A bill is being considered in Costa Rica that proposes to identify each container of this type of beverage with a device, label or sticker in order to prevent smuggling, a measure that, according to business people, would not be effective.
Given the crisis in the region, businessmen in Guatemala report that smuggling of Mexican products has increased, while in Panama, beer producers attribute the rise in illegal trade in alcoholic beverages to the dry law.
With the spread of Covid-19, governments in Central America have decreed mandatory quarantines and have also restricted the movement of consumers at certain hours.
In Costa Rica, the retail sector guild estimates the monthly value of illicit trade generated through social networks such as Facebook at $8.5 million.
From the Costa Rican Chamber of Commerce statement:
San José, Wednesday, December 18, 2019. The illicit market in social networks reaches an inventory value of at least 5.1 billion colones per month ($8.5 million).
In Costa Rica, a bill is being discussed that seeks to combat adulteration and smuggling of alcoholic beverages, but the business sector believes that if approved, the result could be an increase in illegal trafficking.
The project called "Law against adulteration and smuggling of alcoholic beverages", proposes the use of technological tools to combat smuggling, imitation and adulteration of alcoholic beverages.
In Costa Rica, it is estimated that illegal trade mobilizes around $1.230 million per year, which is equivalent to 7% of household consumption.
According to a study by the Costa Rican Chamber of Commerce's (CCCR) Illicit Trade Observatory, the products most affected by smuggling are cigarettes, alcoholic beverages, spare parts for vehicles, clothing, pharmaceuticals and medicines.
It has been reported that six out of ten bottles of liquor consumed in Costa Rica are of illegal origin, and this situation has been attributed to the heavy tax on alcoholic beverages in the country.
An investigation published by Crhoy.com details the figures on the market of illegal alcoholic beverages in Costa Rica.The document concludes that between 2014 and 2017 the value of the illicit liquor market has grown almost 50%.
In Costa Rica a considerable increase has been reported in the illegal transfer of agricultural products such as avocados, which have been banned from Mexico for almost three years.
Crhoy.com reports that "... 'The Fiscal Control Police (PCF) reported a change in the trend of items confiscated in the first quarter of 2018. This is because they have detected significant shipments related to products such as avocados and garlic."
In the view of businessmen in Guatemala, the country has become a connection center for merchandise that is transported illegally from the Colon Free Zone, in Panama, to the Corozal Free Zone, in Belize.
Within the to and fro of contraband products moving from the south of Central America on the route to Mexico, a significant amount stays in Guatemala, where criminal structures are responsible for "marketing" these products throughout the territory.
In 2014 a special unit was created to deal with complaints about the marketing of fake garments, and since then it has received an average of five complaints a month.
The market for fake clothing brands in the country has been growing, according to the authorities at the Economic, Tax and Customs Crimes Prosecutor's office, which claims to receive five complaints per month.
Commercial activity grew in 2016 driven by subsectors such as automobiles, although brakes were still encountered such as growing informality, smuggling and bureaucracy in health and safety records.
At the end of the year, the commercial sector has maintained its relevance for the country 's economy and has become the main generator of employment, with 15% of the total labor force, according to the balance complied by the Chamber of Commerce of Costa Rica.
Through at least 47 clandestine posts on the border between the two countries there is illegal circulation of tomatoes, yams, avocados, plantains and bananas.
Eduardo Carles, Minister of Agricultural Development in Panama, told Prensa.com that, in the case of bananas and plantains,"... producers sell them in Costa Rica when the price falls in the local market ....
As expected after any government intervention in a market, the price consumers pay for the product has increased and a black market has been created, encouraging smuggling.
And the Costa Rican State itself risks having to pay millions in compensation for convictions for failing to comply with the procedures established by the WTO after blocking imports of avocados from Mexico.
The new law lowers from $50,000 to $5,000 the minimum amount of goods in infraction, for it to be considered as a crime of smuggling.
The Legislature approved the bill which sanctions with penalties smuggled goods worth over $5000. The new law also provides for penalties against "split smuggling", made by the same group or individual.
"... The reform proposes that when different entries are reported for amounts less than the $10,000, but which added together exceed that figure, they will be considered a violation of the law, regardless of whether the entry is of different products or money. Prison sentences and fines will be toughened and repeat smugglers could be punished with 3-10 years in prison, depending on the offense. "
The Smuggling law approved on its first reading includes penalties of 3-10 years in prison for those who illegally sell goods infringing animal, human or plant health.
From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):
UCCAEP celebrates approval of project to improve anti-smuggling
Business sector considers it a step towards the promotion of formality.
Drug trafficking organizations send shipments to Europe in containers loaded mainly with agricultural products.
The Business Alliance for Secure Commerce (ASBC) is warning about activities practiced by criminal organizations, such as that in April 2014 when drug filled containers were seized in Europe, having come from Costa Rica. Exporting companies have had to pay more in order to implement controls and prevent filtration by criminal groups.
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