The costs incurred by businessmen in Nicaragua, because of excessive procedures and low efficiency of foreign trade systems is 25% additional to the value of the goods, while in El Salvador and Costa Rica, amounts to 18% and 16%, respectively.
A study by the Economic Commission for Latin America and the Caribbean (ECLAC) specifies that the costs paid by businessmen in Nicaragua, because of excessive procedures and low efficiency of foreign trade systems is 25.3% additional to the value of the goods, followed by El Salvador with 18.3%, Costa Rica with 16.3%, Honduras with 15.8%, Guatemala with 14% and Panama with 9%.
Salvadoran industrialists claim that with the presidential veto of the administrative simplification law, the country has lost a valuable opportunity to improve the already deteriorated business climate.
EDITORIAL
With the veto of the Administrative Simplification Act, the Salvadoran government is sending a clear message to the business community and to society in general: There is no interest in paving the way for the private sector to generate more jobs and, consequently, more wealth and socioeconomic development.
Trade in goods in the region is showing signs of recovery with an increase in exports to third-party trading partners and an increase in intraregional imports.
From the Trade Monitor report by the Economic Secretariat for Central American Integration (SIECA):
Central America, July 10, 2017.Trade in goods in Central America shows signs of recovery with an increase in exports to third-party trading partners and an increase in intraregional imports, according to figures from the most recent Central American Trade Monitor for the first quarter of 2017.The main results derived from the Monitor are as follows:
Which goods can circulate freely and through which border posts, what procedures need to be done and other details about how the customs union functions.
From a report by Agexport:
1. From now on exports to Honduras will technically be treated as transfers and imports as acquisitions.
In Costa Rica the exporter's union has stated that complying with the new regulations of weighing containers will raise costs and affect their already deteriorating competitiveness.
The new rules for certifying the weight of maritime cargo to be adhered to under the SOLAS convention will come into effect on July 1, 2016, and Costa Rican exporters are already raising their voices to denounce the impact it will have on their cost structure.
From April 1st 2015 the only documents needed to send products to the Indian market will be the air declaration, the commercial invoice and bill of entry.
From a statement issued by the Costa Rican Foreign Trade Promotion Office (Procomer):
India has decided to simplify procedures for imports, which will reduce costs and time and aims to improve the country's position in the ease of doing business list produced by the World Bank.
Starting April chambers of commerce in the region will be providing free training on phytosanitary controls, management at border posts and customs procedures for exporting firms.
From a statement issued by the Chamber of Commerce of Costa Rica:
As of April, the Chamber of Commerce of Costa Rica will be running a training program on trade facilitation for the public and private sector, within the framework of a cooperation agreement signed between the Federation of Chambers of Commerce of Central America (FECAMCO) and the United States Agency for International Development (USAID) to implement the USAID Regional Project on Trade and Market Partnerships.
Central America must improve the quality standards of its products, learn more about the consumers and simplify processes in order to take advantage of the opportunities of the Agreement with the European Union.
In order to maximize the opportunities provided by the Association Agreement which has been signed with the European Union (EU), Central American companies must have a better understanding of the European market, which has more than 500 million consumers who are demanding in terms of quality and food safety. Furthermore, it is essential to simplify export procedures in order to expedite the process of obtaining permits and other procedures which are reducing export competitiveness in Central America.
The deadline for food exporters to update their details with the Food and Drug Administration of USA is December 31, 2014.
From a statement issued by the Foreign Trade Promotion Office of Costa Rica (PROCOMER):
Every company which manufactures, processes, packs or holds food for human or animal consumption and export to the United States must renew its registration with the Food and Drug Administration (FDA) as part of the measures included in the Food Safety Modernization Act (FSMA). The deadline for this adjustment will be from 1 October to 31 December.
The Ministry of Foreign Trade in Costa Rica has created a new unit to "support local companies engaged in exports or who have the potential to do so."
EDITORIAL
The question that immediately arises is how this "support" to companies with export potential will be given since it is already well established that official "consultants" who populate the offices of the new unit, do not know how "to be entrepreneurs," but merely how to receive their salaries on time every month, regardless of the fate of companies that they "support":
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.
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.
European business people have criticised errors made by customs officials in implementing the terms of the Association Agreement.
After three months of the entry into force of the Association Agreement between Central America and the European Union, a lack of knowledge on the part of customs authorities has complicated the implementation of the trade agreement, as explained by the Chambers of Commerce and Industry of Spain (CAMACOES) Italy (Camcig) and Germany.
Now we transport thousands of tons of goods in fast trucks, we dispatch proformas and invoices online ... and there are still customs agencies.
EDITORIAL
The controversy which arose in Guatemala over the proposed creation of the Agile Import Window (VAI by its initials in Spanish) is as old as the world. Not going too far back into the past, we know that when in the late nineteenth century cars began to circulate, in many places the speed of their movement was restricted so that they would not go faster than a horse and buggy, and there were many who protested that this invention would put drivers of carts out of work along with horses and cattle breeders.
The competitiveness of the economies of the isthmus is being impaired by the inefficiency of the bureaucracy in the management of customs offices in the region.
The bureaucracy at customs offices has become a serious problem for the Central American region. Among other things it generates increases in the costs of exporting because of the procedures that must be paid for, loss of perishable goods and delays in production in processes that have to wait for raw materials.