Paraguay

Compliance/Financial Considerations

If you intend to do any of the following in Paraguay, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2.

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Paraguay, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Paraguay. For more information about double taxation issues, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122. Transparency International’s 2018 survey of perceived public sector corruption rated Paraguay at 29 out of 100 (132nd out of 180 countries reviewed, i.e.  corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations.

Articles

The US State Department's page on PARAGUAY may be found HERE.

Personal Safety

AUTHORITIES IN PARAGUAY HAVE FURTHER RELAXED RESTRICTIONS ON NONESSENTIAL ACTIVITIES UNDER THE NEW CORONAVIRUS DISEASE (COVID-19) RECOVERY MEASURES ANNOUNCED FOR NOVEMBER 16-DECEMBER 6. AUTHORITIES BEGAN THE GRADUAL REOPENING OF THE COUNTRY'S BORDERS IN MID-OCTOBER. INTERNATIONAL FLIGHTS AT SILVIO PETTIROSSI INTERNATIONAL AIRPORT (ASU) RESUMED OCTOBER 21. AS OF NOVEMBER 16, ENTRY REQUIREMENTS FOR ALL ARRIVING TRAVELERS HAVE BEEN REVISED, AND THE MANDATORY 14 DAY QUARANTINE REQUIREMENT HAS BEEN EASED. ALL PERSONS ENTERING THE COUNTRY MUST PRESENT PROOF OF A NEGATIVE PCR TEST TAKEN WITHIN 72 HOURS BEFORE ARRIVAL OR COMPLETE A MANDATORY 14 DAY SELF QUARANTINE. AUTHORITIES COULD REIMPOSE, EXTEND, FURTHER EASE, OR OTHERWISE AMEND ANY RESTRICTIONS WITH LITTLE TO NO NOTICE DEPENDING ON DISEASE ACTIVITY OVER THE COMING WEEKS. HIGHLY TARGETED LOCALIZED MEASURES COULD BE ENFORCED IN SOME COMMUNITIES.

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu (link sends e-mail).

If you are traveling to Paraguay on University-related business, please sign up for the University’s travel insurance program by going here (link is external). For more information on the travel insurance program, please go here

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic (link is external)

The quality of health care in Asuncion can be good, but elsewhere in Paraguay medical services are either limited or non-existent. Medical evacuation may be the best treatment option for a serious injury or illness. The US Embassy maintains this list (link is external) of ambulances and hospitals in Paraguay, although it makes no representations concerning their availability or performance.

The drinking water in Paraguay’s urban areas is usually potable, but power outages, water shortages, and other problems may compromise water quality. The drinking water in rural areas may be contaminated with pathogens and chemicals. To reduce the risk of gastrointestinal discomfort or illness, drink only bottled, boiled, or purified water. Travelers should use well-recognized brands of bottled water whenever possible.

Street vendors and other unregulated food distributors often have poor hygiene standards and should be avoided. Travelers should also avoid raw or undercooked meat dishes and unpasteurized dairy products, which frequently harbor bacterial and parasitic pathogens.

Travelers risk contracting a number of serious illnesses in Paraguay, including:

  • Malaria, transmitted by mosquito bites year-round, with elevated risk from February through June.
  • Typhoid, transmitted by contaminated food, water, or milk.
  • Dengue fever, yet another mosquito-borne disease. Risk is countrywide throughout the year.
  • Leishmaniasis, transmitted by sand flies. Areas of highest risk include the departments of Caaguazu, Canindeyu, San Pedro, Alto Parana, Amambay, Caazapa, and Guaira.
  • Hantavirus, transmitted through rodent waste, in rural and semi-rural areas. The central Chaco region has reported the most cases.

The crime rate in Paraguay is high and rising, especially in Asuncion and Ciudad del Este. Visitors to Asuncion should limit travel to downtown tourist sites, shopping areas, and the riverfront government district. Due to the widespread risk of fraud, restrict credit card use to upscale hotels, stores, and restaurants, and witness all transactions. Go inside banks or large hotels to use ATMs.

Public transportation should be avoided. To get around by car, use a private vehicle or a taxi secured through a trusted source. The carjacking risk is sufficiently high that travelers should use vehicles only during the day on well-traveled streets and highways. Roadside banditry is common in Canindeyu, San Pedro, and Caaguazu.

Strikes and protests periodically disrupt Asuncion. Avoid demonstrations, as violence may ensue if the police attempt to disperse protestors.

The Paraguayan police have a reputation for corruption. The armed forces are better paid and trained and are often more responsive to security concerns. 

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned. Penalties for possessing, using, or trafficking in illegal drugs in Paraguay are severe, and convicted offenders can expect long jail sentences and heavy fines. Additionally, it is not uncommon for individuals detained on drug-related charges to spend extended periods in detention before trial. Furthermore, some laws are also prosecutable in the United States, regardless of local law. 

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately.

LGBTI Travelers: There are no legal restrictions on same-sex sexual relations or the organization of LGBTI events in Paraguay.