, transportati on, import, export and transit of living modified 
organisms for agricultural use, generated using m odern biotechnology techniques, with a view to 
preventing and minimizing the possible risks of su ch activities to the environment, agriculture and 
human health. 
97. Honduras has a network of national laboratori es, consisting of SENASA laboratories and 
other public and private laboratories accredited and supervised by SENASA.  These laboratories are, for example, responsible for the diagnosis of disease s in animals;  the quality control of chemical, 
biological or related substances for use with livest ock;  and the control of physical, chemical and 
biological residues and contaminants. 
                                                     
 
71 WTO document G/SPS/N/HND/32  of 20 April 2009;  WTO document G/SPS/N/HND/15 of 
3 December 2007 and Regulations on the Registration, Us e and Control of Pesticides and Related Substances 
(G/SPS/N/HND/27 of 4 December 2007). 
72 Regulation on Seeds (WTO document G/SPS/N/HND/14 of 3 December 2007). 
73 Regulation on Organic Agriculture (WTO docu ment G/SPS/N/H ND/17 of 3 December 2007). 
74 WTO document G/SPS/HND/28 of 4 December 2007. Honduras WT/TPR/S/234 
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(2) MEASURES AFFECTING EXPORTS  
(i) Registration, documentation and procedures 
98. The export requirements have not changed substa ntially since the first Trade Policy Review 
of Honduras's in 2003. 
99. Export procedures are carried out at the Export Processing Centre (CENTREX), in which all 
institutions involved in the export process are represented.  These include:  the Ministry of Agriculture and Livestock (Animal He alth and Plant Health subdirectorates);  the Ministry of Industry 
and Trade (Directorate-General of Production Sect ors);  the Central Bank of Honduras (International 
Department);  the Executive Directorate of Revenue (DEI), and the International Regional 
Organization for Plant and Animal Health (OIRSA). 
100. Export requirements vary according to the produc t and the country of destination of the 
exports.  For exports to Central America, it is necessary to fill out the Central American Single 
Customs Form, which can be obtained, for US$5.00, from the National Association of 
Industrialists (ANDI) or the Chamber of Comme rce.  Exports outside the CACM must be 
accompanied by the Single Customs Declaration (DUA). 
101. Generally speaking, exporters must submit an export declaration for each bill of lading or 
equivalent document.  Along with the export declaration, the declarant must submit the following documents:  (a) a bill of lading or equivalent document;  (b) a commercial invoice;  (c) certificates of 
origin
75;  (d) documents required by the Central Bank of Honduras, such as the National Tax 
Registration (RTN);  (e) the sanitary and phytosanitary certificates required by the SAG;  (f) the free 
sale and use certificate issued by the Ministry of Health for exports of some food products;  
(g) documents supporting the export tax exemption,  where appropriate;  and (h) other documents 
required by special laws, depending on the nature of  the goods (for example, coffee) or the customs 
operation. 
102. Exporters are required to declare each of their exports to the Central Bank of Honduras, 
including the quantity, value and destination of the goods to be exported, the date of export and the 
currency in which payment will be received.  Foreig n exchange must be sold at any commercial bank 
for the declared f.o.b. value.  Exports of goods originating in the free zones, industrial export processing zones and agricultural export zones are exem pt from this requirement.  In addition to the 
original and seven copies of the export declaration,  duly filled out with no a lterations or amendments, 
signed and sealed by the firm or the customs agen t, the Central Bank requires the original and one 
copy of the firm's memorandum of association, th e RTN and the commercial invoice, if the firm is 
exporting for the first time. 
103. In Honduras there are several customs regimes affecting exports:  re-export;  temporary 
export with re-import in the same state;  tem porary export for outward processing;  and industrial 
zones (section 3(iv)). 
104. The re-export of foreign goods that have entere d the country but are not considered to be 
definitively imported is allowed.  In the case of goo ds that have been abandoned, or where there is a 
                                                     
 
75 Exports under different preferential agreements must be accompanied by different certificates of 
origin, depending on the agreement.  CENTREX provides  most of those forms, with the exception of the 
Certificate of Origin Type A, which is required for expo rts to the rest of Central America.  This form is 
furnished by the ANDI. WT/TPR/S/234 Trade Policy Review 
Page 52 
 
 
well-founded presumption that a misdemeanour or criminal customs offence has been committed, 
re-export will not be allowed. 
105. Goods which have entered Honduras under the te mporary import regime and which have not 
undergone any changes may be re-exported.  These g oods will be used for a specific purpose and may 
be entered with suspension of import taxes.  They  must be re-exported within a period of six months 
from the date of import.  Goods will be subject to physical inspection at the time of re-export, and the 
deposit that was withheld at the time of temporary import will be refunded. 
106. The temporary export regime involving re-im port in the same state allows the temporary 
export of goods from the customs territory, with su spension of customs duties, for a specific purpose 
and for a specified time, in order to be re-imported in  the same state in which they left or after having 
undergone additional working which does not involve a substantial change.76  In this case, upon their 
return, they will be admitted with full relief from import taxes. 
107. The time-limit for the re-import of goods expor ted temporarily is six months and may be 
extended for the same period by a decision of the Directorate-General of Customs.  Goods exported 
under the temporary regime, except for vehicles, mach inery and equipment, may remain abroad for up 
to three months from the date of acceptance of the relevant policy by Customs.  This time-limit may 
be extended for the same period at the discretion of the Directorate-General of Customs.  Vehicles, machinery and equipment may leave and return w ithout payment of customs duties, provided that 
they return within a period of one year;  mach inery and equipment may also leave the country, 
provided that they return within a period of six months from the date on which their outward 
movement was authorized;  both time-limits may be extended in duly qualified cases.
77 
108. The temporary export for outward processing regime allows the temporary export of 
Honduran goods, with suspension of export levies (which  currently are not applied), in order for them 
to undergo outward processing and be re-imported subsequently as "compensating products" (final 
products), with complete or par tial exemption from import levies. 
(ii) Export taxes 
109. Coffee is the only export product that is subject  to an export tax in Honduras.  For each 
quintal of coffee exported, the exporters must pay US$13.25 to the Honduran Coffee Institute 
(IHCAFE);  part of this tax is earmarked for paymen t of the coffee growers' debt and the funding of a 
trust for the revitalization of the sector.78  This tax may be deducted from corporate income tax as an 
expense.79 
110. The sales tax on exports has a rate of 0 per cent.80 
                                                      
76 The mere incorporation of finished parts or components is not considered a substantial alteration, so 
long as they do not undergo any other process that  affects the nature of the exported merchandise. 
77 Customs Law, Decree No. 1-004. 
78 Law on Financial Revitalization of the Coffee Production Sector, Decree No. 152-2003 of 
17 September 2003 and Decree No. 56-2007 of 8 May 2007. 
79 The export duty of US$13.25 is used in the following manner:  US$2.75 as a contribution to the 
IHCAFE and the Coffee Growers' Fu nd (Decree No. 213-2000);  US$0. 50 as a loan payment (Decree-Law 
No. 292 297-2002);  US$9.00 for the trust fund and producers' voluntary capitalization (Decree No. 152-2003 and Amendment No. 56-2007);  and US$1.00 as payment of other debt (Decree No. 143-2008). 
80 Law to Promote Production, Competitiveness and Support for Human Development, 
Decree No. 131-98 of 20 May 1998;  Law on Financial Stability and Social Protection, Decree No. 194-2002;  
and Law on the Rationalization of Public Finances, Decree No. 219-2003 of 12 January 2004. Honduras WT/TPR/S/234 
 Page 53 
 
 
(iii) Prohibitions, licensing and other restrictions 
111. Honduras restricts or prohibits some exports for reasons of public health and morals and to 
comply with the commitments specified in intern ational agreements to which it is a signatory. 
112. According to the Health Code, the export of an y food that has been altered, contaminated, 
adulterated or misbranded, or that is technically  presumed to be harmful to health for any other 
reason, is prohibited. 
113. Honduras has undertaken to prohibit exports of certain plants and animals threatened with 
extinction, in accordance with the Convention on International Trade in  Endangered Species of Wild 
Fauna and Flora (CITES). 
114. The export and re-export of cement to the rest of Central America is allowed provided that 
there is no shortage of supply on the domestic market, but such tr ansactions apparently are still 
subject to a special permit issued by the Ministry of Industry and Trade.  The exporter must submit an application to the Directorate-Ge neral of Consumer Protection a nd to the Directorate of Legal 
Services), both under the Ministry of Industry an d Trade, which will rule on whether the export 
should take place.  The export authorization is valid for one year.
81 
115. Honduras prohibits exports of wood of latifoliate species from natural forests.  These types of 
wood can be exported only after working or processi ng;  accordingly, the export of roundwood or 
squared wood of these species is prohibited. 
116. There appears to be no export licensing system in Honduras. 
(iv) Export subsidies and incentives 
117. Honduras notified the WTO that it did not apply any export subsidies on agricultural products 
over the period from 2004 to 2008.82  These are the most recent notifications. 
118. Honduras notified three subsidy programmes to the WTO:  the temporary import regime 
(RIT)83, free zones (ZOLI)84, and industrial export processing zones ( ZIP).85  The three programmes 
have been in effect since the late 1970s and early  1980s.  The laws and regulations governing these 
three regimes have remained largely unchanged si nce the last Trade Policy Review of Honduras in 
2003.  In all three instances, the programmes allo w imports of some products with exemption from 
and suspension (in the case of the RIT) of custom s duties and other taxes on imports.  The incentives 
granted are designed to promote exports, a ttract investment, stimulate production and 
competitiveness, and create jobs.  Those incentives have not changed since the previous Review 
(Table III.7).  The Ministry of Industry and Trade is responsible for the supervision, control and 
promotion of the special temporary import regimes,  tourism free zones and other free trade zones, 
including the free zones. 
119. The goods and services produced in the free zones may be sold in the national territory 
subject to the payment of customs duties and other taxes, provided that they do not exceed the limits 
                                                      
81 Decision No. 306-2008 of 13 May 2010. 
82 WTO documents G/AD/N/HND/27 of 28 November 2008 and G/AG/N/HND/28 of 10 August 2009. 
83 Executive Decree No. 37  of 20 December 1984, amended by  Legislative Decree No. 190-86 of 
31 October 1986, Legislative Decree No. 8-85 of 7 February 1985 and Decree No. 135-94 of 28 October 1994. 
84 Decree No. 356 of 19 July 1976, amended according to Decree No. 131-98 of 20 May 1998. 
85 Decree No. 37-87 of 7 April 1987. WT/TPR/S/234 Trade Policy Review 
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established by law.86  The limit is around 5 per cent of the production of an enterprise based in a free 
zone.  However, the new Regulation to the Law on Fr ee Zones stipulates that enterprises dedicated to 
producing goods which are not produced domestically may import their entire output into the national 
customs territory, while having to pay customs duti es and other taxes and levies from which they had 
been exempt, including local taxes.87  Goods produced in the industrial export processing zones can 
be imported into Honduran territory provided they  are not produced domestically, with payment of 
customs duties. 
120. Honduras can maintain these export promotion schemes until its per capita gross national 
product (GNP) reaches US$1,000 in constant 1990 dollars for three consecutive years.88  In the last 
three years for which data are available (2005-200 7), the country's gross national income (GNI)89 has 
remained below US$1,000 in constant 1990 dollars.90  Considering that its GNP might possibly 
exceed the maximum specified in the SCM Agreemen t, in December 2001 Honduras reserved its right 
to apply the special procedure agreed at the Doha Ministerial Conference, in order to maintain export 
subsidies under its free zones, industrial expor t processing zones and temporary import regime.91 
Table III.7 
Subsidies notified to the WTO 
Programme Beneficiaries Incentive 
Temporary Import Regime 
 Honduran and foreign natural and legal persons Su spension of payment of customs duties or 
any other taxes or charges, including the 
general sales tax on imports 
Free Zones  Honduran and foreign natural and legal persons 
based in Honduras 
 Enterprises must export at least 95% of their 
production. 
 Commercial enterprises must earmark not less 
than 50% of their annual sales for export or re-
export. Industrial enterprises are exempt from the 
payment of customs duties, charges, surcharges 
and other taxes and levies directly or indirectly 
related to customs import operations. 
Sales and output generated in the free zone and 
commercial and industrial property and establishments located therein are exempt from 
the payment of municipal taxes and charges. 
Similarly, companies established in the free zone are exempt from the payment of corporate 
income tax. 
Industrial Export Processing Zones 
(ZIPs) Honduran and foreign natural and legal persons 
based in Honduras Total exemption from the payment of customs 
duties, sales tax and other taxes, levies, charges 
and surcharges on imports.   
Sales and output generated in the ZIPs and 
industrial and commercial property and 
establishments located therein are exempt from state and municipal taxes. 
User companies established in a ZIP are 
exempt from the payment of corporate income tax. 
Source : WTO document G/SCM/N/186/ HND of 18 September 2006. 
 
                                                      
86 Five per cent of total annual output for industrial enterprises and 50 per cent of total annual sales for 
commercial enterprises. 
87 Decree No. 43-2009 of 21 December 2009. 
88 WTO document WLI/1000 of 20 January 2001. 
89 The World Bank changed its methodology and has stopped classifying countries according to GNP;  
it now classifies them according to GN I.  For more information on this change, see World Bank, Change in 
Terminology.  Viewed at:  http://web.worldbank.org/WBSITE/EXTERNAL/DATAS TATISTICS/0,,contentMDK:20451503~menuPK:641
33156~pagePK:64133150~piPK:64133175~theSitePK:239419~isCURL:Y,00.html). 
90 WTO document G/SCM/110/Add.6 of 17 July 2009. 
91 WTO documents G/SCM/N/74/HND of 4 December 2001 and G/SCM/ 39 of 20 November 2001. Honduras WT/TPR/S/234 
 Page 55 
 
 
121. In addition to the free zones and ZIPs, in 20 01 Honduras launched anothe r, similar regime:  
agricultural export zones (ZADE).92  These zones may be located in any part of the country and are 
designed to promote agricultural production orient ed exclusively towards export by establishing 
"agricultural export companies".  The companies included under this regime are exempt from the 
payment of all customs duties and other internal taxes on the goods that they import and/or export;  
they are also exempt from the payment of co rporate income tax.  Companies which availed 
themselves of the ZADE regime were able to se ll their products in the country whenever domestic 
production was insufficient, while paying the customs duties and other relevant levies.  This regime 
was suspended;  according to the authorities, only one company is currently benefiting from it and it 
exports 100 per cent of its output.93 
122. The Customs Law (Decree No. 212-87) provides for the refund of levies (the drawback 
system).  This customs regime allows the complete or partial reimbursement of customs levies paid or deposited at the time of the import of certain goods, when these and other equivalent goods are to be 
re-exported after being processed, alte red or incorporated into export products.  This regime has fallen 
into disuse, since exporters prefer to use the temporary import regime mentioned earlier. 
(v) Financing, insurance, and guarantees 
123. Honduras apparently has no official export  financing or insurance programmes. 
(vi) Export promotion and marketing assistance 
124. The institutions which provide assistance to expor ters are the Ministry of Industry and Trade, 
through the Directorate-General of Foreign Trade and Investment Promotion and CENTREX;  the 
Foundation for Investment and Development of Exports (FIDE);  the Honduran Foundation for 
Agricultural Investment (FIA);  the Federation of  Agricultural Exporters of Honduras (FPX);  the 
Chambers of Commerce and Industry of Honduras;  the National Association of Exporters of 
Honduras (ANEXHON);  the Honduran Private En terprise Council (COHEP);  and the National 
Association of Industrialists (ANDI). 
125. The Ministry of Industry and Trade, through th e Directorate-General of Foreign Trade and 
Investment Promotion, remains the agency resp onsible for facilitating and promoting industrial 
development, trade in goods and services, and e xports and investment, while establishing a close 
relationship with the country's production sectors.
94 
126. The FIDE, an institution in which entrepreneurs, the Government and the labour sector are 
represented, is implementing two programmes, Honduras Compite  (Honduras Competes) and the 
National Competitiveness Programme;  one of their objectives is to promote exports.  One of the 
pillars of the National Competitiveness Programme is  export promotion.  In order to attain this 
objective, bottlenecks have been identified that woul d need to be resolved urgently, according to the 
authorities.  The Honduras Compite  programme seeks to develop the sectors which have been 
identified as having the greatest production potential, for example, light assembly, the agricultural and 
forestry sector, and tourism. 
127. The objective of the Agricultural Business Promotion Centre (CPNA) is to develop the 
agricultural sector in Honduras by promoting exports of agricultural products.  The CPNA is responsible for the National Programme for the Prom otion of Agri-business, the priorities of which 
                                                     
 
92 Decree No. 233-2002 of 1 February 2002. 
93 Decree No. 51-2003 of 10 April 2003. 
94 Online information from the SIC.  Viewed a t:  http://www.sic.gob.hn/mision-y-vision.aspx. WT/TPR/S/234 Trade Policy Review 
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are to provide information on markets, facilitate  marketing, promote technological innovation and 
facilitate financing.95 
128. The Agri-business Development Centre (CDA/FINT RAC) is a project initiated in 2000 with 
the objective of providing technical assistance to producers, processors and exporters of fresh and 
processed fruits and vegetables in the areas of marketing, post-harvest management, production, 
processing and information on technology.96  In 2006 the CDA/FINTRAC in itiated a Farmer Training 
and Development Programme (EDA) which will rema in in operation until 2011.  The programme's 
objective is to increase rural incomes and employme nt opportunities through sustainable agricultural 
development.  The programme's ke y components are:  identifying and developing markets, building 
agri-business capacity, facilitating access to cred it and building  produc tion and post-harvest 
management capacity. 
129. The FPX implements several programmes desi gned to strengthen the Honduran agricultural 
export sector;  for example, the Agricultural Ex port Capacity-Building Programme (PROFORCA) 
and the Integrated Inter-Institutional Programme for Honduran Export Diversification (PIIDEH).  
Through these programmes, the FPX seeks to im prove international market access for Honduran 
products, to increase the participation of small and me dium farmers in foreign trade, and to diversify 
agricultural exports. 
130. The PROFORCA provides technical assistance , financing and information on methods of 
producing and marketing agricultura l products with a view to increasing the agricultural producers' 
competitiveness and access to agri cultural export markets.  The programme's beneficiaries are 
Honduran agro-industries and producers of non-tr aditional agricultural export products.  The 
programme's components are commercial management and promotion and technical assistance for the 
development of new production processes. 
131. The PIIDEH is a strategy initiated in 2007, th e main objective of which is to diversify and 
increase the competitiveness of non-traditional e xports, thereby enabling Honduras to expand its 
supply of exportable goods.97  In order to achieve these objec tives, the Programme focuses on training 
local experts from the public and private sectors in aspects of marketing. 
(3) OTHER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
(a) Fiscal and financial incentives 
132. According to the Honduran authorities, studies of the country's tax situa tion have shown that, 
owing to the proliferation of incentives, exemptions and special treatment and the lack of centralized 
control over them, the amount of foregone fiscal revenue that such incentives represent cannot be 
precisely quantified.  For this reason, as part of the plan for modernization of the government administration and under the authority of the Execu tive Directorate of Revenue, the Registry of 
Exemptions and Special Regimes was recently established (in May 2010) as a specialized unit 
responsible for the control and registration of exemp tions and privileges.  Within this new framework, 
                                                     
 
95 Online information from the Ministry of Agriculture and Livestock, Agricultural Business Promotion 
Centre (CPNA).  Viewed at:  www.sag.gob.hn. 
96 Online information. Viewed at:  http ://www.hondurasag.org/fintraccda/market. 
97 Online information from the Federation of Ag ricultural Exporters of Honduras, Integrated 
Inter-Institutional Programme for Honduran Export Diversification.  Viewed at:  
http://www.fpxhn.net/piideh/piideh.html. Honduras WT/TPR/S/234 
 Page 57 
 
 
registration is compulsory in order for natural or le gal persons to benefit from exemptions or a special 
regime, and it is also a requirement for continuing to receive benefits that have been granted. 
133. Honduras grants fiscal exemptions through sev eral programmes, including the temporary 
import regime, industrial export processing zones and free zones. 
134. The machinery, appliances, spare parts and in puts used in the dairy industry, including 
packaging and processing plants, are exempt from sales taxes.98  Until 2006, under the General 
Mining Law, mining companies were exempt from the payment of import taxes and customs duties on imports of equipment, machinery, spare parts and material needed for the efficient and economical 
development of mining operations, with the exception of petroleum derivatives.
99 
135. The tourism sector is a priority within the nati onal development strategy.  Therefore, the State 
seeks to foster and promote tourism, to improve th e supply of tourism services, and to restructure 
tourism zones.100  Consequently, new tourism projects benefit from a number of fiscal incentives.  
During the period from 2003 to 2010, these projects have been exempt from the payment of corporate income tax for ten years from their launching, an d from the payment of taxes and other charges 
arising out of the import of new goods and equipm ent needed for the construction and launching of 
certain tourism projects, the import of motor vehicl es for use in tourism, and the import of new or 
used aircraft and vessels for tourism activities.  Since May 2010, some of these incentives have been 
abolished.
101  The Ministry of Tourism has been responsi ble for the administration and award of these 
incentives.  The beneficiaries of the aforesaid in centives are Honduran and foreign individuals and 
companies (duly registered) that are directly li nked to tourism or provide services to tourists.102 
(b) Support, assistance and credit programmes 
136. The Rural Development Fund, administered by  the National Agricultural Development Bank 
(BANADESA), offers financing to rural develo pment enterprises and municipal associations to 
enable them to fund small, marginal and subsis tence agricultural producers, indigenous groups, 
landless rural families and micro-entrepreneurs. 
(ii) Competition policy and price controls 
(a) Competition policy 
137. One important change in Honduran trade policy since the last Review in 2003 is the adoption 
of legislation on competition policy and the establishmen t of institutions for its implementation.  This 
is an important initiative, because the Honduran  market has been characterized by strong 
concentration.  The legislation on competition c onsists of the Constitution, the new Law for the 
Defence and Promotion of Competition (Legislativ e Decree No. 357-2005 of 4 February 2006) and 
the regulation thereto (Decision No. 001-2007), the Commercial Code (Rule No. 73-50 of 16 January 1950), the Criminal Code (Decree No. 144-83 of 23 August 1983) and the Consumer 
Protection Law (Decree No. 24 of 2008). 
                                                     
 
98 Tax Equity Law and Decree No. 51-2003, Chapter III, Article 15 of the Sales Tax, and Executive 
Decision No. 024-2009, A-041-2009. 
99 The Supreme Court of Justice abolished these in centives on 4 October 2006 through a Judgement 
published in the Official Journal of 24 November 2006. 
100 Law to Promote Production, Competitiveness and Support for Human Development and Law on the 
Honduran Tourism Institute , Decree No. 360-2002. 
101 Law on Revenue Enhancement, Social Equity and Rationalization of Public Expenditure. 
102 Law on Financial Stability and Social Protection, Decree No. 194-2002 of 5 June 2002. WT/TPR/S/234 Trade Policy Review 
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138. The Commission for the Defence and Promotion of Competition (CDPC), established in 
2006, is the institution responsible for implemen ting the Law for the Defence and Promotion of 
Competition.103  In order to discharge its duties effectiv ely, the Commission continually supervises the 
performance of various sectors of the economy in order to determine whether conditions are 
inconsistent with free competition and to propose measures needed to strengthen and improve those 
conditions.  To this end, the CDPC is authorized to  initiate and carry out any investigation related to 
the matters for which it is responsible  (Table III.8).  As a result of such investigations and studies, the 
CDPC has made recommendations on policies that shoul d be followed in the pharmaceutical industry, 
the energy market and the credit-card industry.  Th e CDPC also conducts investigations into possible 
practices or conduct prohibited by law and takes the measures needed to put a stop to such practices 
or conduct, without prejudice to the imposition of th e relevant penalties.  The CDPC coordinates with 
the regulatory commissions in such sectors as ba nking and insurance, telecommunications and energy 
to facilitate the implementation of the Law on Competition. 
Table III.8 
Activities of the CDPC, 2006-2009 
Year Resolutions Sector 
2006-2007 14 resolutions on mergers 11: financial sector 
1: petroleum-based fuels 
1: health 1: trade in goods 
 5 ex officio investiga tions 1: banking sector 
1: pharmaceutical productsa 
1: credit and payment cardsb 
1: cable television 
1: fossil fuels 
2008 16 resolutions on mergers 10: financial sector 
3: agricultural sector 1: trade in electroconductors 
1: electricity generation 
1: trade in automobiles 
 6 investigations (2 upon complaint and 4 ex  officio) 1: cable television (complaint) 
1: credit cards (complaint) 
1: pharmaceutical products 
1: liquid fuels and liquefied petroleum gas (LPG) 1: transport of liquid fuels 
1: marketing of sugar 
2009 3 resolutions on mergers 1: real-estate industry 
1: bread-making industry 
1: petroleum products marketing industry 
 6 investigations being fi nalized (3 ex officio and 
3 upon complaint)  
a The actions related to the investigation of several economic agents in this sector  resulted in the issuance of resolutions st ating 
that the economic agents investigated had infringed Article 5(1)  of the Law.  The resolutions imposed a number of specific 
measures designed to end the practice of re straint of competition.  In addition, with  a view to deterring such conduct, the 
offenders (who had engaged in collu sion) were penalized by having to pay millions [of lempiras] in fines.  The objective of thi s 
concerted practice had been to fix or es tablish lower percentage discounts than those offered under conditions of free 
competition. 
b The results of the investigation led to several recommendati ons:  promotion of a specific regulation governing purchase and 
exchange rates;  regulation of debit-card transactions;  and establishment of guidelines and criteria for ensuring transparency  in 
the contractual relations between issuers and purchasing agents and between the latte r and affiliated businesses. 
Source : Information provided by the authorities. 
 
139. The Constitution of the Republic (Article  339) prohibits monopolies, monopsonies, 
oligopolies, cornering and similar practices in  industrial and commercial activity.  However, 
according to the Constitution, the State may reserve th e right to carry out certain functions, such as 
basic industries, undertakings and services "of public interest".  Nevertheless, the Constitution and the 
                                                      
103 Legislative Decree No. 357-2005, published in the Official Journal of 4 February 2006. Honduras WT/TPR/S/234 
 Page 59 
 
 
law on competition provide that, in instances in whic h the State is fulfilling or seeks to fulfil the role 
of an entrepreneurial State, it shall be subject to the Law on Competition. 
140. The Law for the Defence and Promotion of Comp etition is designed to promote and protect 
the exercise of free competition in order to ensure e fficient markets and the well-being of consumers.  
The Law governs all areas of economic activity, including those reserved for the State.104  The Law 
regulates mergers in order to prevent abuses by comp anies that may have a dominant market position;  
it also prohibits practices which restrict free comp etition both by their nature and by their effect 
(Box III.1). 
 
Box III.1:  Restrictive practices prohibited by their nature 
(1) Fixing prices, tariffs or discounts; 
(2) Wholly or partially restricting the production, distribution, supply and marketing of goods and services; 
(3) Engaging in direct or indirect market sharing, base d on territorial areas, customer base, supply sectors or 
sources of supply; 
(4) Fixing, concerting or coordinating bids, or refraining in concert from participation in public tenders,  
quotations, competitive bidding and auctions. 
Restrictive practices prohibited by reason of their effect 
The following practices are considered to be prohibited by reason of their effect: 
(1) Imposing restrictions concerning territory, volume or customers among economic agents that are not 
competitors among themselves, and placing a distributor or supplier under an obligation not to produce or distribute goods or services for a certain period; 
(2) Setting prices or other conditions which distributors or suppliers must observe when selling goods or providing 
services; 
(3) Concerted action by economic agents designed to exert pressure on some other economic agent in order to 
dissuade him from taking a certain step or to compel him to act in a certain manner; 
(4) Making the signing of a contract dependent on the acceptance of additional services which by their nature have 
no relationship to the purpose of the contract; 
(5) Making a transaction subject to the condition that the othe r party will not use, purchase, sell or provide goods 
or services produced, distributed or marketed by a third party; 
(6) Setting prices below cost in order to wholly or partially eliminate competitors, or using unfair practices; 
(7) Limitation of production, distribution or technological development by an economic agent to the detriment of 
other economic agents or of consumers; 
(8) Granting of favourable terms by an economic agent to its buyers while requiring their purchases to represent a 
certain volume or percentage of their demand; and 
(9) Any other act or negotiation which the Commission considers as restricting, diminishing, injuring or impeding 
free competition in the production, distribution, supply and marketing of goods or services. 
Abusive practices: (1) Making the purchase of goods or services conditional on the purchase of other goods and services not needed 
by the consumer, with the exception of goods and services which, in accordance with commercial practice, are 
supplied jointly; 
(2) Refusing to supply goods or services to consumers.  In cases where conditions, terms or limitations have been 
established under the present Law, these shall be brought to the attention of consumers in a timely and public manner; 
(3) Refusing to supply goods or services to consumers, or making such supply conditional, on grounds of race, sex, 
class, religion, age or for any other reason injurious to human dignity; 
(4) Requesting, requiring or allowing consumers to sign any wholly or partially blank document, contract or 
security which places them under an obligation; 
 
                                                      
104 CDCP online information, Resolution No. 12-CDCP-2009- Año (Year)-IV, Official Journal of 
6 August 2009.  Viewed at:  http://www.cdpc.hn/pdf/No%20%2012-
09%20_%20CERTIFIC%20%20RES%20%20No%20%2012-09%20SOBRE%20NOTIFC%20NC.pdf. WT/TPR/S/234 Trade Policy Review 
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(5) Circulating information or acting in any other manner which discredits consumers because of actions they are 
taking in exercise of their rights; 
(6) Collecting payment by means which damage the honour and image of consumers or through intimidating or 
defamatory mechanisms; 
(7) Setting fractional prices for different elements of a good or service which constitutes a whole, with the aim of 
increasing the normal price of such good or service or concealing the total value of the good; 
(8) Hoarding, speculating in, adulterating, limiting supplies of or refusing to sell consumer or health goods, as well 
as the essential inputs, raw materials, materials, c ontainers, packing and semi-processed goods needed to 
produce and market them, in order to cause a rise in their prices or any other economic loss to consumers;  and 
(9) Hoarding, speculating in, limiting supplies of or refusing to sell goods, services and inputs needed for the 
country's economic activities: 
Source : Official Journal No. 30,920, Deci sions and Laws Section, Republic of Honduras, Tegucigalpa, M.D.C., 
4 February 2006;  and Article 68, Consumer Protec tion Law, Official Journa l No. 31,652, Republic of 
Honduras, Tegucigalpa, M.D.C., 7 July 2008.  
 
141. Under the Law on Competition, practices which are restrictive by their effect may be 
prohibited only if it is proven that the share of the af fected market is greater than the one set by the 
CDPC for determining whether a form of conduct is  prohibited.  The implementing regulations for 
this law establish general guidelines that the CDPC must follow in order to determine the relevant 
market and the elements that should be taken into account in deciding whether an agent has a 
"notable" share of a market.  If, as a result of an  investigation, it is proven that the practice is 
prohibited, the CDPC may also impose fines, without  prejudice to criminal or civil actions.  The 
regulations establish fines, which will vary accordi ng to the seriousness of the conduct, the number of 
infringements, the impact that the restriction has had on free competition, the injury and prejudice to 
consumers, or the size of the affected market.  The CPDC may impose provisional measures at any 
time during an investigation.  The Commission's decisions shall be made public by means of a 
resolution.  Economic agents may appeal a decision of the Commission.  They have the right to lodge 
an administrative appeal with the Commission itself;   once this appeal is settled, the administrative 
channel is exhausted, and the only solution that remains is an independent judicial authority, 
specifically, the Administrative Court. 
142. The law also prohibits mergers, the objective or e ffect of which is to restrict, diminish, injure 
or impede free competition.  Mergers must be notif ied to the CDPC by economic agents in advance, 
and they may be subject to verification.  The Commi ssion will verify merger operations in which the 
amount of the assets exceeds the equivalent of 10 ,000 minimum wage units (calculated on the daily 
average) or the sales volume is greater than 15, 000 minimum wage units (calculated on the daily 
average), or where the combined market share of the economic agents involved in the merger exceeds 
20 per cent of the relevant market.105 
143. In order to determine whether a merger impede s free competition, the CDPC must take into 
account the following criteria:  the market share;  the possibility that the merger entails prohibited 
practices or conduct, or constitutes a barrier to the entry of new economic agents;  the possibility that 
the merger will facilitate a unilate ral price increase, while other ec onomic agents will be unable to 
counteract such power;  and the possibility that the merger is the only option for avoiding the 
withdrawal from the market of the production assets of  one of the economic agents participating in the 
merger.  The CDPC may order the temporary suspen sion of an operation during an investigation to 
determine the effects of a merger.  Depending on th e outcome of the investigation, the CPDC may 
adopt a favourable decision, order the break-up of  the merger, or impose the corrective measures 
needed. 
                                                      
105 CDPC online information, Resolution No. 18-CDPC- Año (Year)-III, Official Journal of 
11 June 2008.  Viewed at:  http://www.cdpc.hn/pdf/umbrales.pdf. Honduras WT/TPR/S/234 
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144. The 2005 Law on Competition repealed Article 424 of the Commercial Code (Rule No. 73-50 
of 16 January 1950) which had permitted "agreeme nts between companies that regulate the general 
terms and conditions regarding the quantity and quality of production or the characteristics of services 
provided to the public."106 
145. The Consumer Protection Law also lists a number of abusive practices (Box III.1).  
Infringements of this Law are penalized.  Th e penalty may be a fine ranging from one to 
10,000 minimum wage units and a one-month closure of the establishment.  Consumers may appeal to 
the administrative authority or bring legal action if their interests are affected.  The resolution imposing the penalty, indicating the type of infri ngement committed and the name of the supplier, 
must be published in a large-circulation daily ne wspaper.  The Directorate-General of Consumer 
Protection, the authority which applies the Consumer Protection Law, may launch an investigation on its own initiative.
107 
146. The Consumer Protection Law, Decree No. 24-2008, prescribes the immediate withdrawal 
from the market of goods or services which infring e the provisions contained in the standards and 
technical regulations. 
147. The publication of the Executive Secretariat of the Central American Council on Consumer 
Protection (CANDECO) on the state of consumer rights protection in Central America indicates that the protection of Honduran c onsumers is still inadequate.
108  The authorities indicated that this study 
was carried out when the old Consumer Protecti on Law was in effect;  they believe that the 
implementation of the new Law approved in 2008 w ill solve many of the problems mentioned in the 
study. 
(b) Price controls 
148. The function of the Directorate-General of Consumer Protection (within the Ministry of 
Industry and Trade) is to implement the Consum er Protection Law, its Regulations and other 
applicable provisions, and to monitor the prices of  goods and services, guide consumers and supervise 
agricultural, handicraft and health fairs. 
149. The Consumer Protection Law (Decree No. 24 of 2008) superseded the old Consumer 
Protection Law of 1989, which did not meet the re quirements for effective protection of consumer 
rights.  The Regulations of the Consum er Protection Law were issued in 2009.109  The Law regulates 
the marketing of goods and services, as well as the provision of public services, if the latter are not regulated by other laws.  In principle, the Law regulates all public services:  electricity, 
telecommunications, drinking water supply and sew age services, waste collection, urban and 
inter-urban public transport, hea lth and education.  Excluded, unde r Article 2 of the Law, are the 
sectors regulated by their own entity, i.e. the National Telecommunications Commission 
(CONATEL), the Regulatory Authority for Drinki ng Water and Sanitation Services (ERSAPS), the 
National Energy Commission and the National Commission on Banking and Insurance (CNBS). 
                                                     
 
106 Article 424 of the Commercial Code and Article 60 of the Law on Competition. 
107 The actions that may be initiated ex officio by the implementing authority are set out in 
Article No. 83 of the Consumer Protection Law of 2008. 
108 Online information from La Prensa.hn, " Protección deficiente para consumidores ".  Viewed at:  
http//www.laprensahn.com/layout/set/print/la yout/set/print/content/view/print/145544. 
109 Regulations of the Consumer Protection Law, Decision No. 15-2009 of 9 March 2009.  Viewed at:  
https://cohep.com/leyes.html. WT/TPR/S/234 Trade Policy Review 
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150. The Consumer Protection Law prohibits hoard ing, speculating in, limiting supplies of or 
refusing to sell staple or essential consumer or hea lth goods, as well as the essential inputs needed to 
produce them, in order to trigger an increase in thei r prices or any other economic loss to consumers.  
Charging a price higher than the declared or published price is also prohibited by law. 
151. Under the new Law, a price stabilization and coordination plan must be drawn up for the 
items in the basic basket that are in "seasonal demand".110  There are still no regulations for designing 
this plan.111 
152. In 2007, with a view to controlling price sp eculation throughout the country, Honduras 
established a price control mechanism for essential cons umer goods in the basic basket.  The prices of 
some 25 products, including rice, beans, sugar, salt,  vegetable oil, butter, wheat flour, maize flour, 
eggs, milk, ground coffee and chicken, were made su bject to price monitoring.  The maximum prices 
were fixed initially for a period of six months;  this period could be shor tened if trade became 
"regularized" or extended if it did not become "re gularized".  According to the authorities, trade 
regularization depended on the supply of the domestic market.  The maximum prices of controlled products were fixed on the basis of the prices re corded on 1 September 2007 at the Agricultural and 
Handicraft Fair organized by the Ministry of Industry and Trade.
112  After 2007, there were no further 
proposals for price fixing. 
153. The maximum selling price of essential servic es and the price of inputs needed to produce 
goods and services and inputs indispensable "for the country's economic activities" are also fixed by 
the Directorate-General of Consumer Protection.  There is no list of goods or services subject to price 
control.  A maximum selling price will be determined  only in unforeseeable circ umstances or cases of 
force majeure  caused by emergency situations, disasters or calamities, and when goods and services 
are marketed under a regime of monopoly or oligopoly and the absence of free competition is proven;  in the latter case, a favourable ruling by the Commission for the Defence and Promotion of 
Competition is required.
113 
154. It is State policy to ensure the supply of medici nes of the highest quality at the lowest possible 
price.  For this reason, the old law allowed the Ministry of Industry and Trade (SIC) to control 
consumer prices.  The SIC fixed the maximum percentage of gross profit for the sale of pharmaceutical products.  The profit was determined on the basis of the c.i.f. price in the case of 
imported products and on the basis of the ex-factor y price when the products were manufactured in 
Honduras.  The profit margin on the sale of generic pr oducts could be different from the one fixed for 
the sale of commercial products with a trademark.  The old law also provided that the percentage of 
gross profit on pharmaceutical products sold in hospita ls or private polyclinics could not be more than 
25 per cent over the original cost.
114 
155. Pursuant to Decision No. 139-97, the State was able to control the profit margins on 
medicines and other pharmaceutical products for human  use, but that Decision was rescinded when 
                                                      
110 Those which for cultural reasons are consumed only  or in greater quantity at certain times of the 
year or are grown only at certain times of the year. 
111 The list of items in the basic basket may be found in the Sales Tax Law, Decree-Law No. 24 of 
20 December 1963.  Viewed at:  http://www .sefin.gob.hn/portal_prod/data/leyes/LEY% 
20DE%20IMPTO_S_VTAS.pdf-+. 
112 Law on Price Control for the Basic Basket, Decree No. 113-2007 of 30 October 2007. 
113 Article No. 73 of the Consumer Protection Law. 
114 Health Code, Decree No . 65-91, Official Journal of 6 August 1991. Honduras WT/TPR/S/234 
 Page 63 
 
 
the new Consumer Protection Law came into eff ect.  Currently, the State fixes the price of 
hydrocarbons.115 
156. The autonomous State institutions which pr ovide public services, such as the National 
Electricity Company (ENEE)116, the National Drinking Wate r and Sewage Service (SANAA)117, the 
Honduran Telecommunications Company (HONDUTEL)118 and the National Port Enterprise (ENP), 
set the charges for these services.  These institutions set thei r own charges autonomously, without the 
need for approval by the Ministry of Communica tions, Public Works and Transport (SOPTRAVI) or 
by the National Supervisory Commission on Public  Services (CNSSP).  The CNSSP currently sets 
charges only for the services provided by the Hond uran Postal Company (HONDUCOR), the ENP, 
and the Honduran Institute for Anthropology and Hi story (IHAH).  These charges are set on the "basis 
of the real economic costs" of providing the servi ce, plus a minimum percentage for recovery of 
investment. 
157. The authorities also control the interest rates charged for consumer credit on forward sales.  
The interest rates applied to these sales may not be mo re than twice the average effective interest rate 
applied to consumer credit by the national ba nking system in the preceding month, plus the 
corresponding year-on-year inflation rate.  Ev ery month, the National Commission on Banking and 
Insurance publishes the maximum and minimum average interest rates of the national banking system 
in the statistical bulletin, while the Central Bank of Honduras publishes the year-on-year inflation 
rate, measured by the change in the consumer price index, also on a monthly basis. 
(iii) Government procurement 
158. Honduras is not a party to the WTO Plurilatera l Agreement on Government Procurement, nor 
is it considering accession. 
159. The legal framework relating to government pr ocurement has not changed substantially since 
2003.  The Government Procurement Law (Decree No . 74-2001 of 1 June 2001) and its Regulations 
(Executive Decision No. 055-2002 of 15 May 2002) continue to govern contracts for public works 
and the supply of goods and services, including consultancy services, concluded by any publicly 
funded government entity. 
160. The Government Procurement Law provided for the creation of the Procurement and 
Purchasing Standards Office ( ONCAE), which was created in 2001 but began operating in 2004.119  
This office is attached to the State Secretariat for Presidential Affairs, and its  main responsibility is to 
set general rules and guidelines for developing or improving the operational, technical and economic 
aspects of government procurement systems.120  This office does not act as a government procurement 
body;  procurement is carried out in a decentr alized manner by each of the governmental entities, 
following the general guidelines laid down by the ONCAE. 
                                                      
115 Law on Hydrocarbons, Decree No. 194-84, Official Journal No. 24557 of 28 February 1985;  and 
Decree No. 41-2004 of 23 April 2004. 
116 Framework Law on the Electricity Subsector , Decree No. 158-94, Official Journal of 
26 November 1994. 
117 Law establishing the National Drinking Water and Sewage Service (SANAA), Decree No. 91 of 
23 May 1961. 
118 Organic Law on the Honduran Telecommunications Company (HONDUTEL), Decree-Law No. 341 
of 4 June 1976. 
119 Law on Government Procurement, Decree No. 74-2001, and Internal Regulations of the INCAE 
(Executive Decision No. 012-2004 of 10 May 2004). 
120 ONCAE online information, "Principales Responsabilidades".  Viewed at:  
http://www.on cae.gob.hn. WT/TPR/S/234 Trade Policy Review 
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161. The Law stipulates that all enterprises, Honduran an d foreign, must be listed in the Register of 
State Suppliers and Contractors administered by the ONCAE in order to take part in public tendering.  
All contractors are subject to the same requirements and listing in the Register is free of charge and is valid for three years.  Some 1,600 suppliers are curr ently listed in the Register of State Suppliers and 
Contractors, including 27 foreign companies. 
162. The body responsible for procurement within each entity will prepare, in each case, the 
specifications and other documents governing the tendering procedure, as well as the general and 
special stipulations of the contract to be concl uded.  Under the Law, the tender specifications should 
be prepared in a way that encourages competition a nd allows potential contractors to participate on an 
equal footing;  to this end, no restrictions may be imposed that might limit the opportunities for some 
participants to compete, nor may requirements be enfo rced that are not technically indispensable.  If it 
is proven that there has been malicious collusion be tween two or more participants in a procurement 
process, the respective bids will be disregarded.  According to the authorities, since 2003 there have 
been no instances in which a malicious collusion betw een two or more participants in a procurement 
process was proven. 
163. The procurement procedures have remained unchanged since 2003.  The Law stipulates 
five procedures:  public tendering, private tenderi ng, open competition, limited competition and direct 
contracting, and one procedure, quotation, is sti pulated for small procurements in the Regulations.
121  
The Law provides that the threshol d values for the procedure to be used will be established annually 
in the country's General Revenue a nd Expenditure Budget (Table III.9). 
164. In the case of public tendering, a public call for bids is issued.  In the case of private 
tendering, the body responsible for procurement must issue a call for bids to at least three potential 
contractors.  Private tendering is used when contracts do not exceed a certain amount, as indicated in Table III.9;  when the number of qualified suppliers or contractors is limited;  in unforeseen circumstances, such as emergency situations, or for reasons of public safety;  in the event of a 
shortage of essential goods;  and when a public tend er fails to attract a sufficient number of bids or 
ends with no winners. 
165. Consultancy contracts will be awarded through open competition, in keeping with open or 
limited competition procedures, which require invitati ons to tender to be issued to at least three 
qualified bidders, depending on the threshold values selected (Table III.9). 
Table III.9 
Threshold values for the application of tendering procedures, 2010 
(Lempiras) 
Type of procurement Threshold values Tendering procedure 
Public works L 1.8 million or more Public tendering 
 L 900,000 or more, but less than L 1.8 million Private tendering 
Provision of goods and services L 450,000 or more Public tendering 
 More than L 180,000, but less than L 450,000 Private tendering 
Consultancies L 1.8 million or more Open competition 
 L 900,000 or more, but less than L 1.8 million Limited competition 
Small procurements More than L 53,000, up to L 180,000 Quotation (at least three quotations) 
Small procurements Up to L 53,000 Quotation (at least two quotations) 
Source : Information provided by the authorities. 
 
                                                      
121 This procedure is defined in Article 7(f) of the Regulations of the Law on Government Procurement. Honduras WT/TPR/S/234 
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166. Direct contracting is used for public works, supplies or consultancy services with particular 
characteristics (for example, specialized services or minting of money) and not on the basis of the contract value, as in other procurement procedur es.  In these cases, quotations may be requested 
without the same formalities as are required for a priv ate tender.  Direct contracting may also be used 
in emergency situations;  in the case of specia lized goods and services for which the owner of the 
registered patent or trademark has exclusive manufac turing or sales rights, provided that there are no 
suitable substitutes;  for security reasons;  or in th e case of specialized scientific, technical or artistic 
works.  In the aforementioned cases, direct contr acting requires authorization from the President of 
the Republic.  No lists of suppliers have been drawn up for direct contracting;  however, it is 
recommended that contracting entities select suppliers  from the existing databases in their registers 
and in the registers of the Honducompras  system, in order to ensure that suppliers contracted under 
the direct contracting procedure have experience with government procurement, offer guarantees, and 
have a good record with regard to deliver y and compliance with contract clauses. 
167. The assessment of bids is not based solely on price;  it may include other factors such as 
financing terms, environmental be nefits or the availability of spare parts and services.  When a 
contract is not awarded to the lowest bidder, the Law requires the administrative authority to give 
reasons for its decision, which the competent higher authority then has to approve.  The Government 
may establish other criteria, such as delivery times,  maintenance, quality, pr oduct guarantees and the 
like, or the product best suited to the need.  Comp anies wishing to challenge an award must exhaust 
all administrative channels before a case can  be brought before the national courts. 
168. International public tendering is limited to cases wh ere special expertise is required, or other 
reasons warrant the participation of foreign cont ractors.  Foreign companies based outside Honduras 
may take part in any tender or competitive proce dure without an intermediary.  Foreign nationals or 
Hondurans may take part even if they are not listed in  the Register of State Suppliers and Contractors, 
since registration is mandatory only when a supplie r is favoured in a process.  Foreign enterprises 
participating in any process are subject to th e same requirements as Honduran enterprises.  
Nevertheless, in certain cases where reas ons of public interest are involved
122, foreign enterprises 
must allow Honduran enterprises to take part in the implementation of the project or the provision of 
the services within the country.  The Law does not speci fy any percentage of participation, nor does it 
specify how to determine that percentage, but the aim is to ensure the broadest possible recruitment of 
Honduran enterprises and professionals.  In practice, international tendering is carried out only when 
at least part of the financing is from an extern al source, since the Law on Government Procurement 
provides that, if a contract is to be financed ex clusively with national funds , it should be awarded to 
enterprises or individuals or that are Honduran or from countries with which Honduras has an agreement in that regard (see below). 
169. The Honduran government procurement system h as mechanisms that might favour domestic 
enterprises and goods.  The Law on Government Proc urement establishes a pr eferential margin for 
domestic bids.  Therefore, in the assessment of bi ds for a public works project, bids submitted by 
foreign contractors are increased by 7.5 per cent of the value originally specified.
123  Similarly, for the 
procurement of goods or services, if the bids in clude imported goods, tariffs  and other import taxes 
are added to the price of those goods, or, if the goods are exempt, a sum equivalent to 15 per cent of 
                                                      
122 Article 147 of the Law (Decree No. 74-2001) specifies that "technical and professional activities 
related to the provision of professional services, and the promotion of the entrepreneurial capacity and experience existing within the country for the construction of public works and the provision of consultancy, 
auditing or other professional services in general in order to stimulate domestic production, are declared to be of 
public interest." 
123 Article 128 of the Regulations of the Law on Government Procurement. WT/TPR/S/234 Trade Policy Review 
Page 66 
 
 
the value of the bid is added.124  This does not apply to bids submitted by foreign companies or 
individuals from countries to which Honduras grants  national treatment under its bilateral or 
multilateral trade agreements.  The law also specifies that micro, small and medium-sized enterprises 
must have a 30 per cent share of government procurement. 
170. In addition to establishing a preferential margin for domestic bids, the Law on Government 
Procurement provides for other means of incr easing participation by Honduran companies and 
professionals in public tenders, measures which might, therefore, restrict the participation of foreign 
enterprises and individuals.  The Law provides that:  in the assessment of a bid, consideration should 
be given to the use of goods manufactured in Honduras125;  contracts fully financed exclusively with 
national funds should be granted solely to Hondur an contractors;  and tender documents should 
include special clauses that allow domestic manufac turers to compete with manufacturers in other 
countries that receive duly proven subsidies or incentives.126  In practice, this excludes any foreign 
entity or individual from all tenders not financed w ith external funds.  The Law also provides that 
projects valued at more than L 50 million may be  tendered in portions not exceeding L 15 million in 
order to provide greater opportunities for participatio n to domestic contractors.   Likewise, consultancy 
contracts financed entirely with domestic funds that are awarded to fore ign enterprises must be 
implemented in Honduras and must employ Honduran  personnel, as stipulated in the terms of 
reference.127 
171. Invitations to tender are issued through notices publis hed in the Official Journal or at least in 
another national newspaper, a nd through the State contracting and procurement system 
(Honducompras ) administered by the ONCAE.128  In the case of international tendering, the notice of 
invitation to tender is also published abroad .  Bids must be submitted in Spanish. 
(iv) State trading and State enterprises 
172. Honduras notified the WTO that it had no State trading enterprises within the meaning of 
Article XVII, paragraph 1, of  the GATT between 2003 and 2010.129 
(v) Trade-related investment measures 
173. Processors of some staple grains who buy part of the grains on the local market may benefit 
from tariff reductions in importing these grains (Chapter 4(1)). 
(vi) Intellectual property rights 
(a) Introduction 
174. Honduras is a member of the World Intellectual Property Organization (WIPO) and a 
signatory to several international intellectual property agreements.  Since 2003 Honduras has acceded 
to the Budapest Treaty on International Recogn ition of the Deposit of Microorganisms for the 
                                                      
124 Goods are considered to be of foreign origin when  the cost of foreign inputs, labour and services 
used in manufacturing them exceeds 60 per cent of the price of the goods. 
125 Article 147, paragraph 2, of the Law on Government Procurement. 
126 Article 147, paragraph 3, of the Law on Government Procurement. 
127 Article 151 of the Law on Government Procurement. 
128 Article 4 of the Law on Transparency  and Access to Public Information. 
129 WTO documents G/STR/N/2/HND-13/HND of 21 May 2010. Honduras WT/TPR/S/234 
 Page 67 
 
 
Purposes of Patent Procedure (2006), the Patent La w Treaty (2006), the International Convention for 
the Protection of New Varieties of Plants - UPOV (2006) and the Trademark Law Treaty (2008).130 
175. The legal framework in the area of intellect ual property rights (IPRs) has undergone some 
changes since the last Trade Policy Review of Honduras, mainly because of the entry into force 
of DR-CAFTA.  The main IPR laws are:  the Law on  Copyright and Related Rights 
(Decree No. 4-99-E);  the Industrial Property Law (D ecree Law No. 12-99-E), which regulates the use 
of patents, utility models and industrial designs in Honduras;  and the Law to Implement the Free 
Trade Agreement between the Dominican Republic , Central America and the United States of 
America (Decree No. 16-2006), which amends the tw o previous laws, streamlining the protection 
process and extending the terms of protection.  Gene ral regulations on IPRs are also found in the 
Constitution, other laws and regul ations, and the Criminal Codes stipulate penalties in case of 
infringement of IPRs.  There are also provisions  which authorize customs to inspect goods (CAUCA 
and RECAUCA).  The WTO Agreement on Trade-Re lated Aspects of Intellectual Property Rights 
(TRIPS) is an integral part of Honduran legislation. 
176. Since 2004, the responsibility for formulati ng and implementing Honduran intellectual 
property rights policy, which previously lay with  the SIC, has been exercised by the Property 
Institute, which acts through the Directorate-General of Intellectual Property (DIGEPIH).  The DIGEPIH is the enquiry point for the purpo ses of Article 69 of the TRIPS Agreement
131, and 
comprises the Office for the Administration of Copyright and Related Rights and the Industrial 
Property Registry Office.  The main functions of  the DIGEPIH are to guarantee and strengthen the 
protection of intellectual property rights, to ensure  compliance with international commitments, and to 
take part in bilateral and multilateral negotiations on intellectual property. 
(b) Copyright and related rights 
177. According to the authorities, the Law on Copyright and Related Rights of 1999 incorporates 
the main elements relating to protection of the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT), as well as the international rules laid down in 
the TRIPS Agreement. 
178. The Law on Copyright and Related Rights protects all original creations in the literary and 
artistic fields.  These include, as works, computer  programs and databases.  The Law protects the 
rights of Honduran authors and foreign authors residing in Honduras, as well as foreign works first published in Honduras.  There are no excepti ons or exemptions from national treatment for 
foreigners who publish their works in Honduras.  The rights of foreigners whose works were 
first published abroad are protected under internati onal conventions or, in the absence thereof, on the 
basis of the reciprocity principle. 
179. The rights granted to copyright holders include the right of distribution, through sale, hire or 
any other means, and the right of communication of  the work, regardless of when and where it is 
accessed. 
                                                     
 
130 In 2003 Honduras was already a signatory to:  the Berne Convention for the Protection of Literary 
and Artistic Works (1990);  the Rome Convention for th e Protection of Performers, Producers of Phonograms 
and Broadcasting Organizations (1990);  the Geneva Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of their Phonograms (1990);  the Paris Convention for the Protection of 
Industrial Property (1994);  the WIPO Copyright Treaty (2002);  and the WIPO Performances and Phonograms 
Treaty (2002). 
131 WTO document IP/N/3/Rev.10 of 16 May 2008. WT/TPR/S/234 Trade Policy Review 
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180. The terms of protection have changed since the last Review in 2003.  Works are protected 
during the author's lifetime and for 75 years following his death;  in the case of anonymous works, for 75 years from the date of disclosure or publication of  the work.  If the author's identity is revealed 
before this period expires, the applicable provi sions shall be those for works whose authors are 
known.  In the case of photographic works, the term  of protection is 70 years (previously 50 years) 
from the end of the calendar year in which the wo rk was first published.  The Law enacted in 2000 
extends the term of protection for works and re lated rights from 50 to 75 years.  The term of 
protection for related rights is 75 years.
132 
181. Related rights are protected under Article 14 of the TRIPS Agreement.  The Law on 
Copyright also specifies that owners of audiovisual  works, computer programs and works included in 
a phonogram may authorize or prohibit the rental or  import of phonograms, or making them available 
to the public, by any means and in any form. 
182. The DIGEPIH's Office for the Administration of Copyright and Related Rights keeps a 
register of copyright and related rights.  Honduran legislation recognizes the principle of copyright protection without requiring any registration fo rmalities.  Between 2003 and 2009, a total of 
919 artistic and musical works, 833 literary works,  46 software programs, eight phonograms, and 
50 cinematographic works, videograms and the like we re entered in the Copyright Register.  Since 
2009, a fee ranging from L 50 to L 2,500 has been charged for entry in the Copyright and Related Rights Register.
133 
183. The Law contains provisions on administrative, civil and criminal proceedings for reported 
rights infringements and payment of damages for an y injury caused, with cust odial sentences of up to 
six years in cases classified as offences;  and fines ranging from ten to 200 minimum wage units in cases involving administrative sanctions. 
(c) Trademarks and geographical indications 
184. The Industrial Property Law regulates all matters  relating to trademarks.  Honduras protects 
trademarks and other distinctive signs, as well as ge ographical indications, designations of origin, and 
certification marks.
134 
185. Any mark may be registered, except those which the Law considers unregistrable, for 
example, generic terms or those describing or indi cating the products themselves, or commercial or 
industrial services or establishments which are recognized  by their trademark.  Nor is it possible to 
register marks identical to others already register ed or graphically or phone tically similar to other 
marks already registered in the same class of products or in related classes.  Marks identical or similar 
to others that are already registered abroad for a similar product, and that are famous or well known, 
cannot be registered in Honduras.  There cannot be two identical or similar marks for the same class 
                                                      
132 Law to Implement the Free Trade Agreement be tween the Dominican Republic, Central America 
and the United States of America (Dec ree No. 16-2006) of 24 March 2006. 
133 Governing Council Resolution No. 278-2009 of the Property Institute. 
134 Article 54 of the Law to Implement the Free Trade Agreement between the Dominican Republic, 
Central America and the United States of Am erica (Decree No. 16-2006) of 24 March 2006. Honduras WT/TPR/S/234 
 Page 69 
 
 
of products.135  The Industrial Property Office has a classifier of product and service marks that may 
be consulted.136 
186. Under Honduran law, various types of marks ma y be registered:  names (those consisting of 
letters, words, numbers, or a combination thereof);  labels (those consisting of a design);  and mixed, a 
combination of the two preceding types.  Slogans linked to a registered trademark may also be 
registered.137 
187. Marks are registered at the DI GEPIH.  Applicants may be H onduran or foreign natural or 
legal persons;  the requirements for foreigners ar e the same as for Hondurans.  Registration confers 
the exclusive right to use the mark .  The mark may be transferred (sold) or handed down (inherited).  
The holder (owner) may grant a "licence" to a third pa rty;  that is, he may authorize the use of the 
mark without losing ownership of it, on th e basis of time-limits and other conditions.138  Marks are 
protected for a period of ten years, renewable for equal periods.  Non-use may entail loss of the right to a mark. 
188. The Industrial Property Law (Decree Law No. 12-99-E) also provides for the protection of 
geographical indications.  A geographical indication may be registered as a mark, provided that it 
does not mislead or deceive consumers with respect to  the origin, source, characteristics or qualities of 
the product or service. 
(d) Patents of invention and other rights 
189. The Industrial Property Law contains general provisions and basic principles on patents, 
including provisions on patent applications and re view, licences and transfers, and expiration of a 
patent. 
190. In the area of industrial property, all inventi ons in any sector of technology can be patented, 
and are protected for a term of 20 years from the fi ling of the application.  The period for granting a 
patent may not exceed 60 months (five years);  failing which, the patent applicant must be compensated.  Industrial models and drawings, u tility models and industrial designs may also be 
protected.  The Law contains provisions relating to  review of the merits and form and to the 
registration, expiration of registration, transfer  and granting of licences, and legal protection. 
191. The Law provides for the granting of compulsory  licences to work patents, for reasons of 
public interest, national emergency,  national security, nutrition or pub lic health.  Compulsory licences 
may also be granted if the patent has not been expl oited in the national territory within four years of 
an application or three years from the date the patent  was granted (the longest term).  In such cases, a 
compulsory licence may be obtained provided the applicant can demonstrate that he had previously 
requested the patent holder to grant him a contr actual licence, which was not granted on reasonable 
terms and within a reasonable period of time.  Up to now, no compulsory licences have been granted. 
192. Parallel imports are prohibited, unless they are for investigations. 
                                                     
 
135 Products and services are grouped into classes (gr oups of related products or services).  There are 
34 classes of products and eight classes of services. 
136 Online information from the Direct orate-General of Intellectual Prop erty (DIGEPIH).  Viewed at:  
http://www.karlhollmann.com/principal.htm. 
137 Online information from the Directorate-General of  Intellectual Property (DIGEPIH). Viewed at:  
http://www.karlhollmann.com/principal.htm. 
138 Online information from the Direct orate-General of Intellectual Prop erty (DIGEPIH).  Viewed at:  
http://www.karlhollmann.com/principal.htm. WT/TPR/S/234 Trade Policy Review 
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193. The protection of confidential information or industrial secrets is al so regulated by the 
Industrial Property Law.  The authorities indicated  that regulations governing the protection of 
confidential data and information are being drafted.  The Criminal Code also contains provisions 
against the violation and disclosure of industrial secrets, with penalties ranging from three to 
12 years' imprisonment. 
(e) Protection of plant varieties 
194. A draft law was submitted to the Congress in 1999, amended in 2002, and submitted again to 
the Congress, which is still considering it in th e Agricultural Committee.   According to the 
authorities, this draft law follows the UPOV guidelines.   Up to now there has been no application for 
protection of plant varieties. 
(f) Layout-designs of integrated circuits 
195. Honduras has not yet adopted any specific provisions to regulate the protection of 
layout-designs (topographies).  A draft law on the prot ection of layout-designs of integrated circuits 
was submitted to the National Congress for approval in 1999.  As it was not approved, a new draft 
with some procedural improvements was submitted.   According to the authorities, the Industrial 
Property Office has received no requests for the protec tion of layout-designs of integrated circuits. 
(g) Enforcement of intellectual property rights139 
196. The Industrial Property Law and the Law on Copy right and Related Rights allow the holder to 
institute any proceedings before the administrative au thority, without prejudice to his right to bring 
actions in the civil and criminal courts, whet her acting on his own beha lf or through legal 
representatives.  Those laws also provide for ad ministrative, criminal and civil penalties;  
administrative penalty proceedings;  civil actions a nd proceedings;  final, transitional, and repeal 
provisions;  and validity periods.  The Criminal Code  establishes the applicable penalties for offences 
relating to intellectual property. 
197. The Draft Regulations on the Procedure Govern ing Special Requirements Relating to Border 
Measures, of 2002140, which established all the procedures relating to precautionary measures 
intended to prevent the import or export of products  infringing intellectual property rights, has not 
been approved.  The authorities indicated that this instrument had been revised in the light of the 
TRIPS Agreement and the DR-CAFTA free trade ag reement and submitted to the customs authorities 
for review. 
198. In order to ensure the application and enforc ement of the various intellectual property laws, 
agreements and conventions, Honduras has trai ned the judicial, customs, fiscal, police and 
administrative authorities of the institutions responsible  for application of the remedies provided for in 
administrative, civil and criminal proceedings for th e proper enforcement of protected rights.  It has 
also modernized the institutions responsible for th e administration of intellectual property laws and 
trained their staff in order to facilitate and streamline the registration formalities. 
                                                      
139 The enforcement system was described in detail in  the Secretariat Report for the previous Trade 
Policy Review of Honduras (WTO, 2003). 
140 WTO documents IP/Q/HND/1, IP/Q2/HND/1, IP/Q3/HND/1, and IP/Q4/HND/1 of 
30 January 2002. Honduras WT/TPR/S/234 
 Page 71 
 
 
199. The Inter-Institutional Commission against Piracy  is composed of public institutions and 
business associations.141  It was responsible for the protec tion, oversight and safeguarding of 
intellectual property rights and worked to counter pi racy in the country until 2002.  In 2007, on the 
initiative of the Directorate-General of Intellectua l Property, the Commission, together with other 
concerned institutions, again assumed the function of protecting IPRs.  The authorities were unable to 
provide statistical indicators on enforcement of IPRs. 
                                                      
141 The Commission consists of:  the Public Pros ecutor's Office (entity re sponsible for initiating 
criminal proceedings in cases of intellectual property ri ghts infringement);  the Ministry of Security (entity 
responsible for the police authorities who confiscate count erfeit and pirated goods);  the Executive Directorate 
of Revenue (entity responsible for Honduran Customs);  the National Telecommunications Commission (entity 
responsible for authorizing the operation of free-to-air and satellite-to-cable television companies);  the Supreme 
Court of Justice (the highest body responsible for the administration of justice in Honduras);  and the Honduran Private Enterprise Council.