Ample supply of trainable and productive labor. A wide range of low cost, local raw materials such as wood, cotton, textiles, fruits, sugar, vegetables, meats, seafood, leather, coffee, cocoa and spices are available for processing and manufacturing industries. Many Honduran products enter the US duty free under the Caribbean Basin Initiative. A special law has been established for export companies operating in government Free Zones that provides the following benefits. No import or export duties for material, equipment, office supplies, etc., required by the manufacturing plant.
Companies are exempt from income tax, city and county taxes.
The paperwork required to clear incoming and outgoing shipments is minimal. In February 1982, the Reagan Administration proposed the Caribbean Basin Initiative to promote economic development and political stability in Central America and the Caribbean countries, through trade incentives and increased economic aid to boost private sector trade and investment. The goal of the CBI is to attract foreign and domestic investment to these countries, to encourage economic diversification, and to expand export earnings. Its central aspect is the establishment of a permanent CBI program. Repeal of the 1995 termination date for CBI Tariff Duty Cut on Leather.