With the entry into force of the Single Central American Declaration, businessmen in the region report losses because of the delays generated by the implementation of the new system in the import and export processes.
At the end of March, a report was made that the Council of Economic Ministers (COMIECO) agreed to postpone to May 7, 2019, the entry into force of the Single Central American Declaration (DUCA), which had initially been set for April 1, 2019.
With the aim of better publicizing the operation of the Single Declaration, it was agreed to postpone the entry into force of the document until May 7, 2019.
The entry into force of the Central American Single Declaration (DUCA) had initially been set for April 1, 2019.
From the statement of the Single Window for Exports of Guatemala:
March 28, 2019. The Customs Office of the Superintendency of Tax Administration (SAT) informs that the Council of Economic Ministers (COMIECO) in a meeting held on March 28, 2019 in Guatemala City, through Resolution No. 410-2019, agreed to postpone until May 7, 2019, the entry into force of the Central American Single Declaration (DUCA) which had been set for April 1, 2019.
Central American businessmen assure that the customs tax on the transport of cargo in transit or with final destination that the Nicaraguan government wants to impose "threatens the instruments of Central American integration, and becomes an obstacle to intraregional trade.
Weeks ago it was reported that from March 15 would begin to collect the customs tax, however, the authorities did not specify what amount will be required from carriers.
In 2018, trade between the two countries totaled $968 million, 6% more than in 2017.
Figures from the Secretariat of Central American Economic Integration (Sieca), specify that last year 82% of trade between the two countries was for sales from Guatemala to Honduras, and the remaining 18% from Honduras to Guatemala.
Guatemala, El Salvador and Honduras have yet to finalize their Customs Union, since this week a new round of negotiations began in which they will follow up on the project to implement the advance declaration.
Although in December 2018 it was reported that the El Poy integrated border post in Chalatenango, the first to have the necessary infrastructure to operate within the framework of the customs integration of the Northern Triangle, began operating in El Salvador, the unification process is currently under negotiation among the countries.
In El Salvador, the integrated border posts El Poy, in Chalatenango, the first to have the necessary infrastructure to operate within the framework of the customs integration of the Northern Triangle, became operational.
After the adaptation of the border post, the infrastructure and computer systems of El Poy are practically ready to operate, however, the products that will have free circulation between the three countries and which goods will continue to be protected have yet to be defined.
After several rounds of negotiations, El Salvador formally joined the Customs Union process with Guatemala and Honduras, so it will have to adjust its systems to the community information platform.
Authorities from the countries of the Northern Triangle reported that since November 20th, El Salvador has been fully incorporated legally and administratively into the process of Deep Integration of the Customs Union between Guatemala and Honduras.
On November 12th, the VII Round of Negotiations for the inclusion of El Salvador in the integration process towards the free transit of individuals and goods between Guatemala and Honduras began in San Salvador.
The negotiations between the three countries will last the entire week and it is expected that this round of dialogues will address issues related to the customs, migration, sanitary and phytosanitary challenges facing El Salvador.
The second round is being held in Panama, where representatives of the Central American countries will discuss advances and proposals regarding the integration of the region.
The round is formed by two groups, one normative technical and the other IT technical, with a broad agenda that will be discussed from October 15th to 17th. The agreements reached will be presented on Thursday 18th and Friday 19th, at the meeting of the General Directors of Customs of Central America.
The Costa Rican company Desacarga will be the authorized company to provide, from September, a maritime cargo service between the Salvadoran port of La Unión and Caldera, in Costa Rica.
Monica Segnini, CEO of Desacarga, told Elmundo.sv that "... the company is 'finalizing the final details to start operating the ferry in September', which, she explained, will offer a cargo and passenger transportation service both on the Pacific coast, and on land borders."
It has been estimated that since the crisis began in Nicaragua, losses in trade between Nicaraguan and Salvadoran companies amount to $12 million.
The cheese and milk trade is the area that has been most affected by the socio-political crisis occurring in Nicaragua.According to representatives from the Ministry of Economy of El Salvador, losses in bilateral trade not only of cheese and milk, but also of other goods, amount to $12 million.
The Legislative Assembly of El Salvador has approved incorporation into the Customs Union between Guatemala and Honduras.
Although an improvement has been reported in the transit of goods through customs posts as well as an increase in bilateral trade, there are still a lot of aspects that need improving, according to businessmen who trade among these countries.See "Customs Union: Good results, but improvement still needed"
Reduced times to move goods through customs posts and an increase in bilateral trade are some of the results of the first year of the Customs Union between Guatemala and Honduras.
Twelve months after the entry into force of the treaty between the two countries, trade figures have favored the two Central American countries. In 2017, exports from Honduras to Guatemala totaled $384 million, 16% more than in 2016, and sales made from Guatemala to Honduras amounted to $967 million, which is equivalent to a 6% increase.
In the fourth round of negotiations to incorporate El Salvador into the customs union process with Guatemala and Honduras, issues such as internal taxes, phytosanitary measures and tariffs, among others, will be discussed.
From a statement issued by the Ministry of Economy of El Salvador:
The IV Round of negotiations for the incorporation of El Salvador into the process of Deep Integration towards the Free Transit of People and Goods between the Republics of Honduras and Guatemala, began today in San Salvador.
Starting from March 1, use of the Invoice and Central American single declaration will be mandatory to transport merchandise through border posts between Guatemala and Honduras.
In December authorities in Guatemala and Honduras decided to postpone the mandatory use of the Central American single invoice and declaration (Fyduca) form, due to, among other things, ignorance about the use of the system on the part of some companies.