Exports increase in Nicaragua at the beginning of 2021
In this first period, different reports such as the Consumer and Trade Production System, as well as a statement by the Ministry of Finance and Public Credit, ensure that Nicaragua currently has grown 6.5% compared to exports, this includes exports from the Free Zones.
The reports show that the Free Zones in Nicaragua managed to recover by -13.7%, i.e. approximately 40% impact of the pandemic, as stated by the Minister of Finance and Public Credit, progress made in the last quarter. Like, he emphasized this progress had to do with the replacement of some free zone exportable goods, an example of this is the production of masks increasing their export. It should be noted that suchenterprises apply to the following import and export tax incentives:
- Exemption from all customs and consumer taxes and duties related to imports, applicable to the introduction into the country of raw materials, materials, equipment, machinery, matrices, parts or spare parts, samples, molds and accessories intended to enable the Company for its operations in the Zone.
- Exemption from customs taxes on transport equipment, which are cargo vehicles, passengers or services, intended for the normal use of the company in the Zone.
- Total exemption from indirect, sales or selective consumption taxes.
- Total exemption from export taxes on products processed in the Zone.
Likewise, according to the Export Processing Centre (CETREX), the sales portfolio above USD 1 million in January was formed in decreasing order by cane sugar, peanuts, culture shrimp, morolique cheese, beans, lobsters, oils and fats, beverages, alcoholic liquids and vinegar, mozzarella cheese, seafood, processed cigars, fish, processed coffee, rum, and tobacco. In addition, this export information is certifying 2,843 million commodities in sugar, banana, coffee, meat, dairy, gold, with an extraordinary impact on the commodity side, which kept the economy going, and which managed to minimize the negative impact. Raw gold was again placed as the leading product in Nicaraguan exports, recording sales of more than USD 65,853 million in the first 31 days of the current year.
The Minister of Finance and Public Credit also notes that they have continued a review process through a list of projects linked to the country’s climate strategy in conjunction with the Ministry of Natural Resources, which may be of support to investors considering initiating projects related to those that this authority catalogs as important to continue increasing this part of the country’s economy.
Naimeh Suárez Siezar
García & Bodán