Trade and Commercial Law Assessment - Honduras - Economic ...

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004 HONDURAS f. ♦ Although transportation security has improved recently, security issues remain a major concern and significantly affect trade transaction costs because many trucks must travel in convoys, some with armed guards, and limit travel to the hours from 6 a.m. to 6 p.m. Increased costs related to security are estimated to range from $50 to $70 per container, including the cost of a guard for each vehicle and monitoring personnel to track the movement of each dray. Outside of the special unit dedicated to security, the police thus far have been unsuccessful in addressing this issue. The Director General of Intellectual Property within the Ministry of Industry and Commerce administers and oversees IPR requirements for Honduras. With the passage of the new Property Law (Ley de Propriedad or LdP), the Registry office will be incorporated into a new Instituto de Propiedad, an autonomous office independent of any ministry. According to officials involved in protecting intellectual property rights (IPR), in 2003 the office’s current staff of 21 employees process ed 186 patents, 5,638 trademarks, and 230 copyrights. Three alternatives exist for dealing with infringing articles—administrative, civil, and criminal. 1) IPR Operations That Support Quality Enforcement ♦ IPR officials report that Honduran law includes protection for all categories of IPR merchandise and meets the minimum standards of the WTO TRIPS agreement. ♦ Communications between the Registry office, judges, police, and prosecutors are conducted on an as-needed basis, and the sharing of information is without barriers. ♦ Honduras has a unique provision within its copyright laws, whereby administrative penalties can be assessed. In 2003–2004 nine penalties, totaling $53,000, were imposed on cable companies for unauthorized broadcasts. ♦ Political influence is minimal within the Registry office, with only the director, not the staff, rotated with each new administration. In addition, the current director was well qualified for the appointment, having an extensive background in IPR issues and law. ♦ Intellectual Property Rights ♦ Steps have been taken to make the IPR regulatory body an autonomous department outside of any ministry. This should increase the profile and priority of the work performed, provide an increase in budget to improve technical capacity, and improve the quality of the review of initial decisions by the office (since the first level of review will be by qualified staff within the department rather than by Ministry of Trade officials who have no training in IPR issues). ♦ Honduras has completed its assessment of the changes required to meet its IPR obligations under CAFTA. This includes 14 modifications to existing IPR laws and becoming a signatory to five existing IPR international agreements. The government anticipates being able to complete these actions by the required deadlines. 2) IPR Issues to Address The IPR Registry staff is inadequate to handle the workload and insufficiently qualified to handle to complexities involved. Excessive workload hampers training efforts. XI-21
TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004 HONDURAS ♦ The current automated system is outdated, inefficient, and unreliable. Requests to the World Intellectual Property Organization (WIPO) for assistance have not been met. A modern system with linkages to the other Honduran agencies and offices involved in enforcing IPR requirements would improve service to the filers and increase enforcement capabilities. ♦ The government must initiate a campaign to raise awareness of IPR protection as a critical function of the state and a necessity for protecting national innovation and artistic development. IPR protection cannot be viewed as the sole responsibility of the Registry office. ♦ Honduras has a poor record of IPR enforcement because of a lack of technical capacity and a serious government mandate to address the problem. 3) Private Institutions Private sector entities also contribute to trade facilitation. The costs and speed of delivery to market for the international trader are directly affected by the strength of the trading community and its level of cooperation with the public sector. This community includes exporters, importers, customs brokers, the trucking community, vessel carriers and agents, freight forwarders, free zone operators, couriers, and bonded warehouse proprietors. Private sector priorities include improving trade facilitation and preparing for the opportunities and challenges of CAFTA. Many private institutions are leaders in the campaign to simplify procedures and increase public agency professionalism. With few exceptions, the transport ind ustry and the other service sectors, such as the free zones, warehouse operators, and customs brokers, provide the trade community with competent and efficient service. However, there are some areas of concern, such as the poor condition of the transport fleet and the poor quality of many customs brokers. g. Importers and Exporters With more than $6 billion in goods and services traded per year er export community. 174 , and as a major Central American port, Honduras has a significant import-export community. Key issues for the trade community include quality standards and establishing a strong 1) Importer-Exporter Operations That Facilitate Trade ♦ Private organizations representing the business community are working to improve trade facilitation and prepare for CAFTA. The Asociación Nacional de Industriales (ANDI), the national manufacturers association, is helping industries, principally small- and medium-sized enterprises, compete internationally and working to improve the business climate. The Honduran Association of Maquiladores (Asociación Hondureña de Maquiladores, or AHM) promotes trade facilitation activities. Various associations support the development of the Customs Union to reduce fees through simplification and automation. 174 Economic Intelligence Unit (2004), Country Profile for Honduras. XI-22
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