The Tax Authority of Guatemala has denied the existence of a consensus among Central American countries to implement a unified charge.
The Superintendency of Tax Administration (SAT) of Guatemala denied that there is a consensus among countries to implement a one-time charge for reviewing scanned merchandise flowing through the region, as announced by the Directorate General of Customs of El Salvador.
El Salvador is proposing implementing a single charge for non intrusive inspection of goods at borders with Guatemala and Honduras.
The Directorate General of Customs (DGA) announced that Central American countries could implement a single charge for intrusive inspection of goods. Guatemala and Honduras have shown interest in this system proposed by El Salvador.
The main issue of concern is the slow pace of intraregional trade, which in particularly is hindered by customs offices in the isthmus.
The quarterly meeting of the executive directors and presidents of the Federation of Chambers and Industry Associations of Central America (Fecaica) showed the concern of the sector over measures such as the charging at offices in El Salvador of an $18 fee for the service of scanning the cargo passing through.
It is time for the organizations dedicated to integration to be held to account, and the countless meetings and bombastic statements to be brought back down to earth.
" ... trading successfully requires a lot of work, it means risking assets, paying salaries, burning the candle at both ends in order to fulfill an order, it means having to throw away products because consumers dont like them anymore or because another one came in from abroad that pushed yours aside. Every extra dollar caused by difficulties at Central American borders pushes companies towards not being able to compete, towards disappearing. "
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.
The suspension of payment for customs inspections in El Salvador applies to goods in international transit and those with a local destination.
From a press release issued by the Legislative Assembly of El Salvador:
The Legislature has approved an authentic interpretation of Decree 604, approved on January 16, which contains exceptional and transitional provisions applied to the "Customs Simplification Act" to suspended for a period of 180 days, the fee for the provision of non-intrusive inspections, whose office of departure and destination are within or outside the borders of El Salvador.
The government is considering various options for the revival of rail freight in the country.
The Government is considering two options to revive freight railroad in the country. The first is the creation of a state company that would operate under the public-private partnership model and the second is a concession in tranches awarded to different companies.
Trade ministers from the region are promoting the regional recognition of sanitary permits by its digitization and online availability.
Trade ministers from the region analyzed uploading permissions to a web platform in order to expedite the process of trading regionally. The initiative would allow an exporter registered in Guatemala not to have to send physical documents to another Central American country in order to register.
They are supporting Costa Rica in the dispute it has with El Salvador over the lack of respect for the DR -CAFTA and they are requesting action to be taken to end the paralysis of intraregional trade at Salvadoran customs offices.
The Federation of Chambers and Associations of Exporters in Central America (Fecaxca) is proposing that the fee of $18 being charged at customs offices in El Salvador be only imposed on goods which have the country as a final destination, and not everything that passes through Salvadoran territory which may be destined for other Central American countries.
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.
Central American countries need to grant each other complete air freedom, with unrestricted frequencies and multiple designations.
A study of the conditions of competition in air transport for passengers in El Salvador, prepared by the Superintendency of Competition in the country, contains relevant definitions for optimization of air transport not only for El Salvador, but also all other Central countries.
"We cannot continue to be a region where trade is moving at 15 kph when developed countries have cargo moving at 60 kph."
Employers believe that border points and customs offices in Central America are limiting their work and reducing their competitiviness despite the fact that they have been selling products to each other for over a decade.
"We cannot continue to be a region where trade is moving at 15 kph when developed countries have cargo moving at 60 kph," said Jorge Daboub, president of the Federation of Private Entities of Central America, Panama and the Dominican Republic (FEDEPRICAP).
Regional unions are threatening a general strike in the Salvadoran border to protest at the rate of $18 per inspection at customs offices in that country.
S21.com.gt reports: "The new provision of the General Customs of El Salvador will take effect on 6 January, in light of this, carriers of the remaining five countries in the region have announced a general strike on the Salvadoran border if this legislation goes ahead. "
It will connect the cities of La Hachadura and Pedro de Alvarado, an area where 60% of intraregional trade circulates.
From a press release by the Government of Panama:
The binational working table between El Salvador and Guatemala, responsible for Transport and Infrastructure matters, agreed to build a four-lane bridge at the border between Ciudad Pedro de Alvarado, Guatemala, and La Hachadura, El Salvador, with the aim of improving commercial traffic between the two countries.
A recent update of a Sieca regulation is causing confusion because of the inclusion of potassium bromate as a permitted additive.
This topic has been discussed by delegates from the Central American Ministries of Economy, Trade and Health, who have participated in review meetings of the Central American Regulations of the Member States of the Secretariat of Central American Economic Integration (SIEC).