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 second round is being held in Panama, where representatives of the Central American countries will discuss advances and proposals regarding the integration of the region.
The round is formed by two groups, one normative technical and the other IT technical, with a broad agenda that will be discussed from October 15th to 17th. The agreements reached will be presented on Thursday 18th and Friday 19th, at the meeting of the General Directors of Customs of Central America.
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.
In the fourth round of negotiations to incorporate El Salvador into the customs union process with Guatemala and Honduras, issues such as internal taxes, phytosanitary measures and tariffs, among others, will be discussed.
From a statement issued by the Ministry of Economy of El Salvador:
The IV Round of negotiations for the incorporation of El Salvador into the process of Deep Integration towards the Free Transit of People and Goods between the Republics of Honduras and Guatemala, began today in San Salvador.
In this third round of negotiations, discussion will take place on the border model to be implemented to incorporate El Salvador into the integration process initiated by Guatemala and Honduras.
From a statement issued by the Ministry of Economy of El Salvador:
February 12.The city of Tegucigalpa, Honduras, this week becomes the site of the third round of negotiations for the incorporation of El Salvador into the process of deep integration started by Guatemala and Honduras, informed the Vice Minister of Economy, Dr. Luz Estrella Rodríguez.
The use of the Central American single invoice and declaration form will be mandatory from March 1, 2018 and not from January 1, as originally planned.
Authorities in Guatemala and Honduras have decided to postpone the mandatory use of the Central American single invoice and declaration (Fyduca) form, due to, among other things, ignorance about the use of the system on the part of some companies.
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
Businesses have reported difficulties when using the system that generates the invoice and the Central American single statement form and state that the three integrated customs offices are not working.
Integration of customs systems in Honduras and Guatemala started three months ago, but not in the agile way that the companies that trade in the region had hoped for.