CHAPTER II.- COMPANY OVERVIEW
2.11 Logistics
2.11.1 Importing/Exporting Process to Honduras
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of coffee and cocoa prices are largely determined by the supply/demand of the market, and thus are the most fluctuating of all of our initial trade offerings.
We anticipate price increases of around 5% for every product category each year, taking into account inflation and currency exchange fluctuations.
2.11 Logistics
Guanxi Trading LLC will focus on importing and exporting products between Honduras and Taiwan with high appeal and salability and we will handle all the transactions from supplier to buyer.
Our basic process is shown in the following diagram:
Figure 2: Basic Process Diagram
In the following section, we cover basic importing/exporting requirements for each country.
2.11.1 Importing/Exporting Process to Honduras
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Honduras is a resource-scarce economy in some areas, therefore it is necessary to import raw materials and other goods which it lacks, and it exports primarily agricultural products.
However, it must export finished products in order to accumulate enough foreign exchange and boost the economic development of the country. However, it does have some natural advantages over Taiwan in producing certain goods due to its climatic conditions and land distribution.
Honduras, as is the case of Taiwan, is a well-respected trade partner. Both are members of the World Trade Organization (WTO) and neither of them have direct complaints listed against them on the WTO’s disputes by country.2
As an initial step to start an importing/exporting company in Honduras, you need to be legally constituted and then proceed to issue an importing/exporting license, which is issued by the Center for Export Procedures (CENTREX).
Importing Process in Honduras
In Honduras, the import procedures are handled by the General Directorate of Regulations and Institutional Development, along with the General Directorate of Public Health and the Service for Agricultural and Livestock Health (SENASA).
The intervention from a customs broker is required when CIF imports exceed US$1000 in value. To execute an import transaction, the importer must present a declaration for each shipment received, including the class, quality, details of the merchandise, and including the following documents:
2 Disputes by Country/Territory. World Trade Organization. [online] Available:
http://www.wto.org/english/tratop_e/dispu_e/dispu_by_country_e.htm
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Bill of lading or equivalent document
Commercial invoice
Declaration of customs value
Single customs declaration or import policy
Certificate of origin
Phytosanitary certificate: for products of vegetable origin
Zoosanitary certificate: for products of animal origin
The Customs Administration has the obligation to review the import request within one working day. Once it has been approved, the importer has four working days to remove the merchandise from the customs custody. There is a possibility to request for immediate withdrawal in the case for perishable products, live animals or press material.
Regarding tariffs, Honduras, as member of the Central American Common Market (CACM), adopts the Central American Tariff System, which uses as a base the Harmonized Commodity Description and Coding System nomenclature of eight digits.
Labeling requirements are set by the Ministry of Health through the Sanitary Regulations Directorate (SRD). General goods have no special labeling requirements; labels are just required to have basic information such as manufacturer, country of origin, expiration date, health warnings, etc. However, special requirements do apply to some food products and pharmaceuticals, such as translation into Spanish.
Stick-on labels are allowed to fully comply with Honduran labeling requirements on product information, but not to indicate the manufacturing or expiration date, because they can be easily altered.
Exporting Process from Honduras
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There are no known export subsidies provided by the Honduran government. 3 This means that local farmers and producers have no incentive from the Government to export their products. However, Guanxi Trading LLC will work closely with local farmers and producers to motivate them to enter the foreign market and thus, increase their sales and productivity.
To be able to export, an exporting license must be granted by CENTREX, in which an exporter code will be granted and must be used on all procedures regarding export permits.
For all exports exceeding US$3000 in value, an Export Declaration must be issued by CENTREX.
Additionally, for food and plant related exports, the following are the requirements demanded by the Ministry for Agriculture and Livestock (SAG):
Zoosanitary certificate, which is issued by the Division of Food Control, a section of the Ministry of Public Health. This is required for all products and sub products of animal origin (live animals, dairy products, seafood and meats). Cost is around US$13.
Phytosanitary certificate: for all exports of plant products and sub products. Cost is around US$13.
These certificates are issued by the Center for Export Procedures (CENTREX), for which an extensive list of documents is required for approval of the certificate.
Additionally, the Central Bank of Honduras (BCH) demands the following:
- Export Declaration Form - Income Declaration Form
Coffee exports must have the following documents:
3 2011 Investment Climate Statement – Honduras. U.S. Bureau of Economic, Energy and Business Affairs.
March 2011.
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- Photocopy of notice of sale from the Honduran Coffee Institute, IHCAFE, which is the institution that is responsible for the development of the coffee industry in Honduras
- Request for extension of the export certificate and certificate of origin - Pink slip copy of the export certificate issued by IHCAFE
- Certificate of origin type “O” from IHCAFE
- Export certificate from the International Coffee Organization (ICO) - Photocopy of the national tax registry (RTN)
Additionally, to be able to export coffee from Honduras, Guanxi Trading LLC must be a registered member of IHCAFE.
For exports of any type of samples with no commercial value, a request must be made to CENTREX for registration statement and export control.