Honduras - Guatemala Customs Union: How does it work?

Which goods can circulate freely and through which border posts, what procedures need to be done and other details about how the customs union functions.

Wednesday, June 28, 2017

From a report by Agexport:

1.  From now on exports to Honduras will technically be treated as transfers and imports as acquisitions. 

2.  In its first phase, the single customs territory will include 12 peripheral customs offices and 3 integrated border posts.

3.  The customs offices with integrated border posts are:   Agua Caliente at kilometer 240 on the Central American Highway, Esquipulas, Chiquimula; El Florido at kilometer 228 on the Central American Highway, Camotán, Chiquimula and the border crossing between Ríos , Puerto Barrios, Izabal.

4. The main change is that with this customs union free circulation will be enjoyed more than 95 percent of the tariff universe and approximately 70 percent of current bilateral trade.

Read full report (in spanish).

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The Customs Union in the Northern Triangle

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Negotiations have started to incorporate El Salvador into the Customs Union that is already functioning, albeit partially and with some setbacks, between Guatemala and Honduras.

Internal taxes, customs procedures, migration, tariffs and sanitary and phytosanitary permits are some of the issues to be addressed in the first round of negotiations between the Salvadoran government and its Guatemalan and Honduran counterparts. 

Honduras - Guatemala: Customs Union is Still Possible

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Despite the corruption scandals that tarnished the policy in Guatemala and Honduras, Honduran businessmen say the project of to unify the border posts at the end of the year is still moving forward.

Amid strikes, marches and demonstrations which have taken place in Guatemala and Honduras, working groups composed of representatives of the private sector in both countries and the government have not stopped working, as reported entrepreneurs like Maria Antonia Rivera, from the Chamber of Commerce and Industries of Cortés.

Guatemala - Honduras Border Integration Starts

June 2015

The first stage of the pilot program, which began on June 1, consists of transferring the post of El Florido Guatemala, to Honduran offices in Agua Caliente.

The second phase, scheduled for December, "... involves the installation of "peripheral posts", with which border points will be removed and turned into only crossing and control points, trade will through peripheral positions.

Governments Hinder Intra-Regional Trade

July 2014

Despite the antiquity of the efforts for Central American integration and for the Customs Union the obstacles to trade between the countries on the isthmus presented by customs offices are notorious.

The Federation of Chambers and Associations of Exporters of Central America (Fecaxca) is once again calling for policies and common strategies for standards and customs procedures.

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