With $80 million from the IDB and the European Union modernization works will be undertaken at five land border crossings.
According to Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), "...'First there was an IDB contribution of approximately US $60 million and we have managed to negotiate, according to what was reported at the Roatan summit, a week ago, the EU providing another US $20 million'. "
The Nicaraguan private sector claims that customs is demanding that form be completed in English, and they are charging for import certificates in dollars instead of the local currency.
The Superior Council of Private Enterprise in Nicaragua (COSEP) has protested against Customs offices continuing to hamper trade and generating delays in the transit of goods to the region.
If the proposed amendment to the Scanner Act is approved, the fee to be charged will be $70 on merchandise worth over $2,000 and $20 on goods ranging in value from $500 to $2000.
In addition, there will be a fee of $25 on freight from the free zone declared in air customs offices and $30 of free zone goods declared in land and maritime customs offices.
Employers are demanding greater efficiency and speed in the process of monitoring and reviewing merchandise in the country's customs offices.
Between three hours and several weeks is the time it can take a van with merchandise to have its permit to enter or leave the territory processed at the office of El Guasaule in Somotillo, Chinandega, the third most important border in the country, through which 300 to 400 trucks pass per day."The problem is repeated in the 11 air, sea and land customs offices in Nicaragua."
From the border with Mexico up to Darien in Panama, customs offices are hindering trade and conspiring against the region's development.
According to the Corporation of Guatemalan Customs Agents (CAAG), delays suffered by transport carriers alone make goods 5% more expensive for Central American consumers. But added to this is 30% for sanitary and phytosanitary barriers and non-tariff measures that are applied in each country.
Entrepreneurs and drivers and transporters indicate that there are a lot of inconveniences in the customs office at Port Corinto.
Truckers for example, complain of constant fines, confiscation of vans and goods without any legal reason. They are also required to pay for stays in the harbor of Punta Icaco because front loading machines are only available at night.
The concessionaire in charge of scanning services in Nicaraguan customs offices would recover its investment in 15 months and earn $220 million in the 15 year contract.
From all this money, 10% will go to the Directorate General of Customs (DGA). According to preliminary calculations made by the Nicaraguan private sector, the company will invest about $22.4 million in the seven scanners to be installed in each of the seven Nicaragua customs offices, recovering its investment in just 15 months.
In Nicaragua the Concession Act for Non Intrusive Inspection has been approved, allowing the award for a period of 15 years of a contract to a Panamanian company.
According to the deputy Jenny Martinez, with the award (prior to approval of the Act) the company Alvimer Internacional are ensuring the use of modern technology scanners to move goods, which will save time for the commercial sector and therefore also save money.
A new customs office to be inaugurated in March 2014 will save commercial cargo 140 miles of travel to Puerto Limon in Costa Rica.
The president of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri has asked for "strengthening and securing of the new border crossing" in order to promote trade.
According to Aguerri, the opening of the office called Santa Pancha, "will have a good very positive impact on our commercial loads, on the cargo passing through Nicaragua to Puerto Limón".
Preparations are being made for a single form that will streamline customs trade ahead of the entry into force of the Association Agreement between Central America and the European Union.
According to the president of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri, already working on this issue are the Central American Integration System (SICA), and the Secretariat of Central American Economic Integration (SIEC).
Joint work by businessmen and the Customs Department has born fruit in solving the bureaucratic problems in importing products.
"Today if a customs official imposes a fine, they do not retain the goods, and it will not stop the process, we will ensure that processes are facilitated", said Aguerri Adam Joseph, president of the Superior Council of Private Enterprise(COSEP) at a press conference.
Instead of being reduced, bureaucracy at the Central American borders is becoming increasingly burdensome, complicating and making intra regional trade more expensive.
Constant delays which increase transportation costs, lack of progress in the streamlining of customs procedures and a perceived stagnation of the customs and economic integration project are the most pressing problems observed by business associations in Central America.