Liquor distribution companies are demanding that the government improve measures to control the illegal entry of spirits, particularly from Nicaragua.
The cost of a box of 24 units of Nicaraguan liquor ranges from $13.50 to $14, while in the Honduran formal market the same amount costs between $19 and $26.50. The obvious difference in prices and growing demand for the product due to the proximity of the holiday seasons are the main factors that contribute to an increase in alcohol smuggling in Honduras at this time of year.
As part of the controls to combat smuggling, between May and July 29 companies were suspended from the list of importers, which represents 60% of the total volume of pairs of shoes entering the country.
In order to detect and prevent irregularities in the import of footwear, the General Administration of Federal Tax Audit Tax Administration Service of Mexico carried out 31 audits "...
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. "
A retailers union has submitted to the government a number of measures aimed at combating the smuggling of goods and informality in the commercial sector.
The Union of Retail Sellers, recently created by the Enterprise Chamber of Commerce and Services -Cecoms- has submitted proposals to combat the illegal entry of goods into Guatemala.
Customs fraud and smuggling goods have affected retail companies for years , for which reason, the CACIF has created the Union of Retailers, comprising of supermarkets, appliance stores, importers of beverages and liquor, sellers of tobacco, electronic appliances and computers.
The union has denounced the absence of a long-term policy to organise production and help the fight against the pests and smuggling which are hurting the sector.
The recent plague of the salivosa insect, which caused an emergency phytosanitary status to be declared, the increased smuggling of beef on the border with Mexico and the lack of actual figures related to the sector, are the main arguments put forward by the livestock sector when demanding that the government implement a policy of long-term development for the sector.
Industrialists are warning that the 2013-2014 harvest losses could exceed current projections of 600 million hundredweight.
The reduction in purchase volume in the north of the country has caused alarm in the industry which believes that the product is coming in through the border with Guatemala and being sold mainly in Cortés and Santa Barbara.
Representatives from the Association of Sugar Producers of Honduras (Apah) reported in an article on Laprensa.hn that "... 'There is a direct relationship between smuggling and sales by the central market of Honduran sugar. During the last months we saw a significant decrease in the area, which alerted us that something irregular was going on, this is a mass consumption product and one of the most indispensable in the basket, so there should not be a decrease in demand. '"
One out of every five bottles of liquor consumed in the country comes from the illegal market, which moves $64 million and is growing by 30% every year.
The easy availability of raw materials and the lack of regulation on the end use of these products, leads to one out of every five bottles of liquor consumed in the country being illegal, absorbing 23.5% of the total spirits market in terms of volume and total sales.
Exporters warn that the proposal to retain $5 for every three or four pounds of exportable quintal will reduce competitiveness and encourage smuggling.
The bill introduced in Congress days ago cites the retention of $5 for every three or four pounds of exportable quintal in order to constitute a fund to support coffee growers affected by rust. Exporters believe that this measure will only encourage more smuggling and reduce the product's competitiveness internationally.
The authorities have put an end to the control process implemented over the last six months and whose results have left exporters and the logistics sector in doubt.
The Superintendency of Tax Administration (SAT) ended the intervention activity without making known the figures for collections or the concrete results of the intervention operation.
According to lahora.com.gt, "the Party of National Unity of Hope (UNE) showed data on the downward trend in the collection of customs, which they claim shows that the operative intervention did not work."
Honduran businessmen estimate that a million quintals of grain have been illegally trafficked into Guatemala in recent months.
The reduction of the grain harvest in Guatemala caused by the rust plague intensified the problem, exacerbating a situation which is already well known among producers and exporters of Honduran coffee.
"It has been estimated that one million quintals of coffee may have left the country illegally," warned the president of the Coffee Exporters Association of Honduras (Ahdecafeh), Osman Acosta.
Up to 15% of the market in products such as cigarettes, liquor, drugs and footwear, is supplied with goods whose origins are illegal.
Added to the list of products that have traditionally been traded illegally, such as cigarettes and alcoholic beverages, there is an increasing tendency to smuggle medicines, shoes, clothing, and beauty and personal care products, among other things.
The business climate, smuggling and taxes have forced the tobacco company to close its operation in the country.
In a letter sent on March 5, to their suppliers, British American Tobacco announced the closure of its operations in El Salvador. The increase in smuggling and lack of competitiveness in terms of cost are some of the reasons for its departure.
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