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

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
Authority created in 1994.) The positive aspects of the legal framework include clearly stated
authorities that provide a balance between facilitation and control. There is adequate authority
for Customs and its supporting institutions, particularly the Ministries of Agriculture, Health, and
Industry and Commerce, and the National Police, to carry out their functions in an efficient
manner. Although most law enforcement functions reside with the police, Honduran law
provides some authority for Customs to conduct joint investigations with the police when there is
belief that an infraction is criminal in nature.
Nevertheless the existing legal framework is not sufficient to ensure an orderly and wellfunctioning
trading system. Despite the adequate basic authority for Customs and its supporting
institutions to perform their functions in facilitating efficient, secure flow of goods and services,
this authority is undermined by a civil service regime that is far from achieving the foundation of
well-functioning public services—personnel and integrity—and key authorities, such as risk
management for Customs.
1. Legal Authority Supporting Trade Facilitation
♦ There is adequate support for Customs management, operations, and procedures.
CAUCA and RECAUCA and supporting national laws provide a generally good legal
framework for Customs authority in Honduras.
♦ The Honduran constitution provides that all laws are to be published in official
government Gazette, and Customs laws and regulations are also made available on the
Customs Web site.
♦ CAUCA and RECAUCA provide a legal foundation for efficient processing of goods.
CAUCA requires that all declarations be electronically transmitted. There is authority for
the electronic transmission to be the legal declaration. Procedures are standardized and
written and also are available on the Customs Web site. The procedures are in general
conformity with Kyoto Convention Guidelines.
♦ Honduras is not a contracting party to the Harmonized Commodity Description and
Coding System but has been a user of the system at the eight-digit level since 1993.
♦ The General Agreement on Tariffs and Trade (GATT) valuation agreement was
implemented in January 2000, with some reservations allowing minimum values on used
goods, which have now expired. Honduras has been a WTO member since 1995.
♦ The law provides for proper monitoring of prohibited and restricted goods. Such goods
are identified by directive and provided to officers in the form of written directives and
electronic notifications.
♦ RECAUCA regulations adequately cover the brokerage community, requiring either a
written test or a university degree in Customs matters to gain a license.
♦ There is a process for administrative and criminal penalties within the law. CAUCA
provides that the importer has a right to both administrative and judicial review of
Customs decisions.
XI-3