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.
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.
Producers and industrialists in the livestock sector have agreed to work together to reduce smuggling by optimizing controls on the movement of cattle.
The problem of cattle smuggling is an issue that has already been denounced on several occasions , and has now led to industry players coming together to make changes to processes and improve controls. The goal is to minimize smuggling so that industrialists have sufficient supply to give to slaughterhouse and producers get better yields.
It has been indicated that deductions and taxes incurred by coffee farmers is the reason for smuggling of the grain to neighboring countries.
According to an article on Laprensa.hn Emilio Medina, manager of the export company Beneficio de Café Montecristo, "... taxes and deductions applied to each hundredweight of coffee exported combined with low grain prices in the international market have led to increased smuggling of the aromatic to Guatemala and Nicaragua ... This traffic of coffee to neighboring countries has affected the volume of shipments and foreign exchange. "
The commissioning of the plant belonging to the Mexican SuKarne has once again brought to the fore the problem of smuggling of live cattle both to Costa Rica and to Honduras.
An article in Elnuevodiario.com.ni reports that "... Canicarne's executive director, Onel Perez, insisted that the problem of livestock [smuggling] not only affects meat processing plants, but will also have effects on employment in newly set up processing plants, the price of meat for consumers, and livestock taken as a whole. "
The value of illegal sales of about 32,000 hectoliters of pure alcohol in the country each year is estimated at $54 million.
Growth in the volume traded on the illicit market has been increasing, with the exception of the period between 2012 and 2013, when it went down by 3.7% due to "... greater government control on ethanol, specifically in control of pharmacy alcohol and counterfeit or adulterated alcohol. "
The reform aims to add to the Criminal Code offenses of smuggling and customs fraud, among the violations against economic order.
From a statement issued by the National Assembly of Panama:
The full National Assembly approved on its third reading Bill 176 which amends and adds articles to the Penal Code.
The rule is intended to add to the existing Criminal Code the offenses of smuggling and customs fraud within infringements against the economic order, adding a new Chapter.
"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".
Local producers denounce the practice of triangulation, smuggling, under-invoicing and reporting new footwear coming from China as used.
In 2012 footwear exports generated $35 million, though at the end of 2014 this figure recorded a reduction of $4.2 million. The opposite has occured with imports, which between 2012 and 2013 amounted to $143 million and in 2014 increased by $7 million, according to figures from the Bank of Guatemala (Banguat).
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.
Producers in Honduras have denounced the existence of an alleged trade triangulation in which Guatemalan companies are importing shrimp from Ecuador to then export them to Mexico.
This commercial triangulation, according to the National Aquaculture Association of Honduras (Andah), creates unfair competition and affects the performance of local industry, and could even be one reason behind the decline in product prices.
The livestock sector attributes the reduction in sales in the first nine months of the year, compared to the same period of 2013, to increased smuggling.
Some 39,800 cattle were exported up to the month of September, according to reports from the Central Bank of Nicaragua. This amount reflects a decline in sales compared to September 2013 when 56,000 heads were exported.
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