In order to guarantee the supply of basic grains in the country, the Salvadoran government has signed an agreement to import 35,000 tons of white corn.
Due to the lack of rain that has affected crops in areas of the east of the country, the government signed an executive agreement between the ministries of Agriculture, Economy and Finance, to import basic grain.
Salvadoran exporters claim that the system used by the Ministry of Finance from November to return VAT has put a strain on companies liquidity.
The new mechanism to refund VAT to exporters (which has been in force since November), has caused new problems between the sector and the tax authority of El Salvador.
In El Salvador the export sector claims that delays of up to nine months are being reported on tax refunds due from the Treasury, which should take no more than 30 days.
Seven months ago the Exporters Corporation of El Salvador (Coexport) submitted to the Ministry of Finance a proposal for self-assessment of Value Added Tax (VAT) with the aim of reducing the time it takes to receive tax refunds.
The measure announced by the Salvadoran government applies to the import of live pigs, meat and meat products.
From a statement issued by the Ministry of Finance of El Salvador:
The prohibition of the importation of pigs from Guatemala is being maintained
The Directorate General of Livestock, at the Ministry of Agriculture reports that the restriction on the import of live pigs will be maintained, as well as fresh, cured, frozen meat, semen or other genetic material of porcine origin, from Guatemala.
Salvadoran Customs offices have increased charges for procedures at night or at weekends, from $6.86 to $315.24.
According to representatives from business and industry, this measure taken by the Salvadoran government, threatens to undermine the productive chain and business in the country.
"The discomfort arises because the Ministry of Finance through the Directorate General of Customs, promoted Executive Agreement number 763, published in the Official Journal on 29 April, which details charges of $259.33 per hour for extraordinary services (those between 4:00 and 6:00 pm), when previous charges were $3.43 ", reported Elsalvador.com .
The legislature has passed a special scheme for fast entry of goods into the country, for a 30 day period.
The measure seeks to reward those importers who have incurred losses the week long closure of several border posts because of a strike by customs workers.
Workers agreed to lift the measure, which began as a protest against non-payment of a $1,000 bonus, after negotiating with the tax authorities.
The Ministry of Finance’s customs and administrative services have been re-established and imports and exports are being processed normally.
The strike held last week has generated millions in losses not only for the country’s trade but throughout the region.
This morning the resumption of activities was reported at various border points such as Anguiatú and San Cristobal, Santa Ana and El Amatillo, in La Union.
The Salvadoran border closure is affecting not only the local industry but also neighboring countries with losses of millions of dollars.
Since last Tuesday, the strike at the borders which led to the cessation of domestic trade, has also affected regional trade.
"The blockade has generated, since that day, the paralysis of trade, not only locally but also regionally, as trucks could not transport import and export products.
Officials at the Ministry of Finance and Customs have kept customs offices at a standstill for the third day running.
Business groups are concerned about the extent of the emergency measure which has generated large economic losses for businesses.
Laprensagrafica.com reports, "At the customs border posts of El Poy, El Amatillo, The Chinamas and The Hachadura, staff of the National Civil Police (PNC) was deployed during the morning to streamline administrative processes and prevent transit through them being further affected.
Goods vehicles can not pass through customs posts at the Salvadoran border, where Treasury officials are on strike.
Various business groups have expressed concern about the strike, which is causing serious economic losses for businesses.
Regarding this, the Chamber of Commerce and Industry in El Salvador states that "We have learned from our partners that the suspension of customs duties has already begun to generate losses of perishable products, delays in delivery times and possible shortages of basic goods, especially vegetables from other countries in the region and those that supply El Salvador. "
Last year, the Stock Exchange of El Salvador negotiated credit notes for $120 million, and so far in 2012, $37 million has been negotiated.
From a press release of the Exporters Corporation of El Salvador:
So far in 2012, the Stock Exchange of El Salvador (BVES) has negotiated $37 million in Public Treasury Credit Notes (PTCN) issued by the Government through the Ministry of Finance.
After reaching a partial agreement with tax authorities, customs officials have allowed perishable cargo to enter the country.
For the moment all other cargo is being detained at the border.
In the next few hours negotiations will be held is to discuss labor agreements that will allow the full recovery of customs activities.
"... The Salvadoran Association of Industries (ASI) said that the closure of customs offices across the country is holding up the daily trade flow of exports and imports worth about $40 million", reports Laprensagrafica.com
A dedicated electronic processing desk for exports and imports in El Salvador (CIEX) is now connected to the local customs offices and those of Honduras, Guatemala and Nicaragua.
Costa Rica will be added soon.
Cornelio Deras, director of the Center for Import and Export Procedures (CIEX), noted that the technology they are using allows them to connect to any country with whom they have a free trade agreement or a commercial interest.
The Directorate General of Customs has launced the PAGOES platform (Electronic Payment of Government of El Salvador).
Through this system, users will pay fees and other costs related to import procedures such as VAT, accessories, fines and excises.
The new method of payment will expedite the paperwork, said Luis Ernesto Angulo, Deputy Director General of Customs, adding that "the user, from the comfort of their home or office, can fulfil their obligations. No more going to the bank to make all the payments. "
The Ministry of Finance examines the installation of mobile customs offices at illegal border crossings.
The salvadoran Customs Director, Carlos Cativo, said they have already received instructions from the Ministry of Finance and are coordinating with migration and Agriculture for the creation of border points.
"He also stated that the border point model designed will be mobile because it is projected each stay to be able to rotate and the computer equipment to be used to also be portable," informs the article in Laprensagrafica.com.