Nicaragua - Customs and duties

In 1990, the government's liberalized import schedule allowed private sector imports for the first time in 11 years. Import licenses are only required for the import of sugar. Nicaragua follows the CACM common import tariff schedule with rates ranging from 5% to 15%. Duties are set on an ad valorem basis, and there are specific consumption (usually less than 15%) and sales taxes (15%). There are also a few prohibitive import duties, like that of chicken legs and thighs at 170%. An industrial free zone operates at Las Mercedes near the Managua international airport. Employment in the zone more than doubled from 1995 to 1998. There are also two private free zones and construction of four others was authorized in 1999.

Nicaragua has free trade agreements with Mexico and the Dominican Republic; and is a member of the Central American Common Market (CACM). The country is also a Caribbean Basin Initiative beneficiary.