1. What are the rules used for the product to be labelled: Made In Paraguay.

 

Any good produced in Paraguay must have a regional content of at least 40%. The next 60% can come from any extra-zone country. Reaching such regional content, the goods produced can access the market of any of the MERCOSUR members free of duties and taxes.

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2. In Paraguay, companies inside the Maquila regime are exempt from all taxes or fees relating to the production process, what does it mean "will be charged 1% on the value added to the product within national territory”?

 

Maquila companies (installed in Paraguay) will be charged only with the "Maquila Unique Tribute" equivalent to a fee on the added value given in national territory, which is the value added to the product in Paraguay. This includes the portion corresponding to the value of "service" given by the maquila company (the utility itself).

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3. Are Maquila companies exempt from the payment of Value Added Tax?  Can you recover the VAT on local purchases of goods and services? In what way is this refund materialised? How is it calculated?

 

The Value Added Tax related to purchases of goods and services in the national market (linked to maquila operations), is recovered in certified negotiable and transferable credits. Maquila companies as exporters, act as withholding agents for VAT. It means that they do not pay tax to the provider, but retain the appropriate amount and deposit it directly to the tax authority (Ministry of Finance).

The maquila company may request at any time to the Treasury the refund of amount held, which will be returned in tax credit within 60 days. (See Law 96/2003).

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4. Which Customs legal figure is used for imports of Maquila regime?

 

The law is called "the Maquila Temporary Import".

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5. What is the period of stay for imported materials and inputs?

 

The period of stay is 12 months at the most (6 initial months which can be extended for another 6 months) only for imports of raw materials and supplies, parts or components. It does not apply to capital goods of fixed assets such as machinery and equipment required for production. For these goods the maximum period of stay in Paraguay can be any term (including several years) equivalent to the period specified in the Program and/or Contract by the Maquila Company and the Head Office.

 

6. What are the ways to instrumentalise the guarantees to be provided to the Paraguayan Customs office?

 

In terms of instruments that can be used to provide satisfactory assurances to the National Customs Direction, you can use any of the stated in the Customs Code: a) Deposits money in sight, b) Bank Guarantee, c) Insurance policies d) Warranty, e) Certificates of Deposit or Warrants. Note: the most used are insurance policies, for the temporary import of raw materials, supplies, parts and components; and garments - for entry of machinery and equipment.

 

7. The resulting products to be exported must be submitted necessarily to the Head Office?

 

Not necessarily, they can be sent to anywhere in the world by the account and order of the Head Office.

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8. Do raw materials, supplies, parts or components and capital goods must necessarily enter from the Head Office?

 

Not necessarily, raw materials, supplies, parts or components and capital goods can be brought from anywhere in the world by the account and order of the Head Office.

 

9. Are there any benefits granted to the personnel, in addition to what is stated in the regulations?

 

Additional benefits depend on the internal politics of companies.

 

10. Is there a Maquila regulatory framework?

 

In Paraguay, the Maquila Regime has its origin in the Law Nº 1064 of the year 1997, and is protected by the

Decree Nº 9585 from the year 2000.

The main objectives of this regulatory framework are to promote the establishment of Maquila companies in Paraguay and to regulate their operations.​

 

11. Which are the most used seaports for the traffic of goods that go from Paraguay and that arrive to Paraguay?

 

The most used seaports and current network of free ports are:

Argentina: Buenos Aires y Rosario

Brasil: Paranaguá, Santos, Rio Grande do Sul

Chile: Antofagasta, Iquique

Uruguay: Montevideo y Nueva Palmira