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

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004<br />

HONDURAS<br />

Administration (FDA) issues these certificates, at a cost of $10 per certificate. Certificates must<br />

be authenticated three times through notary actions, twice in the exporting country <strong>and</strong> once by<br />

the Honduran Ministry of Foreign <strong>Trade</strong>. As a result, according to Ministry of Health officials,<br />

securing a certificate usually takes about 4 to 8 weeks, at a cost of $80 to $100. The second step<br />

involves filing the certificate with the registration at the Ministry of Health. For processed food<br />

registration, which can be submitted <strong>and</strong> approved at four locations throughout the country,<br />

approval takes about 20–30 working days, at a fee of $11. For pharmaceuticals <strong>and</strong><br />

cosmetics,<br />

the process is more lengthy, costly, <strong>and</strong> centralized (in Tegucigalpa). Fees range from $20 to $ 30<br />

for administrative processing with a flat $350 for required laboratory analysis. The laboratory at<br />

the Honduran Pharmaceutical College is used for this purpose. Although current regulations state<br />

that this process must be completed within 40 working days, this deadline is often missed, <strong>and</strong><br />

Ministry of Health officials acknowledged that the process can take as long as 6 to 8 months.<br />

A staff of 12–14 members, who manually administer all steps in the process, h<strong>and</strong>les<br />

registrations. Collected fees, with the exception of those for laboratory analysis, are dedicated to<br />

Health Ministry operations. The agency is now rewriting the current law to increase<br />

administrative fees by 50–100 percent, which they say will more accurately reflect true costs.<br />

♦ The agency has established a customer service window at Tegucigalpa where the<br />

trade<br />

community can obtain registration status information. Another such window will soon be<br />

established in San Pedro Sula. Unfortunately, this service will not shorten the time it<br />

takes for agency personnel to actually determine registration status, which is now<br />

approximately 2 days because of a lack of automated tracking systems. Nevertheless, the<br />

service will enable traders to get status updates.<br />

♦ The agency, through World Bank funding, is developing an automated operating system<br />

within the registration<br />

offices to track <strong>and</strong> control submissions <strong>and</strong> authorizations.<br />

Although this will take at least 1 year to complete, <strong>and</strong> even more to implement, the<br />

modernization process has begun.<br />

♦<br />

♦<br />

1) Ministry of Health Operations That Support <strong>Trade</strong> Facilitation<br />

The agency has taken or is now taking steps to modernize <strong>and</strong> improve its procedures through<br />

the following actions:<br />

Facilitative procedures for regional products were initiated in August 2004. National<br />

registration of some food <strong>and</strong> beverage products is now accepted as valid within four<br />

Central American countries, though Costa Rica is not participating. Under this mutual<br />

recognition policy, products can be imported from one country to the next with a<br />

certificate of “free sale” from a third country. A dialogue is now under way with the<br />

Dominican Republic to establish the same reciprocal procedures.<br />

Full accreditation of the laboratory at the Pharmaceutical College is under way. The<br />

improvements needed to achieve this accreditation will expedite <strong>and</strong> improve the quality<br />

of laboratory results.<br />

♦ Laboratory fees will soon be based on the product rather than being a flat fee. This fee<br />

structure should reduce laboratory fees for routine products.<br />

XI-13

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