Honduran juridical persons, created especially for this purpose, are recognized as having the initiative to promote the foundation of private centers or universities in accordance with the Constitution and the laws.
15. Sector: Entertainment Services
Subsector: National Artistic Production Services
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4)
Level of government: Central
Measures: Decree No 123 dated October 23, 1968, Law for the Protection of Musical Artists, Articles 1 and 4.
Description: Cross-Border Trade in Services
Notwithstanding the above measure, Honduras agrees that foreign musical artists wishing to present shows in Honduras either individually or as a group must pay the Sindicato de Artistas de Honduras 5 percent of their fees and the impresario or lessee must, if possible, hire local musical artists from the country for the same show.
For greater certainty, foreign musical artists must register with the Sindicato de Artistas de Honduras for each performance in Honduras.
16. Sector: Championships and Soccer Game Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4) Local Presence (Article 12.5)
Level of government: Central
Measures: Regulations of Championships and Competitions of the National Non-Amateur First Division Soccer League, Articles 9 and 10.
Description: Cross-Border Trade in Services
For the registration of foreign players, a certificate issued by the Secretariat of State in the Offices of the Interior and Population will be required, stating that the residency document is being processed.
Each club affiliated to the Soccer League may register a maximum of 4 foreign players.
17. Sector: Recreational, cultural and sporting services - Gambling casinos (including roulette, checkers, cards, point and bank, baccarat, slot machines and other similar games)
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Local Presence (Article 12.5)
Level of government: Central
Measures: Decree No. 488, dated February 16, 1977, Law of Gambling Casinos, Article 3.
Description: Investment and Cross-Border Trade in Services
Only Hondurans by birth and legal entities constituted in accordance with the laws of the country may apply to the Executive Branch for licenses to operate gambling casinos.
18. Sector: Security-Related Investigation Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Senior Management and Board of Directors (Article 11.8)
Level of government: Central
Measures: Decree No 156-98, Organic Law of the National Police, Article 91.
Description: Investment
Foreign companies requesting a permit for the provision of private security services must associate with Honduran companies engaged in the same activity and appoint a Honduran manager by birth.
19. Sector: Fishing Industry
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4)
Level of government: Central
Measures: Decree No 154, Fisheries Law, Chapters IV, Article 20.
Description: Investment
Only Honduran nationals resident in Honduras and companies incorporated under Honduran law, which are at least 51 percent owned by Honduran nationals, may engage in commercial fishing in waters, seas, rivers and lakes located in Honduras.
20. Sector: Transportation
Subsector: Air Transportation
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Senior Management and Board of Directors (Article 11.8)
Level of government: Central
Measures: Decree No 55-2004, May 19, 2004, Civil Aeronautics Law, Title VIII, Chapter I, Articles 106 and 149.
Description: Investment
Air services of public transportation between any two points of the national territory are reserved for Honduran companies.
Honduran companies shall be understood as those that meet the following requirements:
(a) at least 51 percent of its capital must belong to Honduran natural or juridical persons; and
(b) effective control of the company and _ its management must also be in the hands of Hondurans.
In order to perform private air services for remuneration, authorization is required from the General Directorate of Civil Aeronautics and be a natural person or legal entity of Honduran nationality.
21. Sector: Air Transportation
Subsector: Specialized Air Transportation
Industrial Classification:
Obligations Affected: Most-Favored-Nation Treatment (Article 12.3) National Treatment (Article 12.4)
Level of government: Central
Measures: Decree No. 146, Civil Aeronautics Law, Chapter X, Second, Third and Fourth Section, Articles 37, 125 and 126.
Description: Cross-Border Trade in Services
Specialized private air transportation services for remuneration may only be provided by Honduran nationals or companies incorporated under Honduran law and must be authorized by the Ministry of Public Works, Transport and Housing.
In the absence of Honduran personnel to perform such activities, foreign pilots or other technical personnel may be allowed to perform such activities, giving preference to qualified personnel from any Central American country.
22. Sector: Transportation
Subsector: Maritime Transportation. Coastwise Navigation
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Most-Favored-Nation Treatment (Articles 11.5 and 12.3) Local Presence (Article 12.5)
Level of government: Central
Measures: Decree No 167-94, Organic Law of the National Merchant Marine, dated January 2, 1995, Title Il, Ill, Chapter VII, Article 40. Agreement No 000764, Maritime Transportation Regulations dated December 13, 1997, Article 6. Decree No 154, Fisheries Law, Chapters IV, Articles 26 and 29.
Description: Investment and Cross-Border Trade in Services
Cabotage navigation for mercantile purposes is reserved to Honduran merchant vessels. Exceptionally, when there are no Honduran merchant vessels or they are not available and for the time that such circumstance lasts, the General Directorate of the Merchant Marine may authorize foreign merchant vessels to provide cabotage services in Honduras. In such circumstances preference shall be given to vessels flying the flag of Central American countries.
Honduran merchant vessels must be incorporated under the laws of Honduras, and at least 51 percent of its subscribed and paid-up capital stock must be owned by Honduran nationals and the company must be domiciled in Honduras.
For greater certainty, maritime transportation includes also transportation on lakes and rivers.
Only vessels flying the Honduran flag may engage in commercial fishing activities in Honduran territorial waters.
Only Honduran nationals by birth may be captains of commercial fishing vessels.
23. Sector: Transportation
Subsector: Ground Transportation
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Most-Favored-Nation Treatment (Article 12.3) Local Presence (Article 12.5) Market Access (Article 12.6)
Level of government: Central
Measures: Decree No. 319-1976, Land Transportation Law, Articles 3, 5, 17, 18, 27 and 28. Agreement No 200, Regulation of the Land Transportation Law, Articles 1, 7, 32, 33 and 34. Decree No 205-2005, Traffic Law of January 3, 2006, Article 46.
Description: Investment and Cross-Border Trade in Services
Domestic public land passenger transportation services and cargo transportation services may be provided only by Honduran nationals and companies incorporated under Honduran law in which at least 51 percent of the capital is owned by Honduran nationals. It is necessary to obtain a certificate of operation from the Direcci6n General de Transporte de la Secretaria de Estado en los Despachos de Obras Publicas, Transporte y Vivienda (SOPTRAVI), which is subject to an economic needs test.
International public land passenger transportation services and cargo transportation services may be provided by foreign nationals and by companies incorporated under the laws of a foreign country on the basis of reciprocity, but authorization for particular routes shall be granted preferentially to foreign nationals and companies incorporated under the laws of a foreign country on the basis of reciprocity.
Honduras nationals and to companies incorporated under Honduran law.
Foreigners entering the national territory may drive with the valid license they carry and shall be subject to the principle of reciprocity.
24. Sector: Transportation
Subsector: Rail Transportation
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Senior Management and Board of Directors (Article 11.8)
Level of government: Central
Measures: Decree No 48, Constitutive Law of the National Railroad of Honduras, Chapters I and VIII, Article 32 and Article 12 (amended by Decree No 54).
Description: Investment
Ferrocarril Nacional de Honduras may sell its subsidiaries to private entrepreneurs of Honduran nationality and to companies incorporated under Honduran law.
To be a senior manager of Ferrocarril Nacional de Honduras, it is required to be a Honduran national by birth.
25. Sector: Other Commercial Services -General Deposit Warehousing
Subsector:
Industrial Classification:
Obligations Affected: Market Access (Article 12.6)
Level of government: Central
Measures: Agreement No. 1055, General Warehousing Regulations, Article 3.
Description: Cross-Border Trade in Services
Only companies incorporated under the laws of Honduras with fixed capital and for the sole purpose of providing warehousing services are authorized to provide such services.
26. Sector: Electric Power Services
Subsector:
Industrial Classification:
Obligations Affected: Market Access (Article 12.6)
Level of government: Central
Measures: Decree No 158- 94, Framework Law of the Electricity Sub-sector, Article 23.
Description: Cross-Border Trade in Services
In order to be established in Honduras and to be able to provide electricity distribution services, a company must be incorporated as a trading company with nominal shares.
Annex I. Non-Conforming Measures. List of Mexico
1. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4)
Level of government: Federal
Measures: Political Constitution of the United Mexican States, Article 27. Foreign Investment Law, Title Il, Chapters I and II. Regulations of the Foreign Investment Law and the National Registry of Foreign Investments, Title Il, Chapters I and Il.
Description: Investment
Foreign nationals or foreign companies may not acquire direct dominion over lands and waters within a 100- kilometer strip along the borders and 50 kilometers along the beaches (the Restricted Zone).
Mexican companies without a foreign exclusion clause may acquire direct ownership of real estate used for non- residential activities located in the Restricted Zone. Notice of such acquisition must be filed with the Ministry of Foreign Affairs (SRE) within 60 business days following the date on which the acquisition is made.
Mexican companies without a foreign exclusion clause may not acquire direct ownership of real estate for residential purposes located in the Restricted Zone.
Pursuant to the procedure described below, Mexican companies without a foreign exclusion clause may acquire rights for the use and enjoyment of real estate located in the Restricted Zone that is intended for residential purposes. Such procedure will also apply when foreign nationals or foreign companies intend to acquire rights for the use and enjoyment of real estate located in the Restricted Zone, regardless of the use for which the real estate is intended.
Permission from the SRE is required for credit institutions to acquire, as trustees, rights over real estate located in the Restricted Zone, when the purpose of the trust is to allow the use and exploitation of such property, without granting real rights over them, and the beneficiaries are Mexican companies without a foreigner exclusion clause, or the foreigners or foreign companies referred to above.
The use and exploitation of the real estate located in the Restricted Zone shall be understood as the rights to the use or enjoyment thereof, including, as the case may be, the obtaining of fruits, products and, in general, any yield resulting from the operation and lucrative exploitation through third parties or credit institutions in their capacity as trustees.
The duration of the trusts referred to in this reserve shall be for a maximum period of 50 years, which may be extended at the request of the interested party.
The SRE may verify at any time compliance with the conditions under which the permits referred to in this reservation are granted, as well as the presentation and veracity of the aforementioned notifications.
The SRE will decide on the permits, considering the economic and social benefit that the realization of these activities will have for the Nation.
Foreign nationals or foreign companies that intend to acquire real estate outside the Restricted Zone, must previously present before the SRE a written document in which they agree to consider themselves Mexican nationals for such purposes and waive the right to invoke the protection of their governments with respect to such property. Note: For greater certainty, this reservation is without prejudice to the dispute settlement mechanism established in this Agreement.
2. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Market Access (Article 12.6)
Level of government:
Measures: Federal Foreign Investment Law, Title VI, Chapter Ill.
Description: Investment and Cross-Border Trade in Services