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).
The World Trade Organization has managed to make its first agreement in 22 years on measures to remove barriers to trade by simplifying customs procedures.
The agreement reached in Bali could mean an increase of 1 trillion dollars in global trade.
Part II of the draft of the ministerial declaration of Bali is related to Trade Facilitation and establishes the customs procedures which must be undertaken by signatory countries.
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. "
The term of the decree allowing the border areas of Mexico to import goods at a significantly lower charge than in the rest of the country has been extended for three years.
According to the Mexican Finance Minister, Luis Videgaray, the decree was scheduled to end on Decemnber31 December, however, the term has been extended for another three years.
Another decision taken by the Mexican government is to close customs checkpoints on the border areas. "We will start gradually, but from today (Thursday) we are taking action to eliminate various Customs checkpoints located in states bordering the United States and Guatemala, though not exactly on the borders," said President Enrique Peña Nieto.
Exporting through a port in the Caribbean would reduce the cost currently paid per container in ports in Honduras or Costa Rica by between $800 and $1,000.
This was explained by Pablo Fernandez, chief of Transportation and Infrastructure, however, no formal announcement has been made about its construction. "...A truck with goods can take 18 hours to cross the border into Costa Rica and up to 12 hours to pass into Honduras," reports Elnuevodiario.com.ni.
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 World Trade Organization aims to reduce by half the costs added to products as they pass through customs offices.
An article in Elfinancierocr.com reports that "... all WTO members recognize that progress can be made in cutting costs associated with inefficiencies in order to make trade more efficient."
"... The idea is that the WTO reaches agreements related to this and other issues at the Ninth Ministerial Conference to be held in Bali, Indonesia, from 3 to 6 December. "
Entrepreneurs are unaware of new judicial courts especially dedicated to solving conflicts or disputes in this matter.
The entity was created a year ago and is responsible for resolving complaints and appeals related to tax and customs matters generated against institutions such as the Directorate General of Customs (DGA) and the Department of Revenue (DGI) .
The government has committed to remove the fee of 0.26% on the value of goods for inspecting cargo via scanner.
"What is (now) our responsibility is to finish reviewing what will happen with the mechanism, what the cost will be, which we are defining. We are seeing what will happen to exports, imports from free zones, what will happen with international traffic, but what is noteworthy is that what has been agreed is an elimination of the ad valorem (tax)," said President of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri.
Political parties are not interested in the subject because it is not profitable electorally or because they believe their country will lose sovereignty.
So says Richard Aitkenhead, president of Grupo Inversiones y Desarrollo de Centroamérica (IDC) during a meeting organized under the framework of the Second Support Program for Regional Integration (PAIRCA II).
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.