The president of Honduras announced, "We have discovered a smuggling ring, but do not worry, because we will put it in its place."
In the latest chapter of the story in which 14,300 tons of rice were going to come into Honduras without having paid taxes, the president of Honduras, Porfirio Lobo, said the importer of the shipment will pay a $2.5 million tax bill, corresponding to 45%, reports LaPrensa.hn.
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.
In the last three months about 250 thousand gallons of gasoline a day have entered Guatemala from Mexico.
The figures from the Guatemalan Association of Fuel Dispensers, are in the opinion of its director Jaime Matus, disturbing, as they represent an increase of 25% compared to the first months of the year.
This activity represents a loss of $64 million annually in taxes for the exchequer.
The price paid for the grain in Costa Rica is more attractive to Panamanian producers than what they receive in the local market.
In Costa Rica, the producer receives $12 for a can of ripe coffee beans (20 to 25 pounds), whereas in Panama they receive $9.
Since the start of the coffee harvest in the province of Chiriqui on 25 August, 300 quintals of coffee have been sent to Costa Rica according to statistics from the Ministry of Agricultural Development (MIDA).
Costa Rica egg producers are also complaining of loss of yield due to an increased supply, apparently from Panama.
Representatives of the National Poultry Chamber (Canavia) indicate that this situation has led to a drop in producer’s prices. The current value is $1.38 per kilo, well below the $2.06 that would be the price if all costs were covered.
Anthony Miranda, Santa Marta Poultry manager, added that at times farms have had to price the product at $ 0.79.
Smuggling and counterfeiting of drugs like Viagra and antibiotics is growing in Panama.
Panama’s privileged geographical location brings great benefits, but also risks.
Such is the case of drug smuggling, as the country has become a transit and distribution centre for these illegal products, which are sold on the black market at prices lower than in pharmacies and other authorized outlets.
The poultry sector in Nicaragua has denounced the importation of products from Honduras, which are causing losses for producers.
The president of the Nicaraguan Association of Small and Medium Poultry Producers , (APEMEP), Alfonso Valerio Muñiz told the press that
this week's seizing of 10,000 boxes of eggs is not the first, as in May the National Police seized 15,000 boxes.
Smuggling costs the Guatemalan economy close to $1,280 million a year.
The Executive Director of the Chamber of Industry of Guatemala (CIG), said that besides the impact on the economy, it also has consequences for the health of the population.
The amount of fuel smuggled is nearly 250 thousand gallons a day, said Enrique Melendez, president of the Fuel Vending Association.
The Livestock Directorate is increasing border controls to prevent the smuggling of contaminated cheese.
21 days ago, authorities installed tighter controls in several customs offices and in the Amatillo border, near Honduras.
"According to data from dairy producers association Proleche, the most smuggled products are custard, hard cheese and adulterated goods such as fluid milk, made from powder milk, a forbidden practice in El Salvador", reported La Prensa Grafica.
In 2009, authorities confiscated 1.7 million pounds of smuggled dairy products, worth $4.4 million.
Orlando Carranza is the President of Proleche, the Dairy Producers Association of El Salvador. He stated that smuggling is the industry's largest problem, and that the situation has worsened in the past year.
Elsalvador.com reported that "the situation affects national producers because illegal products, originated from Nicaragua and Hoduras, drag down prices, as there is excess supply".
The Monetary Authority of Guatemala decided, against the vote of banking representatives and private enterprise sectors, to increase debt through issuance by 10.9%.
The main argument by the opposition is that the solution to the problems in the treasury is to reduce state spending, not increase debt. They insist that the money that is going to cover state expenditures in this manner should be invested to facilitate credit for the productive sector, which has suffered a sharp decline.
An extra $300 to $400 million would enter the State treasury if tax evasion, as well as contraband trade, were eliminated, according to a detailed analysis prepared by Funde.
According to the analysis from the National Development Foundation (Funde), experts recommend a series of measures that go from fighting contraband trade to increasing existing tax rates such as VAT, and approving new taxes to improve the financial state of the country.
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