Paraguay* PROFILE CONTENTS }} INTRODUCTION 2 LEGAL AND REGULATORY
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TAXATION
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BANKING 9 PAYMENT INSTRUMENTS
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PAYMENT SYSTEMS
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CASH MANAGEMENT
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ELECTRONIC BANKING
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TRADE FINANCE
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USEFUL CONTACTS
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* Guides specifically designed for treasury managers offering a detailed picture of the banking and cash management arrangements for an extensive range of locations. Please note the information is of a general nature only and is subject to change. It does not constitute financial, legal, tax or other professional advice.
Country Profile
PARAGUAY
INTRODUCTION }} General Capital/Other major cities: Area: Population: Languages: Currency: Country telephone code: Weekend: National holidays: Source: www.goodbusinessday.com.
Business hours: Banking hours: Stock exchange: Leading share indices:
Asunción/Ciudad del Este, San Lorenzo, Luque, Capiatá, Lambare, Fernando de la Mora 406,752km2 6.7m Spanish, Guaraní Paraguayan guaraní (PYG) 595 Saturday and Sunday 2nd half 2015 — 28 Sep, 8, 25, 31 Dec 2016 — 1 Jan, 1, 24, 25 Mar, 1, 14, 15 May, 12 Jun, 15 Aug, 29 Sep, 8, 25, 30 Dec 08:00–12:00 and 15:00–19:00 (Mon–Fri); 08:00–12:00 (Sat) 08:45–15:00 (Mon–Fri) Bolsa de Valores y Productos de Asunción SA (BVPASA) PdV General, PdV 20
Government Legislature }}Constitutional republic with a bicameral National Congress (Congreso Nacional) composed of the Chamber of Senators (Cámara de Senadores) and the Chamber of Deputies (Cámara de Diputados). }}Chamber of Senators – 45 members elected to serve five-year terms. }}Chamber of Deputies – 80 members elected to serve five-year terms. }}The president is elected every five years. Head of state and political leader }}Horacio Manuel Cartes Jara, president (head of state and government) since 15 August 2013.
Sectoral distribution of GDP (% of GDP) Agriculture Industry Services
20.4% 17.7% 61.9% (2013 estimate)
Please note that the information contained in this document is of a general nature only and is subject to change whether for economic, political, social or other reasons. It is not intended to be comprehensive and does not constitute financial, legal, tax or other professional advice on which you should rely. Accordingly if you are planning any business activity in the country or taking, or refraining from any action on the basis of the information in this document, you must obtain your own independent professional advice. The materials contained in this document were assembled in March 2015 (unless otherwise dated) and were based on the law enforceable and information available at that time. We make no representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities arising under or in connection with the use of, or any reliance on, this document or the information contained within it.
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PARAGUAY
Economy
2009
Exchange rate* (PYG/USD)**
2010
2011
2012
2014
2013
Q2
Q3
2015 Q4
Year
Q1
4,965.4 4,735.5 4,191.4 4,424.9 4,320.7 4,419.9 4,289.9 4,615.2 4,462.3 4,759.5
Interest rate (MMR)** (%)
8.94
Unemployment (%)
1.85
7.70
6.63
6.25
6.25
6.30
6.30
6.28
NA
NA
7.2
7.1
8.1
8.1
NA
NA
NA
NA
NA
Consumer inflation*** (%)
+ 2.6
+ 4.7
+ 8.3
+ 3.7
+ 2.7
+ 6.6
+ 4.7
+ 3.7
+ 5.0
+ 3.1
GDP volume growth*** (%)
– 4.0
+ 13.1
+ 4.3
– 1.2
+ 14.3
+ 3.2
+ 4.2
+ 5.8
+ 4.2
NA
GDP (PYG bn)
79,117
94,934 108,795 113,442 124,766
–
–
– 138,260
–
GDP (USD m)
15,934
20,047
25,957
25,637
28,876
–
–
–
30,984
–
2,509
3,103
3,951
3,832
4,247
–
–
–
4,556
–
– 0.2
– 3.1
– 2.3
– 3.9
– 0.2
–
–
–
NA
–
GDP per capita (USD) BoP (goods/services/income) as % GDP * Market rate. ** Period average. *** Year on year.
Sources: IMF, International Financial Statistics, May 2015 and 2014 Yearbook.
Country credit rating Fitch Ratings rates Paraguay for issuer default as: Term
Local currency rating
Foreign currency rating
Short
–
B
Long
BB
BB
Long-term rating outlook
Stable Source: www.fitchratings.com, June 2015.
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Country Profile
PARAGUAY
LEGAL AND REGULATORY }} Central bank }}Established in 1952, the Banco Central del Paraguay (BCP) is an autonomous institution operating in accordance with the Organic Law of the Central Bank of Paraguay.
Bank supervision }}The Superintendency of Banks, a separate entity within the BCP, supervises the banking sector within Paraguay.
Resident/non-resident status }}A company is considered resident in Paraguay if it has its place of effective management in Paraguay, unless its charter states otherwise. }}A company formed under Paraguayan law will be treated as resident.
Bank accounts }}Foreign exchange accounts and domestic currency (PYG) accounts can be held by residents both domestically and abroad. Resident domestic currency accounts are convertible into foreign currency. }}Non-resident bank accounts are permitted in both foreign and domestic (PYG) currency. Non-resident domestic currency accounts are convertible into foreign currency. }}Interest can be offered on current accounts. }}Overdraft facilities are available to residents and non-residents.
Reporting }}There are no central bank reporting requirements for companies. }}Banks are required to submit information on all currency transfers to and from abroad to the Superintendency of Banks. }}Financial organisations are obliged to report remittances abroad within 24 hours following the transaction. }}Transactions data must be sent electronically to the Superintendency of Banks.
Exchange controls }}Paraguay is a member of the Mercado Común del Sur (Mercosur) regional common market. Mercosur comprises Argentina, Brazil, Paraguay, Uruguay and Venezuela. }}Paraguay is a member of the Latin America Integration Association (LAIA). }}Regional payment and clearing arrangements exist between Argentina, Brazil, Bolivia, Chile, Colombia, the Dominican Republic, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. Payments can be made through unique central bank accounts within the framework of the multilateral clearing system of the LAIA. }}The Paraguayan guaraní (PYG) is Paraguay’s official currency. }}Exchange controls are administered by the BCP. }}Commercial banks can participate in the forward exchange market, with regard to trade transactions, on terms freely negotiated with clients. }}In trade-related payments, documentation is required to prove the origin of funds transferred for transactions exceeding USD 10,000 or its equivalent.
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}}Royalties and remuneration from the binational companies administering Paraguay’s Itaipu and Yacyreta dams are required to be fully surrendered to the BCP. }}The Superintendency of Banks must be notified of all credit institutions’ borrowing abroad. }}Banks are not permitted to lend over 5% of their net worth to non-residents unless approval is granted by the Superintendency of Banks to increase the threshold, up to a maximum of 20%.
Anti-money laundering/counter-terrorist financing Supplied by BCL Burton Copeland (www.bcl.com). Data as at February 2015.
}}Paraguay has implemented anti-money laundering legislation (Law No 1015 of 1996; Article 196 of the Paraguay Criminal Code of 1997; Ministry for Industry and Commerce Regulations of 2007; Penal Code of 2008, which came into effect July 2009; Law No 4024 of 2010; Resolution No 333 of December 2010; and Law No 4503 of 2011). }}Paraguay is a member of the South American Financial Action Task Force (GAFISUD) and the Organisation of American States/Inter-American Drug Abuse Control Commission (OAS/CICAD). }}Paraguay has established a financial intelligence unit, the Unidad de Analisis Financiera (UAF), which is a member of the Egmont Group. }}Although account opening procedures require the formal identification of the customer, whether regular or occasional, upon entering into business relations, minimal personal background information is actually required. }}Financial institutions must identify beneficial owners when there is reason to assume that their customers are acting on someone else’s behalf. }}Financial institutions are required to record and report suspicious transactions to the UAF, including transactions that are unusually large or complex, or economically unjustified. }}Individuals transporting above USD 10,000 into or out of Paraguay must file a customs report. However, according to the most recent International Monetary Fund (IMF) assessment, these reports are rarely collected or checked. }}All records must be kept for at least five years, but the IMF states there is little government enforcement of this regulation.
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PARAGUAY
TAXATION }} All tax information supplied by Deloitte Touche Tohmatsu (www.deloitte.com) and Deloitte Highlight, 2015.
Resident/non-resident }}Residence is determined in order of priority according to: }}The place of a company’s management or direction; }}The place where the company’s main activities are carried out; and }}The location of the company’s representative address.
Tax authority }}Subsecretaría de Estado de Tributacíon (SET).
Tax year/filing }}The tax year is the calendar year. However, taxpayers who are deemed to keep adequate accounting records may be authorised to use their commercial period as their tax year. }}Certain industries (e.g. assurance, beverages, agricultural and sugar mill companies) are required to use specific tax years. }}A self-assessed tax return has to be filed within four months of the company’s year-end but the taxpayer’s identification number determines the exact due date. }}Advance tax payments must be made in the fifth, seventh, ninth, and eleventh months. Each tax advance must be equal to 25% of the previous year’s income tax. The annual income tax liability has to be paid by the time the return is filed. }}Consolidated returns are not permitted and each company must file a separate return.
Corporate taxation }}Corporate income tax is levied on a territorial basis. Corporate tax is due, with some exceptions, on business income derived from activities performed, property situated or economic rights used in Paraguay, regardless of the nationality, domicile or residence of those taking part in the operations or the location where contracts are concluded. Income from foreign sources is not taxable, with the exception of income derived from capital invested abroad by Paraguayan companies. }}Corporate income tax rates is 10%. }}Dividend distributions paid locally incur a surtax, which will be paid by the company when dividends are distributed (5%), but are not subject to withholding tax. }}Dividends and profits paid or credited by Paraguayan companies to non‑resident shareholders are subject withholding tax at a rate of 15%, in addition to the surtax of 5% which applies to all dividend distributions. }}There is no alternative minimum tax. }}Branches of non-resident companies in Paraguay must withhold an additional tax of 15% on remittances to their head offices. }}Incentives regimes offering reduced taxation include free trade zones; a maquila regime and a special regime for local or foreign investment in the country. }}Tax losses cannot be carried forward or back.
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Financial instruments }}There are no specific tax rules for financial instruments. Interest and financing costs }}There are no specific tax rules regarding interest and financing costs. Foreign exchange }}There are some specific tax rules relating to foreign exchange differences on assets and liabilities denominated in a foreign currency. There are two kinds of exchange rate applicable to different transactions: buyer and seller; assets are valued at a buyer exchange rate and liabilities are valued at a seller exchange rate.
Advance tax ruling availability }}There is a procedure available under which a taxpayer may request an official opinion on the legal treatment that applies to a specific tax event. The taxpayer must detail clearly all the elements and events under consideration and provide an explanation of the issue. The ruling must be issued within 90 days and may be contested through an administrative or judicial appeal.
Capital gains }}Capital gains derived from the sale of fixed assets, immovable property and securities are taxed as ordinary income at the standard corporate rate.
Withholding tax (subject to tax treaties) Payments to: Resident companies Non-resident companies
Interest
Dividends
Royalties/fees
Technical service fee
None
None
None
None
15%
30% on 50% of amount paid, effective tax rate 15%
30% on 50% of amount paid, effective tax rate 15%
6%/15%/30%*
* Interest paid to a non-resident is subject to a 30% withholding tax, which is imposed on 50% of the payment, resulting in an effective tax rate of 15%. A 6% withholding tax applies to payments made to a financial institution. If the payment is made from a subsidiary to the head office, the effective tax rate is 30%.
Tax treaties/tax information exchange agreements (TIEAs) }}Paraguay has entered into four tax treaties. }}Paraguay has signed several agreements for the avoidance of double taxation of income from international shipping and/or air transportation.
Thin capitalisation }}There are no formal thin capitalisation rules.
Transfer pricing }}There are no formal transfer pricing rules in Paraguay except for the export of commodities.
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Real estate tax }}Real estate is taxed annually at 1% of its cadastral valuation (0.5% for certain rural properties). }}There are other surtaxes that also apply to specific types of property, for example, tax at a rate of 0.3% is levied on the transfer of immovable property (calculated on the higher of the transaction price or the cadastral value of the property). }}Local municipalities collect these real estate taxes.
Stamp duty }}There are no formal tax rules for stamp duty.
Cash pooling }}Paraguay has no specific tax rules for cash pooling arrangements.
Sales taxes/VAT (incl. financial services) }}Paraguay has a nationwide VAT system on the supply of goods and services and on the import of taxable goods and services. }}VAT at the standard rate of 10% is levied on the sales of goods and services. }}A preferential VAT rate applies to: }}Financings (yielded monthly amounts/loan interest): 5% }}Cession of real estate (monthly quota): 5% }}Real estate sale (30% of the sale price): 5% }}Basic consumer goods, i.e. rice, milk, eggs (sale price): 5% }}Pharmaceutical products (sale price): 5% }}Exemptions include some fuels, books and newspapers. }}A maximum rate of 5% applies to basic consumer goods (sales price), e.g. rice, milk, eggs. }}Exports are zero rated. }}VAT registration is compulsory for all companies and unincorporated businesses whose taxable turnover exceeds a certain amount.
Financial transactions/banking services tax }}There are no specific financial transactions taxes in Paraguay.
Payroll and social security taxes }}There is no payroll tax levied on employers. }}Employers are required to pay social security taxes for each employee at a rate of 16.5% of gross employment income. }}Employees must contribute 9% of their gross income, which is withheld by their employers.
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PARAGUAY
BANKING }} Major banks
Total assets (USD millions)* 31 December 2014
Bank Banco Itaú Paraguay
3,568
Banco Continental
3,491
Banco Regional
2,962
BBVA Paraguay
2,095
Banco Nacional de Fomento
1,169
* PYG 4629 per USD 1.
Sources: Banco Central del Paraguay and www.accuity.com, March 2015.
Overview }}Paraguay has 15 private banks and one state-owned bank (Banco Nacional de Fomento). There are also 12 finance companies and one representative office of a foreign bank (Delta Bank and Trust Company). }}The four largest banks in Paraguay control approximately 63% of the banking sector’s total assets. }}Seven of Paraguay’s 15 private banks are foreign owned or foreign controlled — Banco do Barsil, Banco de la Nacion Argentina, Banco Itaú Paraguay, BBVA Paraguay, Banco GNB Paraguay, Citibank and Sudameris Bank. }}GNB Sudameris completed its purchase of HSBC Paraguay in December 2013. The bank has been renamed Banco GNB Paraguay.
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PARAGUAY
PAYMENT INSTRUMENTS }} Cash }}Cash is an important payment medium in Paraguay, particularly for low‑value retail and commercial transactions.
Credit transfers }}Credit transfers are used for both high-value and low-value payment transactions. }}Electronic credit transfers are used by the government and companies for salary and supplier payments. }}High-value and urgent electronic credit transfers are cleared and settled via the LBTR, the national RTGS system, on a same-day basis. }}Low-value, non-urgent and high-volume electronic credit transfers are processed via the ACH. There is no value limit and funds are available to the beneficiary on T+0 or T+1, depending on when the transaction is processed.
Direct debits }}Direct debits (débitos directos) are available in Paraguay and used for low‑value recurring payments such as utility bills. }}Direct debits may be used for one-time or recurring payments, provided there is a signed authorisation in place. }}Direct debits are processed via the ACH. Funds are available to the beneficiary on T+0 or T+1, depending on when the transaction is processed. }}The volume of interbank direct debits in Paraguay remains low.
Cheques }}The cheque is the most popular payment instrument in Paraguay in terms of volume and is used for both retail and commercial payments. }}Cheques can be denominated in PYG and USD. }}There are two types of cheque in Paraguay: regular cheques (cheques comunes) and post-dated cheques (cheques diferidos). }}Regular cheques have to be paid on demand and are not acceptable for deferred payment. }}Post-dated cheques are payment orders payable on a future date and are often used in retail/consumer payments and commercial transactions. }}PYG-denominated cheques are processed and cleared electronically via the Cheque Clearing House. Cheques are also physically exchanged by banks each business day in Asunción and at two regional clearing houses. Final settlement is via the LBTR. Cheques are generally available to beneficiaries on a T+1 basis.
Card payments }}The use of payment cards in Paraguay has increased steadily over the past decade. }}There were approximately 893,886 credit cards in circulation in Paraguay in December 2014. }}In 2014, the total value of credit card payments increased by approximately 19.2% on 2013 figures, from PYG 27,262 billion to PYG 32,489 billion. }}Visa and MasterCard are the principal credit card brands issued in Paraguay, although the regional credit card Cabal, which primarily serves cooperative banks, and the national credit cards Credicard, Dinelco Crédito and Bancard Check are also available.
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}}There are approximately 1,051 ATMs and 11,000 POS terminals in Paraguay. }}There are three main ATM networks in Paraguay: }}Red Infonet, operated by Bancard, currently includes all 15 of the private banks, five finance companies and nine cooperatives. }}Dinelco, operated by BEPSA (processor and administrator of credit and debit cards), includes state-owned Banco Nacional de Formento. }}The Procard ATM network (owned by Procard SA, which in addition processes Visa, MasterCard and Credicard credit card payments) includes Banco Nacional de Formento and several finance companies and cooperatives. }}ATMs in Paraguay can be used to facilitate the payment of utility bills, credit card bills and taxes. More recently the functionality of ATMs was extended to enable consumers to purchase pre-paid mobile phone minutes. }}Pre-paid telephone cards are issued and widely used.
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PAYMENT SYSTEMS }} Type }}SIPAP (Sistema de Pagos del Paraguay) is the platform for all of the BCPoperated interbank payment and settlement systems. All transactions processed via SIPAP are settled through reserve accounts maintained by participants at the BCP. The following high-value and low-value electronic transfer and clearing systems are part of SIPAP. }}The LBTR (Liquidación Bruta en Tiempo Real), Paraguay’s real-time gross settlement (RTGS) system, is used for interbank funds transfers. }}The ACH (Cámara Compensadora Automatizada) processes interbank electronic credits and debits. }}The Cheque Clearing House (Cámara Compensadora de Cheques) is the national cheque clearing system in Paraguay. The physical exchange of cheques is made in parallel with the exchange of electronic information. Cheques and return items are physically exchanged in Asunción and two regional clearing houses (Ciudad del Este and Encarnación). Multilateral net positions are consolidated at the clearing house in Asunción and settled via the LBTR in participants’ accounts at the BCP. Funds are generally available to beneficiaries on a T+1 basis. Cheques drawn in USD on banks in Paraguay are exchanged on a bilateral basis between banks.
Participants }}Participation in the LBTR and ACH is compulsory for banks and other financial institutions authorised to operate in Paraguay. }}All commercial banks and other financial institutions authorised to offer current accounts to their clients participate in the Cheque Clearing House.
Transaction types processed }}The LBTR processes high-value PYG-denominated interbank and commercial payments with same-day value on a gross basis. There is no value threshold. In addition, the LBTR effects the final settlement of participants’ net balances originating from Paraguay’s other clearing houses. }}The ACH is used to process and clear low-value PYG-denominated electronic credit transfers and direct debits. The ACH can also process debit cards and ATM transactions. }}The Cheque Clearing House clears and settles cheques.
Operating hours }}The LBTR operates from 08:00 to 17:00 local time, Monday to Friday. }}The ACH operates from 08:30 to 16:20 local time, Monday to Friday. }}There are two clearing sessions daily at the Cheque Clearing House: at 10:00 and at 15:00 (Mondays and Fridays) and at 10:00 and 14:30 (Tuesdays to Thursdays).
Clearing cycle details LBTR }}The LBTR settles interbank transfers in real time and with immediate finality. Funds are credited to the receiving financial institution’s reserve account at the BCP.
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ACH }}08:30–11:30 T+0 Morning cycle: banks transmit electronic files to the ACH with electronic credit and debit instructions. }}08:30–11:30 T+0: banks transmit electronic files to the ACH with previous cycle’s (previous day’s Afternoon cycle) return item information. }}11:45–12:00 T+0: settlement of multilateral net positions in participants’ accounts at the BCP. }}12:00 T+0: funds are available to beneficiaries. }}11:45–15:50 T+0 Afternoon cycle: banks transmit electronic files to the ACH with electronic credit and debit instructions. }}11:45–15:50 T+0: banks transmit electronic files to the ACH with the previous cycle’s (Morning cycle) return item information. }}16:05–16:20 T+0: settlement of multilateral net positions in participants’ accounts at the BCP. }}16:20 T+0: funds are available to beneficiaries Cheques }}Cheques are truncated and physically exchanged by the banks each business day at around 15:00 in Asunción and at the regional clearing houses.
Currency centre holidays* 2nd half 2015 2016
28 Sep, 8, 25, 31 Dec 1 Jan, 1, 24, 25 Mar, 1, 14, 15 May, 12 Jun, 15 Aug, 29 Sep, 8, 25, 30 Dec * Source: www.goodbusinessday.com.
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CASH MANAGEMENT }} Domestic Notional pooling }}Notional pooling is not permitted in Paraguay. Cash concentration }}Zero balance accounts are not currently used in Paraguay.
Collections }}Companies that receive post-dated cheques (cheques diferidos) may use a bank cheque custody service (custodia de cheques). In this case, the bank maintains the inventory of post-dated cheques on behalf of the company and automatically deposits the cheques for clearing, settlement and credit to the collecting company’s account on the due date. Post-dated cheques can also be discounted (descuento de cheques) and used as a source of short-term financing (subject to credit approval by the company’s bank). }}Companies that receive large volumes of consumer payments may use special deposit tickets, which can be paid at designated bank branches. The remittance information is captured at the time the payment is made and provided to the collecting company via electronic banking, file transfer or report. }}Cobradores (private couriers or collection services) and/or sales persons are frequently used by companies to facilitate collections by delivering invoices and picking up payments from their clients. }}Companies that receive payments at their offices by cash and/or cheque may use an armoured car service (transporte de valores). These services are typically contracted through a bank. The armoured car service travels to the company’s offices on a specified schedule, where it picks up cash and/or cheques and then makes the deposits at designated bank branches. }}Aquí Pago and Pago Express are used by many private and public companies as non-bank collection networks through which consumers can pay their bills. Payment of many types of consumer bills (telephone, gas, electric, water, school tuition, taxes, etc.) can be made at the hundreds of Aquí Pago and Pago Express outlets (bocas de cobranza), which are frequently located in supermarkets, cyber cafés, shopping malls, service stations and pharmacies in cities around the country. These services are particularly important to the large segment of Paraguay’s population that does not maintain bank accounts.
Cross-border }}Cross-border payments are routed via SWIFT and settled through accounts held with correspondent banks abroad.
Lifting fees }}Fees are applied on funds transfers between resident and non-resident accounts.
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Short-term investments }}Interest can be earned on resident and non-resident current accounts. }}Time deposits (depósitos a plazo fijo) are available in PYG and USD in a range of maturities. }}Certificates of deposit (certificados de depósito de ahorros – CDAs) are available in PYG and USD. }}Instruments of monetary regulation (Instrumentos de regulación monetaria – IRM) are issued by the central bank. }}Treasury bonds (bonos del tesoro) are issued by the Ministry of Finance.
Custody and securities settlement Information provided by www.globalcustody.net, 2015.
Depository }}Bolsa de Valores y Productos de Asunción SA (BVPASA). Central counterparty }}BVPASA. Settlement }}There is no standard.
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ELECTRONIC BANKING }} }}Electronic banking is available in Paraguay and offered by the country’s leading banks. }}There is no bank-independent electronic banking standard in Paraguay; each bank offers its own proprietary system for corporate banking purposes. }}Major banks in Paraguay offer internet-based electronic banking systems. Services available include balance and transaction reporting and payment initiation. }}Internet banking is available, but usage is limited due to Paraguay’s low internet penetration rate (estimated at 36.9% of the country’s population in December 2013). However, consumers with internet access can make account enquiries and initiate payments. }}Mobile banking is offered by Paraguay’s leading banks. Services available include balance and transaction reporting and payment initiation. }}Mobile payment services such as Tigo Money are also available. }}Paraguay had an estimated mobile penetration rate of 106% at the end of 2014.
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PARAGUAY
TRADE FINANCE }} Trading partners* Import
Brazil 24.2%, China 19.5%, Argentina 18.3%, USA 11.5%.
Export
Uruguay 17.7%, Brazil 16.4%, Argentina 15.6%, Russia 12%. * The World Factbook 2013-14. Washington, DC: Central Intelligence Agency, 2013 (www.cia.gov/library/publications/the-world-factbook/index.html).
Imports Documents }}In order to import goods into Paraguay, a commercial invoice (four copies), which must include a full description of the imported goods, bill of lading (four copies in Spanish or English), certificate of origin (two copies) and, in certain cases, packing list are required. }}A sanitary certificate is mandatory when importing live animals, seeds, grains and plants. Licences }}Licences are not required for the majority of imports. }}Two types of import licences are issued in Paraguay: automatic and nonautomatic licences. Automatic licences are required to import products such as footwear, beef, wheat flour, personal hygiene products and cosmetics, batteries, steel products and salt. Non-automatic licences are required to import sugar, chicken and chicken offal. Taxes/tariffs and other fees }}Paraguay is a member of the Mercosur (Mercado Común del Sur) regional common market. Mercosur comprises Argentina, Brazil, Paraguay, Uruguay and Venezuela. }}According to the Mercosur Common Code, imports into Paraguay from outside the Mercosur common market are usually subject to ad valorem tariffs of 0–20%. }}A number of commodities (including computer-related products, telecommunications equipment, textiles, clothing, shoes and processed foods) are exempt from the Mercosur common external tariff (CET), as part of the transitional implementation of the CET. Prohibited imports }}A negative list (of products that may not be imported) is in operation. }}It is prohibited to import certain commodities into Paraguay, in order to protect public health, and for national security and moral reasons. }}Prohibitions may be lifted in exceptional circumstances in order to ensure Paraguay has adequate supplies of certain goods.
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Exports Documents }}In order to export goods from Paraguay, a commercial invoice (including a full description of the exported goods), bill of lading, certificate of origin and, in certain cases, packing list are required. Licences }}Prior authorisation from the relevant agency is required for exporting certain commodities. }}The National Institute of Technology and Standardisation, the Ministry of Agriculture and Livestock, the Ministry of Industry and Commerce or the Ministry of Public Health and Social Welfare impose technical standards on the relevant exports. }}Quotas are applied to the exports of certain woods and wood products. Taxes/tariffs and other fees }}No taxes are charged on exports from Paraguay. Prohibited exports }}A negative list (of products that may not be exported) is in operation.
Financing imports and exports Imports }}There are no financing requirements for imports. Exports }}There are no financing requirements for exports.
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USEFUL CONTACTS }} Banco Central del Paraguay Leading banks:
Banco Continental
Banco ItaĂş Paraguay
Banco Nacional de Fomento
Banco Regional
BBVA Paraguay
www.bcp.gov.py www.bancontinental.com.py www.itau.com.py www.bnf.gov.py www.bancoregional.com.py www.bbva.com.py
Superintendency of Banks
www.bcp.gov.py
Ministry of Industry and Commerce
www.mic.gov.py
Ministry of Finance
www.hacienda.gov.py
National Chamber of Commerce and Services of Paraguay Bolsa de Valores y Productos de AsunciĂłn
www.ccparaguay.com.py www.bvpasa.com.py
BEPSA del Paraguay
www.bepsa.com.py
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