Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region.
As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders.
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%.
The slowdown in domestic consumption in Costa Rica, together with the local currency depreciation, will cause customers to buy fewer high-end technology products.
In the report published by the Central Bank of Costa Rica (BCCR) called the October-2018 Economic Situation Report, it is explained that the slow increase in credit, imports of final consumer goods and tax collection are clear indicators of a slowdown in domestic demand.
In Costa Rica, the law on incentives to import these types of vehicles has been in force for six months, but agencies are not able to take advantage of the exoneration because the Treasury has not yet adapted its customs computer system.
Although the "Law of Incentives and Promotion for Electric Transport" came into force six months ago, distributors are still facing obstacles to complete the importation processes under the new tax benefits scheme.
While in Panama a company can send a container abroad in 10 days, in Nicaragua the process takes 21 days.
Of all the countries in the region Nicaragua is the place where exporting or importing goods takes the longest, significantly increasing the cost of these commercial operations, said the Doing Business report issued by the World Bank (WB).
The cost stated in the report "does not include the payment for freight, which usually varies depending on the final destination of the cargo. In this, according to the WB, are all the costs associated with the completion of the procedures which have to be undertaken for exporting or importing goods. "This includes documentation costs, administrative fees for customs clearance and inspection, customs broker fees, port charges and inland transport costs, among other things." It even incorporates the cost of bribes which sometimes occur in the process of obtaining a document. "
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.
Sellers of used cars in Costa Rica believe there is discrimination in the way the Ministry of Finance estimates import taxes on cars.
According to Jose Carballo, president of the Costa Rican Automotive Chamber, the industry complains that 52% is charged for new vehicles, while used cars which are over six years old are charged 79%.
"The tax burden is calculated using a ranking system, explained the Director of Taxation, Carlos Vargas, this means that vehicles from zero to three years old pay 52.29%, four to five years 63.91% and six years or more 79.03%", reported Nacion.com.
The Government of Panama inaugurated the Public Administration Transparency Module, on the web site of the National Customs Authority.
The commissioning of this new tools will allow Panamanians or foreigners to review the information contained in the import and export declarations, without the need for a password.
The Director of the National Customs Authority, Vilma De Luca, said that the tool will promote competition and benefit all Panamanians, who are the consumers, and will help in the supervision of correct customs declaration of the goods.