Dairy products | Import Licensing Procedures

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Basic information

Outline of the system

The automatic import licensing system for dairy products was established in keeping with the guidelines of the WTO Agreement on Import Licensing Procedures.

In short, economic operators wishing to import dairy products or by products are required to submit an application to the Directorate General for Economic Integration and Trade Policy of the Secretariat of State for Industry and Trade. Applications must include general information on the importer, details concerning the type(s) of product and the quantities to be imported, and a copy of the sanitary requirements and formalities in force in the country.

Import licences are mandatory for all imports covered by the system, with the exception of frontier traffic, small, non commercial consignments for household use and samples with no commercial value. Donations are also exempted, providing that they are accompanied by a document certifying that they are being imported under a donation scheme.

Import licence procedures have a cost equivalent to approximately US$10.00. Licences were originally issued within a maximum of ten days; however, this period has now been reduced to a maximum of five official working days.

It should be noted that licences do not limit or restrict the number or volume of imported products and importers may request one or several licences at a time.

An import licence does not preclude the need to comply with other customs and administrative formalities, nor does it exempt products from import duties.

Product coverage

Automatic import licensing for dairy products. Please see Products

Nature of licensing

Automatic

If Automatic, administrative purpose

Non-Automatic

If Non-Automatic, description of the notified Non-Automatic Licensing regime

Products under restriction as to the quantity or value of imports

The import licensing system for dairy products does not limit the volume or number of imported products. Its objective is to:

(a) Establish descriptions of all imported dairy products in order to check with the customs authorities whether the imports are being classified correctly. Indeed, certain inaccuracies in tariff classification have been noted as a result of inadequate product descriptions;

(b) gain more specific knowledge of the import/marketing sector so as to ascertain with the country's health authorities whether importers of dairy products meet the sanitary requirements for domestic marketing of such products;

Please note that activities are being conducted in conjunction with the customs authorities to edit import statistics and ensure the correct classification of dairy products.

As to whether any other methods were considered as an alternative to import licensing, it should be noted that a licensing system imposing no limits on import volumes and applied on the basis of the guidelines and provisions established in the WTO Agreement on Import Licensing Procedures was considered following the very first complaints submitted by the dairy sector.

Questions for products under restriction as to the quantity or value of imports

Please see Answers 6.1-6.11.

The system applies to products originating from which country?

The system is applied on an MFN basis and therefore concerns imports from all over the world.

Expected duration of licensing procedure

Legal requirements

Is the licensing statutorily required?

The import licensing system for dairy products was established pursuant to Executive Decision No. A 024 2009 of 24 September 2009, published in Official Journal (La Gaceta) No. 32,067 on 19 November 2009. This Executive Decision was subsequently amended pursuant to Executive Decision No. 041 2009 of 18 November 2009, which is in the process of being published in the Official Journal.

Import licences are required for all imports covered by the system, except for frontier traffic, small, non commercial consignments for household use and samples with no commercial value specified in Honduran customs legislation. Donations must be accompanied by a document certifying that they are being imported under a donation scheme.

Does the legislation leave designation of products to be subject to licensing to administrative discretion?

The Government of Honduras administers the import licensing system for dairy products through the Secretariat of State for Industry and Trade.

Is it possible for the government to abolish the system without legislative approval?

The President of the Republic (or the Executive) does not require legislative approval to include or exclude products or to abolish the licensing system.

Eligibility of applicants

Is there a system of registration of persons or firms permitted to engage in importation?

Dairy product importers register.

What persons or firms are eligible to apply for a licence?

Pursuant to Executive Decision No. A 024 2009 of 24 September 2009, amended by Executive Decision No. 41 2009 of 18 November 2009, economic operators interested in importing dairy products or by products are assigned a number in the dairy product importers register, which was established under that same Executive Decision.

Is there a registration fee?

Registration is free of charge but requires importers to provide the following information:
Name, trade name or corporate title, telephone number, fax number and e mail address; name of legal representative; photocopy of identity card or copy of residence permit in the case of foreigners;
copy of national tax registration; copy of valid sanitary licence issued by the competent authority.

Is there a published list of authorized importers?

Contact point for information on eligibility

Ministry/Authority

Address

Telephone

Fax

E-mail address

Website

Contact officer

Submission of an application

Administrative body(ies) for submission of an application

Secretariat of State for Industry and Trade

Documentation requirements

What information is required in applications?

Pursuant to Executive Decision No. A 024 2009 of 24 September 2009, amended by Executive Decision No. 41 2009 of 18 November 2009, import licence applications must include the following:

(a) Name, trade name or corporate title of the applicant;
(b) importer's registration number;
(c) requirement withdrawn under Executive Decision No. 041 2009;
(d) trade name of the product to be imported;
(e) technical description of the product to be imported, specifying its composition and the relevant tariff heading (04.01 to 04.06; 1901.1; 1901.90.20; 1901.90.90; or 2106.90.60). The description must clearly indicate whether the product in question is "infant formula", "follow up formula", or another type of food preparation regulated by the current Decision;
(f) quantities to be imported in kilograms or litres, as applicable, and values in US dollars or the equivalent in lempiras at the current exchange rate; country of provenance and likely date of importation;

Article 4 of Executive Decision No. A 024 2009 provides that for customs purposes, the trade name and technical description referred to in paragraphs (d) and (e) must coincide with the description set forth in the Single Customs Declaration (DUA) when the product is being imported from outside Central America, and with the description in the Central American Single Customs Form (FAUCA) when the product is being imported from within Central America under the General Treaty on Central American Economic Integration.

What documents is the importer required to supply with the application?

Photocopy of the official sanitary export and import certificate issued by the National Agricultural Health Service (SENASA) in accordance with the procedures and requirements set forth in the Regulations for the Sanitary Inspection and Certification of Milk and Dairy Products (Decision No. 656 2001). This requirement does not apply to imports of tariff subheading 2106.90.60.

Window of submission of an application

How far in advance of importation must application for a licence be made?

Pursuant to Executive Decision No. 41 2009, import licences are issued within five official working days and come into effect immediately.

Are there any limitations as to the period of the year during which application for licence can be made? If so, explain

The import licensing system for dairy products does not impose limitations as to the period of the year during which applications for import licences may or may not be made.

Issuing the license

Can a licence be granted immediately on request?

The import licensing system for dairy products does not restrict the number of licences that may be granted on the same official working day as the application filing date. Applicants must, however, meet every one of the requirements laid down for the issuing of licences.

Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence

They may also be issued within a shorter time frame in special circumstances. It has been known for the Directorate General for Economic Integration and Trade Policy to issue a licence on the same official working day as that on which the licence application was made.

Which administrative body is responsible for approving application of licences?

Import licences for dairy products are requested from, processed and issued by the Secretariat of State for Industry and Trade. No other administrative body is required for the purposes of visa, recording or approval.

Must the applications be passed on to other organs for visa, note or approval?

Executive Decision No. A 024 2009 of 24 September 2009 originally provided that applications were to be submitted to the General Secretariat of the Secretariat of State, which forwarded them to the Directorate General for Economic Integration and Trade Policy for processing. Executive Decision No. 41 2009 of 18 November 2009 dispensed with the need to submit applications to the General Secretariat and provided that the Directorate General for Economic Integration and Trade Policy would receive and process applications and issue import licences.

Are there any other conditions attached to the issue of a licence?

The import licensing system for dairy products is not subject to any condition restricting the amount of imports, nor is it linked or subject to conditions established for products under import quotas agreed on by Honduras in its trade negotiations.

Fees and other administrative charges

Is there any licensing fee or administrative charge?

Import licensing procedures have a cost equivalent to approximately US$10.00. This follows the issue of Decree No.17-2010 of 22 April 2010, "Law on Revenue Enhancement, Social Equity and Rationalization of Public Expenditure", Article 49 of which is a general measure authorizing all central government bodies to charge a fee for issuing licences and certifications.

What is the amount of the fee or charge?

Import licensing procedures have a cost equivalent to approximately US$10.00.

Is there any deposit or advance payment required associated with the issue of licences?

No deposit or advance payment requirement is associated with the import licensing system for dairy products.

Amount or rate?

Is it refundable?

What is the period of retention?

What is the purpose of this requirement?

Refusal of an application

Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?

Executive Decision No. A 024 2009 of 24 September 2009 implementing the import licensing system for dairy products does not specify any circumstances under which an import licence may be refused other than failure to meet the established requirements.

Are the reasons for any refusal given to applicants?

Have applicants a right of appeal in the event of refusal to issue a licence?

Any applicant whose application is rejected is, however, entirely free to re submit the request to the Directorate General for Economic Integration and Trade Policy, once the unfulfilled requirement has been met.

If so, to what bodies and under what procedures?

Importation

Are there any limitations as to the period of year during which importation may be made?

What documents are required upon actual importation?

For imports of dairy products and by products covered by the import licensing system, the sanitary and customs documents required for all other types of imports are required in addition to the import licence.

Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

It should be noted that import licensing covers dairy products included in the import quotas agreed on by Honduras under the various Agreements in force in the country. Licensing does not, however, restrict or otherwise impact on procedures for the issuing of import quota certificates.

Conditions of licensing

What is the period of validity of a licence? Can the validity be extended? How?

Import licences for dairy products are valid for 60 days.

Executive Decision No. A 024 2009 of 24 September 2009 does not provide for extending the validity of licences already issued. Importers may, however, request a new licence or avail themselves of the procedure laid down in Article 44 of the Law on Administrative Procedure (Legislative Decree No. 152 97).

Is there any penalty for the non-utilization of a licence or a portion of a licence?

There are no penalties for non utilization or partial utilization of an import licence for dairy products.

Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?

Executive Decision No. A 024 2009 of 24 September 2009 stipulates that import licences are non transferable.

Foreign Exchange

Is foreign exchange automatically provided by the banking authorities for goods to be imported?

There is no connection between the import licensing system for dairy products and the obtaining of foreign currency to import dairy products.

Is a licence required as a condition to obtaining foreign exchange?

Is foreign exchange always available to cover licences issued?

What formalities must be fulfilled for obtaining the foreign exchange?

The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)

6.1

Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?

The import licensing system applied by the Government of Honduras does not limit the volume of imports or the number of imported products. It should be noted that the system was extensively discussed with the sectors concerned before its entry into force. Meetings were held with associations and unions, and the Decision bringing the system into effect was published. All relevant information is published in the Official Journal.

Requests for exceptions to or exemptions from the import licensing requirement for dairy products, together with the reasons for making such a request, may be submitted to the Directorate General for Economic Integration and Trade Policy of the Secretariat of State for Industry and Trade.

6.2

Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?

This question is not applicable, given that the system in effect does not limit the number of products to be imported or the volume of imports. A separate import licence is, however, required for each shipment. There is no limit on the number of import licence applications that may be submitted by an importer, provided that the relevant sanitary and health requirements are met.

6.3

Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)

The current licensing system does not involve quantification or form part of the import quota regime. Nor does it limit the importation of certain products. The Decision establishing the system does not therefore envisage measures to check whether the volumes indicated have actually been imported.

The Honduran Government's Secretariat of State for Industry and Trade has not yet notified the measure to all the countries from which dairy products are imported. Only the Central American countries have been notified.

6.4

From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?

This question is not applicable, given that the import licensing system for dairy products is not in any way related to applications for import quota shares.

Import licence applications may be submitted at any time of the year, without any associated time-limits.

6.5

What are the minimum and maximum lengths of time for processing applications?

Under Executive Decision No. A 024 2009 of 24 September 2009, import licences were to be issued within a maximum period of ten days. However, under Executive Decision No. 41 009 of 18 November 2009, this time-limit was reduced to a maximum of five official working days. It should be noted that in exceptional cases, a licence may be applied for and issued on the same working day.

6.6

How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

Import licences for dairy products can be used immediately. There is therefore no minimum time period between the granting of a licence and the opening of the period of importation.

6.7

Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?

Import licences for dairy products are requested from, processed and issued by the Secretariat of State for Industry and Trade. No other administrative body need be approached.

6.8

If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?

This question is not applicable given that the licensing system does not limit the volume of imports or the products to be imported. The licences bear no relationship to import quotas.

6.9

In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?

Not applicable.

6.10

In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?

The import licensing system for dairy products does not make the granting of licences subject to permits being issued by exporting countries.

6.11

Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

Under the import licensing system for dairy products, the issuing of licences is not conditional on the product being exported or not sold in the domestic market.