VI.  Trade Regulations and Standards

Tariffs and Import Taxes

Paraguay has the lowest tariffs and import taxes in the southern cone.  It
is a member of the Latin American Integration Association (ALADI) and of
Mercosur.  The GOP pursues low import tariffs in ALADI and a low
common external regime with a maximum rate of ten percent in Mercosur.
The present customs regime provides the following categories for
assessment of import duties:   Raw materials (zero percent), capital goods
(five percent), cigarettes and alcoholic beverages (10 percent).  Rates of
15 and 20 percent are applied to cars, depending on their customs
assessment value.  Those valued above 20,000 USD pay the highest rate.

Import Licenses

In general, Paraguay has an open market and does not require import
licenses for most products.  Nevertheless, the government of Paraguay
requires a previous license for imports of guns and ammunition.

Import/export documentation

Import and export operations must be processed through authorized
banks and supervised by the Central Bank of Paraguay.  Documents
required for imports are:  import statement issued by the bank;
commercial invoice issued by the seller of merchandise; certificate of
origin of the merchandise; Paraguayan consular invoice; and bill of
lading.

Temporary Entry

Paraguay has a system of temporary entry which allows admission into
Paraguay of certain goods such as machinery, tools, equipment and
vehicles to carry out public and private construction work.  The
government also allows temporary entry of equipment for scientific
research, exhibitions, training or testing, competitive sports, and
travelers or tourists items.  Merchandise introduced in the country
under the temporary entry system may be nationalized in Paraguay by
complying with all the normal requirements for imports and paying the
duties.  The temporary admission system allows entry of certain goods
for subsequent re-export for a period running up to 12 months, which
can be renewed for another period.  The government also allows
temporary entry for a ten day period for merchandise in transit.

Labeling, Marking Requirements

Paraguayan regulations require that the country of origin be designated
on domestic and imported products.  Expiration dates are required on
medical products and some consumer goods.  Warning of hazardous
products to the health, such as cigarettes, must be labeled in a visible
place.

Prohibited Imports

The Paraguayan government prohibits the imports of certain foods and
agricultural products.  Although the list is reviewed by the government
every six months, it normally remains the same.

Free Trade Zones/Warehouses

Paraguay has several free trade zones and warehouses.  They are
located in Argentina (Buenos Aires, Rosario, and Santa Fe); Brazil
(Paranagua and Santos); Chile (Antofagasta); and Uruguay (Montevideo,
Nueva Palmira, and Colonia).

Membership in Free Trade Arrangements

Paraguay is a member of the Latin American Association for Regional
Integration (ALADI), and a member of the southern cone common market
(Mercosur) together with Argentina, Brazil and Uruguay.  Paraguay is
also a member of GATT.