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).
Because the implementation of the Central American Single Declaration continues to generate problems in customs in the region, the contingency plan for DUCA F and DUCA was extended until June 27.
"If you use the Contingency Plan, we suggest that you make sure you arrive at the destination country with the DUCA F and DUCA T duly processed and the supporting documents," reported the Guatemalan Association of Exporters.
Since there are still difficulties arising from the implementation of the Single Central American Declaration, the Contingency Plan for DUCA F and DUCA T was extended until 17 June.
Central American customs authorities agree to maintain in force the Contingency Plan for DUCA F and DUCA T, until June 17, 2019, at 23:59 hours. If the Contingency Plan is used, we suggest that you make sure that you arrive at the destination country with the DUCA F and DUCA T duly processed and the supporting documents," explains a statement from Agexport. See full document.
A contract was signed for Eurofinsa to design and build the border area for freight transport in El Amatillo, El Salvador.
From the statement of Fomilenio II:
November 30, 2018. On this day, FOMILENIO II signed the contract that will lead the start order to the design and construction of the border area for freight transport of El Amatillo (Pasaquina, La Union), with the purpose of facilitating land trade from El Salvador to other Central American countries, through coordinated border management, promoting the increase in the flow of exports and imports.
The Salvadoran business sector is opposed to the decision of President Sánchez Cerén to veto reforms to the customs simplification law, which established concrete measures to streamline foreign trade procedures.
From a statement issued by the Inter-Trade Commission for Trade Facilitation (CIFACIL):
The Trade Facilitation Commission (CIFACIL), which groups together seven production unions from El Salvador, deplores the decision of the President of the Republic, Salvador Sánchez Cerén, to veto the reforms to the Customs Simplification Law, which were aimed at advancing the adoption of concrete measures to facilitate trade and which will help overcome the stagnation of foreign trade by our country.
Businessmen are complaining about erroneous charges being levied by Customs on exempted companies, courier shipments or cargo that does not even reach the borders.
The incorrect application of the new rules on the charge of $18 which applies in Salvadoran customs offices for the use of X-rays starting from 1 January 2016, is causing problems and provoked a reaction by seven private sector unions that form the Intergremial Commission for Trade Facilitation (Cifacil).
In September, the IMAE grew by 4.1% compared to the same month in 2014, driven by agriculture, which grew by 13%, and transport and communications, which increased by 10%.
The report of the Central Bank of Nicaragua:
In September, the monthly index of economic activity (IMAE) grew by 4.1 percent compared to September last year. Meanwhile, the average annual variation stood at 3.8 percent and cumulative growth in the January-September period was 3.5 percent.
Despite innumerable meetings of leaders and officials who frequently express their willingness to act on the issue, customs transit continues to be the main factor affecting logistics costs for regional trade.
At the first congress of freight transport in El Salvador once again the problem that continues to prevent the region achieving greater commercial development, was brought to the light.
The crisis in the tax administration department has created delays of up to 15 days in release of containers and serious lack of coordination in the management of processes at land borders and ports.
The business sector states that the lack of coordination is so bad that there are lines up to 4 km long at land border posts, where the main problems are "...
Despite the antiquity of the efforts for Central American integration and for the Customs Union the obstacles to trade between the countries on the isthmus presented by customs offices are notorious.
The Federation of Chambers and Associations of Exporters of Central America (Fecaxca) is once again calling for policies and common strategies for standards and customs procedures.
In order to expedite intraregional trade it is necessary for customs offices dealing with cargo freight, to be open all hours, just as immigration customs offices are.
A study commissioned by the Federation of Chambers of Commerce of Central America (Fecamco) concluded that there are 87 barriers to trade in the region, one of the major ones being operations of the systems at customs offices at borders, followed by bureaucratic requirements and lack of adequate infrastructure.
Problems persist in the process of reviewing merchandise at the border posts in Amatillo and La Hachadura causing delays to cargo trucks.
Double review processes, recurring failures with x-ray machine inspection and the absence of a contingency plan for unforeseen delays has generated delays of between 19 and 23 hours for the approval of entry and exit of goods, said the Salvadoran Association of International Freight Carriers (ASTIC).
Central American countries need to implement a series of improvements in customs procedures in order to meet the requirements of the agreement for the facilitation of international trade.
Within two years, as part of the commitments made in the 2001 Doha Round of the Bali Agreement, signed in 2013 by 160 nations belonging to the World Trade Organization (WTO), including Central America, governments will have to harmonize their customs systems ensuring trade facilitation. However, to date institutional progress on issues established by the Agreement such as simplification, harmonization and automation of procedures for international trade have not happened, particularly in relation to the requirements and formalities for import, export and transit of border freight.
The regional union is bringing charges to the Central American Court of Justice over what it considers to be undue customs fees in El Salvador.
The American Federation of Freight (Fecatrans) announced that it is preparing a lawsuit against El Salvador at the Central American Court of Justice (CCJ). The union is complaining about the fees that carriers pay at customs offices in that country, which it considers improper.
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.