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October 4, 2013In force

Law Creating the National Fund for Competitiveness of the Agricultural Sector

Congreso Nacional

  • Decree: 143-2013
  • Published: October 4, 2013
  • Issuing body: Congreso Nacional
  • Gazette: 33,245
  • Category: Financial & Tax

Summary

AIThis summary was generated by AI and may contain errors. Always verify against the original law text below. Not legal advice. Learn how we use AI

This law creates a National Fund that collects small taxes from meat and dairy producers (10 cents per pound of meat, 3 cents per liter of milk) to invest in training, technology, research, and quality assurance in livestock farming. It benefits small and medium-sized ranchers and consumers through safer and more competitive products.

Considerations

Whereas it is a matter of public interest the existence, maintenance, and promotion of the agricultural and livestock sector, especially that of small and medium-sized producers engaged in this activity to guarantee food security.

Whereas this Law shall have as its purpose the promotion of the agricultural and livestock sector within the framework of sustainability and environmental conservation.

Whereas it is necessary to strengthen the institutions of the agricultural and livestock sector in order to modernize it and make it competitive in regional and international markets.

Whereas it is necessary to improve the health and quality of our agricultural and livestock products for the benefit of Honduran citizens.

Whereas it is necessary to create a seal that guarantees to the Honduran population the food safety and hygiene of both national and foreign products.

Articles

Article 2.-

NATIONAL FUND FOR COMPETITIVENESS OF THE AGRICULTURAL SECTOR.- The National Fund for Competitiveness of the Agricultural Sector is hereby created for the management of resources derived from the collection of the agricultural development levy; which shall comply with the policy guidelines of the National Agricultural Commission, as a decentralized body dependent on the Secretariat of State in the Offices of Agriculture and Livestock (SAG).

Article 3.-

OBJECTIVES OF THE NATIONAL AGRICULTURAL FUND:

  • 1)

    To promote programs for development, modernization, education, training, research and technology transfer that contribute to the increase in productivity of cattle and swine raising and the internal and external commercialization of derived products;

  • 2)

    To seek the establishment of a system for the registration of marks and brands at the national level;

  • 3)

    To promote the joint realization with the State of the National Agricultural Center;

  • 4)

    To drive co-investment operations in productive and complementary infrastructure in producing areas;

  • 5)

    To promote campaigns aimed at increasing domestic consumption of agricultural products, through the guarantee of a quality seal; and,

  • 6)

    To strengthen surveillance programs and the eradication of endemic diseases;

Article 4.-

LIVESTOCK DEVELOPMENT LEVY.- The Livestock Development Levy is hereby created as a parafiscal contribution, which shall be ten cents of Lempira (0.10) per pound of processed or imported beef or pork meat; three cents of Lempira (L.0.03) per liter of raw milk purchased from the national producer by industrial or artisanal plants and three cents (0.03) that the importer shall pay per pound or dairy by-product imported, whether in the form of cheese or growth-type milk imported from any origin; it is understood that industrial or artisanal plants that have already collected these three cents of Lempira (L.0.03) per liter of raw milk shall not apply this provision so as to avoid duplicate payment or contribution.

Article 5.-

INCORPORATION OF OTHER SECTORS TO THE FUND.- Sectors or subsectors not originally incorporated may participate by requesting their membership to the Board of Directors of the National Fund for Competitiveness of the Agricultural Sector. CHAPTER II BOARD OF DIRECTORS

Article 6.-

BOARD OF DIRECTORS OF THE NATIONAL FUND FOR COMPETITIVENESS OF THE AGRICULTURAL SECTOR.- The Board of Directors of the National Fund for Competitiveness of the Agricultural Sector is hereby created, which shall be composed as follows:

  • 1)

    The President of the National Federation of Farmers and Ranchers of Honduras (FENAGH);

  • 2)

    Two (2) representatives of the cattle sector proposed by the meat and dairy subsector;

  • 3)

    One (1) representative of the swine sector appointed by the association of swine producers;

  • 4)

    One (1) representative of the National Association of Meat Processing Plants (ANEDEC); and,

  • 5)

    Two (2) representatives of small and livestock producers, one from each subsector appointed by the Secretariat of State in the Offices of Agriculture and Livestock (SAG), from a list of three candidates from each subsector presented by peasant organizations. The National Fund for Competitiveness of the Agricultural Sector is authorized to incorporate other public or private organizations that it deems necessary in specific cases.

Article 7.-

COMPOSITION OF THE BOARD OF DIRECTORS.- The members of the Board of Directors are appointed for a period of three (3) years and may be reelected in their positions. The organizations that compose it may remove their representatives when they deem it necessary; except, government representatives who may be removed by the authority that nominated them and the representative of the National Federation of Farmers and Ranchers of Honduras (FENAGH), who shall remain in office as long as they hold the position of President of FENAGH for which they were appointed.

Article 8.-

POWERS OF THE BOARD OF DIRECTORS.- The Board of Directors has the following powers:

  • 1)

    To issue and approve the regulations of functions and powers of the Board of Directors and the internal provisions that the National Fund for Competitiveness of the Agricultural Sector may require;

  • 2)

    To issue and approve the internal operating regulations of the National Fund for Competitiveness of the Agricultural Sector;

  • 3)

    To propose the regulations of this Law before the Secretariat of State in the Offices of Agriculture and Livestock (SAG), for its approval and respective publication;

  • 4)

    To appoint and remove the Executive Director of the National Fund for Competitiveness of the Agricultural Sector;

  • 5)

    To authorize the execution of agreements and contracts;

  • 6)

    To propose, coordinate and support the formulation and execution of policies for national agricultural development;

  • 7)

    To approve the work plan and annual budget, prepared by the Executive Directorate based on the objectives established in Article 3 of this Law and to evaluate the progress thereof; and,

  • 8)

    To promote other activities that support agricultural production. For the fulfillment of the aforementioned functions, members of the Board of Directors whose domicile is in a place other than the capital of the Republic, where the headquarters of the National Fund for Competitiveness of the Agricultural Sector shall be located, shall only be entitled to travel expenses as determined by the corresponding Regulations. The other members shall perform their duties on a pro bono basis.

Article 9.-

QUORUM OF SESSIONS.- The quorum of Board of Directors sessions is formed with the presence of at least five (5) members. The Board of Directors shall make its resolutions in ordinary or extraordinary sessions. The former shall be held on the dates established for this purpose by the respective Regulations; and the latter whenever convened by the President in accordance with what is provided in the Regulations. The Board of Directors may also be convened at the request of the majority of its members. At the first ordinary session, the Board of Directors shall be elected, appointing a President, a Vice President, a Secretary, a Treasurer and three (3) alternate members. Agreements shall be made by simple majority vote. Each member of the Board of Directors has the right to one vote, and in case of a tie in a second vote, the President shall have the casting vote, also known as double vote. In such case, at least one representative from four (4) sectors that compose the Board of Directors must be present. The casting vote or double vote granted to the President shall not apply to personnel hiring and dismissals.

Article 10.-

EXECUTIVE DIRECTOR.- The Board of Directors, in the exercise of its powers, must appoint and remove an Executive Director, by the vote of at least six (6) of its members. The President of the Board of Directors holds the legal representation of the National Fund for Competitiveness of the Agricultural Sector with powers as legal representative, and may delegate or substitute this to the Executive Secretary if deemed convenient; the functions thereof shall be defined in the internal operating regulations. The Executive Director of the National Fund for Competitiveness of the Agricultural Sector cannot be related by blood up to the fourth degree or by affinity up to the second degree inclusive to the members of the Board of Directors and must meet the requirements set forth in this Law.

Article 11.-

ADVISORY COMMITTEE.- The Board of Directors of the National Fund for Competitiveness of the Agricultural Sector may constitute advisory committees that shall be composed of representatives of the various activities related to agricultural production activity. CHAPTER III PARAFISCAL LEVY

Article 12.-

CONTRACT FOR ELABORATION AND DISTRIBUTION OF THE LEVY.- The Board of Directors shall execute a contract with the National Federation of Farmers and Ranchers of Honduras (FENAGH), hereafter called the "Collection Entity", for a period of not less than ten (10) years for the preparation and distribution of the quality seal of the Livestock Development Levy. The contract shall establish the requirements, conditions and prohibitions regarding the management of the quality seal of the Livestock Development Levy. With respect to the amount generated by its sale, the provisions of Article 4 of this Law shall be followed. CHAPTER IV PROJECTS

Article 13.-

PROJECTS.- The Board of Directors of the National Fund for Competitiveness of the Agricultural Sector may approve specific projects through the "Collection Entity", who shall be responsible for their execution. Likewise, the "Collection Entity" is authorized to subcontract other private entities, if necessary, for the preparation and execution of the projects, in accordance with what is determined in the respective Regulations of this Law.

Article 14.-

INVESTMENT PLAN.- The Executive Directorate of the National Fund for Competitiveness of the Agricultural Sector shall annually prepare the investment plan and expenses for the execution of the projects of the following year, which may only be executed once it has been approved by the Board of Directors of the National Fund for Competitiveness of the Agricultural Sector. CHAPTER V ASSETS OF THE NATIONAL FUND FOR COMPETITIVENESS OF THE AGRICULTURAL SECTOR

Article 15.-

ASSETS OF THE NATIONAL FUND FOR COMPETITIVENESS OF THE AGRICULTURAL SECTOR.- Assets acquired with fund resources or other titles must be entered in the inventory register book of the Fund. CHAPTER VI FISCAL CONTROL

Article 16.-

ADMINISTRATIVE OVERSIGHT.- The Secretariat of State in the Offices of Agriculture and Livestock (SAG) shall monitor and evaluate the execution of projects for which the Executive Directorate of the National Fund for Competitiveness of the Agricultural Sector must submit a semiannual report regarding the resources obtained through collection to the Board of Directors, which shall forward it to the Secretariat of State in the Offices of Agriculture and Livestock (SAG). With the same periodicity, the Executive Directorate shall send to the Superior Court of Accounts (TSC), a report prepared by the Executive Directorate on the amount of resources from the levies collected in the previous semester, without prejudice to the fact that both the Secretariat of State in the Offices of Agriculture and Livestock (SAG) and the Superior Court of Accounts (TSC) may inquire about such reports in the books and other documents regarding the levies collected held by the Executive Directorate and the collection entity. For the exercise of the required fiscal control, the Superior Court of Accounts shall adopt the corresponding legal systems.

Article 17.-

Delay or failure in the payment, collection, and deposit of the development fees established in this Law shall be penalized with seven percent (7%) annually on the amount in arrears, which shall be paid together with the payment of the principal in arrears. CHAPTER VII FINAL PROVISIONS

Article 18.-

The Board of Directors of the Fund must be constituted within thirty (30) calendar days from the effective date of this Law.

Article 19.-

The contract with the collecting entity must be prepared for authorization by the Board of Directors within forty-five (45) calendar days after its installation.

Article 20.-

With the exception of representatives of the Public Administration and the President of the National Federation of Farmers and Ranchers of Honduras (FENAGH), to be a member of the Board of Directors the following are required:

  • 1)

    To be in full enjoyment of civil and political rights;

  • 2)

    To be of legal age of twenty-one (21) years; and,

  • 3)

    To be of recognized honorability.

Article 21.-

The following cannot be members of the Board of Directors:

  • 1)

    Those who do not meet some of the requirements of the preceding Article;

  • 2)

    Relatives within the fourth degree of consanguinity or second degree of affinity;

  • 3)

    Those who are in arrears to the State, the bankrupt or insolvent, even if they have been rehabilitated; and,

  • 4)

    Those who for any reason are legally incapable of performing said function. When any of the aforementioned incapacities occurs, the replacement of the respective member shall proceed in accordance with the procedures established in this Law and its regulations. The acts in which the declared incapacitated person participated before his replacement shall not be invalidated by this circumstance.

Article 22.-

The Regulation of this Law shall be issued at the proposal of the Board of Directors of the National Fund for the Competitiveness of the Agricultural Sector within a period of ninety (90) days counted from the effective date of this Decree.

Article 23.-

This Law shall not result in any increase to the products that make up the basic basket of Hondurans.

Article 24.-

Article 15, literal e) of Decree No. 24 dated December 20, 1963 and its reforms, containing the LAW ON SALES TAX, reformed by Article 16 of Decree No. 17-2010, containing the LAW FOR STRENGTHENING REVENUES, SOCIAL EQUITY AND RATIONALIZATION OF PUBLIC SPENDING, is reformed and shall henceforth read as follows:

Article 15

The following are exempt from the tax established by this law, the sale of the following goods and services: a)...; b)...; c)...; d)...; e) Likewise, implements, machinery and equipment, accessories and their spare parts, raw materials, inputs, packaging materials, used for industrial production, processing, distribution of milk, beef and pork products, as well as their derivatives, fresh milk, skimmed and whole powdered milk, flavored milk; natural juices, as well as pharmaceutical products for veterinary use, agricultural tools, fertilizers or manure, fungicides, herbicides, insecticides, pesticides, live animals in general, and minerals for animal consumption, frozen semen of animal origin, seed, bulbs for planting, fish flour, bone flour, coconut flour, African palm derivative, molasses for animal feed production, animal concentrates and concentrates for animals in general; likewise, all machinery and equipment of the dairy and meat industry shall be exempt from Tax, as well as their spare parts such as cutters, meat injectors, mills, homogenizers, pasteurizers, ice banks, pumps, devices, liquid meters, cleaning products, stainless steel piping and others that are related to dairy and beef and pork meat, bagging machine, vacuum packaging machine, laboratory articles, compressors, prefabricated freezer chamber and insulation panels for the industry, electric conveyors, stabilizers for dairy products, stone and milk remover, manometer and equipment, spare parts for refrigerated transport and dairy and meat products and irrigation equipment, yogurt equipment for milk, display cases, refrigerators for milk and meat, milk basket dispensers, different types of spare parts for motors and equipment for the production of meat and milk and their derivatives from producing plants; f)...; and, g)...

Article 25.-

Article 75 of the Law of Municipalities, contained in Decree No. 134-90 of October 29, 1990, is reformed and shall henceforth read as follows:

Article 75

The following have the character of municipal taxes:

  • 1)

    Real property;

  • 2)

    Personal;

  • 3)

    Industry, Commerce and Services; and, 4) Extraction and exploitation of resources.

Article 26.-

Article 82 of the Law of Municipalities, contained in Decree No. 134-90 of October 29, 1990 and other legal provisions that are contrary to this Law are repealed.

Article 27.-

This Law shall take effect as of the day following its publication in the Official Newspaper "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Meeting Hall of the National Congress, on the twenty-seventh day of the month of July of two thousand thirteen. MAURICIO OLIVA HERRERA PRESIDENT, BY THE LAW RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LOPEZ CALDERÓN SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., September 30, 2013. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICES OF AGRICULTURE AND LIVESTOCK. JACOBO REGALADO WEIZEBLUT

Notes

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