As of October 1st, Guatemala and Honduras will begin operating three Peripheral Customs Offices, areas that will simplify procedures and allow free community mobility between both countries.
Guatemalan and Honduran taxpayers who make definitive imports to each State Party will be the ones to benefit from the implementation of this type of customs, since the goods imported under this modality will enjoy free mobility.
Delays are reported in Salvadoran customs in San Cristóbal and La Hachadura, and difficulties in the port of Santo Tomás de Castilla, in Guatemala, because of the implementation of DUCA.
The Inter-American Commission for Trade Facilitation (CIFACIL) of El Salvador asked the Superintendency of Tax Administration (SAT) of Guatemala, to work to solve the problems that Salvadoran companies are facing in the port of Santo Tomás de Castilla, Guatemalan maritime terminal in the Atlantic, arising from the implementation of the Single Central American Declaration (DUCA).
In 2018, trade between the two countries totaled $968 million, 6% more than in 2017.
Figures from the Secretariat of Central American Economic Integration (Sieca), specify that last year 82% of trade between the two countries was for sales from Guatemala to Honduras, and the remaining 18% from Honduras to Guatemala.
Guatemala, El Salvador and Honduras have yet to finalize their Customs Union, since this week a new round of negotiations began in which they will follow up on the project to implement the advance declaration.
Although in December 2018 it was reported that the El Poy integrated border post in Chalatenango, the first to have the necessary infrastructure to operate within the framework of the customs integration of the Northern Triangle, began operating in El Salvador, the unification process is currently under negotiation among the countries.
In El Salvador, the integrated border posts El Poy, in Chalatenango, the first to have the necessary infrastructure to operate within the framework of the customs integration of the Northern Triangle, became operational.
After the adaptation of the border post, the infrastructure and computer systems of El Poy are practically ready to operate, however, the products that will have free circulation between the three countries and which goods will continue to be protected have yet to be defined.
After several rounds of negotiations, El Salvador formally joined the Customs Union process with Guatemala and Honduras, so it will have to adjust its systems to the community information platform.
Authorities from the countries of the Northern Triangle reported that since November 20th, El Salvador has been fully incorporated legally and administratively into the process of Deep Integration of the Customs Union between Guatemala and Honduras.
On November 12th, the VII Round of Negotiations for the inclusion of El Salvador in the integration process towards the free transit of individuals and goods between Guatemala and Honduras began in San Salvador.
The negotiations between the three countries will last the entire week and it is expected that this round of dialogues will address issues related to the customs, migration, sanitary and phytosanitary challenges facing El Salvador.
The Legislative Assembly of El Salvador has approved incorporation into the Customs Union between Guatemala and Honduras.
Although an improvement has been reported in the transit of goods through customs posts as well as an increase in bilateral trade, there are still a lot of aspects that need improving, according to businessmen who trade among these countries.See "Customs Union: Good results, but improvement still needed"
Reduced times to move goods through customs posts and an increase in bilateral trade are some of the results of the first year of the Customs Union between Guatemala and Honduras.
Twelve months after the entry into force of the treaty between the two countries, trade figures have favored the two Central American countries. In 2017, exports from Honduras to Guatemala totaled $384 million, 16% more than in 2016, and sales made from Guatemala to Honduras amounted to $967 million, which is equivalent to a 6% increase.
A key factor in economies´competitiveness is the unrestricted movement of the available human and material resources, and this is where the customs integration of Honduras, Guatemala and El Salvador falls very short.
EDITORIAL
Jorge Cobas González Director of CentralAmericaData.COM
The governments of Nicaragua and El Salvador have started the observation process, a step in the process to join the Customs Union which is already in effect between Guatemala and Honduras.
The process starts with the incorporation of representatives from the Nicaraguan and Salvadoran governments as observers in the meetings between Guatemala and Honduras.
At the end of July, talks will begin between the governments of the Northern Triangle to assess the inclusion of El Salvador in the Customs Union between Guatemala and Honduras.
In the first talks to be held at the end of July, technical tables will set up which will have the task of negotiating the terms and conditions under which El Salvador will join the Customs Union, it was reported in a statement by the Salvadoran Ministry of Economy.
Completion has been announced of the pilot phase of the Central American Invoice and Single Declaration, and the process for the actual tests with companies is expected to start in the second week of May.
The Guatemalan government reported that the pilot tests for the transmission of the Central American Invoice and Single Declaration - FYDUCA - (a document that will record the purchase and legal tenancy of goods between Guatemala and Honduras) was successful, meaning that they are now in the adjustment phase.
Customs Union between Guatemala and Honduras passes implementation phase after submission of the Enabling Protocol to SICA.
From a statement issued by the Secretariat of Central American Economic Integration:
Central, 4 May 2016. The Republics of Guatemala and Honduras, accompanied by the Secretariat of Central American Economic Integration (SIECA), officially delivered the Enabling Protocol for the Deep Integration Process into the free transit of goods and individuals between the two countries, for its submission to the General Secretariat of the Central American Integration System (SICA).
The Central American Bank for Economic Integration has announced that this month it will deliver 55% of the funds required to implement the customs union between the two countries.
The funds pending for the implementation of the Customs Union between Guatemala and Honduras are being managed by the Central American Bank for Economic Integration (BCIE) for a total of $1.5 million for delivery in February.