Agreement Ihtt-002-2019 Minimum Rates for Public Freight Transportation Service (Articulated Vehicles or Tractor-Trailer Units)

Established in the Executive Agreements Numbers 1 and 2 published in "La Gaceta", Official Gazette of the Republic, dated December 2 and July 9, respectively, and as a complement thereto, the MINIMUM TARIFFS FOR THE PROVISION OF PUBLIC CARGO TRANSPORTATION SERVICE are as follows:

• a)

  For routes with distance greater than 60 kilometers operating in the modality of a vehicle with own traction (tractor-truck) belonging to the carrier, coupled to a vehicle without own traction belonging to the user (semi-trailer), a minimum tariff per kilometer traveled (considering obligatorily for this calculation the kilometers traveled on the outbound and return trips) of ONE DOLLAR AND TWENTY-FOUR CENTS (US$ 1.24) or its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH).

• b)

  For routes with distance greater than 60 kilometers operating in the modality of a vehicle with own traction (tractor-truck) coupled to a vehicle without own traction, both belonging to the carrier, the aforementioned minimum tariff shall be increased by TWENTY PERCENT (20%) per kilometer traveled (considering obligatorily for this calculation the kilometers traveled on the outbound and return trips) and may be paid in dollars or in its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH).

• c)

  For interurban routes with distance less than 60 kilometers, operating in the modality of a vehicle with own traction (tractor-truck) belonging to the carrier, coupled to a vehicle without own traction belonging to the user, a minimum tariff of ONE HUNDRED FIFTEEN DOLLARS (US$ 115.00) when the movement is outbound only with guaranteed transport, the carrier's contracting for a new trip or service with the same user, and of TWO HUNDRED THIRTY DOLLARS (US$ 230.00) if the movement is outbound and return, with or without cargo from the same user, comprising the route from the departure sites to the destination sites and its return or to intermediate locations, the tariff may be paid in dollars or in its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH).

• d)

  For routes comprised within the urban limit of the city of Tegucigalpa operating in the modality of a vehicle with own traction (tractor-truck) belonging to the carrier, coupled to a vehicle without own traction belonging to the user, a tariff of EIGHTY DOLLARS (US$ 80.00) or its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH).

• e)

  For routes comprised within the urban limit of the rest of the cities of the country, operating in the modality of a vehicle with own traction (tractor-truck) belonging to the carrier, coupled to a vehicle without own traction belonging to the user, a tariff of FORTY-FIVE DOLLARS (US$ 45.00) or its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH).

• f)

  For routes comprised in subsections c), d) and e) above, operating in the modality of a vehicle with own traction (tractor-truck) coupled to a vehicle without own traction, both belonging to the carrier, the minimum tariffs established therein shall be increased by TWENTY PERCENT (20%) and may be paid in dollars or in its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH). This does not apply if the vehicle is rigid, that is, it is not coupled.

APPLICATION OF THE MINIMUM TARIFF. For routes of more than 60 kilometers, the first 60 kilometers must be calculated in accordance with the tariff of US$ 1.24 indicated in Subsection c) above or in the case where the tractor-truck and the coupled vehicle are both property of the carrier, the tariff shall be US$ 115.00 plus 20%. The excess kilometers (from kilometer 61 onwards) must be calculated at US$ 1.24 per kilometer traveled (considering obligatorily for this calculation the kilometers traveled on the outbound and return trips) or in the case where the tractor-truck and the coupled vehicle are property of the carrier, the tariff shall be US$ 1.24 plus 20%.

TOLLS. The costs associated with toll payments in public cargo transportation must be paid by the user whenever in the highway section where the cargo is transported there are tolls actually in existence, with the carrier committing to deliver indelibly to the user the original and legible receipts for purposes of deducting such additional cost in their accounting as an expense. This provision is established by the Honduran Institute of Land Transportation (IHTT) exercising for this purpose its legal authority clearly and expressly contained in the Second Paragraph of Article 66 of the Land Transportation Law of Honduras, where it is established that tariffs must be set by the Institute based on the provision of Public Service by the Concessionaire, taking into account the different variables of specific operation costs, among them the cost per toll.

OUTBOUND AND RETURN. It is reiterated that for all cases where the per-kilometer tariff previously stated applies, for economic calculation the number of kilometers for outbound and return trips must be considered, but considering at the same time the following extremes:

• a)

  For routes with distance less than 60 kilometers and urban routes, the user shall have the right to send cargo of the same user on the return with the same carrier (Given that they are paying inclusive the kilometers traveled on the return), to the place of origin or to intermediate points without additional cost other than that established here, a right that the user may exercise without additional cost within 4 hours counted from the date and time of arrival with the original cargo at the destination point of this original cargo and, if within this period (4 hours) there is no return cargo, the carrier may return to its place of origin without further liability on its part but, as has been reiterated, the user must pay the carrier the return kilometers.

• b)

  For routes with distance greater than 60 and up to 200 kilometers, they shall have the right to send cargo of the same user on the return with the same carrier (Given that they are paying inclusive the kilometers traveled on the return), to the place of origin or to intermediate points without additional cost other than that established here, a right that the user may exercise without additional cost within 24 hours counted from the date and time of arrival with the original cargo at the destination point of this original cargo and, if within this period (24 hours) there is no return cargo, the carrier may return to its place of origin without further liability on its part but, as has been reiterated, the user must pay the carrier the return kilometers.

• c)

  For routes with distance greater than 200 kilometers or outside the national territory, they shall have the right to send cargo of the same user on the return with the same carrier (Given that they are paying inclusive the kilometers traveled on the return), to the place of origin or to intermediate points without additional cost other than that established here, a right that the user may exercise without additional cost within 48 hours counted from the date and time of arrival with the original cargo at the destination point of this original cargo and, if within this period (48 hours) there is no return cargo, the carrier may return to its place of origin without further liability on its part but, as has been reiterated, the user must pay the carrier the return kilometers. These hours shall also apply for trips outside the national territory.

PAYMENT FOR DEMURRAGE. A reference value of ONE HUNDRED DOLLARS (US$ 100.00) is established that the user shall pay to the carrier for each day of demurrage that detains the carrier beyond the time without cost to the user regulated in the previous article. This is applicable when the cab and the trailer are property of the carrier. The payment for demurrage may be paid in dollars or in its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH). A reference value of ONE HUNDRED FIFTY DOLLARS (US$ 150.00) is established that the user shall pay to the carrier, for each day of demurrage that detains the carrier outside the national territory, beyond or additional to the time without cost to the user regulated in the previous article. This is applicable when the cab and the trailer are property of the carrier. The payment for demurrage may be paid in dollars or in its equivalent in Lempiras at the official exchange rate determined on the date of invoicing, in accordance with the Currency Policy executed by the Central Bank of Honduras (BCH).

PRACTICAL AND ILLUSTRATIVE EXAMPLES OF CALCULATION OF THE MINIMUM TARIFF IN PUBLIC CARGO TRANSPORTATION. CASE 1.1: Interurban trip of 50 kilometers. Tractor-truck belonging to the carrier coupled to vehicle without own traction, belonging to the user: US$ 115.00. CASE 1.2: Interurban trip of 50 kilometers. Tractor-truck and coupled vehicle without own traction, both belonging to the carrier: US$ 138.00 (US$ 115 plus 20%). CASE 2.1: Interurban trip of 80 kilometers. Tractor-truck belonging to the carrier coupled to vehicle without own traction, belonging to the user: First 60 km US$ 115.00. Remaining 20 km US$ 24.80 (20 X 1.24). TOTAL US$ 139.80. CASE 2.2: Interurban trip of 80 kilometers. Tractor-truck and coupled vehicle without own traction, both belonging to the carrier: First 60 km US$ 138.00 (US$ 115 plus 20%). Remaining 20 km US$ 29.80 (20 X 1.49, 1.24 plus 20%). TOTAL US$ 167.80. CASE 3.1: Urban trip in Tegucigalpa. Tractor-truck belonging to the carrier coupled to vehicle without own traction, belonging to the user: US$ 80.00. CASE 3.2: Urban trip in Tegucigalpa. Tractor-truck and coupled vehicle without own traction, both belonging to the carrier: US$ 96.00 (US$ 80 plus 20%). CASE 4.1: Urban trip in cities related in Subsection e) of Article 1 of this Regulation: Tractor-truck belonging to the carrier coupled to vehicle without own traction, belonging to the user: US$ 45.00. CASE 4.2: Urban trip in cities related in Subsection e) of Article 1 of this Regulation: Tractor-truck and coupled vehicle without own traction, both belonging to the carrier: US$ 54.00 (US$ 45 plus 20%).