Market Reports/Tariffs
Textiles, Apparel, Footwear and Travel Goods

Honduras

Import Tariffs
Documentation/Procedures
Restrictions
Standards
Labeling
Intellectual Property Rights
Market Information

Last updated on 08/23/2012

If you have any questions about the following information, please contact Richard Stetson at the U.S. Department of Commerce Office of Textiles and Apparel at 202-482-3400 or click here for e-mail access.

**The following information is provided only as a guide and should be confirmed with the proper authorities before embarking on any export activities.**


Import Tariffs - Honduras
The United States, Honduras, Costa Rica, El Salvador, Guatemala, Nicaragua, and the Dominican Republic have signed the U.S - Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), which allows for increased opportunities for U.S. textile and apparel trade and business in the CAFTA-DR region. For example, U.S. qualifying products will enter the region duty free, immediately upon entry into force of the Agreement. With a more liberal rule of origin than the CBTPA, CAFTA-DR will promote growth of the region’s apparel companies and increase market opportunities for U.S. exporters of yarns and fabrics. In addition to the successful apparel assembly trade, the CAFTA-DR will provide new export opportunities for U.S. technical textiles are used in infrastructure projects, agriculture, construction, and uniforms. For more information on benefits provided under the this agreement, see the CAFTA-DR in the FTA section.

U.S. exports that do not qualify under the CAFTA-DR will be subject to non-preferential treatment as outlined below.

Honduras is a member of the Central American Common Market (CACM). Member countries of CACM (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua) apply a common external tariff (CET) for products manufactured and imported from outside of the CACM. However, each CACM member is allowed to determine any product exceptions. Textile and apparel products are generally exceptions. Tariff rates are generally determined on the cost, insurance and freight (c.i.f.) value. For more information on this and other agreements, see the Organization of American States (OAS) website.

Honduras: Tariffs (percent ad valorem) on Textiles, Apparel, Footwear and Travel Goods
HS Chapter/Subheading
Tariff Rate Range (%)
Yarn
- silk
5003-5006
0 - 5
- wool
5105- 5110
0 - 5
- cotton
5204-5207
5
- other vegetable fiber
5306-5308
5
- man - made fiber
5401-5406/5501-5511
0 - 5
........................
Woven Fabric
- silk
5007
10
- wool
5111-5113
10
- cotton
5208-5212
0 - 15
- other vegetable fiber
5309-5311
5 - 10
- man - made fiber
5407-5408/5512-5516
0 - 10
........................
Knit Fabric
60
0 - 10
........................
Non Woven Fabric
5603
0
........................
Industrial Fabric
59
0 - 10
........................
Apparel
61-62
0 - 15
........................
Home Furnishings
including: bed, bath, kitchen linens, etc.
63
0 - 15
........................
Carpet

Footwear

Travel Goods
57

64

4202
15

0 - 15

15

More detailed tariff information may be obtained from the Central America regional tariff schedule on the Secretaría de Integración Económica Centroamericana (SIECA) website or from the Current Situation of Schedules of Members on the World Trade Organization website.

Additional Import Taxes and Fees--There is a value-added tax (VAT) of 12 percent applied on the c.i.f. value plus duty applied to most products; however certain items of necessity and handicrafts are exempted. There is also a 0.5% service charge applied on all items except for raw material and some capital goods. Complete information on import tax legislation, customs regulations, and general administrative procedures is available at Secretaria de Industria y Comercio.

Samples/Temporary entry-- Customs legislation allows duty-free entry of items for use at exhibits and trade shows for up to three months. This authorization can be extended for an additional three months, if necessary. Temporary entry is granted upon making a deposit equivalent to the import duty applicable to the specific product. The guarantee is refunded at the time of re-exporting the product.

For information on how to determine tariff rates, see the Export.gov webpage on Tariffs and Import Fees.

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Import Documentation/Procedures (Honduras)

CAFTA-DR Certificate of Origin--For U.S. exports to receive the preferential tariff treatment provided by CAFTA-DR, the Honduran importer should present to the Honduran Customs authorities (Dirección Adjunta de Rentas de Aduana) certification in support of the claim of preference. The Honduran importer should work with the U.S. exporter to ensure that a U.S. good meets the relevant rule of origin prior to making a claim.

It is important to note that the ultimate responsibility for claiming preferential treatment lies with the Honduran importer; however, the U.S. supplier should be ready to provide to the importer assistance and cooperation in producing accurate and well documented claims for preferential treatment. The exporter, importer, or producer of the goods may produce the certification where the goods originate. A sample CAFTA-DR certification of origin and an unofficial English translation of the instructions for filling out the CAFTA-DR certificate of origin is available on the Export.Gov website.

For more information on local customs rules and regulations:
Customs and Tax Division
(Dirección Ejecutiva de Ingresos -DEI)
For information on common export documents, such as transportation documents, export compliance documents, certificates of origin, certificates for shipments of specific goods, temporary shipment documents, and other export-related documents, see the Export.gov webpage on Common Export Documents.

For more information on import procedures and documentation requirements, see the Country Commercial Guides (CCG) in the U.S. Commercial Service Market Research Library (enter your country of interest in the "country" field, and enter "Country Commercial Guide (CCG)" in the "Report Type" field. Some market research reports are available only to U.S. companies and U.S. students/researchers that are registered with Export.gov.

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Import Restrictions (Honduras)
No information is currently available on any bans, quotas, or other restrictions.

U.S. Export Restrictions:

The Office of Foreign Assets Control (OFAC) in the U.S. Department of the Treasury administers and enforces economic and trade sanctions against targeted foreign countries, terrorists, and international narcotics traffickers and their agents in accordance with U.S. foreign policy and national security goals. The OFAC website includes summaries of sanctions programs for various countries and the “Specially Designated Nationals and Blocked Persons” (SDNs) list of entities and individuals with whom U.S. persons may not conduct business and whose property must be blocked if under the control of a U.S. person.

The Bureau of Industry and Security (BIS) in the U.S. Department of Commerce is responsible for implementing and enforcing the Export Administration Regulations (EAR), which regulate the export and re-export of most commercial items. BIS maintains the Denied Persons List, which consists of individuals, and companies that have been denied export and re-export privileges by BIS, and the Entity List, which consists of foreign end users who pose an unacceptable risk of diverting U.S. exports and the technology they contain to alternate destinations for the development of weapons of mass destruction
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Standards - Honduras
As a general rule, Honduras accepts the results of other countries testing and inspection procedures. In general, standards issues and related technical obstacles have not pose a major hurdle for U.S. exporters.

Final technical regulations are published in the local government newspaper “La Gaceta”, which is available only through printed copies purchased from the National Graphic Arts Company, Tel: (504) 230-3026. New laws and regulations approved by the government’s executive branch become effective on the date of publication.

Local standards organization and other resources:
Sistema Nacional de la Calidad (SNC) (National Quality System)
Dirección de Competitividad e Innovación
Secretaría Técnica de Planificación y Cooperación Externa (SEPLAN)
(Directorate for Competitiveness and Innovation
Ministry of Planning and International Cooperation (SEPLAN))

The National Center for Standards and Certification Information (NCSCI) at the National Institute of Standards and Technology (NIST) in the U.S. Department of Commerce provides information on U.S. and foreign standards, technical regulations, and conformity assessment procedures for non-agricultural products. NCSCI staff responds to requests for information by identifying relevant standards and regulations, and by referral to the appropriate standards-developers or private-sector organizations. Under copyright restrictions, NCSCI cannot provide copies of standards, but NCSCI does provide sources for accessing standards.

U.S. companies can register for the Notify U.S. service to learn about and comment on proposed changes to foreign standards, technical regulations, and conformity assessment procedures that may affect U.S. access to global markets.

Additional resources:

Examples of voluntary formaldehyde labeling programs

American Apparel and Footwear Association's Restricted Substances List

American National Standards Institute (ANSI)

International Organization for Standardization (ISO)


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Labeling - Honduras

Labeling requirements for merchandise in general are established under Article 9 of the Consumer Protection Law, Decree 41-89 of 1990. Enforcement of marking and labeling regulations is conducted by the General Directorate of Production and Consumption of the Ministry of Industry & Trade.

In general, labels of all consumer-oriented products are required to include the following basic information: name of the product; name of the manufacturer; country of origin; sales price; elaboration and expiration dates; net content; list of ingredients and any applicable health warnings. Imported sample-sized products must comply with labeling laws.

In March 2013, Honduras notified to the WTO its intent to adopt Central American Technical Regulation (RTCA) No. 61.01.03:12, a technical regulation establishing labeling requirements for footwear. In general, the regulation requires that the label be provided in Spanish/Castilian and be marked, printed, sewn, glued or otherwise attached to the product. The label must include the following information:
a) Country of origin
b) Name and address of the manufacturer or distributor for domestic products, or of the importer or distributor for imported products.
c) Information on the materials of the shoe parts
d) Size information

HND78(spanish).pdf


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Intellectual Property Rights - Honduras
The protection of intellectual property rights (IPR) is under the jurisdiction of the Directorate General of Intellectual Property. The Direccion General de Propiadad Intelectual de Honduras- DIGEPIH handles the registration of patents, trademarks and copyrights, as well as any complaints regarding their infringement.

The life of patents ranges from 10 to 20 years, depending on the importance of the invention. Trademarks are valid up to 10 years from the registration date. "Notorious" or well-known trademarks are protected under the Pan American Convention (1917). Illegal registration of a well-known trademark, however, must be contested in court. Because this regulation favors first registration over first use, numerous cases have arisen of “squatting” on established trademarks, which the legitimate holder must then either purchase or contest in court. Honduras also offers process patent protection.

In early 2006, Honduras strengthened its legal framework for the protection of IPR with the passage of new laws in preparation for the entry into force of CAFTA-DR. The laws provide stronger deterrence against piracy and counterfeiting by, for example, requiring Honduras to authorize the seizure, forfeiture, and destruction of counterfeit and pirated goods and the equipment used to produce them. They also provide the establishment of statutory damages for copyright and trademark infringement, to ensure that monetary damages can be awarded even when losses associated with an infringement are difficult to assign. Finally, CAFTA-DR provides that authorities are able to confiscate pirated goods and investigate intellectual property cases on their own initiative. However, in practice a company complaint is still needed to begin legal proceedings.

For information on protecting your trademarks, patents and copyrights:

Export.gov --Protecting Intellectual Property Rights (IPR) Abroad

StopFakes.gov


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Market Information - Honduras

In the past, Central American apparel production has benefitted from the CBI and the Caribbean Basin Trade Partnership Act (CBTPA). Honduras is currently the largest textile and apparel manufacturer in the Caribbean Basin. The United States has been the largest supplier of fabrics in Honduras. Local producers of fabrics do not compete directly against U.S. producers/exporters of similar products. However, a few local firms have developed a small-size industry that produces for the local and export markets, especially those in Central America. Honduras purchases finished apparel products from the U.S., but the volume and market has been relatively small.


Government Procurement-- See Global Procurement Opportunities for U.S. exporters.

The on-line Contracting and Procurement Information System known as Honducompras is administered by the State Procurement Agency, ONCAE - La Oficina Normativa de Contratación y Adquisiciones del Estado on the Secretaria de Finanzas. To access from the main page, hold mouse over “Finanzas y Presupuesto” at the top, then click on “ONCAE”. ONCAE does not act as a government procurement body. Procurement is carried out in a decentralized manner by each of the governmental entities, following the general guidelines laid down by the ONCAE.

The CAFTA-DR requires procuring entities to use fair and transparent procurement procedures, including advance notice of purchases and timely and effective bid review procedures, for procurements covered by the Agreement. Under the CAFTA-DR, U.S. suppliers are permitted to bid on procurements of most Honduran government entities, including most key ministries and other government entities, on the same basis as Honduran suppliers. The anti-corruption provisions in the CAFTA-DR require each government to ensure under its domestic law that bribery in matters affecting trade and investment, including government procurement, is treated as a criminal offense, or is subject to comparable penalties.

U.S. companies may contact the U.S. Commercial Service for information and personalized counseling at every step of the exporting process. Find a U.S. Export Assistance Centers near you or contact an international office.

Other sources for market information and data:

OTEXA Export Market Report (U.S. export data for textiles, apparel, footwear and travel goods)

Export.gov Trade Data & Analysis webpage

U.S. Department of Agriculture, Foreign Agricultural Service

U.S. Department of State - U.S. Embassies, Consulates, and Diplomatic Missions and
U.S. Department of State Country Background Notes

U.S. Office of the Trade Representative

Local Industry and Trade Associations

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Office of Textiles and Apparel (OTEXA)
U.S. Department of Commerce
Washington, DC 20230
Phone: (202) 482-5078  |  Fax: (202) 482-2331
OTEXA@trade.gov