# Paraguay (PY)

**Capital:** Asunción  
**Currency:** Paraguayan Guarani (PYG) (PYG)  
**Population:** 6,417,076 — Older stored figure; source year not documented.  
**Area:** 406,752 km²

> Paraguay is a landlocked country in the heart of South America and a founding Mercosur member. Despite having no sea coast it operates the world's third-largest river barge fleet: around 80 percent of foreign trade moves via the Paraguay-Parana waterway (Hidrovia) to the ports of the Rio de la Plata and onward to the Atlantic. The main river ports are Villeta, Asuncion and San Antonio. Imports are cleared electronically through the DNIT SOFIA system; import VAT (IVA) is 10 percent (reduced 5 percent). The Mercosur common external tariff applies. Key exports are soybeans, beef, grain and electricity from Itaipu and Yacyreta.

Paraguay (ISO code: PY) is a landlocked country in the heart of South America, bordering Argentina, Brazil and Bolivia. It is a presidential republic and a founding member of Mercosur. The climate is subtropical to tropical, with a pronounced rainy season and mild winters. The economy is shaped by agriculture - soy, maize, beef and cereals - and by hydropower from the Itaipu and Yacyreta dams, which makes Paraguay one of the world's largest electricity exporters. Although it has no sea coast, Paraguay operates the third-largest river barge fleet in the world; around 80 percent of its foreign trade moves along the Paraguay-Parana waterway (Hidrovia) to the ports of the Rio de la Plata. Customs and tax administration were merged into the DNIT in 2024; imports are cleared via the SOFIA system, with import VAT of 10 percent. The Mercosur common external tariff applies, and the national currency is the Guarani (PYG).

**Top Import Partners:** CN, BR, AR, US, DE

**Top Export Partners:** BR, CL, AR, RU, US

**Top Import Goods:** Petroleum products, Vehicles, Machinery, Electronic devices, Chemical products

**Top Export Goods:** Soybeans, Beef, Electricity, Cereals, Cotton

**Key Airports:**
- [Aeropuerto Internacional Dr. Luis Maria Argaña (ESG)](https://www.freight-academy.com/en/information/airports/aeropuerto-internacional-dr-luis-maria-argana-airport-esg)
- [Aeropuerto Internacional Guaraní (AGT)](https://www.freight-academy.com/en/information/airports/aeropuerto-internacional-guarani-airport-agt)
- [Aeropuerto Internacional Silvio Pettirossi (ASU)](https://www.freight-academy.com/en/information/airports/aeropuerto-internacional-silvio-pettirossi-airport-asu)
- [Aeropuerto Internacional Tte. Amín Ayub González (ENO)](https://www.freight-academy.com/en/information/airports/aeropuerto-internacional-tte-amin-ayub-gonzalez-airport-eno)
- [Aeropuerto Nacional Doctor Juan Plate (VMI)](https://www.freight-academy.com/en/information/airports/aeropuerto-nacional-doctor-juan-plate-airport-vmi)
- [Aeropuerto Nacional Dr. Augusto Roberto Fuster (PJC)](https://www.freight-academy.com/en/information/airports/aeropuerto-nacional-dr-augusto-roberto-fuster-airport-pjc)
- [Aeropuerto Nacional Juan de Ayolas (AYO)](https://www.freight-academy.com/en/information/airports/aeropuerto-nacional-juan-de-ayolas-airport-ayo)
- [Aeropuerto Nacional Tte. Cnel. Carmelo Peralta (CIO)](https://www.freight-academy.com/en/information/airports/aeropuerto-nacional-tte-cnel-carmelo-peralta-airport-cio)
- [Aeropuerto Nacional de Coronel Oviedo](https://www.freight-academy.com/en/information/airports/aeropuerto-nacional-de-coronel-oviedo-airport-7550)
- [Aeropuerto Nacional de Itaipú](https://www.freight-academy.com/en/information/airports/aeropuerto-nacional-de-itaipu-airport-14834)

## Customs & Import

**Import VAT:** Import IVA 10 percent standard rate  
**Customs complexity:** medium  
**Customs system:** Electronic import clearance via the DNIT SOFIA system (General Customs Management, formerly DNA). Declarations submitted by licensed customs agents; Ventanilla Única del Importador (VUI) for additional permits.  
**Customs authority:** [Dirección Nacional de Ingresos Tributarios (DNIT), Gerencia General de Aduanas](https://www.dnit.gov.py)

## Logistics & Risk

**Logistics role:** Landlocked country with river logistics / agricultural exporter  
**Economic area:** Mercosur  
**Logistics risk:** medium  
**Dangerous goods relevance:** medium  
**Pharma/cold chain:** medium to high

## FAQ

### What is the import tax rate in Paraguay?

The IVA (VAT) standard rate is 10 percent. A reduced rate of 5 percent applies to basic foodstuffs and human medicines (Law 6380/2019). The tax is levied on import by the DNIT.

### Which authority handles customs in Paraguay?

Since the 2024 merger the Dirección Nacional de Ingresos Tributarios (DNIT) is responsible; its Customs General Management replaced the former DNA. Declarations are filed electronically via the SOFIA system.

### How does a landlocked country reach world trade?

Via the Paraguay-Parana waterway: around 80 percent of foreign trade moves by barge to the ports of the Rio de la Plata (Argentina, Uruguay). Paraguay has the world's third-largest river fleet.

### Which free-trade agreements apply to Paraguay?

Paraguay is a founding Mercosur member applying the common external tariff. The EU-Mercosur agreement has been provisionally applied since 1 May 2026; the EFTA-Mercosur agreement (including Switzerland) was signed on 16 September 2025 and is not yet ratified.

### Which proof of origin is needed for preferences?

For Mercosur preferences the Mercosur Certificate of Origin is used. For third markets the proof depends on the respective agreement. Until end-2038 Paraguay may use higher shares of non-originating inputs for many goods.

### Which ports and airports matter for cargo?

The main river ports are Villeta, Asuncion, San Antonio and Pilar. Air freight runs through Silvio Pettirossi International Airport (ASU) in Asuncion and Guarani International Airport (AGT) near Ciudad del Este.

### What seasonal risks affect logistics?

The main risk is low water (bajante) on the Paraguay River, which in dry years (e.g. 2021 and 2024) markedly reduces barge loading depth and thus the freight capacity of the waterway.

## Sources & Last Verified

- [https://www.dnit.gov.py](https://www.dnit.gov.py)
- [https://www.dnit.gov.py/web/portal-institucional/dtic-sofia](https://www.dnit.gov.py/web/portal-institucional/dtic-sofia)
- [https://ghp.com.py/news/ley-7143-que-crea-la-direccion-nacional-de-ingresos-tributarios/](https://ghp.com.py/news/ley-7143-que-crea-la-direccion-nacional-de-ingresos-tributarios/)
- [https://www.dnit.gov.py/web/portal-institucional/w/iva-tasas](https://www.dnit.gov.py/web/portal-institucional/w/iva-tasas)
- [https://www.bacn.gov.py/leyes-paraguayas/9332/ley-n-6380](https://www.bacn.gov.py/leyes-paraguayas/9332/ley-n-6380)
- [https://www.economia.gov.py/index.php/paraguay-y-el-mundo/aranceles-la-importacion](https://www.economia.gov.py/index.php/paraguay-y-el-mundo/aranceles-la-importacion)
- [https://www.consilium.europa.eu/en/policies/eu-mercosur-agreements-explained/](https://www.consilium.europa.eu/en/policies/eu-mercosur-agreements-explained/)
- [https://www.mercosur.int/en/efta-mercosur-free-trade-agreement-joint-statement](https://www.mercosur.int/en/efta-mercosur-free-trade-agreement-joint-statement)

*Last verified: 2026-06-27*

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