The autonomous tariff cut plan initiated in 1997 and to be fully applied by July 2004 and CACM commitments allowed the setting of 55% tariff on sugar, duty-free entry on cement since 1998, and tariff cuts on new tyres from 10% to 5% as of July 1999. Other reductions are scheduled for dried beans and white maize from 25% to 10% as of July 2000, rice from 30% to 10% depending on the type as from July 2004;  yellow maize and sorghum from 15% to 10% as from July 2000; poultry whole or cut and breasts from 60%  to 10% as from July 2000 and poultry legs and thighs from 200% to 100% as from July 2002. CACM-related changes (Part I of the Joint tariff) have allowed Nicaragua to reduce autonomously maximum tariff levels  for finished consumer goods from 15% to 10% as from July 1999. In addition import duties on motor vehicles in tariff line 8703 have been set at a single rate of 10% except for ambulances and hearse set at 5%.

Furthermore, Nicaragua's scheme for the concessional entry of imports revised in 1997 includes at present duty free import for the following goods: raw materials, intermediary goods and capital goods for the agriculture, livestock, and fisheries sector, and small-sized handicraft firms; crude or partially refined or reconstituted oil and certain oil derivatives; machinery, raw materials, components, packaging materials; import relating to the construction of hotels and entertainment centres; orthopaedic appliances, medicaments, and vaccines for human use as well as inputs and raw materials relating to their production; material, equipment, furniture, ustensils, and machinery for the construction and operation of hospital centres and their annexes; material related to the activities of certain educational and public interest institutions (fire brigade, Red Cross); paper, machinery and equipment for the mass media (press, broadcasting); books, newspapers, magazines, school and scientific material; machinery and equipment, asphalt, and vehicles purchased by the authorities for construction, maintenance, and cleaning of the road network; short-term entry of laptop computers, business samples, professional equipment, and exhibit materials.

An amendment to the Ley de Justicia Tributaria (Tax Justice Act) voted by the National Assembly in April 2000 established tax exemptions for: non-governmental organizations with non-profit activities; import, luxury and sales taxes exemptions for hospital investments; reduction of the tax levied on vehicules based on engine size, aliviating discriminatory tariff treatment against bigger American cars and their similar Japanese; exemption of crude or partially-refined petroleum from import, sales and temporary  protective tariffs; and elimination of import taxes on capital goods, intermediate goods, and raw materials destined for the agricultural sector, small handicraft, fishing and acquaculture industries. 

On 12 February 1993, Nicaragua together with Costa Rica, Honduras, El Salvador and Guatemala, signed in Caracas, Venezuela, with the presidents of the "Group of Three" member countries i.e. Colombia, Mexico and Venezuela, a framework agreement applicable as of  30 June 1993, for the establishment of a free zone in the sub-region. 
The Agreement provides for the elimiation of import duties on most products originating from member countries; import duties on most products will be eliminated within one to three years with respect to Central American products and within five to ten years for Colombian and Venezuelan products. Tariff reductions between Mexico and Central American countries will be agreed on a bilateral basis. The Declaration of Caracas, lays the foundation for a free trade zone between the Group of Three, Central America and the Caribbean.  A free-trade agreement signed on 16 April 1998 by Nicaragua, El Salvador, Costa Rica, Guatemala and Honduras with the Dominican Republic, came into force on 15 October 2001.

In December 1994, Nicaragua participated in the Summit of the Americas at which, heads of state from all coutries in the western hemisphere (except Cuba) agreed on a programme for a Free Trade Area for the Americas (FTAA) by the year 2005. 

After a meeting of deputy foreign ministers of Central America and Chile on 17 August 1998 in Santiago during the 2nd summit of the Americas held in Santiago, on 18 October 1999 in Guatemala City, the presidents of Nicaragua, El Salvador, Costa Rica, Guatemala, Honduras and Chili signed the definitive text of the free trade agreement between Chile and the Central America.

Nicaragua and other 23 countries from Central America and the Caribbean area, benefit from the CBI, the Caribbean Basin Initiative, a US programme, in force since 1984, it grants total exemption from import tariffs until 2008 for a wide range of goods originating in the CBI area, with the exception of the following goods: clothing and textiles (for which exists a special programme guaranteeing access to the american market for clothes made in the CBI); canned tuna, petroleum and petroleum products, footwear excepted disposable articles and shoe parts, some leather rubber and plastic gloves, certain leather garments, clocks and clock parts.

Relations between the CBI countries and the United States of America have been strengthened with the signature by President Clinton on 2 October 2000, of the Caribbean Basin Trade Partnership Act (CBTPA) which grants the countries of the Caribbean Basin, beneficial tariff rates and quotas in the USA, to textiles and apparel products assembled from U.S. fabrics excluded from the programme.

Nicaragua and the other Central American governments and Mexico signed in January 1991, the Tuxtla Gutiérrey Declaration with a view to establishing a free trade area. In August 1992, the same countries signed a Multilateral framework Agreement for a Trade Liberalization Programme. 

Nicaragua and Honduras are negotiating the establishement of a customs union by 2002. 

When goods are classified at a higher rate of duty than is correct, a fine equivalent to 5% of the difference in customs duties will be applied; when goods are underclassified, a fine equivalent to 25% of the difference in customs duties will be applied. If the weight declared is lower than the actual weight by 10 percent or more, a fine will be levied equivalent to 25% of the difference in duties based on the correct and incorrect weight.