Includes the barriers (tariff and non-tariff) that U.S. companies face when exporting to this country.
Last Published: 7/21/2019

In an attempt to lower the budget deficit and to punish the private sector for its participation in pro-democracy reforms and dialogue, the Nicaraguan government has utilized unjustified border procedures to delay and fine imports such as raw materials, spare parts, equipment, as well as agricultural, commercial and industrial products.  Paperwork to release these key elements for the country’s economic performance languishes in the office of the Customs Authority (DGA) for more than a month at a time.  In early August 2018, logistics providers reported that DGA had changed its policies to review any and all cargo entering the country, now requiring full scans or physical inspections for all containers.  Truckers report long delays at the borders, a function of DGA bureaucratic red tape.

The U.S. Embassy receives numerous reports from U.S. businesses and nongovernmental organizations that the Nicaraguan Customs Authority regularly subjects shipments of commercial and donated goods to bureaucratic delays and arbitrary valuation.  Importers and exporters report that customs officials regularly assess exorbitant fines for minor administrative discrepancies.  In some cases, shipments are held for weeks or months with no justification provided by customs agents.  Other issues include arbitrary denials of import permits for products with no justification.  The U.S. Embassy rarely has success in obtaining information from the DGA concerning these cases.

The Nicaraguan government levies a selective consumption tax (ISC) on many items, as described in Chapter 3 of the Country Commercial Guide: Selling U.S. Products and Services.  The tax is not applied exclusively to imports, but imports are taxed on the cost, insurance, and freight value, while domestic goods are taxed on the manufacturer's price. All imported beverages were previously taxed on the price charged to the retailer, however, as the result of an arbitrary implementation of a tax reform passed on February 27th, 2019 by the Customs Authority (DGA), the tax on these imports has tripled.
 

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