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 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.
The private sector has signalled an increase in seizures of drugs, food, smuggled cigarettes, and consumer products from illegal sources.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):
The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) has expressed concern over the increase in illegal trade including smuggling, counterfeiting and piracy.
"If the calculations made for Guatemala in 2013 and 2014 are taken as a reference for other Central American countries, the volume of illegal trade in the region, could be between 3.4% and 4% of GDP".
"If the calculations made for Guatemala in 2013 and 2014 are taken as a reference for other Central American countries, the volume of illegal trade in the region, could be between 3.4% and 4% of GDP".
A bill has been presented which incorporates the concept of customs fraud and smuggling into the Penal Code and establishes penalties from 5-12 years in prison.
The bill provides various prison terms ranging from 5 to 12 years. Porcell explained that these concepts will be incorporated into the Penal Code and that predicates to money laundering will also be considered as an offence.
Entrepreneurs are demanding an acceleration of discussions in the Assembly to approve a bill which introduces the concept of "fractional smuggling" and toughens penalties.
From a statement issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
The Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP) is calling on the members of the Commission on Security and Trafficking in the Legislative Assembly to approve project n° 19,407, entitled "An Act to Improve the Fight Against Smuggling".
The government is looking for alternatives to resolve the conflict between producers and traders, which has generated shortages and led to a rise in prices.
In recent weeks the shortage of meat in the country has caused an increase in prices in the market, despite being one of the products in a list whose prices are controlled. A pound of meat has risen to $2.75. This shortage is attributed to illegal smuggling of cattle to Guatemala.
The shortage of meat denounced by retailers will continue to occur until a definitive solution is found to the illegal trafficking on the border with Mexico.
Guatemala has an annual production of 68.4 tons of beef, and yet the country suffers from shortages, mainly due to the illegal smuggling into Mexico. Currently adjustments are made to the price of meat due to the shortage of meat in the domestic market.
The Chamber of Commerce and the General Department of Customs have signed an agreement for exchange of information and monitoring of imports in order to control the illegal transit of goods.
From a statement issued by the Chamber of Commerce of Costa Rica:
Monday October 27, 2014. The Chamber of Commerce of Costa Rica (CCCR) and the General Department of Customs (DGA) on Monday signed an Agreement for Cooperation Trade Transparency in order to combat all unfair practices in trade, such as smuggling, counterfeiting and other illegal practices.
Nicaraguan producers are complain that phytosanitary controls applied by the government of Costa Rica have increased the illegal entry of Nicaraguan beans, estimated at $4 million a year.
On average over 160 containers holding 480 pounds of beans each are smuggled to Costa Rica, amounting to approximately $26,000, as "... a result of phytosanitary measures restricting the entry of beans with impurities," say Nicaraguan businessmen.
The complaints made by industrialists revolve around informal trade, the fight against smuggling, competitiveness and innovation.
From a statement issued by the Chamber of Commerce of Costa Rica:
At a meeting between the President of the Republic, Luis Guillermo Solís, and representatives of the Chamber of Commerce of Costa Rica several concrete proposals were presented to the Government in four priority areas for the work of the organization, in order to start work together.
The Ministry of Finance intends to lower the minimum amount of the value of illegally imported goods which would incur criminal penalties for smuggling from $50 thousand to $10 thousand.
Deputy Minister of Revenue, Fernando Rodriguez, told Ameliarueda.com that the draft reform law, "... is already in the final stage of reform being prepared by the Commission against Illicit Trade and it is expected that the project will be ready next week to then be submitted to the Legislature. "
Entrepreneurs are warning that illegal payments are still being made for getting goods through because the intervention operation has not worked.
The business community believes that the operation for intervention in customs offices has not worked properly and users have to make illicit payments in order to get their goods through.
"... Because of the long lines caused by the slow procedures and inspection of goods, carriers must pay between $13 and $64 to avoid being punished," said Carolina Castellanos, executive director of the Guatemalan American Chamber of Commerce ( AmCham).
In a region where there should be no customs, borders continue to distort trade in goods.
Various policies, protectionist or open, in the region, continue to generate price distortions and encourage the pursuit of market equilibrium through smuggling.
This is what is happening now with sugar in Nicaragua, where l relatively low prices favour its illegal departure, in this case to Honduras.
Business sectors are demanding greater action against a crime which generates losses of $1,280 million annually for the treasury.
The results of seven months of work by the National Commission for the prevention of Customs Fraud and Smuggling (Conacon) have not met business expectations.
In the case of fuels, the Chamber of Industry of Guatemala (CIG) estimates that about 200,000 gallons come into the country daily from Mexico.