Exporting guide to Paraguay

Paraguay is a South American country with a population of over 7 million people (World Bank, 2019). It has an abundance of natural resources and renewable energy. It is landlocked and bordered by Argentina, Brazil and Bolivia. The economy has grown at an average pace of 4.9% every year for the past decade (World Bank, 2020).

Growing imports

Paraguay’s import market has grown every year from 2014 to 2018 (IMF, 2019). Apart from a dip in 2019, this growth is projected to continue until at least 2024 (IMF, 2019). UK businesses looking to export to Paraguay may benefit from the increase in demand for UK goods and services.

UK government support

UK Export Finance (UKEF) has a £3 to £4 billion export credit facility to help UK businesses export to Paraguay. If you are a UK exporter looking for financial support to bring your products or services to Paraguay, this is a good opportunity.

Strengthening economy

Economic conditions are improving in Paraguay. Unemployment levels have held at just under 6% over the past decade (World Bank, 2020). A strong rebound in GDP is projected for 2021 as well as economic growth for the next 5 years (IMF, 2019), which should equate to an increase in spending power for local consumers.

Town in Paraguay

Ease of doing business

125th

out of 190 countries (World Bank, 2019)

Currency

Paraguayan guarani

Business language

Spanish

You may need a translator

GDP per capita

$5,934

UK is $42,558 (IMF, 2018)

Economic growth

3.4%

(IMF, 2018)

Time zone

GMT -4

New

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Make the right choice by comparing data from other countries.

Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in Paraguay have identified opportunities for UK businesses in the following sectors:

Doing business in Paraguay

Preparing to export

Taxation

Paraguay has a Value Added Tax (VAT) rate of 10%. VAT credit refund schemes and exemptions are also available.

Import duties

Import duties in Paraguay range from 0% to 38% depending on the tariff level applied. Most products imported from the UK fall into the 10% tax category. We advise you to contact a customs clearance agency to assist you with the process.

Regulations

To act as an importer your company, as a first step, must be registered to the Paraguayan Customs Authority. Paraguayan customs work alongside government agencies that control the entry of merchandise into the country, according to the category. These institutions regulate permits, authorisation and certifications for imports.

For more information regarding importation and exportation regulations, as well as customs codes and tariffs, please refer to the Paraguayan Customs Authority website.

Trade barriers

Check for any reported barriers to trading with Paraguay.

Report any trade barriers that are affecting your business so we can help fix them.

Operating in Paraguay

Intellectual property

As a first step, we advise you to speak to an intellectual property lawyer if you think you need patent protection when exporting. Copyrights are managed by the National Directorate for Intellectual Property (DINAPI). Trademarks can be registered in the name of a product or service at the DINAPI. Once a trademark is registered, the owner has exclusive right to use it in Paraguayan territory

Challenges

Corruption, bribery and bureaucracy in public entities are among the challenges when doing business in Paraguay. For more information on how the Paraguayan government can protect you from this, please refer to the Anti-Corruption Secretariat website.

Next steps

DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.