Due to the tropical storms Eta and Iota, severe damage has been reported to the road network in Central American countries, and some border posts in Guatemala, Honduras and El Salvador have been suspended.
Since November 17, operations were suspended at the El Corinto, El Florido and Aguas Calientes border posts. These areas, shared by Guatemala and Honduras, are not operational, according to the Guatemalan Superintendence of Tax Administration (SAT).
As of October 1st, Guatemala and Honduras will begin operating three Peripheral Customs Offices, areas that will simplify procedures and allow free community mobility between both countries.
Guatemalan and Honduran taxpayers who make definitive imports to each State Party will be the ones to benefit from the implementation of this type of customs, since the goods imported under this modality will enjoy free mobility.
In this scenario of economic crisis, falling tax revenues and the need to finance recovery programs, in Guatemala and Costa Rica it is already proposed to increase current taxes and create new ones.
Guatemalan authorities are already beginning to discuss the fiscal policy they will apply in 2021, when the economy will have to face the effects of the economic crisis generated by the covid-19 outbreak.
Delays are reported in Salvadoran customs in San Cristóbal and La Hachadura, and difficulties in the port of Santo Tomás de Castilla, in Guatemala, because of the implementation of DUCA.
The Inter-American Commission for Trade Facilitation (CIFACIL) of El Salvador asked the Superintendency of Tax Administration (SAT) of Guatemala, to work to solve the problems that Salvadoran companies are facing in the port of Santo Tomás de Castilla, Guatemalan maritime terminal in the Atlantic, arising from the implementation of the Single Central American Declaration (DUCA).
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.
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 union of Salvadoran freight forwarders has announced that they could stop transporting merchandise to the neighboring country on November 1 and 2, in protest against a supposed extraordinary charge of $40 that the Guatemalan tax authority levies during the holidays.
Although the Salvadoran Association of International Freight Carriers (Astic) insists that they have to pay this additional fee when they enter Guatemala with merchandise on holidays, the Superintendency of Tax Administration (SAT) explained that in those days there is no extra charge.
The passage of freight transport is being blocked by demonstrations held by Guatemalan teachers which have forced the closure of the customs offices of Pedro de Alvarado, San Cristobal and La Ermita.
The private sector grouped under the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif) has called for an end to the blockades that are already affecting Puerto Quetzal and the route to the border at Pedro de Alvarado, in Jutiapa, towards El Salvador.
In the customs offices of Tecun Uman working hours have been extended both on the Guatemalan and Mexican side in order to allow passage of trucks which until now had been left stranded.
The Superintendent of Tax Administration is also operating an extraordinary timetable, a measure which could be extended for a few days, depending on what is decided at the end of the weekend.
An announcement has been made that in 2016 an integrated system will be used to to carry out fiscal, safety and phytosanitary controls in a single revision.
The Tax Authority will be responsible for deciding the date of the launch of the new system, which will integrate phytosanitary controls, customs and security in the container terminal of Puerto Quetzal.
The dismantling of a network of corruption at the highest level in the Superintendency of Tax Administration has forced an analysis of the stability of the government of Otto Perez Molina.
Calderon raises three possible scenarios:
"...First scenario: precarious balance, which means continuing the current pace of deterioration in the political system and levels of governance, and at the same time assuming an increased fragmentation of the government bloc.
The Tax Authority of Guatemala has denied the existence of a consensus among Central American countries to implement a unified charge.
The Superintendency of Tax Administration (SAT) of Guatemala denied that there is a consensus among countries to implement a one-time charge for reviewing scanned merchandise flowing through the region, as announced by the Directorate General of Customs of El Salvador.
With the decreed intervention the time it takes to pass through customs has doubled and even tripled in some cases.
Elperiodico.com.gt reports: "The militarization in customs offices and the lack of staff in the Tax Authority (SAT) are delaying the passage of trucks by between three and ten days."
Added to this are technical and administrative deficiencies in the Directorate General of Customs at the Ministry of Finance of El Salvador for passage through Cuidad Pedro de Alvarado and San Cristobal.
Regional freight transportation businessmen in Guatemala will meet to discuss abuses in fees and other procedures at several customs offices on the isthmus.
As reported by Benjamin Castro, president of the Chamber of Honduran Cargo Transporters, carriers also hope to meet with the Tax Authority (SAT), to discuss other problems they are experiencing in the country.
There is a requirement to avoid duplicate collection of customs duties levied on imports in order to meet the provisions of the trade pact with the European Union.
The commissioner of Customs at the Superintendency of Tax Administration (SAT) in Guatemala, Oscar Funes, referred to the commitments made by the region in the signing of the Association Agreement between Central America and the European Union, signed on 29 June.