25.07.2013 Views

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

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

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

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004<br />

HONDURAS<br />

k.<br />

Automation would expedite acceptance <strong>and</strong> release of merch<strong>and</strong>ise, <strong>and</strong> would decrease<br />

the need for an onsite Customs presence.<br />

♦ Operators must employ full-time Customs officers, even through Customs staff are<br />

occupied only 20–50 percent of the time.<br />

♦ All told, the costs <strong>and</strong> delays associated with Customs processing have severely affected<br />

warehouse businesses. For the past 6 years, warehouse profits have been declining<br />

because Customs restrictions have been driving business away. Despite having the lowest<br />

costs in the region, Honduran warehouse operators can no longer compete. Efforts to<br />

lobby for the required reforms within<br />

the Ministry of Finance <strong>and</strong> the Central Bank have<br />

failed. The industry is still operating within the confines<br />

of an unchanged 1967 law. As a<br />

result, this critical private supporting institution is<br />

in danger of disappearing.<br />

The transportation<br />

industry generally provides an adequate service at a reasonable rate for the<br />

Honduran<br />

trading community.<br />

According to transportation officials, the focal point for sea transportation is Puerto<br />

Cortez,<br />

which h<strong>and</strong>les 90 percent of Honduran vessel traffic. Approximately 30 carrier lines, including<br />

10– 12 major international containerized carriers <strong>and</strong> small bulk carrier lines, call at the port. In<br />

total, about<br />

150 calls per month are made through this facility, with a minimum of one call per<br />

day to <strong>and</strong><br />

from the southeast coast of the United States. The major carriers all have terminals<br />

within the port limits.<br />

Although security is good within these areas, theft has occurred when<br />

containers<br />

are drayed outside these areas for examinations. As a result, carriers now dem<strong>and</strong> a<br />

letter of<br />

transfer with receipt. If the cargo is not returned within 24 hours, the carrier checks on<br />

its status.<br />

In addition, containers are left off wheels at night to make theft more difficult.<br />

The trucking industry falls into two distinct groups: five major operators h<strong>and</strong>le about 40 percent<br />

of the trade, with the remainder covered by small owner-operators. The Cámara de Transporte<br />

de Carga de <strong>Honduras</strong> (CATRACHO) is <strong>Honduras</strong>’s<br />

major trucking association, representing 70<br />

percent of the industry through its 1,700 company<br />

members. Each carrier has its own<br />

arrangement<br />

with the trucking companies. Some run their own operations, others use the major<br />

trucking<br />

companies, <strong>and</strong> some deal exclusively with the small owner-operator businesses. Most<br />

require that the vehicles be in good condition <strong>and</strong> no older than 6 to 10 years.<br />

♦<br />

Transport Industry—Vessel Carriers <strong>and</strong> Truckers<br />

1) Transport Industry Operations That Support <strong>Trade</strong> Facilitation<br />

High-quality, sufficient service is available to the trade through the vessel carriers calling<br />

at Puerto Cortez. These international carriers meet industry st<strong>and</strong>ards regarding security<br />

<strong>and</strong> operate efficiently within their private terminals at the<br />

port.<br />

♦ An excellent partnership exists between the carriers <strong>and</strong> the trucking community. Most<br />

carriers compensate partially<br />

for rising fuel costs. Carriers dealing with small companies<br />

will finance the maintenance of a fleet, secure fuel at reduced costs, <strong>and</strong> provide<br />

insurance, deducting small amounts from each payment to cover these expenses. No<br />

interest is charged for these services.<br />

XI-27

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!