Country profile
Paraguay
PY · PRYAs of: 6/27/2026Landlocked country with river logistics / agricultural exporter
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.
Overview
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).
Mentioned countries
Customs & Import/Export
Import 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.
Export system
Export clearance also via SOFIA of the DNIT. Exports mainly move by inland waterway via the Paraguay-Paraná Waterway (Hidrovía) to ports on the Río de la Plata; declarations submitted by licensed customs agents.
Import VAT
- Import IVA 10 percent standard rate
- reduced 5 percent on basic foodstuffs and human medicines (Ley 6380/2019). Collected at import by the DNIT.
Import documents
- Commercial invoice (Factura comercial)
- Packing list
- Transport document / Bill of lading (B/L, CRT, AWB)
- Import declaration (Despacho de importación, SOFIA)
- Certificate of origin for preferences
- Health and phytosanitary certificates (SENACSA/SENAVE)
Export documents
- Export declaration (Despacho de exportación, SOFIA)
- Commercial invoice
- Packing list
- Transport document (B/L, CRT)
- Mercosur Certificate of Origin
- Phytosanitary and veterinary certificate (SENAVE/SENACSA)
Origin proofs / FTA
Mercosur member: Mercosur Certificate of Origin for preferences. EU-Mercosur Agreement provisionally applied since 1.5.2026; EFTA-Mercosur Agreement signed 16.9.2025, ratification pending.
Restricted & prohibited goods
Subject to authorization, among others: weapons, ammunition, explosives, medicines, chemicals, as well as agricultural and plant goods (SENAVE phytosanitary, SENACSA veterinary). Used vehicles subject to age limits.
Export controls & sanctions
No autonomous sanctions regime; as a UN member, implements sanctions of the UN Security Council. Mercosur foreign trade rules apply; no separate dual-use export control.
Without warranty — always verify with freight forwarder/customs agent and official authorities.
Customs / Import / Export (Americas) — General process
Quick operational overview for international shipments to the Americas. Depending on the destination, additional security filings, product requirements, or broker processes may apply.
Documents (typical)
- Commercial invoice (description, value, Incoterms)
- Packing list (weights, dimensions, packages)
- HS code / tariff classification
- Proof of origin / preference docs (where relevant)
- Transport documents (AWB / Bill of Lading) depending on mode
Process (simplified)
- Prepare export (docs, HS code, origin)
- Import clearance in destination country (declaration, possible checks)
- Release and delivery; duties/taxes according to classification and value
Important: Requirements depend on goods, origin, Incoterms, value, and consignee. When in doubt, confirm with your broker/forwarder and official sources.
Official links
Note: regional/general sources. Country-specific authority links will be added iteratively.
Trade
Freight Infrastructure & Transport Network
Transport relevance
Cargo airports
- Silvio Pettirossi International Airport, Asunción (ASU)
- Guaraní International Airport, Ciudad del Este (AGT)
Seaports / access ports
- No seaport of its own (landlocked); sea access via Buenos Aires/Rosario (AR) and Montevideo/Nueva Palmira (UY) via the Hidrovía
Inland ports & terminals
- Villeta (main container river port)
- Puerto de Asunción
- Terport / Caacupemí (Asunción)
- San Antonio
- Pilar
- Ciudad del Este
Road corridors & border crossings
- Route PY02/PY07 Asunción - Ciudad del Este - Foz do Iguaçu (Brazil)
- Asunción - Clorinda/Puerto Falcón (Argentina)
- Bioceanic Corridor through the Chaco towards Chilean Pacific ports
Top trade lanes
- Paraguay-Paraná Waterway (Hidrovía) - Río de la Plata (Atlantic)
- Paraguay - Brazil (Ciudad del Este)
- Paraguay - Argentina
- Paraguay - EU/EFTA
Risk & Operational Notes
Risk notes
Landlocked country: foreign trade depends heavily on the Hidrovía. Low water (bajante) on the Paraguay River can severely restrict draft and convoys (most recently in 2021 and 2024). Dependence on ports in Argentina and Uruguay.
Seasonal & weather risks
Subtropical climate; rainy season October to April. Summer low-water phases (bajante) on the Paraguay River periodically limit navigability of the Hidrovía and thus freight capacity.
Current logistics notes
Status 2026: EU-Mercosur Agreement provisionally in force since 1.5.2026; EFTA-Mercosur (incl. Switzerland) signed 16.9.2025, ratification ongoing. Customs and tax administration merged into the DNIT since 2024.
As of: 2026-06-27
Operational notes – no claim to completeness. Verify with your freight forwarder and official sources.
Airports in this country
Latest News
Sources & Data Confidence
Official sources
- dnit.gov.py
- ine.gov.py
- mef.gov.py
- mercosur.int
Source references without warranty. For legal/tax decisions consult official authorities.
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.
Which trade partners are important for Paraguay?
Which logistics terms are especially relevant for Paraguay?
For international shipments, these terms are a good quick start:
Next steps
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