While in customs offices the $18 fee is still being charged, those employers affected by it are concerned and are asking for a refund of what they have already paid.
The Chamber of Commerce of El Salvador (CCES) expects the authentic interpretation of the decree exempting the charge for the service of non-intrusive inspection of exports and imports and international transit of goods, to be published soon in the Official Journal, as the $18 fee is still being charged at the borders of the country.
The suspension of payment for customs inspections in El Salvador applies to goods in international transit and those with a local destination.
From a press release issued by the Legislative Assembly of El Salvador:
The Legislature has approved an authentic interpretation of Decree 604, approved on January 16, which contains exceptional and transitional provisions applied to the "Customs Simplification Act" to suspended for a period of 180 days, the fee for the provision of non-intrusive inspections, whose office of departure and destination are within or outside the borders of El Salvador.
Salvadoran exporters are asking for clarification over the regulation that puts on hold the fee of $18 per inspection of goods.
The Corporation of Exporters of El Salvador (Coexport) asked the Government to clarify which goods have to be inspected at customs and pay the $18 fee. They explain that there is confusion occurring at the regional level which must be addressed.
President Funes has asked Congress to suspend for 180 days the fee charged for inspecting goods in transit using scanners.
From a press release issued by the Presidency of El Salvador:
The President, Mauricio Funes, today appealed to the Legislature, through a project for a proposed temporary decree, to suspend the collection of $18 for non-intrusive inspections in the case of goods going through customs offices which are destined to go out of the country, an issue which has generated a dispute at the borders.
Central American companies are asking the Salvadoran government to intervene in the conflict, which is already generating huge losses.
Legislation in the region allows customs offices to design nonintrusive inspection methods, but these should not generate arrears in clearance or excessive costs which obstruct the free movement of goods, services and people.
Only cargo destined for El Salvador should be charged with the $18 fee for the inspection with scanner, request freight carriers.
According to the Secretariat for Central American Economic Integration (SIECA), this fee violates conventions and trade agreements in the region. In addition, they believe that the inspections and the time it takes to submit all shipments to the procedures are excessive.
The improvised implementation of a new system of customs administration and the opposition to the collection of $18 for each declaration of goods is already affecting regional trade.
The implementation of an inspection system for cargo transportation in El Salvador has not only generated traffic chaos but has also caused delays in intraregional trade.
The regional union of freight carriers is protesting about the fee for inspections using scanners at Salvadoran customs offices and the delays it has generated.
The Central American Freight Council declared a protest strike at Salvadoran borders over the payment of $18 for the inspection of cargo travelling overland.
Freight carriers are opposed to the collection of a fee of $18 per inspection using scanners and are threatening strikes and a change of routes.
Representatives from the freight union are analyzing re routing trucks so that they do not have to cross El Salvador in order to reach the rest of the region, instead crossing at the border of Agua Caliente, Chiquimula, into Honduras.
"We cannot continue to be a region where trade is moving at 15 kph when developed countries have cargo moving at 60 kph."
Employers believe that border points and customs offices in Central America are limiting their work and reducing their competitiviness despite the fact that they have been selling products to each other for over a decade.
"We cannot continue to be a region where trade is moving at 15 kph when developed countries have cargo moving at 60 kph," said Jorge Daboub, president of the Federation of Private Entities of Central America, Panama and the Dominican Republic (FEDEPRICAP).
Regional unions are threatening a general strike in the Salvadoran border to protest at the rate of $18 per inspection at customs offices in that country.
S21.com.gt reports: "The new provision of the General Customs of El Salvador will take effect on 6 January, in light of this, carriers of the remaining five countries in the region have announced a general strike on the Salvadoran border if this legislation goes ahead. "
Costa Rican customs offices do not have enough staff to handle the flow of cargo from Panama to the rest of Central America.
While on the Panamanian side there are about 25 people to process documents from carriers, on the Costa Rican side there are only 5 staff members to carry out these duties.
The situation occurs at a time when "the international freight activity going from Paso Canoas to Central America has increased by 50 % ...
The function of the AEO is to contribute to the implementation of safety guidelines of the World Customs Organization in order to have a secure supply chain.
From Wikipedia:
"The AEO certificate, issued by customs authorities in the EU and many other countries using the same or a similar name, is a trusted certificate which Customs offices give to traders who meet certain requirements which demonstrate to the customs offices their reliability regarding customs processes, solvency and safety. It is granted to operators involved in the chain of international trade, whether natural or legal persons, provided that the professional activity of these operators is subject to customs regulations, such as importers, exporters, manufacturers, representatives at customs offices, bearers, carriers , terminal operators, shippers etc.
The cost of customs procedures adds up to 40% to the price of products traded between countries in the region.
The isthmus is the natural destination for the region’s export producers and a large part of the countries’ economic development depends on the 40 million people that inhabit Central America, forming a unified marketplace.
In addition to customs union, the head of the Secretariat for Central American Economic Integration (SIECA), Yolanda Mayora, highlighted the importance of security costs in intraregional commerce, which according to the World Bank make up 3.7% of the final price.