In order to improve the sector's production management and guarantee safe pork trade, the Guatemalan government is moving forward with the implementation of the Official Pork Traceability Program.
The program, which is being implemented by the Ministry of Agriculture, Livestock and Food (Maga), consists of placing radiofrequency button-type and flag-type devices for breeding animals.
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.
Because the current legal framework is ineffective, Guatemalan entrepreneurs in the food sector are asking the government to draft a new law that would criminalize smuggling and also consider it a matter of national security.
Directives of the Guatemalan Chamber of Food and Beverages (CGAB) assure that the current Decree 58-90 "Law Against Fraud and Contraband" is obsolete and does not allow for direct and frontal combat against contraband.
As a result of the operations carried out by the Superintendence of Tax Administration to stop smuggling, in recent days there have been two attacks on the customs area of Tecún Umán I, on the border between Guatemala and Mexico.
According to information provided by the Guatemalan authorities, on November 13 and 17, groups of alleged smugglers attacked the customs of Tecún Umán I in San Marcos, because in the operations deployed by the tax authority, merchandise was seized that was not declared upon entry into the country.
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%.
It is estimated that in 2015 illicit trade and customs fraud added up to $2.2 billion, equivalent to 3.5% of GDP.
Cereals, animals, meat and meat products, bakery products, sugar, macaroni and noodles, dairy, alcoholic beverages and textiles topped the list of products most affected by illegal trade, according to a study by ASIES.
Rice, vegetable oil, liquor, eggs, sugar and cement make up the bulk of the products in the list of goods most affected by illegal trade in the country.
From a statement issued by the Chamber of Industry in Guatemala:
Guatemala, July 19 2016. - The Chamber of Industry in Guatemala has revealed, as it has done repeatedly over the past twenty years, the situation of Contraband and Customs Fraud in the country, and this morning presented to the media the alarming statistics representing losses caused by this scourge in Guatemala.
It has been announced a tender will be launched in April for an electronic system to check containers.
After several failed attempts, it has now been announced the tender to install a tracking system to track and monitor the location of containers in Guatemala will be held no later than April, according to the Superintendent of Tax Administration, Francisco Solórzano Foppa.
Businesses are asking the Executive to reactivate the National Commission against Smuggling to protect issues such as competitiveness, intellectual property rights and the rights of consumers and entrepreneurs.
When the criminal customs fraud structure in Guatemala known as La Linea fell, the National Commission Against Contraband (Conacon) ceased to be operational.
The Executive Directorate of Revenue in Honduras is putting out to tender the implementation in Tegucigalpa of a control and monitoring center.
Honduras Government Purchase DEI-BID-LPI-063-2015:
"Description of the Sub Systems:
-Infrastructure Support: Relates to conditioning of the site, wall cladding, false ceilings and floors, LED lighting, air conditioning, common telecommunications infrastructure, furniture equipment for use by technical staff, etc.)
The producers union has estimated the number of pigs per month which are smuggled illegally from Mexico at 2500, causing losses of $15 million a year.
The Association of Pork Producers of Guatemala (APOGUA) states that the annual pork sales total $323 million, but could be more if it were possible to minimize the illicit flow of pork from Mexico.
Elperiodico.com.gt reports that "...Despite performing surveillance on the border with Mexico to stop and report the crime, it is estimated that in one month about 2500 pigs are able to enter from Mexican territory. According to the general manager APOGUA, Carlos Zuastegui, so far in 2015 that 8400 pounds of pig meat have been seized."
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.