Doing business

(Last updated: 6 July 2007)

Business etiquette

Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff based on NAUCA Nomenclature (Nomenclatura Arancelaria Unificada Centro Americana) ie. Central America Uniform Tariff Nomenclature, which is derived from the SITC. Duties are ad valorem, assessed on the CIF value.

Four levels of duty are applied: five per cent, 10 per cent, 15 per cent and 20 per cent. Tariff rates on raw materials and inputs from outside Central America are now subject to a one per cent tariff. Tariffs on capital goods were also previously reduced to one per cent.

A free trade agreement between the countries of Central America provides for a tariff reduction schedule through 2000. Intermediate goods with a 10 per cent duty have been reduced to five per cent, while intermediate goods with a 15 per cent duty have been reduced to 10 per cent. The 20 per cent duty on finished goods has been progressively reduced to 17 per cent.

Customs authority contact details:

Director General
Direccion General des Aduanas
Av Juan Lilndo, Edifico 504
Dendencia de la Secretaria de Hacienda y
Gredito Publico Tegucigalpa, D.C.
Tel: +504 312 550 or 310 023
Fax: +504 312 601

Non-tariff barriers

All importers must be registered in the Registry of Importers, administered by the Directorate General of Economy and Commerce of the Ministry of the Economy and Finance. A registry card, or carnet, indicating the importer's registration number is issued by the Directorate General of Economy and Commerce.

All imports in excess of approximately US$850 require permits issued by the External Financing Department of the Central Bank. Validity period is usually nine months, with extension to 12 months available under special circumstances.

Allocation and authorisation is controlled by the Central Bank. Authorisation of foreign exchange allocation is dependent upon the import's essentiality.

The import of corn, rice, sorghum, beans and potatoes is the monopoly of the Honduran Institute of Agricultural Marketing (IHMA).

All pharmaceutical specialities, whether for human or veterinary use, must be registered with the Faculty of Chemistry and Pharmacy (El Colegio Quimica y Farmacia) before they may be imported or placed on sale in Honduras. Pharmaceutical specialities include - besides medical preparations for human or veterinary use - simple chemical substances, products for opotherapy, serums, vaccines and all poisonous products (including cosmetics, hygiene products, insecticides, pesticides and related products - if poisonous).

The Government of Honduras has created a 'Registry of Importers and Exporters'. Everyone who imports or exports has to register. People who register must fill out a form supplied by the Directorate General of Economy and Commerce to receive their registration card, or carnet. In order to remove goods from customs, importers need to note the number of their carnet on the import permit covering their goods.

Product certification, labelling and packaging

Labels must be in Spanish or have strip labels in Spanish added. Foods must show list of ingredients used. Any artificial colorants and preservatives must be shown in lettering not less than one-fourth the size of the lettering used for the name of the product.

Veterinary preparations must have, above the main label, a second label, red, and with the words 'Uso veterinario' (veterinary use).

Packages may be marked in stencil or brush and should be numbered consecutively. Marks used must be registered at the Customs House.

Special certificates

Livestock and animal products require a permit issued by the General Director of Animal Husbandry and Veterinary Medicine. Live animals and animal products need a sanitary certificate issued by a competent authority in the exporting country, legalised by the Consul.

Spirits must be accompanied by a certificate stating alcoholic strength, as determined by the Gay Lussac Scale.

Fertilisers and insecticides require a certificate of analysis, legalised by the Consul.

Used clothing must be accompanied by a certificate of disinfection, legalised by the Consul.

Imports of leather require a certificate issued by the Department of Primary Industries and

Energy stating that they are free of foot and mouth disease, rinderpest, pleuropneumonia and African swine fever.

Methods of quoting

Quotations should be in US dollars CIF Honduras port. Payments are usually made on sight draft terms, payable against delivery of shipping documents or, if by parcel post, against delivery of goods. Banks limit letter of credit to 90 days, but this term may be extended.

Documentary requirements

Commercial invoice

One original and four copies in Spanish required, attached to the Consular invoice for Consular legalisation. This document is a combination of a commercial invoice and packing list.

Must include the following (agreeing exactly with Consular invoice):

• Origin of goods, terms of payment, sales price, terms of delivery and FOB value.
• Ocean freight and marine insurance, marks, numbers on containers and their weight.
• Sailing date of vessel.

Must be signed in ink. Fax signatures acceptable on copies.

The following declaration is to appear (in Spanish) at the bottom of the invoice:
'The undersigned (shipper's name ) declares and swears that he is (title) or (name of the business firm) of this city, street ...... No ..... that the prices and other data given on this invoice are correct, that he is jointly responsible along with the document signee firm for any illegality or error which by later investigation may be discovered in the data given.'

Five legalised copies in Spanish on official forms are required for all shipments over US$25 FOB.

The invoice must contain the following information:

• Date and place of shipment
• Name of the shipper
• Name of the vessel and date of sailing
• Shipping mark
• Port of destination in Honduras
• Name of the consignee
• Name and address of importer
• Marking on packages, number and kind of packages
• Quality, size of parcels by unit in metric system
• Detailed description of goods agreeing with the NAUCA Customs Tariff
• Gross and net weights in kilograms
• FOB and CIF value in US$
• Details of the consular tax of 8% (see also 'Taxes and surcharges' above)
• Numbers on relevant commercial invoice and bill of lading.

Bill of lading/airway bill

One original and four non-negotiable copies required in Spanish language, signed by shipper and legalised by Consulate. The following applies:

• May be in English if a Spanish translation appears on the bill.
• All relevant details regarding the shipments must be included and these must agree with the other documents.
• 'To Order' bills acceptable.

Packing list

If a combination commercial invoice and packing list is not used, a separate packing list must be presented, showing marks, numbers and weights.

Public health requirements

Foods and beverages must be registered with the Department of Food Control of the Ministry of Public Health prior to import. Goods are subject to analysis in Honduras.

Synthetic food dyes are prohibited.

All pharmaceutical and poisonous products (including cosmetics, insecticides, pesticides) must be registered at the Faculty of Chemistry and Pharmacy before retail sale is permitted.

All imports of animals and animal products must be authorised by the Director General of Animal Husbandry and Veterinary Medicine. Live animals must be accompanied by a certificate of health; and animal products, except those packed in steam-sterilised cans, must be covered by a sanitary certificate issued by the authorities of the country of origin.

A certificate of health, issued by the Department of Health, and bearing the following statement must cover all importations of leather into Honduras: 'I hereby certify that the leather covered by said invoice are originated, tanned, manufactured and processed in Australia, that they are free of virus of foot and mouth disease, rinderpest, pleuropneumonia and that after treatment they have not been in contact with products or materials contaminated by said diseases.' This certificate must be presented to the Honduran Consulate for legalisation.

Plants and plant products require permits from the Bureau of Agriculture of the Ministry of National Resources.

Insurance

Normal commercial practice.

Weights and measures

The metric system.

Taxation

Import surcharge - 10 per cent of the CIF value.

Sales tax - 12.5 per cent on alcoholic beverages and tobacco products. All other items, nine per cent. 

Consumption tax on imported petroleum derivatives: seven per cent of the duty-paid value. Domestic products are subject to a rate of seven per cent of the ex-factory price.

Customs service fee - five per cent of the CIF value on most imports. Exemptions include pharmaceutical products for medicinal purposes and powdered milk.

A consular fee of eight per cent, of the invoice value, is levied for the consular certification of shipping documents.